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Buying Spanish Property Off-Plan
One of the popular investment options is to buy 'off-plan'. This term refers to a situation where a developer decides to build a number of appartments or villas on a plot and needs to sell some or all of them before they have been built, in order to fund the development. Once a certain number have been sold, the bank funds the money and the building begins. The advantage here is that you can secure the property by paying a small deposit and then a percentage of the purchase price (typically around 30%). Properties that are sold off-plan can be very competitively priced as the developer will want to maximise the amount of cash he has to fund the development. In other words, the more cash the developer has, the less he has to borrow and if he borrows less then he pays less interest to the bank.
Why Buy Off-Plan?
There are a number of benefits to buying property off-plan. We have already mentioned that the property can be competitively priced and therefore a good investment, but there are other advantages:
- Property value increases during the build period
- You get to choose the best location on the development
- You can often specify the furnishings and decor of the property
- Only 30% of purchase price paid during construction
- Guaranteed non-status mortgage on completion
- Bank guarantee on all our developments for investor protection
- Potential 50% capital gains plus 10% rental yield
The Growth Potential In The Costa del Sol
- A theme park is being commissioned into development at Manilva (Scheduled to open 2008 - Rumoured to be Disney)
- In anticipation of a further 7 million tourists coming to the region airport expansion is inevitable
- Estepona has been developed to take in Cruise liners
- Sotogrande is the centre of the Polo jet set (Chrysler Gold Cup)
- Puerto Banus now rivals St.Tropez as the millionaire's playground
- 50 top golf courses within 30 minutes drive, including Valderrama (home of Ryder Cup)
- New proposed airport 30 minutes from Sotogrande (outline planning)
