The Spanish real estate crisis transformed the local real estate market. One of the biggest changes has been the disappearance of the long lists of turn-key apartments that used to be ready for expats to move straight into: now almost all new builds are sold off-plan. In the immediate wake of the market crash, buyers rejected this way of buying their properties due to some developers' past fraudulent behaviour.
The sector, however, has come on leaps and bounds since then, offering more guarantees and legal security, which has restored trust in buying a property off-plan, particularly among foreigners. One of the hubs for buying new builds is Calpe where an excellent selection - in terms of quantity, quality and exclusivity - is available. Keep reading to discover the advantages of buying a property off-plan in Calpe.
The advantages of buying a property off-plan in Calpe
Not only is the sale of new apartments in Calpe on the up, the transaction comes with all sorts of benefits. According to an Idealista article, buying a property off-plan is a decision that will benefit both your quality of life and your pocket. Calpe is currently at a critical point in terms of off-plan properties so if you want to buy a new holiday or retirement home, the time is now.
Save money: This is the headline advantage. Generally speaking, buying a property off-plan can save you money as you set the price at the time of purchase, thereby avoiding the rise in value that normally happens during construction, which takes about two years. Properties that are under construction or in the design phase tend to sell for a lower price than completed properties.
Advantageous payment plan and finance options: Unlike conventional sales, which require the buyer to have 35% of the property price up-front (20% as a deposit on the mortgage and an additional 10-15% for operational costs), buying off-plan offers more flexibility. The buyer normally has to pay a percentage of the price when they sign the contract and the rest in quotas during construction. This gives buyers time to save and get a better mortgage, potentially even subrogating the developer’s mortgage.
Personalisation: A big advantage of buying off-plan is that you can choose the fixtures and fittings. Most developers give buyers the opportunity to tailor the property to their needs and tastes, offering the choice of an open-plan or separate kitchen, changes to materials or the layout, and the addition of equipment like home automation. By supervising the build, you can make changes during the process, if needed.
The luxury of choice: Buying off-plan means you can choose the property based on your needs and preferences, deciding your preferred orientation, height and views, or selecting a penthouse or a ground floor with a garden. It’s important to take decisions quickly as the most desirable properties tend to be sold first. This is also true with regards to storage units and parking places in the garage.
The finest materials and modern developments: Buying off-plan means getting your hands on a property built with the finest materials and energy-efficient systems, resulting in savings on your monthly bills. New builds also tend to be located in modern developments, like this one in Calpe, offering gorgeous communal areas complete with pools, padel courts and social rooms.
Investment potential: Buying off-plan comes with considerable potential for appreciation in value. By purchasing the property before it is built, the agreed price tends to be lower than the market price at the time of completion. This means that once the build is complete, the value of the property may have increased, providing an immediate return on investment. Negotiating a fixed price protects the buyer from potential increases in the real estate market during the construction period.
Steps for buying a property off-plan in Calpe
The process of successfully buying a property off-plan is a meticulous one as it’s an important transaction that requires special attention. Read on to discover how to buy a property off-plan in Calpe.
1. Research the developer: Before entering into negotiations to purchase the property, you need to know who you’re dealing with. Check out the property register to make sure the developer owns the land destined for construction or make an appointment at the local council: they will be able to tell you if the construction project is authorised and whether all licences are in place. Our advice? Choose a developer with extensive experience with a reputation for security and guarantees.
2. Read the contract thoroughly before signing: Avoid abusive clauses that could be harmful to you. Although the real estate sector has become much more professional in Calpe over the years, we recommend paying careful attention and dedicating time to understanding the legalese in the contracts.
3. Keep an eye on your payments: Once you’ve signed the contract, you will have to make a payment to block the property with the developer. Ask for a supporting document that guarantees the payment is only to be used for the construction project in Calpe.
4. Guarantee the final price with the new build developers in Calpe before signing: Before signing the contract, make sure you are provided the total price of the property, including 10% VAT. Never sign documents that do not clearly state the exact price. You must also make sure the payment plan is laid out (in quotas or in one payment).
5. Demand a precise date be named for when you will get the keys: We recommend asking for a specific date to be given and to sign a document that protects you if the timelines are not upheld. In this case, you can demand economic compensation for the damages this delay may cause.
6. Ask for a personal guarantee from the developer: This guarantee should cover the whole development, protecting you if the developer cannot afford the building costs and declares bankruptcy, leaving buyers without a property and without their money. With a guarantee, if this were to happen, you can get the money you invested back or compensation.
7. Ask for a copy of the property plans: Once the construction is complete, the plan enables you to check and make sure the property is as you purchased it. If this is not the case, the document is proof of fraud and can be used in a court case.
8. Don’t sign immediately: It is your right as a buyer to get a draft of any paperwork three days ahead of signing. Request this so you can check that everything is correct. Revise the clauses regarding finishings and the structure of the property as well as the communal areas.
Invest in an off-plan property in Calpe
Are you thinking about buying a new build apartment in Calpe or by the beach for your holidays or retirement? We recommend entrusting a real estate agent with local experience and checking energy certifications to ensure you make a good and efficient investment. Your agent will also keep you up-to-date with any news about the evolution of the construction and Calpe’s urban development plans.
Here at Grupo Esmeralda, we’re on hand to help you with anything you may need.
