Always remember that the most important criteria is "location, location, location"

Buying off-plan is a when a person commits to buying a property before building work has even started, usually just from a set of drawings. Even though all the building permissions and licences are in place, actual start of construction may be weeks even months away. To help sell the properties at this early stage the prices are normally extremely competitive. So without there being any foundation in place or a brick laid you are committed to buying and spending thousands of pounds. Sounds terrifying but it needn’t be.

Buying off-plan is becoming standard practice when buying property overseas. Quite often, the only way to get exactly what you want and more importantly, where you want it is by buying off-plan. There are other advantages if you get in early enough you may be able to secure a property at a significant discount. Then as construction begins and the development begins to take shape or a show house is opened, the prices increase substantially as other prospective purchasers with less imagination than you can see what the homes will look like.

Of course, it’s not just you who benefits from buying off-plan.  It is also good business for the developer, at the time of pre-construction, he is eager to sell as many properties as possible to minimise his risks and keep him in a strong position with his investors.

"Mortgages are usually available from the developer, but you might find it worthwhile to shop around"

In addition, his cash flow is improved tremendously, due mainly to the buyer’s deposits that have been paid when signing the contracts. Most developers will keep this stream of money flowing by organising staged payments during the course of the building program.

You will be asked to pay a deposit of 20% -30% of the full purchase price, this secures your property, and the remaining balance is paid when the property is completed. Most contracts take at least 18 months to complete, which gives you plenty of time to organise your money.

When buying a property abroad one of the main considerations is that you minimise the risks. How do you do that? Well firstly, get yourself an established agent, one with a good track record, someone who will hold your hand and guide you safely through the maze of buying property in a foreign country.

The best way of finding a good agent is by recommendation, another way is by using the internet. Although you may be overwhelmed by the number of real estate agents that appear, visit different sites and remember, the site is usually a reflection of the owner, so if you are not impressed by the site, don’t bother to go any further. Always remember if a deal seems too good to be true – it usually is, so proceed with caution.

OFF-PLAN PROPERT CHECKLIST
The following checklist may help prevent you buying into something that you will later regret. Firstly, check out the builder. Here in Spain, builders have to have an official licence to operate. Find out how long the business has been established, try to visit previous projects and ask residents what the after sales service was like. Next check to see that he has all the planning permissions and licences in place to build the development in that location. Try to find out what are the chances of other developments suddenly shooting up all around you.

Ask the developers about the other buyers. What nationality are they? What age group? Are they investors or second-home buyers? remember these people are going to be your neighbours.

A development with a good ratio of residents to holiday homes means the property also has local appeal. This helps when the time comes to sell.

Before parting with any of your hard-earned cash, get yourself a lawyer. Whatever else you do on your own, don’t try to skimp on impartial legal advice. We recommend that you do not use either the developers own lawyer or a lawyer who has been referred to you by the developers or estate agents sales team. There is an obvious conflict of interest.

One of the first jobs your lawyer will do is to check that the builder has bank guarantees and insurance in place. All developers by law must offer a bank guarantee, this is

Always remember the most important criteria is "location, location, location". Property miles inland with no facilities nearby, poor roads and transport will be hard to sell. On

the other hand, if you are within 10/15 minutes of a good beach, on or near a golf course, with the use of a swimming pool, shops and restaurants nearby and good parking, then you are much more likely to be onto a winner.

When we bought our first off-plan property here in Spain, we committed every sin that was possible. we didn’t use a solicitor, we paid for extras that we didn’t need. Fortunately, we eventually completed the purchase. However, it was a very steep learning curve and we never repeated any of the mistakes on subsequent purchases. So,  do make sure you proceed with caution.

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