 NEW - Advantages
- A deposit of 3,000 euros (approximately £2000) fixes the price that will be paid for the property - no matter how far in advance the completion date is.
- Covered by a statutory 10-year builder's guarantee.
- Being new, no maintenance, upgrading, or repair work is required.
- Payment by instalments allows time to sell UK property or otherwise raise capital. Though it is always advisable to have your finances in order before purchasing.
- Modifications to suit personal tastes and requirements can be incorporated.
- Many new properties have low-maintenance finishes.
- Properties bought "off plans" usually increase in price several times before completion, so they are an excellent investment. It is also usual for the price to increase once the show house is complete and again when the development is completed.
NEW - Disadvantages
- Waiting time - the property is not available now. Dependant on status of property when purchased, this may be several months though opportunities occasionally occur for purchase at a later stage or even, occasionally, after completion.
- Unless the property is part of the final phase some building work may continue in the vicinity.
- There could be delays or problems with the building (this is alleviated by using a reputable agent who knows the area, will only recommend reputable builders and are not influenced by the offer of high commissions)
RESALE - Advantages
- Usually available immediately or within a matter of weeks.
- Any faults may reasonably be expected to have been rectified under the original guarantee.
- You can see what you are getting, it's position, neighbours etc.
- Roads and amenities will be in place.
RESALE - Disadvantages
- Often up to 10% more when compared to an equivalent new property
- Some wear and tear is to be expected.
- If more than 10 years old builder's guarantee will no longer apply.
- Care must be exercised to ensure that there are no charges or debts against the property, especially if buying directly from the owner. You MUST have legal representation when purchasing a property - it's the law - it is their job to look into outstanding debts and inheritance issues. Direct2Spain have recommended English speaking legal representatives to help you.
- Short timescale. A deposit of at least 10% must usually be paid immediately (compared with a flat 3000 euros on new properties). The total balance to be paid on handover of the property, which can take as little as 4 to 6 weeks and cannot be delayed. The completion date is set in stone (unlike in the UK) and we cannot stress enough that it MUST be adhered to. It is therefore ESSENTIAL that your finances are in order before coming to Spain to purchase resale.
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