Off-Plan

Southern Spain is still and will probably always be the first choice for most Northern Europeans to invest in second homes, for many reasons. Too many to list here, but the main reasons are; regular cheap flights, only 2-3 hour flight time, best climate in europe, unrivaled infrastructure and services, majority of english speaking locals and tax loop holes (SEE SOUTHERN SPAIN IN MENU).

With so many people buying for investment nowadays it is very important to chose your property carefully. The Costa del sol already meets most requirements, as mentioned above, however, we also recommend you buy close to golf courses, marinas, shops/restaurants and travel facilities.

The greatest gains are usually made buy investing in new towns or those about to acquire a new attraction/facility i.e. (new marina, golf course, airport, or theme park etc.) however, it is preferable that new towns are still close to an established infrastructure.

Developing countries hoping to join the EU, like Bulgaria and Turkey etc. also offer a growing property market, however, they often fail to deliver an established infrastructure, european build quality and secure property title. Expectations are that these countries will take a decade before offering anything like the services available in Spain, making lifestyle, resale and rental much harder.

An added benefit of buying in Southern Spain is that most of our off-plan portfolio come with "Bank Guarantees". This protects your payments made prior to completion, giving investors an added security unavailable throughout most of the world.

Learn from other peoples mistakes; Many investors previously paid deposits purely to sell-on the contract before completion, however, as developers often only allow property access on completion, it can be hard to sell to end users, who usually want to see their home before buying. Some investors did not calculate on actually completing on their purchase and found themselves in the difficult position of not having the funds to do so, this is called a "distressed sale". A compromised investor in this situation often resorts to selling-on the contract for little or no profit to other investors. However when the second investor carry's out a mortgage valuation, properties usually value 10-30% higher than their bargain purchase price, showing that the off-plan investment did work, but unfortunately the first investor was not in the position to benefit from it.

With our professional and local knowledge, we can help investors carefully select an area and development that should show good capital growth. We also have a panel of UK and Spanish financial advisers and top Marbella law firms to handle your purchase.

For off-plan investment we recommend buying 2 years prior to property completion, in order to gain maximum developer discount and growth potential, however, preferably after building license has been granted. Normally around 30% deposit is needed on exchange with no further payments until completion in 2 years, when you can either take over the developers mortgage for the remaining amount, or take out a new mortgage up to 100% of the purchase price (subject to status and valuation), possibly releasing your original deposit for further purchases.