ARTICLE #2 - 15 JUNE, 2017
"OFF-PLAN PROPERTIES"
Off plan properties are considered the “crown jewel” of the real estate market on the Costa del Sol. In recent times, interest in off plan properties on Costa del Sol has increased, and not without its reasons. Since May 2015 the number of new developments being built in the south of Spain has risen by 5%. This upward trend seems to be a sign that investors now have a strong confidence in the Spanish property market and a better understanding of the industry as a whole.
There are myriad of reasons why it is the right time to invest in an off-plan development like Marbella Club Hills.
Investing in an off-plan property allows investors to gain short and long term profits, depending on the investment perspective. Those who buy a property at an early phase of planning and construction, can secure a short term profit by reselling their property before the development is completed. On the other hand, the possibility of achieving long term profits seems to attract investors with a longer time horizon, who often buy a property to add to their portfolio until the price appreciates enough to allow them to reach the desired return on investment.
We outlined 5 factors that help increase the value of a development during and after construction:
1. Discounts For Early Birds
Buying developments off-plan in the pre-construction or early construction phase, usually presents an opportunity to secure units at a preferential discount. On a first come first served basis, those savvy investors are able to pay less than what the market dictates. However, they need to be in a position to act quickly and possibly even buy more than one unit to secure the available discount.
4. More Units Are Sold
As more units are sold the prices tend to increase. Each group of sales bring the price of the next group higher. The next person buying a property needs to be prepared to pay a higher price overtime.
2. Construction Commencement
Off-plan properties are priced lower because of the fact that they don’t yet exist. Therefore, the most crucial moment in the development of an off-plan project begins when the structure starts to take shape.
5. Construction Completion
Once the development is built, the properties are usually sold fairly quickly. Any prospective client, who wants to buy at this stage, should be prepared to pay significantly more for the property. Purchasing the finished product allows buyers to move into their new houses right away, or rent it out immediately, which in turn increases the value of the property.
3. Best Units Go First
What normally happens is that when a development is started a certain pattern emerges, whereby, penthouses, corner units and ground floor apartments with private gardens are the first ones to sell. What happens after those units are sold? The prices begin to increase.
There are many aspects that require consideration when investing in an off-plan property but as daunting as this may all seem, the process can be hassle free when you purchase your property in a reputable development such as Marbella Club Hills. Whether you are looking to buy a family home or simply want to add to your property portfolio to secure your future financial well-being, off-plan properties are the perfect choice.
