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Buying
Off Plan Property
Buying 'off plan' property in Spain can benefit you in three ways.
First, it is entirely possible to achieve returns in excess of 100% of
your initial investment within 24 months. Second, your profit can
legally be free of capital gains tax. Third, holding on to the
property for a longer term means you can benefit from the fastest
growing property market in Europe (and have a great holiday
destination while your investment is appreciating).
| Spanish Investment Property |
The developer of a building
project is always keen to sell as many properties as early as possible
to improve cash flow, minimize development loans from banks and give
the project some forward momentum. In order to sell before
construction has started, the developer sells 'off plan' at extremely
competitive prices because investors only have plans, computer
simulations and a plot to view at this stage.
Apart from the fact that the developer will be selling at less than
current market value to attract investors, the real key when buying
'off plan' is that you only have to pay 35% of the purchase price as a
deposit. Thereafter, no further payments are required until the
project is completed, at which point it can be financed with a 65%
mortgage or sold.
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