Buying off-plan: get the best price and customise your home (without losing sight of the risks)

Buying a home is probably one of the most important financial decisions of our lives. And when it comes to buying a new home, one of the most common options is to buy off-plan.

But what exactly does this type of acquisition entail, what advantages does it offer and what risks should be taken into account before taking the plunge? In this article, the Quadratia team explains it to you so that you can make the best decision.

What is off-plan purchasing?

Buying a property off plan means buying a property that is not yet built or is in the early stages of construction. Instead of visiting a finished house, you have access to plans, infographics, quality reports and, in some cases, show flats.

The contract is formalised before the house physically exists, and the payment is usually split: an initial part as a reserve, periodic payments during construction and, finally, the remaining amount when the title deed is signed and the mortgage obtained.

Off-plan purchases are very common in new-build developments and usually offer attractive and exclusive economic conditions linked to the trust placed in the buyer.

Isabel Soriano, Sales and Marketing Office Coordinator at Quadratia

5 advantages of buying a newly-built home off plan

Although it can be a little nerve-wracking to buy something that has not yet been built, there are many benefits to buying off-plan:

1. More competitive prices

The starting price of off-plan homes is usually more affordable than that of a completed home. In addition, as work progresses, prices tend to rise, which can translate into a revaluation from the moment you sign.

2. Increased choice

Buying in the initial stages allows you to choose from more options: orientation, height, layout, number of rooms… You can also choose finishes if the developer allows it (floors, tiling, colour of kitchen furniture, etc.) and extend equipment at a certain cost.

3. More flexible financing

As delivery is scheduled in the medium to long term, you have more time to save and organise your financing. In addition, pre-delivery payments are usually well distributed.

4. Brand new and efficient housing

Buying off-plan guarantees that you will be buying a new home with new materials and, in addition, with an updated and more sustainable energy rating, which translates into long-term savings.

5. Buy with guarantees

In Spain, the Ley de Ordenación de la Edificación (LOE) offers in the case of new construction certain guarantees for a certain period of time, which means that construction defects are usually covered.

Potential risks of buying off-plan

Despite its advantages, buying off-plan also entails some risks that should be known and assessed. At Quadratia we work to ensure that these factors do not become concerns:

• Delivery delays: although unforeseen administrative, meteorological or construction-related events may arise, at Quadratia we plan each phase with rigour and foresight. In addition, we keep our clients informed throughout the process so that they always know where their home stands.
• Changes to the initial project: we know how important it is to trust what you see. That is why our designs, renderings and plans are accompanied by a clear and detailed specifications, and a firm commitment to transparency. If there are any modifications, we communicate them in advance and always seek to improve the project.
• Developer’s risk: with more than 50 years of experience in the development of homes on the Mediterranean Coast, Quadratia offers all the legal and financial guarantees required by law. Our clients’ down payments are protected, and our track record guarantees the seriousness with which we manage each development.

Buying off-plan with peace of mind: what to look out for (and how we guarantee it)

Before signing any document, be sure to check that:

• Developer with all the guarantees: before signing, make sure that the developer is duly registered and has a building permit in process or granted by the Town Hall. In our case, and as we have already mentioned, all our activity is backed by more than five decades of experience and strict compliance with town planning and administrative regulations.
• Your payments, always insured: we comply with Law 20/2015, which means that all amounts paid on account are guaranteed by bank guarantee or surety insurance. At the time of signing the purchase contract, you will receive your individual guarantee for your peace of mind.
• Transparent and signed specifications: the specifications form part of the contract and are signed by both parties. This gives you the certainty that what you see in the renderings is what you will receive.
• Final price is fixed from the start: we detail the final price from the beginning, with taxes and no surprises. Our communication policy is clear and direct.
• Work monitoring for your peace of mind: at Quadratia we encourage our clients to see the progress of the works on our website.

Useful tips if you decide to buy off-plan

If you are considering this option, Quadratia gives you the following advice so that everything goes as expected:

• Consider your needs carefully: do you prefer to live in a small inland village, in a big city or on the Costa del Sol or the Costa Cálida (Murcia)? Consider your needs and those of your family and choose a location that you like, but that also provides you with the amenities you are looking for (public transport, shops, leisure facilities, schools, etc.).
• Ask about the details of the payment plan: you need to understand how payments will be made throughout the construction process.
• Ask about possible customisations: some developers offer upgrade ‘packages’ or allow minor modifications if requested in time.
• Calculate your total costs: include taxes, notary, registry, mortgage procedures, furniture and any possible renovations or touch-ups.
• Think long term and choose the right location : inland, city or coast? At Quadratia we offer developments in strategic locations in the Spanish Mediterranean: Costa Blanca, Costa del Sol and Costa Cálida (Murcia). Look for an environment that fits your lifestyle and daily needs.
• Trust only developers with a track record: research previous projects and assess their track record. In our case, historical developments such as those in Bonalba Golf or Playa de San Juan, as well as more recent projects such as Allonbay Village speak for themselves.

When do you have to take out a mortgage when buying off-plan?

Faced with a process that takes so long, it is normal to ask oneself this question. And the answer is clear: the best time to ask for a mortgage when buying off-plan is two or three months before handing over the keys.

Doing so earlier would not make much sense, as your financial situation may change over the years of construction.

Isabel Soriano, Sales and Marketing Office Coordinator at Quadratia