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Off-Plan Investment
Off-plan investment literally means that you are purchasing a property from the plans. Developers in Spain usually offer their properties at the cheapest price on the day the project is released - before a show-home is erected, before a brick is laid, sometimes before a brochure is produced!
During the course of construction, which normally takes two years, property developers will generally increase prices at various stages, sometimes by as much as 5% or 10% each time. Once a Spanish development is completed, you can expect to pay a very different price to those buyers who invested on Day 1. The advantage for buyers investing on completion is that they have a ready-made property that they can then enjoy or rent immediately.....however, they also have to pay all of the money at that stage.
Off-plan investors in Spain reserve their properties at the cheapest prices, but also have to start paying for the property, normally in staged payments during construction. A typical payment schedule for an off-plan property in Spain would be 30% of the purchase price paid at contract (30 days after reserving the property), followed by the balance of 70% at completion, though some developers in Spain require a smaller deposit at contract.
