Buying Property Off Plan

The property boom continues to gather pace and everyone should take a piece of the action. Large investors are reserving whole blocks of apartments as soon as they are released to re-sell gradually, during the time it takes to construct them, usually about two years.

However, you do not need to be rich to invest in these properties or, buy your own holiday home in Spain, Bulgaria, The Bahamas or Cyprus. The secret is to buy from the drawing board. You need from as little as £16,000 which is paid upfront or in instalments over the construction period. Payments can be protected by a bank guarantee. Just imagine at the end of the two-year period you will own a beautiful brand new apartment in a private development complete with tropical gardens and pools. This will obviously be worth more than when it was on the drawing board and could have increased in value by as much as 50% of the original price.

You have the choice to sell and take your profit, or keep the apartment to enjoy for many years to come.

There will be a pre-arranged mortgage, but if you keep the apartment, the monthly repayments can normally be covered from letting income.

By letting their apartments, many small investors have made considerable profits in recent years.

There are many developments to choose from, and new ones are starting each month. Quite often the whole development is sold out long before a brick is laid. When this happens prices usually start to increase and continue to increase as the construction proceeds towards completion.

There are many examples where apartments purchased from the drawing board are re-sold at a profit, several times, during the construction period. When this happens the original investor may avoid most of the purchase costs and taxes. This is because the agreement to buy from the promoter is simply a private contract drawn up by solicitors and states the price, stage payments etc. Only when the development is finished to the satisfaction of the purchaser is the key handed over and the deeds then transfer into the name of the purchaser. At this point VAT and registry and notary costs become payable. The only costs incurred by an investor who sells prior to completion will be his own legal costs.

EXAMPLE:   (£/€ 1.40)

If you sell on completion, it would not be unreasonable to expect the original investment of £26,040 to increase by 50% - 100%.

The information and figures shown are purely an example and as with anything no guarantees can be given.