There are many developers that are building key ready and off plan properties across Spain.
Key ready means the property is built and ready to move in.
Buying a key ready property takes the stress and strain away from the build its self, and means that you do not have to deal with builders, architects, project managers and licences alike.
There are pros and cons of buying off plan and key ready properties.
· The initial outlay is low – you will only have to pay a percentage of the final build cost of the property upfront. The remaining amount can be paid in increments, or on completion subject to the contract signed by you and the developer.
· Design Freedom – You get the chance to put your design ideas into the final build
· Off plan properties are generally cheaper – They are normally purchased with the expectation that the property price will increase in the future
· The developer can go back on the deal and sell the property at its future price when almost completed, and only refund you the deposit you have paid
· The projected price of the property may fall during the build
· The developer may become bankrupt during the course of the build, and you may lose the initial deposit payment
· Lawyer - Always instruct a lawyer to work on your behalf before entering into any contract
· Insure your self - Speak to your bank and ask about the Avales Bancarios (bank guarantees). These are guarantees that you can take out with your bank, to protect you if the developer goes bankrupt before the completion of your property.
· Contact an insurance company - we recommend www.insuranceinspain.com and see what insurance they can offer you to protect against any loss of money.
Updated 24th Feb 2023