Many people prefer new over existing or second-hand, and this trend also applies to houses. Therefore, it is not so strange that there is always a high demand for new-build houses, while the supply is limited.
Buying a house off-plan or from a blueprint is becoming increasingly popular. But what exactly does it entail? What are the advantages and disadvantages? And why should you consider buying a new build project? This article provides a comprehensive guide to purchasing a house off-plan or from a blueprint.
This means that you buy a house before its construction is completed. This form of real estate purchase has several possible advantages, such as a lower purchase price, input in layout and finish, and using the current and modern construction materials and techniques. However, this process also carries risks, such as construction delays, price changes, construction conflicts, and in some cases even project cancellations. Therefore, it is essential to thoroughly understand the implications and details of these real estate transactions before you agree to them.
Here are some reasons why you might consider buying a project house instead of an already completed new build house or a second-hand house:
Customization: By buying off-plan or from a blueprint, you can customize the design and finish of your house to your preferences.
Lower initial price: Houses that still need to be built are usually sold at a lower price than already completed houses.
Construction warranty: New build houses have warranties on certain defects according to the Building Act (LOE).
A brand new house: By buying from a blueprint, you get a house that meets the latest standards in technology, energy efficiency, and safety.
Extra amenities: New build projects often include shared spaces, such as a swimming pool, garden, gym, etc.
Progressive payment: Payments can be made in installments.
Just like any real estate transaction, there are risks associated with buying a house from a blueprint:
Here are some important considerations before you buy a house off-plan:
Before you buy an off-plan house, make sure you have clarified the following questions:
It is recommended to apply for a mortgage two to three months before the handover of the keys. Ask for advice from your (Spanish) bank or mortgage provider for this.
Usually, payments are made in installments, with a down payment at the signing of the contract and the rest upon delivery, but there are also other forms possible that legally protect you in a different way. Discuss this topic with your lawyer / legal counsel to arrive at the solution that suits you.
With the above information, you have a handle to make a well-considered decision when buying a house off-plan, while minimizing the risks.