If you’re considering purchasing a new home or investment property on the beautiful island of Ibiza, opting for an off plan development may be the best decision you’ve ever made. Purchasing a brand new property, or even a pre-owned home, may be expensive. However, buying an off plan development in Spain boasts a wide range of benefits for you and your family. Here, we explore the advantages of buying an off plan development in Ibiza.

1. The cheaper cost

Buying an off plan development can be an effective way of saving money. Buying an off plan development involves choosing a plot of land and design of villa or purchasing an apartment within a block and then paying for the building of the property in instalments at each stage of the building process. Many property developers offer attractive deals on finance which is something you can’t take advantage of when buying a pre-owned property. Mortgage rates in Spain are also highly attractive in comparison to other European countries, making Ibiza a great location for owning a property.

2. Paying in installments

Buying a property in instalments means you don’t require upfront cash or the means of finding upfront finance. This gives you more time to fund your new purchase.

3. Early discounts

Buying a new development early means you’re likely to benefit from a discounted price. As demand for a plot increases, so does the asking price, especially if you find a highly sought after plot in Ibiza.

4. A fixed price

Buying a brand new property off plan only requires you to pay a fixed fee. Purchasing a pre-owned property may require restoration or renovation costs on top of your purchase price. On the other hand, a brand new home allows you to move in straight away and no renovation is needed.

5. Design control

Buying an off plan property gives you a certain amount of control over the design of your purchase. Many developers offer you the opportunity to choose the colour and style of varying fixtures and fittings, as well as furniture options.

6. A guarantee on your new property

Buying an off plan development in Spain means you obtain a guarantee from the developer. Furthermore, the developer is responsible for taking care of any faults when the new owner takes possession of the property. This is known as snagging. Either you or a qualified surveyor should establish a snagging list of any flaws that the property has, for example, dampness, mould or damaged furnishings. Repairs should be amended pre-completion as it can be challenging to get repairs fixed once a sale has been completed.

7. No difference in tax

The amount of VAT you pay on new properties in Spain is currently 10%, which is the same as the transfer tax on resale properties in some areas of the country. This means there is little difference in the buying costs between new and resale property purchases.

8. Investment potential

Buying an off plan development offers fantastic investment potential. It’s very likely that your property value will increase, so if you initially made your purchase in the early stages of development at a discount price, a considerable profit can be made in a relatively short space of time.

9. Great rental potential

In the medium to long term, an off plan property offers great rental potential. Brand new properties are incredibly easy to rent to those searching for a home for a few months or longer. New homes can command higher rental rates than pre-owned properties. Furthermore, Ibiza attracts holidaymaker’s off-season as well as during peak season, making the island an attractive prospect for buying an investment property. Note that the law regarding rentals is subject to some changes. Contact us for the latest update.

Are you interested in buying an Off Plan Development on Ibiza? Don’t hesitate to contact us.