What is an off-plan home?

Buying a home is one of the most important decisions we can make in life. It provides us with stability, a place to call home and, in many cases, represents a long-term investment.

However, what happens when we consider purchasing an off-plan home?

In this article, we are going to dive into the fascinating world of off-plan homes, exploring what they are, their advantages and disadvantages, and what we should keep in mind before embarking on this exciting adventure.

What is an Off-Plan Home?

An off-plan home, also known as a home under construction or pre-construction, is a property that is sold before its construction has been built or completed. In this case, the buyer purchases the property based on plans, designs and specifications provided by the real estate developer or builder.

Advantages of Buying an Off-Plan Home

• Personalization: One of the main advantages of buying off plan is the possibility of customizing the home according to your tastes and needs. From the distribution of spaces to the selection of materials and finishes, you have the opportunity to create a custom home from the beginning.
• More attractive prices: In many cases, off-plan homes are offered at lower prices than already built properties in the same area. This can represent an excellent investment opportunity as the value of the property is likely to increase once construction is complete.
• Flexible financing: When purchasing a home off-plan, the real estate developer may offer flexible financing options, such as staggered payments during the construction process or the possibility of accessing preferential mortgages.
• New and Modern: As a new property, an off-plan home generally comes equipped with modern features and technologies, which can translate into greater comfort and energy efficiency.
• Construction guarantee: As established by the Building Planning Law (LOE), a new construction building has guarantees for a certain period of time for certain types of defects.

Disadvantages of Buying an Off-Plan Home

• Risk of delays: The construction of a property may be subject to various factors that may cause schedule delays, such as adverse weather conditions, material supply issues or building permits. This may affect the expected delivery time of the home.
• Uncertainty about the final product: When buying off-plan, you are trusting the plans and designs provided by the real estate developer. There is some uncertainty about what the property will look like once completed and whether it will meet your expectations.
• Risk of changes in the environment: The surrounding environment may change during the construction period, which may affect the quality of life in the area and the value of the property.

Important Considerations before Buying Off Plan

• Research the property developer: Be sure to research the reputation and track record of the property developer before committing to the purchase.
• Understand the terms of the contract: Carefully review the off-plan purchase contract and make sure you understand all terms and conditions, including delivery times and termination clauses.
• Visit the construction site: If possible, visit the construction site to get a clearer idea of ​​how the project is developing and what to expect once it is completed.

In short, off-plan homes offer an exciting opportunity to purchase a new, custom property at an attractive price. However, they also carry certain risks and considerations that must be taken into account before making a decision. By understanding the pros and cons of buying off-plan and doing careful research, you can make an informed decision that aligns with your needs and goals.