Buying off-plan in Cumbre del Sol: benefits and keys to making the right investment

Buying a property off-plan often raises different questions. Moreover, if you are planning to buy in an exclusive area, it is advisable to get all the answers.

This way, you maximise the investment you are going to make by avoiding mistakes that could be very costly.

What does it mean to buy off-plan?

Buying a property off-plan means acquiring a property that has not yet been built or is in an early stage of construction. That is to say, you have to make the purchase decision based only on the architectural plans, renders, specifications, and available technical documentation.

This type of acquisition is formalised through a purchase contract that establishes delivery deadlines, economic conditions, property characteristics, and legal guarantees. As a general rule, you must pay a deposit or initial payment and then make payments during the construction phase until the work is completed.

Advantages of buying off-plan in Cumbre del Sol

Making an off-plan property investment offers you different advantages, in addition to the fact of buying in Cumbre del Sol. The most notable are as follows:

• Personalisation of the design. This type of purchase allows you to choose from different options for layout, finishes, or materials to tailor the property to your tastes.
• Better purchase price. When buying in the initial phases, the price is usually more competitive. Furthermore, there is a significant margin for revaluation as the work progresses or demand in the area increases.
• Energy efficiency and modern technology. New builds in Costa Blanca are designed according to current standards of sustainability, energy efficiency, and home automation, ensuring comfort, savings, and a lower environmental impact.
• Legal and construction guarantees. Purchasing off-plan includes all guarantees required by current legislation, such as the bank guarantee for the amounts paid in advance and the ten-year structural insurance. This is one of the main benefits of buying off-plan.

Risks and how to mitigate them

Beyond the advantages, this type of purchase involves certain risks that you need to be aware of and manage to avoid setbacks. One of the main risks is delays in delivery. Construction projects can experience delays due to administrative, climatic, or economic reasons, which affects the expected occupancy timelines. To mitigate this risk, it is essential that the purchase contract specifies the dates and penalties for non-compliance.

Another significant risk is the modification of the original project. At times, the final design may differ from what was presented initially. To avoid surprises, it is essential to review the quality report, the signed plans, and any technical annexes included in the contract, as well as to request periodic updates during the construction process.

There is also the risk of insolvency of the developer. If the development company goes into bankruptcy or does not complete the project, you could lose the money paid.

Legal and contractual steps

The following are the legal steps you must follow to acquire a property off-plan:

1. Verification of the developer and the project. Before formalising any commitment, it is essential to check the solvency and track record of the developer. You must request the building permit granted by the relevant council, as well as a simple note from the Land Registry confirming the ownership of the plot and the absence of charges or encumbrances that may affect the construction.
2. Informative documentation. The developer must provide the buyer with the Short Informative Document (DIA), which includes details such as plans of the property, quality specifications, usable area, description of the building, and common areas.
3. Sale and purchase contract. The document must include a series of details, such as the characteristics of the property, the total price, the payment schedule, or the expected delivery date.
4. Guarantees of the amounts paid in advance. The developer is obliged to guarantee the amounts paid by the buyer through a bank guarantee or insurance. These funds must be deposited in a special account designated exclusively for the construction of the property.
5. Deed and delivery. Once the work is completed and the first occupancy licence is obtained, the public deed is signed before a notary and the keys are handed over. At this moment, the buyer pays the remaining amount.

As you may have seen, buying off-plan offers you numerous advantages. But you must not forget the risks it also imposes, for which it is advisable to be prepared. If you have any doubts, at Cumbre del Sol Pre Owned we accompany you throughout the acquisition process and adapt to your particular circumstances. Consult us with any questions!