A Place in the Sun Extras Amanda's Column Issue 71

Date Published:

30/07/2009

“Now could be a fantastic time to buy off-plan – a lot of the initial reasons for buying this way are still there”

At the last A Place in the Sun Live exhibition I carried out a quick poll on our audience and asked who was thinking about buying an apartment or villa off-plan. A few years ago there would have been a sea of hands in the air. How many do you think put their hands up this time? Not a single person – which really surprised me.

When I first started presenting A Place in the Sun back in 2000, people were flocking in their droves to the Spanish Costas and similar places, and developers couldn’t keep up with the demand. Apartments were being bought before foundations had even been laid and changing hands with new buyers when completed, sometimes for quadruple the amount originally paid.

So what went wrong? The last time I was in Spain I was told there was a glut of over half a million properties developers couldn’t shift. It got me thinking: When did we fall out of love with off-plan?

I think there are several reasons why things went downhill. Firstly, it’s the age-old supply and demand rule. When demand was outstripping supply, we couldn’t buy them fast enough, and developers couldn’t build them quickly enough. Then the balance shifted, developers got greedy and started financing themselves to the hilt to build more and more, and we stopped buying as rapidly as there was so much to choose from. Supply was outstripping demand. We also heard the horror stories – about buyers losing all their money, buildings not being completed, developers running off to Brazil to spend your hard-earned cash on piña coladas, and I think a lot of people were frightened off.

You are right to be cautious, but now could be a fantastic time to buy off-plan as a lot of the initial reasons for buying this way are still there.

For starters, you get to choose your plot or where your apartment will be. You can choose fixtures and fittings and spread the cost of your property over months, if not years. Perhaps the biggest benefit of all is that lots of developers are desperate to sell their properties and are offering fantastic bargains. If you are simply looking for a place to relax and are not out to make a quick buck, you could do worse than investigate new developments. I think you’d be surprised at how reasonable the prices of some of these places are at the moment.

A word of warning, however, is not to get too carried away. If something seems too good to be true, it probably is. I implore you to visit the site before you put a penny of your money down. Quite often when you look at a developer’s fancy brochure the complex can look amazing; you really need to see it in the flesh even if it’s just a hole in the ground. Also, when you’re out there visit the site at different times of the day. Is it under a flight path? Can you hear traffic noise or music blaring from nightclubs? Ask to see where your apartment or villa will be situated, make sure you’re happy with the aspect and, most importantly, if the development is underway, check there are people actually working on it.

Are roads going in? Is there an abundance of builders on site? If not, chances are the development is in trouble, so be very wary. Also check how many similar developments there are in the area. If there are hundreds, your resale chances will be severely diminished. Lastly, do not hand over a single penny until your independent lawyer (not one the agent recommends) has thoroughly checked the contract. Be careful and you never know, by this time next year you could be in some foreign clime reading this magazine on your newly built terrace overlooking the sea. Good luck.

Visit A Place in the Sun Live, the overseas property show, at the NEC Birmingham. Visit aplaceinthesun.com to buy your ticket.

This article is taken from issue 71 of A Place In The Sun magazine. To subscribe to A Place In The Sun magazine click here, or call 01371 851884 (opening hours Monday-Friday 9am – 5.30pm).

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