News: Why buy a (New Build)
Upping your budget to afford a new-build or off-plan property instead of a resale one could pay dividends abroad. Here are some reasons to consider this option
– Buying into a new development early could increase your opportunity to benefit from capital appreciation. Why? The first investors in a project often get a discount as well as the chance to pick the best units. And once the development becomes established, demand typically increases, especially when comparable development sites in the local area become harder to find.
– Developers often offer attractive finance deals or payment schemes, which you won’t get when purchasing an existing resale property. This is especially applicable at the moment, as interest rates are at record lows in Eurozone countries, thanks to low European Central Bank rates. Paying for your property in staged payments also suits some buyers, especially when combined with the currency transfer services of Smart Currency Exchange.
– The chance to negotiate extras into your deal often comes with a new-build purchase. This could be the developer, such as Isla Canela featured in the main picture, offering you a furniture pack, parking space or even membership of a gym or the local golf club as an incentive and for no extra cost.
– New property should come with a guarantee from the developer, who will also be obliged to take care of any faults when the new owner takes possession, a process known as snagging. Any deposits or stage payments you make when buying off-plan should be guaranteed.
– Buying off-plan gives the buyer a certain amount of control over the interior of their property, allowing them to tweak the design, and choose the style and colour of certain fixtures and fittings.
– New properties are built using more modern, energy efficient materials than you find in older resale homes. They often incorporate solar or greener energy solutions, including in boilers and hot water systems. Not only does this reduce your carbon footprint, but saves on bills.
– VAT is payable on new-build property transactions. Depending on the country, this could be levied at a lower rate than transfer tax, which is levied on a resale property purchase. In the French Alps, new-build property that is part of a leaseback scheme is exempt from VAT and could have reduced rates of council tax.
– Smart, modern new-build properties in sought-after locations and with access to good facilities usually command a premium in the local rental market, compared to older resale properties.
– Finally, when you buy new-build, you’re not in an onward chain or dependent on the vendor of your new property buying somewhere else. This means your sale is less likely to fall through.
This article was written by The Overseas Guides Company, for more information on buying overseas property successfully, download the Overseas Guides Company’s free Spain Buying Guide,– and start receiving free news updates by email.
If you are considering an overseas property purchase, whether for lifestyle or investment, opening a no-obligation account with FCA-authorised Smart Currency Exchange will enable you to benefit from their competitive exchange rates and specialist currency knowledge, ultimately saving you money and time. For more information, download Smart Currency Exchange’s free report or visit the Currency Zone.