Buying off-plan in Orihuela costa

This topic contains 4 replies, has 5 voices, and was last updated by  Barrel 1 month, 2 weeks ago.

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  • #216623

    Greg
    Participant

    Hello, Im new to the forum and I’m looking for some advice when it comes to buying a property off plan.

    The situation is this, in the begining of the summer I got an advice of buying an apartment in a new Project that the Company Gama Groupo is building, close to the golf courses in Villamartin in Orihuela Costa.

    When I went to look at the building site in the beginning of the summer only some of the apartments were reserved. As nothing was built yet and this was going to be the first block/house out of the six planed I backed out.

    Now the other day I did visit this site again. Apperantly all, except two, of the apartments are already booked/sold in the first block and they have started the building of block two (were there still are some apartments to choose from). But the prices are higher then it was in the first block. I’m now, once again, considering of buying/reserving an apartment but I have some questions;

    Is anyone familiar with this Company Gama Group? Are they trustworthy? Do they build good properties?

    Is it generally a favourable deal to buy apartments off-plan in the beginning of a new building Project?
    I have read that some people advice you not to buy off-plan but on the other hand it seems like you get a better price when buying it early

    Do you think it is a good time to buy something in Spain now when it comes to property prices?

    • This topic was modified 4 months ago by  Greg.
  • #216896

    Pazza
    Participant

    I would advise against buying off plan if I were you. There are actually lots of already built properties available, where you have some idea what it will actually look like and that it will actually be built.

    Prices in Spain have been rising slowly for a while but if you are a Brit then the Euro is far more expensive now unless you transferred money to Euros before Brexit.

  • #218466

    Hi,

    Buying off plan is usually cheaper as it is the way the developer uses to get cash for the construction cheaper than a construction mortgage.
    As the construction goes on and the need for funds is less important for the developer, prices rises.

    There is a special regulation in Spain for buying off plan and jurisprudence is getting more and more protective of buyer’s interests.

    Having said that, buying off plan implies different risks as buying an already constructed property.

    So, as long as you buy well advised by a lawyer, that makes sure that all legal requirements are fulfilled and prepare a good contract for you, it should be a good investment.

  • #218467

    freddo
    Participant

    Gama are building in a lot of areas round Torrevieja and the properties are selling extremely fast and as said by previous poster the best time to buy is when the start selling the 1st block of a developement as the project sells out the prices will rise a lot but if you are lucky you may find 1 apartment that is not sold in a block and may be able to get it at a lower price.
    I have been offered quite a few by this developer

  • #218637

    Barrel
    Participant

    On paper it seems a good idea buying off-plan.  You pay a holding deposit, make the stage payments and a year or so later when completed, your property has already increased in value.  Unfortunately, a lot can happen in that year and in the past people have been caught out when the bubble bursts due to developers being too greedy.  Always safer to buy in an established area but if you decide to buy off-plan at least ensure a bank guarantee is in place and you use a completely independent lawyer – not one recommended by the promoter or estate agent.

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