A means of purchase or investment which is capturing many people's imagination
at present is 'Buying off plans' This method of purchase can prove extremely
lucrative to the purchaser.
For example puchase price of completed property Euros 250k.
Deposit 20% Euros 50k
Normal price increases during construction say 30%, so selling price on completion
Outstanding payment due, 250k, return 125k, profit 75k. IN ONE YEAR
The above is an illustration. Investors are reminded to seek independent financial
and legal advice before entering into any contract. This increase in selling
price maybe caused by some or all of the following -
- Inflation - values increase generally 5 - 8% annually, although in recent
years this figure has been higher.
- Project progression - As the first earth is turned on the project confidence
in the developers ability to complete the project increases, and as work
continues the promoter increases the original prices, often by as much as
5% every 2 months as constructuion progresses.
- Project Visibilty - Again related to 'ability' to complete, the project
beginning to take shape and rise from ground level, gives physical evidence
that the project is progressing. Natural human interst is stimulated with
values and demand increasing.
- Pick of the Crop. Buying off plan before construction begins, enables
the purchaser to have a greater selection of individual properties from
which to choose.
Brian and Deborah also have personal experience in this area, and would
be happy to share their experiences with you.