大象视频

When investing in real estate, it is crucial to consider factors such as the property鈥檚 condition, location, infrastructure, services available, etc. Various options can make your dreams a reality. In recent years, new-build homes have gained more weight compared to second-hand properties. 

When we talk about new construction, we distinguish between buying a house 鈥渙ff plan鈥� or 鈥渒ey-ready鈥�. Both options are attractive, and both come with their own set of benefits and challenges. The choice depends on investment goals, financial situation, risk tolerance and other factors. This guide can help you understand the key differences between off- plan and key-ready properties, and determine which option best suits your needs.

• Table of contents
• 5 Benefits Offered by New Developments
• What are Off-Plan Properties and Key-Ready Properties?
• Key Factors to Consider for Making the Right Choice
• Pros and Cons of Off-Plan Properties: Advantages
• Pros and Cons of Off-Plan Properties: Disadvantages
• Pros and Cons of Key-Ready Properties: Advantages
• Pros and Cons of Key-Ready Properties: Disadvantages
• Comparison: Off-Plan Property vs. Key-Ready Property
• Who Should Choose Off-Plan Properties?
• Who Should Choose Key-Ready Properties?
• When Buying a Home Off-Plan: Our Tips
• Conclusion: Making the Right Choice

As everywhere else, on the Costa del Sol, the newly built properties are becoming more and more popular because of the benefits they offer.

1. Increased Property Values

New construction drives up property values in an area by attracting buyers seeking modern amenities. Improved infrastructure and community facilities enhance the desirability and boost property values. 

2. Improved Community Infrastructure

New developments often come with new roads, public spaces, parks, walking trails, etc. These improvements contribute to a higher quality of life for residents.

3. Access to New Amenities and Facilities

Many new developments offer shared amenities like swimming pools, spa and fitness centres, co-working places, etc. Customization options allow buyers to personalize their homes with modern floor plans and superb finishes. New homes are usually built with integrated smart home features.

4. Lower Maintenance and Energy Costs

New homes are built with energy-efficient features, improved insulation, modern materials and construction techniques, resulting in fewer repairs, lower maintenance costs and utility bills. 

5. Fostering a Sense of Community

New developments often have a strong sense of community, with community spaces and planned social events that connect the residents and build relationships.

Among the most acclaimed projects on the Costa del Sol offered by 大象视频 Brokers, you can find the newly built property you are looking for. For example, we represent a whole development of 13 luxury villas in Pinares de San Anton in Malaga called Pinares Hills. Read more about the development here.

When you buy a new home, one of the biggest decisions that buyers face is choosing between an off-plan property and a key-ready property.

Off-Plan Properties are properties still under construction, or in the planning phase. Buyers purchase them before completion, often at lower prices, with potential for customization, and flexible payment plans offered by developers.

Key-ready properties are fully constructed homes that are available for occupancy or rentals, and typically more expensive. Buyers can move in right after purchase.

In a nutshell, off-plan properties are not yet built; key-ready properties are built and ready.

• Investment goals. What are you looking for: a long-term investment, or a property to live in immediately? 
• Risk tolerance. Are you comfortable with the risks associated with waiting for a property to be completed? 
• Budget. How much can you afford to pay upfront and in the long term? 
• Customization. Do you want to customize the property to your specifications? 
• Market conditions: Is the local market stable or volatile? 

1. Potential for lower prices and payment flexibility. Early buyers benefit from lower launch prices and payment plans. Many developers offer discounts, free maintenance, or flexible down payments.
2. Higher ROI potential.  Property values often increase as the project nears completion.
3. Customization options. Buyers can customize the properties, and choose layouts, finishes, and fixtures.
4. Brand-new modern units. Off-plan properties have never been used, and come with the latest designs and technologies. By law, newly constructed homes are required to have a series of warranties, sometimes a 10-year guarantee.

1. Risk of project delays or cancellation. Buyers may have to wait a significant time before moving in. 
2. Developer reliability. Some projects may face financial difficulties or legal issues, affecting completion time and quality.
3. Market uncertainty. Property value fluctuations can affect investment returns.
4. Limited inspection before purchase. Buyers rely on brochures and floor plans rather than seeing a physical unit.

1. Immediate possession and occupancy. There is no waiting period, which is perfect for those buyers who need to move in right away, and for investors who want to start earning from rentals immediately.
2. Buyers avoid risks related to project delays or developer issues.
3. Assurance of quality due to physical inspection. Buyers can assess the quality, location, and amenities before purchasing, and see exactly what they are getting. 
4. Easier financing. Banks are more likely to provide home loans for completed properties.

1. Prices are typically higher compared to off-plan properties.
2. Less payment flexibility offered by developers.
3. Limited customization options. Buyers receive what is available, with fewer options for modifications.
4. Older construction, unlike newly built off-plan properties.

• Availability

Off-Plan Property: Under construction, requires waiting period.

Key-Ready Property: Immediately available for occupancy.

• Price

Off-Plan Property: Lower launch prices with instalment plans.

Key-Ready Property: Higher price due to completion.

• Investment Potential

Off-Plan Property: Higher ROI potential as value increases over time.

Key-Ready Property: Stable investment but slower appreciation.聽

• Customization

Off-Plan Property: Buyers can choose layouts, finishes, materials, etc.

Key-Ready Property: Limited customization due to completed construction.

• Risk Factor

Off-Plan Property: Potential construction delays, developers鈥� or legal issues.

Key-Ready Property: Lower risk with immediate property possession.

• Inspection

Off-Plan Property: Based on floor plans and marketing materials.

Key-Ready Property: Possibility of inspecting the property.

• Developer Incentives

Off-Plan Property: Discounts, flexible payments, and extra amenities.

Key-Ready Property: Fewer incentives, because the property is fully priced.

• Financing & Loans

Off-Plan Property: Some banks in Spain have stricter financing for off-plan.

Key-Ready Property: Easier mortgage approval for completed properties.

• Rental Income

Off-Plan Property: No immediate rental returns, it is necessary to wait for completion.

Key-Ready Property: Instant rental income potential.

• Market Conditions

Off-Plan Property: Subject to fluctuations in property values before completion.

Key-Ready Property: More stable and predictable pricing.

• Buyers seeking lower prices and flexible payment options.
• Long-term investors looking for high capital appreciation.
• Buyers who do not need immediate possession.
• Buyers who want to customize their future home.

• Buyers who prefer certainty and avoid risks of construction delays.
• Buyers who look for immediate occupancy.
• Investors who want instant rental income.
• Those who need bank loans with higher approval chances.

For your peace of mind and security, when buying an off-plan property we recommend:

- Check the reputation and experience of the promoter who is carrying out the project; find out about their previous work, and the opinions of previous clients. If you do not have any reference to the company, we recommend you to investigate its name, solvency, registration in the Mercantile Registry, and up-to-date building licenses.

- Buyers have the right to access the necessary documentation on the property at any time. Collect all the information about the property. Carefully examine the plans of the plot that will house your future home. Make sure that you understand the distribution of the spaces, and agree with the specified useful square meters, the rooms鈥� size, the materials used, etc.聽 Check if there are communal areas, gardens, and extra services available (concierge, security, etc.)

- Another important factor before buying off-plan is to know the building specifications, quality of the materials used in the construction, and the finishes. The Quality Report, a contractually binding document, should be attached as an annex to the purchase contract. It specifies the finishing of all the rooms and common areas in the urbanization.

- You are about to fulfil your dreams, but don't let the desire to move into your new home play a trick on you. Pay special attention to the deeds and resolve any possible doubts before signing them. Carefully check the documents and the off-plan purchase contract to make sure that it includes all the necessary information: the final price of the property +VAT, the method of payment and the account number, the developer's insurance or bank guarantee, the date of handing over the keys, among others. The contract includes a clause stating the type of penalty that the developers may experience if they delay in the delivery of the property, or other non-compliance.

Both off-plan and ready to move-in properties offer great investment opportunities, but the best choice depends on individual circumstances, needs, preferences, and goals. Off-plan properties offer long-term gains, potential for lower prices and customization, but come with risks and a longer wait time.聽 On the other hand, if you prioritize certainty, immediate occupancy, and stable rental income, a key-ready property will be the right choice, however, typically more expensive.

Before making a decision, carefully consider the pros and cons of each option, and weigh them against your budget, financial goals, risk tolerance, investment timeline, and market trends. Consulting with a real estate expert from 大象视频 Brokers can help you make an informed choice.