AIPP • WHA T T O BUY
WHAT TO BUY: NEW-BUILD T
he downturn in the world economy has created renewed interest in buying new-build property. Especially in countries such as Spain and
the USA, the banks, which underwrote much of the borrowers’ and developers’ debt, have been left with a stockpile of property, mainly new-build, which they need to sell as quickly as possible to recoup their lending. The banks are therefore prepared to cut their losses by selling the properties, often at below build cost, and for as little as 50% of their previous market price in some cases.
Look out for companies and agents who are promoting the sale of ‘distressed property’, a whole mini-industry has sprung up around the phenomenon over the last 18 months. Most are legitimate, but be cautious and double check that if they say they are authorised by, for example, XYZ bank to sell its properties, check that they can show you a document to that effect. Note, it is extremely rare a bank will deal with you directly in the role of the estate agent when purchasing a property, making a good agent even more essential. Today’s reduced prices are an obvious attraction of purchasing a new-build property, but what are the other benefi ts of buying this type of home? Unlike off-plan, there is no chance of your property’s completion date being delayed – as sometimes happens – but you still benefi t from a brand new property. When buying off- plan it can often be diffi cult to visualise the completed interior, building and indeed entire resort, whereas buying new-build property means there are usually no unexpected surprises about size, views or neighbouring properties. However, do ask the developer if he plans to build in front of your sea view – and ask your lawyer to insist the sea-view is included in the sales contract. Other advantages of a new-build property include state of the art homes, usually with wifi etc, built to high environmental standards – at least as high as the building regulations in the country where it’s located – with the latest security and safety aspects incorporated in the house. Generally, buying a new-build home means you’ll have very little extra outlay on top of the purchase price, as many come furnished including white goods, although be sure to check just what is and is not included. Lastly, ensure your property comes with a building guarantee – usually for 10 years – and have your lawyer confi rm the developer has proper insurance to cover any liability to meet the guarantees.
12 AIPP CONSUMER GUIDE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60