Firstly, when a new development is being planned the developer will seek
provisional agreement from the local authority to start the project and,
providing the local authority gives provisional permission the developer can
and usually does start to sell his / her properties on an off-plan basis.
At this stage, the developer of a project is always exposed to risk and must cap
this risk as quickly as possible, limit bank loans and other debts and secure the
best possible interest rates from banks and investors on the development loans
they need. To do this the developer must sell the properties at a cheap price and
This is without doubt the best time for buyers to snap up a bargain as
properties will usually be around 30% cheaper than the final project price.
At this very early stage of planning, there will be no show houses to view.
Interested prospect buyers make their decision to purchase based on the
literature the developer has put together and have to rely on artists impressions
and floor plans usually in the form of brochures. Sometimes the developer will
also commission a DVD to be made. There is also the possibility to visit the site,
so the client can get a feel for the area. It is at this stage of the planning that buyers
have to use a great geal of imagination.
As soon as is possible, the developer usually builds show properties to give
potential customers a firm idea of what they can expect.
As the project gets underway the developer will increase prices on
an incremental basis until the final selling price is reached. So the longer
you delay putting a deposit down on off plan properties in Spain, the more
probably it is that you will pay more for your property.
Of course there is always an element of risk when choosing to purchase off
plan properties in Spain at this early stage as sometimes the expected date
of completion may not be met. There are several reasons why this may happen.
For example, the developer may have been a little too optimistic with
completion times or the weather may slow things up a bit and of course the
local authority could take more time than anticipated to go over all the
planning criteria and give the necessary approval for each stage of the
project. That said, the early stages of the project is without doubt the best
time to pick up a bargain and bag a great
investment property in Spain [http://www.simplymurcia.com] – but
you must allow that thing may take a little longer than anticipated.
The second stage of the licensing procedure is that the plans for the
infrastructure must be submitted and approved by the planning department and
once these are accepted and approved then the final licenses to start
building will be granted. This process is, by and large, the same process
that occurs in the UK and as you may know, planning application criteria can
varies a great deal depending on which local authority is dealing with the
planning application and in Spain it really is not that different.
All in all the planning department acts in the best interests of the customer and even
if they are ponderous in their decision making in the final analysis you are more likely
to get quality off plan properties in Spain [http://www.simplymurcia.com]
built to the right specifications – but, as I say, things can and do take time and this can
be frustrating for some people.