Consider a new-build house
Construction is well underway on the Sunshine Coast, where the demand is huge for bright and modern houses of high quality and with décor as we know it from Scandinavia, for example. If you buy into the project early, you can often get an extra good deal. With a bank guarantee on your deposits, there is no financial risk for you. However, you’ll have to wait a while before you can move in.
The wait is worth it though – because you can usually have a say in interior design etc., as the builders often listen to the buyers’ wishes. At the same time, there has been a boost in the quality of construction in Spain in general, so today it is standard to use insulation, install underfloor heating, use solar energy, etc.
At the same time, large windows, open kitchen family rooms and good terraces are being built in true Scandinavian style. Whether the purpose of your investment is for your personal use for holidays, rental or resale, you can count on making a great deal in a Spanish housing market that is on the rise. This development we’ve explained earlier.
If you are an early bird, you can buy at particularly advantageous pre-launch prices. Once the project is funded, applications for a building permit ensue. Once issued, it takes on average about two years before you can finally sign the deed. But no matter what stage of construction you buy into, you are guaranteed financially.
Bank guarantee on your deposits
A bank guarantee on current deposits during the construction period is required by law. They are transferred to a locked account, which the developer can only access once the deed is signed, and you as a buyer return all original bank guarantees.
Thus, you will not lose any money if a project is not started. Only your time will be wasted and you will now have to start over. Of course, this can be frustrating enough in itself.
Get financed for up to 70%
Spanish banks normally lend up to 70% of either the purchase price or the valuation. Therefore, you must be able to finance 30% plus the purchase cost yourself (about 12% of the purchase price plus any borrowing costs).
In some cases, there are some other percentage distributions, just as you will find that the valuation is usually higher than the purchase price in new construction transactions.
Mojo guides you to a good investment – we know the Sunshine Coast
Buying a home abroad is a big mouthful and a big step for many. This mouthful may seem larger when it comes to new construction, because it can have a very long time line. With the right help and advice, you can make a good investment.
At Mojo Estates we know the different areas of the Sunshine Coast and know where you can get what. Of course, we are following the housing market closely and get news about new construction projects at their very early stages. Therefore, you can consult us for advice if you are considering investing in new construction here.
Tell us what your dream house looks like, what you want to use it for, and what your budget is. Then we’ll help you live out dreams – the Mojoway!