Off Plan purchase of property
When you buy property Off-Plan you are actually entering into a contract with a developer who has all the design and permits to build a home, but the property may not be available in some occasions for a couple of years. What this means is that your property is yet to be built but it already has a minimum value due to the projects viability and permits to build.
Forward planning on Property Investment in Gibraltar, as the current market stands one of the most secure and most rentable Investments is Property. Investments are never 100% secure but the demand for property determines the results.
Register your interest to receive first hand information about what's coming to the market before it's released.
Read MoreStage 11st Payment a refundable Deposit stage actually allow the buyer to opt out of the purchase regardless of the reason.
Read MoreStage 22nd Payment a binding Reservation Contract signed once the development has commenced works.
Read MoreStage 3On entering a contract and during the construction, each buyer will be offered to pay for the property in staged payments.
Read MoreStage 4Every detail is overseen by the developer to ensure your amazing home qualifies with your expectations.
Read MoreFinal Stage
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Be aware you purchase from a developer with a good track record for completing developments and if you do your homework on their previous projects, you will be well advised of how secure your purchase is and what your return on this investment can mean.
Please hunt around if you need a mortgage as securing this will undertake a bank survey on the development and the developer so it is fundamental that you side with a professional when investing in Off Plan.
Our last Off Plan secured an excellent return of over 40% for the buyer in under a year from completion, but this is not always the case. What is a fact is that the current Off Plan Market has an ample following of investors, these are clear indication that your investment is quite secure, so if you are offered the opportunity to Register as a first buyer on an Off Plan promotion you may be a providential investor.
Our form to register is a simple Letter of interest which would not bind you to purchase or even ask that you place any deposit at this time, the market is so demanding that we have launched this Purchase Interest Letter to gather a database of potential buyers/investors interested in an Off Plan well ahead of the launch onto the market.
When the time comes to release the development on to the market, the Off Plan Purchase 1st contract is a refundable investment stage. A purchaser can still opt out of this purchase to receive all his investment back. At his moment the development would have gone through the list of Interested Purchasers who registered previously so chances are that either the last available Off Plan property would be the ones released if any at all.
The Reservation Contract is signed once the development has commenced works. This is a binding document that confirms terms and conditions to purchase the property, the second deposit along with the first deposit constitutes a non-refundable payment forming the binding contract between developer and purchaser. At this stage, a resale from the purchaser to a third interested party is possible, although, the developer would need to allow the transfer of the contract as the property has yet not reached the completion stage. Usually, the developer will claim a financial settlement of a small percentage from the transfer sale to cover expenses and the modification of the agreement, subsequently the transfer contract to the new buyer would proceed smoothly with the 3 parties involved in the signing.
Staged payments example.
(Please be advised that this is a Basic Payment Plan and variables may exist for each development.)
Price of property Off Plan e.g. £200,000
Refundable deposit 5% = £10,000
Reservation Contract (5% previously paid) + 10% = £30,000
Staged % payments over an estimated 18 months of development
A Final payment on Completion
Final Payment and completion are under taken with various models of payment, direct bank transfer of funds, bank or financial institution mortgage or loan. Previous to the handing over our surveyor will accompany the buyer on a meticulous snagging stage to ensure the property’s standard qualifies with every expectation.
