Investing in a New Development in Gran Canaria
Buying off plan property in Gran Canaria is a popular investment option
for many people. Buying off plan means investing in a property on a new
development before that property is built and often before any construction
work has started. In some cases, even before the developer has been granted
a Licencia de obra (licence to build).
You will get a great return for your money if you buy a property in
Gran Canaria during the pre-construction period. Properties are priced
very reasonably at this time since the developer is anxious to sell as
many units as possible to minimise his risk factor and to negotiate decreased
interest rates from investors.
You are being asked to buy an architect’s drawing and an empty
plot of land, therefore, the earlier you make your purchase, the less
expensive it will be.
Typically, investors are required to pay approximately 30 per cent of
the total purchase price as a deposit and the remaining 70 per cent after
completion, which can be financed by a mortgage.
As construction begins and the new development starts to take shape,
it’s much easier to see what the property will look like once it’s
completed. As a result, the purchase price increases at this stage. Once
the development is finished, buyers are willing to pay even more for
the final product. So, it’s no surprise that many people invest
in off plan properties in Gran Canaria only to resell them for a substantial
profit once they are finished. As a bonus, if the property is sold before
the owner takes possession of the escritura (title deeds), the seller
will not have to pay any Capital Gains Tax. |