Advise how to choose between a ”New” or a “Second hand” property

One frequently asked question from our clients is over the benefits of choosing between a new property, or a second hand one, a resale as we say.

As this is a very revelant issue, especially among our British, Swedish and Finnish clients, we offer you some guidelines to help you choose what type of property suits you best.

What does “New property” mean?

When we buy a ”New property” it means that the property is still under construction, or that it has been recently finished. In any case, it has never been lived in by a previous owner.

When we buy a property under construction, or even before the work has started, the purchase is done “off-plan”

This means that, even is the property is not built, we receive all significant documentation to know the quality, the distribution, the orientation the location of the property aso.

In most cases there is a “sales office” by the work site, as well as a “show house” where you can check all relevant details of your new home.

This is a common way that promotors and builders use to sell their properties, even if they sometimes delegate this labour to real estate companies.

Economical benefits to purchase a new property

To buy a “New property” or a property “Under construction” has the following benefits:

• The price of a property bought off/plan is less than a finished one.
• The construction of a new property takes about 12 to 18 months. This gives you more time to find the best option for financing the purchase. Also you have time to choose  the best exchange rate, and prepare your move to Spain
• According to what is stipulated in the purchase contract, different payments are done by the buyer. This means that the total of the price is not paid until the property is taken over. The last payment can be done by a mortgage or a bank check, but only after all work is finished and the property has all necessary documentation  

A new property offers other important benefits that should be taken into account

1. Modern houses offers the best technological solutions for energy saving
2. You choose your own furniture and decoration
3. A new property is a lot easier to rent out
4. As an investment, new property has a higher potential to increase its value
5. New property comes with a 10 year guarantee

So, what benefits does a “second hand” property offer to become an interesting option?

With a “second hand” property, it is understood that the property has been lived in by the owner, or it has been rented out.

Today the Spanish law stipulates some differencies in the costs of purchasing a new, or a second hand property.

On a new property, you must pay a 10% VAT, while on a second hand property the tax (depending on the region) can be a bit less.

According to the National Statistical Institute, the second hand properties have a higher demand from the clients.

The most important reasons why to choose a second hand property

• The price is normally less than on a new property. Many buyers choose to spend the money they save on the purchase price to reform the property to their own liking, and buying new furniture.
• You can take over the property straight away
• Normally they are located more centrally, in mature areas with amenities, shops, sports facilities, gardens aso.
• Older properties tend to be bigger than the new ones. Because of the increase on the price of land, the size of properties has been reduced.  
• When you look at “second hand” properties you get the chance to meet your new neighbours before you take a decision. For instance if you prefer to live with people who speak your own language.  

As you can see both “new property” and “second hand” property have many interesting benefits.

We have tried to explain the differences between the two options so you can make up your mind depending on your own situation and interests.

Please don’t hesitate to contact us for more information. We have a team of professionals who are more than glad to answer all your questions.

To contact us, fill in the form on our home page, or send us a mail to: info@promediahomes.com

If you prefer, you can give us a call on +34 601 223 257.