Buying Property in Marbella: The Pros and Cons of Off Plan and Resale

When you make the decision to move to Spain's sunny Costa del Sol, it feels like you've already done the hard part. You've measured and examined all of the things in your life, and come to a momentous decision: it's time to move. Unfortunately, though, deciding to move to a place like Marbella is the easy part... it's deciding what property to buy that's hard.

When looking at property for sale in the Costa del Sol, you'll see armies of beautiful resale properties, and platoons of just-as-attractive off-plan properties. But what, really, are the differences?

The Main Differences Between Resale and Off-Plan

Who you buy from. One of the main differences between these two types of properties is... the person selling them. With a resale property, you generally work through a real estate agency to buy directly from the former owner. With new developments, however, you buy a property directly from the constructor or promoter. Though you will generally still work with an agent, payments are made directly to the developer.

How you pay. When buying a resale property, you generally pay all in one go. That is, you need to get the money together for the entire payment before you sign a single piece of paper. With off plan property, however, you'll generally stagger your payments while the home is being built, allowing you to set up a gradual payment plan before construction is completed.

What you get. When buying off-plan properties in new developments, you generally get a piece of paper, a promise, and a plot of land - which should eventually become a home. With resale properties in Marbella, on the other hand, you get... well, exactly what you see. A completed, lived-in home with all of the positives and negatives that implies. We'll go into some of those below.

The Pros

Off-plan. There are a lot of pros to buying a home in the Costa del Sol off-plan. One of these is the opportunity to get a great price on a nice property, as the slowing real estate market forces developers to offer lower and lower prices, especially on brand new developments. In addition, there's generally a greater possibility of quick capital growth with an off-plan property, as the value of properties in great locations can tend to increase even before building is finished.

Resale. When buying a resale property in Spain, you have a "what you see is what you get" advantage; you own a trade-able, valuable commodity from the moment you sign the papers. Plus, you always know what you're going to end up with, as everything is right in front of your face. As long as you work with a reputable surveyor, there are no nasty surprises upon move-in. As a bonus, almost every element of a deal with a resale property for sale is negotiable, from deposit, to move-in date, to furniture.

The Cons

Off-plan. The biggest con with buying a Marbella property off plan is the risk of losing your entire investment. If a developer re-mortgages your land or goes bankrupt during the construction process, you could end up with nothing. Even when things do go perfectly, you may have to wait years before construction is finished; and because the Spanish aren't widely renowned for their thoroughness, there may be a few not-so-pleasant surprises when you do the walk-through.

Resale. One problem that many buyers find when shopping for a resale property in the Costa del Sol is... it's a complex process. There are many, many properties, and each one is different - you have to be 100% sure a property has what you want before you buy. You'll have zero say in how the property is put together, and may have to deal with worn-out plumbing, electricity, etc., as the years go by.

In short, both buying properties in new developments and via resale come with plenty of pros and cons. But you'll want to keep in mind that, while it may be more financially attractive to buy off-plan, it's also riskier. It's important to strike a balance between what you look to achieve with a new property... and what you can afford to risk.

Property In Marbella
La Costa Property Solutions are an established full service real estate company based in Marbella on the Costa del Sol and specialize in sale, long term rentals, holiday rentals, project management and property maintenance services.