Nybyggeri vs. videresalg: Hvad er det smarteste træk?

The Costa del Sol property market offers diverse options for buyers, but one question often stands out: Should you buy a new construction property or an existing (resale) home? In the second episode of Costa Insights, Kian Bennani and Matt Campbell dive deep into the pros and cons of each, helping you make an informed decision tailored to your needs.

Understanding the Basics: When starting your property search in Spain, understanding the fundamental differences between new construction and resale properties is essential.

New Construction (Off-Plan): Buying from a Developer: This is a straightforward business transaction with clearly defined steps. Customization Options: Some developers offer personalization options, such as choosing tiles, countertops, or even modifying layouts. However, flexibility varies by developer. Handover Timeline: Off-plan properties require waiting for construction to complete, which could take years depending on the stage of the project.

Resale Properties: Buying from a Private Vendor: This involves more emotion, as sellers often have a personal attachment to their homes. Immediate Availability: What you see is what you get, allowing for immediate occupancy once the sale is finalized. Condition of the Property: You can physically inspect the property, but older homes may require updates to plumbing, electrical, or general infrastructure.

Hidden Costs to Consider: Understanding the costs beyond the list price is crucial when buying property in Spain, as these differ for new and resale properties.

Resale Properties: Transfer Tax (7%): Applies to the purchase price. Legal Fees (1%): Covers the lawyer’s due diligence and paperwork. Total Costs: Approximately 9% of the purchase price in Andalucía.

New Construction: VAT (10%): Instead of transfer tax. Stamp Duty (1.2%): Additional tax specific to new builds. Legal Fees (1%): Similar to resale properties. Total Costs: Approximately 13.2% of the purchase price. Buyers should factor in these differences when budgeting, as they can significantly impact your final outlay.

Timing Your Move: Your timeline is a major consideration when choosing between new and resale properties.

Resale Properties: You can expect to receive the keys and move in within 45–60 days of signing the reservation contract. Ideal for those looking for immediate use of their property, especially retirees or families relocating soon.

New Construction: Completion timelines vary, with developers often quoting 2–3 years, plus a grace period for delays. Buyers should consider interim living arrangements, such as renting, while waiting for their property to be completed.

Pros and Cons of Each Option:

Resale Properties:

• Pros: Immediate availability. Potential for negotiation on price. Established communities with mature landscaping and amenities.
• Cons: Limited customization options. Potential for hidden maintenance issues. May require renovations or updates.

New Construction:

• Pros: Modern designs with energy-efficient features. Customization options available with some developers. Low maintenance for the first few years.
• Cons: Longer waiting period before occupancy. Initial development may feel incomplete (e.g., immature landscaping). Higher upfront purchase costs (VAT, stamp duty).

Investment Insights: Your investment goals can determine the better option for you.

Capital Appreciation: New construction properties often appreciate faster in emerging areas like Estepona, especially when purchased early in the development cycle.

Rental Income: Resale properties in established areas like Marbella may offer immediate rental returns due to their location and readiness.

Making the Right Choice: The choice between new construction and resale ultimately depends on your personal circumstances and priorities.

For Immediate Use: If you want to move in quickly, resale is the clear choice.

For Customization and Modern Features: New builds offer the latest in design and efficiency, though patience is required.

For Investment: Both options have merit, but new builds may offer higher returns in developing areas, while resales can deliver quicker rental income.

Final Thoughts: Both new construction and resale properties have their advantages and challenges. By understanding the key differences, hidden costs, and timelines, you can choose the option that best aligns with your goals. Whether you’re looking for a holiday home, a rental investment, or a permanent residence, the Costa del Sol offers opportunities for every type of buyer.

If you’re considering buying property in Spain, get in touch with Hi Homes for expert guidance tailored to your needs. From finding the perfect property to navigating the purchase process, we’re here to help you every step of the way.