It is again extremely popular to buy a house in project. And this brings a lot of good news: it means that confidence and credibility have returned to the real estate market, since most of the projects under construction are bought long before they are completed. As the supply of new developments is still lower than the demand, the risk of a buyer losing his initial investment is almost zero. And if you know how to choose the right real estate agency, your risk is really zero. Instead, the value of the property can almost double.
Buying a house in project has many advantages. And if you are thinking of buying a new apartment or villa, this might actually be the perfect solution. The purchase of a real estate property under construction has attracted many foreign clients and investors precisely because of the benefits of this type of acquisition. These advantages have to do with price, credit (if you need it), valuation, customization of the house and guarantee.
Operating in the mid-high and luxury segment of the Algarve, Porto and northern Portugal, LUXIMOS Christie's International Real Estate is currently marketing several luxury developments, apartments and villas in the most sought-after areas of Porto: in the heart of Foz do Douro, Downtown, apartments with river view, apartments with sea view in Póvoa de Varzim or apartments overlooking the historical area. And the Algarve developments, from Vilamoura to Lagos, also confirm this high standard of quality provided by the real estate portfolio of this company.
LUXIMOS Christie's International Real Estate, guided by proven standards of ethics, discretion and integrity, and a network of consultants and clients all over the world, is the company that offers the most guarantees in the luxury real estate market, both for those looking for larger homes and for those looking for smaller ones to invest in local accommodation, for example. So, it's time to dispel myths and get to know the advantages of buying a house in project in Portugal.
Buying a house in project means buying more for less. In other words, not only is the property much more affordable at the time of acquisition, but once completed it gains a potential appreciation that can be as much as 20% or 30% higher than the amount you paid for it. The explanation is very simple: when the property is under construction, the big negotiation margin is all on the buyer's side. On the one hand, because the buyer is buying a villa or an apartment that is not yet finished; on the other hand, because the money of the first buyers can make a difference in the management that the construction company makes of the project. Thus, a purchase in project is almost the perfect business (it can be much cheaper than a second-hand house) - and this is evident when the buyer invests to then resell.
It's not just about choosing the fixed decoration of the house, the colours, the pavement floor or the finishes. It is also the possibility of influencing the future characteristics of the real estate property, including joining rooms, for example. But also the opportunity to choose the largest or best property in the condominium, or the tallest, or the one with better solar orientation, or with larger outdoor area or better views. And finally, the possibility to have a decisive say in heating options, kitchen appliances and furniture, and sanitary ware.
In a house that is acquired in project, the payment is made as the construction progresses. Usually, the buyer starts by giving a down payment, to ensure the reservation of the property. Later, when the contract is signed (which must indicate stages of completion of the work), there is a second payment, a little higher. Sometimes the third and final payment takes place only on the day of the deed. If you need to apply for a home loan, banks have very advantageous options for houses under construction. They usually grant advances during a period (called grace period) in which they only charge interest on the credit. Remember that, as a rule, it takes between 12 and 18 months to complete a construction project.
There are only two risks in acquiring a house in project: the deadline set by the builder for completion of the work or, more seriously, the hypothetical scenario of the construction company going bankrupt. The two risks are gone if, instead of negotiating with the construction company, you choose the real estate company that is selling the development, apartment or villa you want to buy. That is the truly decisive choice. Because the real estate company has already had all the concerns you would have. In other words, it has already checked the building permit, insurance and guarantees of the construction company. In addition, it has also taken care of all the associated bureaucracies. So, if you want to buy a house in project, the fundamental step is always to obtain references of the real estate agency with whom you intend to work. If you choose a company with LUXIMOS Christie's International Real Estate accuracy criteria, your purchase is guaranteed.
For people who value safety above all else, and who like to be protected in every possible way, there is a very simple trick to ensure that nothing will go wrong if you buy a house in project: if you make a loan, you should ask the bank for a guarantee on the individual property and not just a collective guarantee on the development. If you do not need to establish any relationship with a banking institution, you can and should use this protection system in the insurance that you would always have to do. From here on, you are 100% safe.