Buying a property off plan (ie before it is built) was at one time the only option when demand exceeded supply. However things have changed in the cyclic world of property.

If you think buying off plan is right for you - fine BUT as the market has now slowed down it is apparent that some builders have slowed down their building projects and in cases stopped building.

This means that your completion date may well be delayed (probably in some cases VERY delayed) If you are not in a rush to complete then you do not have a problem but if you want to move in or start letting it out you will have a problem.

Also ALWAYS ensure when buying off plan that the monies you pay in advance are refundable if the project stops. This is the law and must be arranged via a bonded bank account. Dont be fobbed off with any excuses you want a cast iron guarantee your money is refundable. Take proper legal advice if could well save you money.

Also the idea of buying off plan and selling on prior to completion is very much under legal scrutiny and in some cases may prove to be impossible - again if this is your plan you will need guarantees that this is indeed an option.

If you think buying off plan is too risky for you then you are lucky because there is now plenty of choice of new ready now fully legal property (and so can have a mortgage) They come with a builders 10 year guarantee which again is law and is organised via the local town hall.

Yes, I would agree buying off plan to sell on may not now be such a good idea.
Also it is now not as profitable because you have to pay the IVA on the deposit and initial payments so the profit margin is eroded. However there are plenty of bargains for the shrewd investor and they are returning to the market especially as Bulgaria and others are having their problems as well.

Yes you are quite right - the IVA must now be paid at the time the money is paid to the builder. Off plan may still be an option for some but for many others buying new property ready now is a safer option and mortgages rates appear to be easing.

Buying off plan to sell is a market that has slowed.  In my experience, the market has turned with people now buying to let.  However, don’t be fooled or taken in by ANY developer or agent saying that any property can be easily let because you will soon find out that this market is becoming very competitive with short term lets, ie holidays, is only 10 or mabe 12 weeks of the year.  Any owners need to be aware as any let wont bring in an income to cover a mortgage, unless repayments are minimal. I let my property through Overseas Property Investment (OPI) and found them to be extremely knowledgable of the market needs, moreso than many others in my opinion.

Yes if you are buying to let then you need to do your sums carefully and not based on over optimistic levels of occupation. Long term lets can be a better plan as the cleaning and other overheads are less. A lot also depends on the property, location and how it is furnished and equipped. Marketing is also important - often its best to find your clients through work and social networks.

Humm…. I think I would be very careful buying off plan in Spain at the moment. Many of promotores are going, or going to go under and if that happens with the company you have bought off it could take you with it.

I was doing some work a few weeks back on a villa beside a project that had been stopped, on Saturdays people would be driven up to be shown the project. I could hear some of the conversations and it sounded like they where trying to sell properties in the project… yet it had be officially stopped! personally I would stay clear unless you know you are 100% safe.