Buying a home is one of the most important decisions in a person's life, and when it comes to new-build flats, doubts tend to multiply. One of the most common questions is: how do you pay for a new-build flat? Today we explain it step by step, answering all your questions about payments, taxes and deadlines, so that you can make an informed and safe decision.
Buying an off-plan home involves a series of staggered payments that are spread over the course of construction. This offers payment flexibility, and is one of the main attractions of this type of acquisition.
The first step is booking. In this phase, a private document is signed with the developer and an amount is paid, usually ranging between 3,000 and 6,000 euros, depending on the price of the property. This payment guarantees that the property is removed from the market while the purchase contract is formalised.
After a few weeks, the purchase contract is signed. Here you pay 10% or 20% of the total value of the property, deducting what you have already paid in the reservation. This down payment is key to financing the construction and is backed by a mandatory bank guarantee, which protects the buyer against possible unforeseen events.
During construction, the buyer makes a series of installment payments. These are usually established in monthly, bi-monthly or quarterly installments, and are agreed with the developer from the beginning. This flexibility in the payment plan allows for greater financial organization and adapts to the profile of each buyer.
For example, if the property costs €300,000, and the buyer has paid a 10% deposit, you could set a schedule with installments of €1,000 to €2,000 per month until the time of delivery.
The last large payment is made at the time of delivery of the apartment and the signing of the deeds before a notary. Here the remaining amount is paid, usually by mortgage or with own funds, and the transfer of ownership is formalised.
In this phase, the taxes to be paid in a new-build apartment are also paid, which are as follows:
In many cases, the developer collaborates with a financial institution that acts as a financial promoter. This figure facilitates access to a pre-approved mortgage, with advantageous conditions for the buyer, speeding up the process and increasing the security of the transaction.
The process of buying new build flats is designed to offer security and flexibility to the buyer. Understanding the payment plan for an off-plan home, knowing the taxes that must be paid and being clear about what the financial developer is doing, are key to avoiding shocks and enjoying the road to your new home.