PropertyLisbon – What is Off Plan Property?
Off Plan Property
When purchasing a property in the country of Portugal, one of the ways to go about it is to purchase an off plan property – The term that is loosely used to describe something that is not ready yet. It can refer to a property that is currently undergoing a renovation and is not finished yet, or it can refer to a completely new build development project that has not even started yet.
When choosing one of these options, it is important that our clients fully understand the process. – Every property is different. Not only in the way it looks, but also in terms of the licensing and the timescale projected, so it is vital for our clients to employ the services of a lawyer whose job will be to check everything for them.
Many of our clients opt for purchasing of off plan properties, and for many different reasons. Below, we have listed some of the many ways to purchase an off plan property in the country of Portugal, which should help highlight some of the potential reasoning behind it and why it is such a popular investment purchase on today’s market.
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A Renovation Project
A huge renovation project is taking place in the historical centre of the city of Lisbon as we speak. Many properties in this area date back to the early 19th, the 18th, and even the 17th century are in dire need of full renovation. Many developers who have undertaken these renovation projects will begin to sell properties at the same moment the licensing for the renovation gets officially approved by the local municipality.This means that even though they have not started the renovation works themselves just yet, the developers that are responsible for these projects do have all the required licenses and have set up concrete timescales to begin and finish the renovation projects.
Due to the high demand, the majority of properties that are for sale in the historical centre of the city of Lisbon have been purchased at this point.
One of the biggest advantages for the investor here is that, when purchasing an off plan property in this manner, they usually are able to purchase the property at a price that is discounted against the standard market value because they are purchasing something that is not yet ready. The main disadvantage is the requirement of some additional imagination as the property is not finished just yet.
A Project Approved
This refers to the properties that are being newly built and that have a development project which has already been officially approved. If it is a building, then it means that the number of apartments, the sizes, and the layouts have already been defined and officially approved by the local municipality and it is a project simply waiting to be finished.
Same goes for individual or stand alone properties. When it comes to stand alone properties, one advantage in particular includes that the investor can usually choose to change the finishings to better suit their taste. The fundamentals of the project, however, will have to remain the same.
A Plot of Land or Ruin
This was the original way to purchase off plan properties. It basically comes down to purchasing an empty plot of land and creating something upon it with your architect, and then submitting it to the local municipality and waiting for the approvals. This is, obviously, significantly more daunting of a process than the previous two mentioned. There are numerous other factors involved here as well.
It is, however, worth noting that this way still seems to be the most rewarding one for most of investors / our clients, both financially and mentally, even though it does require a grand vision and a lot of patience.