By Vangjel Dhimo on April 6, 2023
The decision to invest in real estate in Albania and in any country is always a significant one. Among the options available, prospective buyers often face the dilemma of choosing between a property under construction and a ready property. While a ready property may seem more appealing due to its immediate occupancy, there are numerous advantages to buying a property under construction that shouldn’t be overlooked. This comprehensive article will explore the benefits of investing in an under-construction property, including financial advantages, customization options, long-term value, and more.
WHY BUYING A PROPERTY UNDER CONSTRUCTION IS BETTER THAN A READY PROPERTY IN ALBANIA?
BETTER VALUE FOR MONEY
One of the most compelling reasons to invest in a property under construction in Albania is the potential for better value for money. Developers often offer attractive discounts and incentives during the pre-launch or construction phase to encourage sales. These discounts can lead to significant savings compared to buying a ready property.
Additionally, under-construction properties tend to appreciate more rapidly than completed ones. As the project progresses and the neighborhood develops, the property’s value increases, providing an opportunity for the investor to realize substantial capital gains upon completion.
CUSTOMIZATION AND FLEXIBILITY
When you invest in a property under construction in Albania, you have the unique opportunity to customize it according to your needs and preferences. While a ready property might not be an exact match for your requirements, an under-construction project allows you to select the unit’s layout, floor plan, and view, ensuring that your new home is tailored to your specifications.
Furthermore, developers often provide buyers with the option to make changes to the property’s interiors, such as the flooring, wall finishes, and fittings. This level of personalization allows you to create a living space that reflects your style and accommodates your lifestyle.
POTENTIAL FOR HIGHER PROFITS
An under-construction property offers the potential for higher profits upon completion. As the demand for real estate grows and the neighborhood develops, the property’s value appreciates, allowing investors to sell their units at a premium. This appreciation is especially true for properties in emerging locations with promising infrastructure projects, leading to substantial capital gains.
Moreover, under-construction properties can generate higher rental incomes compared to ready properties, as tenants are often willing to pay a premium for new, well-designed spaces. This increased rental income can provide a steady cash flow for investors and help offset any mortgage payments.
LONG-TERM VALUE
Properties under construction have inherent long-term value, as they are built using modern construction techniques and materials that meet current safety and sustainability standards. As a result, these properties are more likely to retain their value and appeal to future buyers compared to older, ready properties that may require significant renovations or updates.
Additionally, under-construction properties are typically part of well-planned communities that include amenities like parks, schools, and shopping centers. These comprehensive developments enhance the property’s long-term value by providing a desirable living environment that appeals to a wide range of buyers.
EASIER RESALE
Investing in an under-construction property can also make it easier to sell in the future. As the property is built to modern standards and customized to the buyer’s preferences, it will likely be more attractive to potential buyers compared to an older, less personalized property.
Furthermore, as the neighborhood develops and infrastructure projects come to fruition, the area surrounding the property will become more desirable, leading to increased demand and an easier resale process.
HIGHER EQUITY
Another advantage of investing in an under-construction property is the potential for higher equity. As the property’s value appreciates during the construction phase, the investor’s equity in the property increases, providing them with more financial leverage for future investments or loan applications.
This increased equity can be especially advantageous for first-time homebuyers, who may use it to secure better mortgage terms or qualify for additional financing.
TAX BENEFITS
Investing in an under-construction property can also provide tax benefits, which can help offset the cost of the investment. In many countries, buyers can claim tax deductions on the interest paid on their home loans during the construction phase. These deductions can result in significant savings over the loan’s tenure and make the investment more affordable.
Moreover, some governments offer incentives for investing in under-construction properties, such as reduced property taxes, stamp duty exemptions, or subsidies for energy-efficient homes. These incentives can further enhance the financial attractiveness of investing in an under-construction property.
GREATER CONTROL OVER THE CONSTRUCTION PROCESS
When you invest in a property under construction, you have the opportunity to monitor the construction process closely. This level of involvement allows you to ensure that the developer adheres to the agreed-upon specifications and timelines. Additionally, it provides you with the chance to address any issues or concerns as they arise, ensuring that your property meets your expectations upon completion.
LOWER MAINTENANCE COSTS
Newly constructed properties generally require less maintenance compared to older, ready properties. Modern construction techniques and materials result in more durable and energy-efficient homes, reducing the need for costly repairs and updates. Furthermore, under-construction properties often come with warranties covering various aspects of the property, providing additional peace of mind for the buyer.
PART OF A GROWING COMMUNITY
Investing in an under-construction property often means becoming part of a growing community. As the project progresses and new residents move in, a sense of community begins to form, creating a vibrant and welcoming environment. This sense of belonging can contribute to the overall quality of life and make your investment even more rewarding.
While ready properties may offer the advantage of immediate occupancy, investing in an under-construction property presents numerous benefits that should not be overlooked. From better value for money and customization options to long-term value and higher equity, under-construction properties provide a compelling case for investors seeking a profitable and personalized real estate investment. By carefully considering these advantages and selecting a reputable developer, you can ensure that your under-construction property meets your needs and exceeds your expectations, making it an ideal choice for your next real estate investment.
FREQUENTLY ASKED QUESTIONS
DO I HAVE TO PAY ANY TAXES WHEN BUYING UNDER CONSTRUCTION?
In Albania, the tax environment is highly favorable, attracting numerous foreign investors who appreciate both the country’s offerings and its transparent legal system. When purchasing a property in Albania, either under construction or ready property, the only fees required are for the notary and the translation of the contract. These charges are typically contingent upon the property’s value.
Notary fees are calculated based on a specific formula, which equates to 0.3% of the property’s overall value. These fees, combined with the translator costs, represent the total expenses incurred when acquiring a property in this country.
WHEN DO I GET THE OWNERSHIP CERTIFICATION WHEN BUYING IN A PROJECT?
When purchasing a property under construction in Albania, the process of obtaining ownership certification usually takes place around six months after the project’s completion, and it involves several steps. Here’s a general outline of the process:
After selecting a property, you’ll sign a preliminary agreement with the developer/seller. This agreement outlines the terms and conditions of the purchase, including the price, payment terms, and construction timeline. The payment schedule will depend on the terms agreed upon in the preliminary agreement. Generally, you’ll be required to pay a deposit and subsequent installments as the construction progresses.
Once the property is completed and all the payments have been made, the developer/seller will submit the necessary documents to the local property registration office to register the property under your name. The documentation required may include the construction permit, proof of ownership, and proof of payment, among others.
After the property registration office processes the documents, they’ll issue an ownership certificate (also known as the “Hipoteka” in Albania). This certificate confirms your legal ownership of the property.
DISCOVER YOUR DREAM PROPERTY IN SARANDA, ALBANIA
Looking to invest in real estate in Albania, specifically in the picturesque town of Saranda? Our team of experienced professionals is here to help you find the perfect apartment for sale in Saranda, tailored to your specific needs and preferences.
To get started, simply visit our Contact Us page, where you’ll find all the necessary contact information, including our phone number, email address, and a convenient contact form. We are committed to providing exceptional customer service and strive to respond to all inquiries within 24 hours.
To help our team better understand your real estate requirements, please include as many details as possible when reaching out to us. The more information you provide, the more effectively we can assist you in finding the ideal apartment for sale in Saranda, one of Albania’s most sought-after coastal destinations.
