Buying a villa directly from the builder (developer) or choosing to purchase the plot and manage the construction as a self-developer (autopromoter) each come with their own advantages and disadvantages. Here’s a detailed comparison for Spain:
1. Buying a villa directly from the developer
Advantages
- Convenience and speed:
- The process is centralized, often including the land, construction, and administrative procedures.
- The house is usually ready or near completion, meaning you can move in much faster.
- Legal guarantees:
- New properties come with legal warranties: 1 year for cosmetic defects, 3 years for habitability or installation issues, and 10 years for structural defects.
- The developer handles legal procedures such as permits and licenses.
- Simpler financing:
- Banks offer specific mortgages for completed homes, which are less risky and easier to secure than self-build mortgages.
- Professional design and planning:
- Homes are typically designed by experienced architects and built by professionals.
- Minimal involvement:
- Ideal for those who don’t have the time or expertise to manage a construction project.
Disadvantages
- Higher cost:
- Developers include a profit margin, making the purchase more expensive.
- Limited customization:
- You may have to settle for pre-set designs, materials, and finishes.
- Risk of developer issues:
- If the developer faces financial or legal problems, you could experience delays or financial losses. However, some risks are mitigated by mandatory insurance.
2. Being a self-developer (buying the plot and managing construction)
Advantages
- Cost savings:
- You avoid the developer’s profit margin, potentially reducing the overall cost.
- Complete customization:
- You can design the home to suit your needs, choosing everything from layout to materials.
- Flexible budgeting:
- You can prioritize certain features or phases according to your preferences and budget.
- Full control:
- You oversee every step of the process and make decisions directly.
Disadvantages
- Complex management:
- You are responsible for obtaining permits, hiring architects, surveyors, and builders, as well as supervising the construction.
- This requires time, knowledge, and dedication.
- More complicated financing:
- Self-build mortgages are harder to obtain and typically require more upfront capital.
- Banks release funds in stages as construction progresses.
- Risk of cost overruns:
- Unforeseen issues during construction can increase the final cost, especially if the project is not well-planned.
- Longer timelines:
- The process from purchasing the plot to completing the home takes significantly longer than buying a finished property.
- Legal responsibility:
- As a self-developer, you are legally responsible for any administrative, technical, or legal issues that arise.
Direct Comparison
| Aspect | Buying directly (Developer) | Self-developing |
| Cost | Higher (includes developer’s margin) | Lower, but risk of overruns |
| Time to move in | Faster (house completed or under construction) | Slower (design and build process takes longer) |
| Customization | Limited | Complete |
| Management | Simple, developer handles everything | Complex, you manage permits, architects, builders |
| Financing | Standard mortgage (easier to obtain) | Self-build mortgage (harder to obtain) |
| Risks | Limited, but dependent on developer’s performance | Higher, unforeseen issues can affect costs/timelines |
| Guarantees | Covered by law (1, 3, and 10 years) | Depends on contracts with builders |
Conclusion
- If you value convenience, speed, and clear legal guarantees, buying directly from a developer is the better choice. It’s ideal for those who want to minimize risks and have limited time or knowledge about construction.
- If you prioritize customization, have experience managing projects, or want to save money, self-developing may suit you better. However, be prepared to take on more responsibilities and risks.
Your decision will depend on your available time, project management experience, and risk tolerance.
