Buying a home

Risks and disadvantages of buying “on paper”

There are not many risks and disadvantages, however, if you are not prepared and do not take the necessary precautions, they could cause you serious ECONOMIC DAMAGE.

Let’s start by analyzing, one by one, these aspects :

The greatest RISK is, without a doubt, the possible FAILURE of the manufacturer . In the most serious cases, if you have not taken the necessary precautions, you could “lose” all the sums paid. In addition to the economic damage, there would also be the insult of finding yourself homeless

In the event that the builder finds himself in financial difficulty, he could delay the delivery of the property or even suspend the work until a date to be set . If so, it will be difficult to tell how long he will be in trouble or worse, if the situation will continue to worsen.

The last risk, which you can run into, is that you are given a property that does not reflect your expectations . In fact, it could happen that the builder did the job wrong, but also that he misinterpreted your requests…

In the latter case, the builder could ask you for the costs for the new modifications if you request them. As you can see, buying “on paper” has many positive aspects… But NOT EVERYONE CAN DO IT , and the reasons are these:

You don’t have to have time problems or the urgency of moving quickly to your new home (on average delivery times range from 10 to 18 months, depending on the progress of the building site). There could also be some delays, so don’t rush…

You must have some liquidity to pay as an advance and during the various stages of work progress. Usually, in the compromise, a payment program is established with advances fixed upon the achievement of certain stages of processing (e.g. foundations, roof, systems, finishing), in addition to the balance foreseen at the signing of the notarial deed.

Without this liquidity, it will be difficult for a builder to sell you the property and / or, if he does, I will do it on his terms.

On the other hand, the “liquidity” required is used by the builder to go ahead with the works without using his capital (and it is also the reason why he grants you the “discount”).

As previously mentioned, even the purchase on “paper” has its downside …

By spending a lot of time between the proposal and the delivery of the property (as we said previously, even 10/18 months) both RISKS and some DISADVANTAGES could be created.

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