New Developments Vs Second hand properties: Advantages and Disadvantages in Menorca

If you find yourself in the beautiful enclave of Menorca, searching for your future home (either as a primary or secondary residence), you've likely pondered a crucial question: should you opt for a resale property or embark on a longer-term new construction project? What are the main differences, especially in terms of the financial and tax aspects? As experts in Menorca's real estate market, we are here to help you explore the key distinctions between these two options and guide you in your decision.

Below, we explain the main differences, advantages, and disadvantages between new construction properties and the resale market, properties that are already built and currently available for sale. And if you have any questions, don't hesitate to contact us!

New Construction Property - Freshness and Customization Opportunity:

A new construction property in Menorca is like a blank canvas where you can bring your dreams and preferences to life. These properties are known for their impeccable and modern state. Some of the advantages of choosing new construction on the island include:

• Development Location: Many new construction properties are located in growing areas with urbanization projects that promise a contemporary lifestyle and modern amenities.
• Energy Efficiency: These properties often meet energy efficiency standards, leading to long-term savings on energy costs.
• Customization: This is where the magic happens. You have the opportunity to choose finishes, layouts, and details that match your tastes and needs.
• Fewer Renovations: Being entirely new, new construction properties save you the immediate stress and costs of renovations.

On the other side of the scale, as a disadvantage of new construction projects, it is worth mentioning that the low availability of buildable land, coupled with the difficulty in obtaining new construction permits, as well as the high costs of construction (materials, logistics, etc.), result in a limited supply of new properties in the market and at higher prices.

If you opt for new construction and want to embark on your own unique personal project, you may be interested in checking out the plots or buildable land in Menorca that we have available on our website.

However, keep in mind that the construction process may take time, and delays in delivery can sometimes occur. If you're looking for a property with character and historic charm, a resale property might be more your style.

Resale Property - History and Character in Every Corner:

Resale properties in Menorca have a story to tell. If you appreciate character and authenticity, these properties can be a smart choice. Here are some reasons why a resale property might be the perfect choice:

• Established Location: These properties are often found in well-established, well-connected areas of the island, offering a convenient lifestyle close to the local community.
• Quick Move-In Time: Once purchased, a resale property is ready to move into immediately, reducing the time between the decision to buy and the actual move.
• Unique History and Character: Some of these properties often feature authentic details and architectural elements that tell the story of Menorca.
• Lower Initial Prices: Generally, resale properties have a more affordable purchase price, which can be attractive for those with a somewhat tighter budget.

However, it's essential to remember that some resale properties may require renovations or improvements, which should be factored into the budget.

Taxes and Fiscal Considerations:

New construction properties may be subject to Value Added Tax (VAT), which is set at 10% of the notarized amount (or 4% in the case of social housing), while resale properties are usually subject to Property Transfer Tax (ITP). In the Balearic Islands, the ITP ranges from 8% to 5% when the property value does not exceed €200,000 and is a primary residence. Be sure to consult a tax expert or real estate lawyer to understand the specific taxes in your case, as this is a significant factor that will impact your decision.

It's important to highlight that the international context, as well as local policies that are currently in place or have recently been enacted, will have a clear and direct impact when choosing between one option or the other. Costs, timelines, and other critical factors will vary significantly. For instance, during periods of global economic growth, low inflation, and more permissive urban policies, opting for new construction may be more appealing. On the other hand, restrictive policies, uncertain international situations, and an excess of new construction in the market may favor the resale market.

In the end, the choice between new construction and resale will depend on your personal preferences and residential needs (timing, costs, etc.). Ultimately, if you're looking for new construction, we have real estate developments that can cater to your needs, as well as land and plots for sale on the island. Conversely, if you've decided to explore the resale market, we encourage you to discover all the homes for sale in Menorca that we have on our website. And most importantly, don't hesitate to get in touch with our team of local experts so they can advise you! We're here to help you find your special corner on this beautiful island.