Why is cooperative housing cheaper in Fuerteventura?

Find out why buying a cooperative house in Fuerteventura is a more economical option than buying a conventional new build house.

Cooperative housing differs from conventional new construction housing in that it is not developed by a development company.
The members of the cooperative (usually the buyers) are the ones in charge of making decisions about the development.

This modality has great advantages over conventional new construction housing. One of these benefits is the economic one, since the final price of a cooperative housing in Fuerteventura is substantially lower than that of a common new construction housing.

Cooperative housing in Fuerteventura is up to 25% less expensive

In the specific case of Villas de Tamaragua, the first cooperative housing development in Fuerteventura, its price is up to 25% cheaper than the rest of the new homes.

But what is the reason for this advantage? Why is cooperative housing cheaper in Fuerteventura?

The figure of the promoter is eliminated

Precisely the absence of the figure of the developer is the main reason why cooperative housing is cheaper than conventional new construction housing.
By eliminating intermediaries, cooperative members (usually buyers) acquire the property at cost price.

Lower cost mortgages

Mortgages associated with cooperative housing are less expensive than mortgages associated with other housing.

This is because, on the one hand, when applying for a loan for a cooperative housing, the member has already contributed up to 25% of the value of the house to the cooperative, so the amount requested from the bank is lower and, consequently, the interest associated with the operation is also lower.

On the other hand, when you are a member of a cooperative, you usually get a better mortgage than buying a home individually from a developer.
Since many mortgages are requested, the bank that works with the cooperative usually offers better mortgage conditions to those who contract the loan with it.

Other aspects

In addition to the aforementioned advantages, it should be added that new construction in the Canary Islands is already cheaper than second-hand housing, an unusual circumstance in Spain, which is only found in the Canary Islands and Galicia.

If we add to this peculiarity all the above, we find that buying housing in cooperative in Fuerteventura is the most economical option to access a home on the island.

Form of payment for cooperative housing

Cooperative housing in Fuerteventura is the most economical option, however, it requires a higher initial outlay.

In order to have a detailed idea of how the payment method of cooperative housing is developed, we will take as an example the payment method of Villas de Tamaragua, currently the first cooperative housing development in Fuerteventura.

Payment plan for Villas de Tamaragua

• Membership in the cooperative: 7.5% of the price of the property of your choice
• Registration: 2.5% of the property price
• 1st Payment: 5% of the price of the property, before the beginning of the work.
• 2nd Payment: another 5% of the price of the property, also before the beginning of the construction work.
• Start of construction: another 5% of the price of the property with the possibility of payment in 24 installments.
• End of the work: at this point, you will have already paid 25% of the value of your home, so you will only have to pay the remaining 75%, at which time you can apply for a mortgage if you need one.

If you want to save money when buying your new home without giving up the advantages of having a newly built home (customization, qualities, features, energy efficiency…) check out the Villas de Tamaragua development, the first cooperative housing development in Fuerteventura.