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Investment
Property in Spain
The
Costa del Sol property boom continues and as new developments are released
onto the market there is the usual rush to reserve prime apartments, those
with the better views, those with the extra space, the corner apartments,
the penthouses, etc.
Experienced
investors are first in the queue to inspect the plans of new developments
as they are released to reserve the best units for a minimal deposit and
usually to resell them at large profits long before building commences.
Currently
investing in property in Spain has shown superb dividends. In the past 5
years many investors, private and professional have made gains of between
30% and 100% on money invested within 12 months.
The
fact that profits far outstrip interest rates has created a whole new
market for investors from all over the world. If you are considering
investment in Spanish property then the following methods may be of
interest to you.
Investing at the Planning stage for maximum profit.
For
serious investors who are not just looking for a home in the sun, the
Costa del Sol has proved to be one of the most lucrative property
investment markets in the world, particularly in the last 5 years. Many
investors, private and professional, have made gains of between
30%
-100%
within 12 months on money invested.
Buying
new property anywhere, before or during construction, and then reselling
it as it nears completion has nearly always been a good investment. There
are always buyers who will pay more for a finished or nearly finished
property than they would for a property ‘off plan’ or a green field
site with a completion date 1-3 years away. Nowhere is this truer than on
the coasts.
To
begin with you can start the process by reserving a property with an
initial payment of 20-30% and then while construction continues the resale
value will increase. By now most, if not all the new properties in the
development will probably have been sold and at any time you can re-sell
your option to buy at a profit.
A
current example would be quality 2 bed 2 bath apartment in a good location
available from 200,000€, to secure a contract on this development you
would pay 27% - 54000€
The
delivery date on this would currently be 2006 so lets assume a
conservative figure of 10% annual Capital increase on the value of the
property, by 2006 the apartment would be worth 266,000€ an increase of
66000€ and up to this point you will only have paid 54000€ this would
show a pre expenses profit over 3 years of 122%
The
great thing about this type of investment is that it is safe. All the
money that you pay initially is protected by a bank guarantee. This means
that whilst you may not make the predicted profit figures you cannot lose
the money that you have invested
Investing In Rental Opportunities
Up
to 8% annual return with 18.5% capital growth,
This
year the Costa del Sol will achieve the highest rental prices for holiday
accommodation in the whole of Spain including the Balearics and the
Canaries. In August the average monthly rental per sq metre will be as
high as 81.95€, which means the owner of a 60 sq metre apartment could
enjoy a rental of 4,917€. But on the coasts the rental opportunity is
not a summer only phenomenon.
Unlike
many holiday locations throughout the Mediterranean, The climate on the
Costa Del Sol means that there is no “off Season”.
Consequently,
your rental property will rarely sit empty and should provide a
substantial extra income as well as the option of using it for yourself
and your family whenever you decide.
If
you’re planning to buy property for rental can
recommend you to the specific areas and properties that attract the most
rental enquiries and best income.
Just
fill in the Property
Finder Form and we will email you a selection of
properties that fit your budget |
