Secretes, for the art of investment
Due to the large number of foreign buyers and the still relatively low prices, the Spanish Real Estate market is an extremely attractive investment possibility. Below you can find an explanation of how you can realize high returns on your investment.
Price increase during the construction of a new development:
A new development has a number of price increases during its construction stages.
The first one is when the company has received their building license and can start to build. They usually increase the price by 10% at this stage. When they start building the show flat, they usually increase the price by another 10%. When the show flat is finished, they usually increase the price by another 10% and when the complex is almost finished, the gardens and the last face are being done, and the pool is finished they usually increase the price by another 10%.
Investors who are familiar with this process can use their money to gain a handsome profit. They can reserve one or more apartments off plan before the building license has been given. They usually have to put down 40% until 50% of the total purchase price during the construction. The remaining 50%-60% will be paid by mortgage, but the investor has no interest in paying this Mortgage, as they will sell the apartment right when it is finished.
Smart Money Is Moving To Spain
Why buy a new property?
- Guarantees on building work
- You can add extras during building, such as swimming pool, extrabig garden, extra bedroom, & garage. Anything is possible.
- The payment for the property is usually in stages.
- You get a blank canvas for all those decorating ideas.
- Everything is shiny and new.
- Getting a mortgage will be easier.
Clients whom are looking to maximise their investment should buy 'Off Plan' .
'Off plan' purchases have seen some spectacular returns for thousands of people over the last couple of years here in Spain, especially on the Costa Blanca
Buying 'Off Plan' means reserving a property on a new development before the property is completed, often before construction has started. Exactly like, you can do in Britain.
The developer is obviously very keen to sell as many properties as early as possible to obtain better interest rates on their development loans from banks and investors. To help sell the properties at this early stage the prices are normally extremely competitive for the reason above and because there is nothing to show potential purchasers except a floor plan and artists impressions of the finished development.
Here again, similar to what you can do in Britain. However, in Britain prices have been to slow down dramatically, hence the smart money is moving into Spain where prices are still racing ahead by as much 30 to 40% a year rallied on by potential buyers from around the world.
For example: Purchase Price: 100,000 euros (Jan 2004) Deposit payable: 50,000 euros
Let us assume that the price of the property in April 2005 on completion 150,000 euros. (This is a much lower return than has been achieved in recent years).
Your profit is 50,000 euros, which is obviously on the top of 100,000 euros asking price and is fabulous 50% return on your money but remember all you have had to pay is a 50,000 euros deposit so your actual return on cash invested is 100%.
When you purchase from a good developer and the location of the development is good, i.e. at the beach or close to a golf course, you can accomplish these high returns as well. La Casa Blanca can advise you with the selection of the development and guide you throughout the buying and selling process of your properties.
However, with our especial offer you can make even more money
1. Buy a property off plan in the booming Spanish property market
2. Pay your deposit.(50%)
3. Let your investment build in value whilst under construction
4. Take delivery of your new property with the balance fees and taxes covered by the mortgage
5. Pay no mortgage payments for 2 years.
6. But rent out your property to produce an income, in the main time
7. Either sells your properties after 24 months .pay of the mortgage and collects your profit or commences the payments and keeps your property, as an alternative to poorly paid pensions as renting can easily cover your mortgage especially when your interest rates are 3,25%