Investment Guide

It is becoming increasingly difficult to find investment opportunities that promise very high returns, as well as the certainty that our investment is 100% safe.

Investing in property can give you the chance to achieve high returns, but most investment in properties require a certain level of speculation, which then re-introduces a risk factor to the investment.

Currently, one of the safest and most lucrative forms of investment available is a new property bought off-plan in the fastest growing property market in the world today – Costa del Sol.

La Duquesa Marina Costa del Sol

When buying off plan, you actually get to reserve a property at around 30% below market value. This means that the property that you are purchasing is worth about 30% more than the price you are paying for it even if the property market in Spain did not move for the next 18 – 24 months.

In reality, the Spanish property market has risen on average by over 20% per year in recent years.

Off plan properties are initially offered at a lower price to attract investors and therefore allowing construction of a new development to begin.

It is possible to limit your investment to 30% of the purchase price and sell the property prior to completion with a return of 80 – 130% on your investment.

When purchasing a property in Spain, a reservation fee of around 6,000 Euros is required and this amount is then deducted from your deposit (30% deposit + VAT). This is normally paid within 30 – 40 days, when the contract has been prepared

Once this has been paid, you have no other requirements to meet until the end of construction.

Should you decide to keep the property as a holiday home, pre-arranged mortgages are available on off-plan properties, or we can assist you in obtaining a mortgage in the UK or in Spain to pay for the remaining balance at the end of construction.

We can even assist you in arranging to convert your Pounds to Euros at the best possible rates.

Your profit is generated through the fact that you have reserved the apartment below its actual value at the time of the reservation.

You can sell the property at any time after the contract or during the construction period, at a much higher price than the one you initially paid. This is because there are usually three pre-scheduled and guaranteed price increases during the construction period.

By selling before completion, the investor avoids the majority of the purchase costs and taxes. This is because the agreement to buy from the promoter is simply a private contract drawn up by the solicitors and states the purchase prices and the stage payments etc.

Only when the development is finished to the satisfaction of the final purchaser the keys are handed over and the deeds then transferred into the name of the purchaser. At this point, associated purchase costs become payable.

On average, the costs of taking a purchase to completion are approximately 10% of the purchase price. This includes VAT @ 7% of purchase price.