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Investment Opportunities - Buy To Let - Buy To Sell


The majority of investors in the Spanish property market are looking for a quick return on their investment.

   This is achieved by buying properties off plan, generally with long completion dates (18 months – 30 months)
 

Payment schedules for off plan properties are generally:-

  • 40% on signing initial contract
  • 40% at roof level
  • 20% on completion
   Due to the long completion dates, after signing the contract but before roof payment Buena Vista Villas will look for a buyer on behalf of the investor. It is better at this stage if the work has started on site which gives greater confidence to the new buyer who generally likes something to see and touch. This is usually 12-18 months after the initial 40% investment has been made.
   The current and previous appreciation in property values in the Northern Costa Blanca gives the main return on the investment. Property prices have been rising at between 20 – 30% per year.
   The new purchase price will take into account the current prices of the same properties (if still being marketed) and generally the increase in property prices throughout the area (currently running at 30-40% on the total cost of a completed project)
  Once a new buyer is found the initial property purchase contract is transferred to the new buyer, whereupon the investor will receive the return of their capital invested together with the profit made. (generally in excess of 100%)
   The new buyer will pay the remaining stage payments at roof and completion.

The following are examples of investments made by our clients recently

Mr P. Selected property (Town House) - Total Cost 132.000
  First payment made 46.000
  Resold 18 months later for 191.000
     
  Profit 59,000 € % Profit = 128%  
     
Mr S. Selected property (Apartment ) - Total Cost 95.000
  First payment made 38.000
  Resold 1 year later for 140.000
     
  Profit 45,000 € % Profit = 118%  
     
Mr N. Selected property (Villa) - Total Cost 220.000
  First payment made 66.000
  Resold 18 months later for 330.000
     
  Profit 110,000 € % Profit = 167%  

Note:- Great care must be taken in the location and type of property in order to appeal to the largest number or second buyers. Buena Vista Villas will advise on this.

Please note these examples are based on past performance and are not guaranteed.

 

 
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