Off plan-why?

Many serious investors are looking to make an above average capital return their main priority when investing “off plan” in Spanish property.

Spanish property “Off-plan” investment purchases have seen some spectacular returns for thousands of investors over the last few years here in Spain, initially on the Costa del Sol, but now also on the Costa Blanca and Costa Calida.

Off plan-How?

1. Early phases are priced significantly below market value (more about why later)
2. The typical deposit is only 20-30% of the total property value.
3. During construction your property should benefit from phase price increases and market growth.

Off Plan Spanish Property Investments

Lo Marabu ....townhouses from 183000 euros
Cabo Roig ...good investment property.... apartments from 180000 euros
San Miguel ...apartments from 95000 euro
Corvera Golf and Country Club.....apartments from 187000 euros
Roda Golf...apartments from 214000 euros
Sucina...Hot property investment opportunity .....apartments from 104000 euros
Polaris World..apartments from 150,000 euros
Los Montesinos ...apartments from 126000 euros
Neuva Ribera Beach Club...frontline apartments from 216000 euros

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Example scenario “Buy to Sell”

Purchase Price: 100,000 euro
Deposit payable: 30,000 euros
Market price for equivalent property 125,000 euros
Assuming a 12% growth in the market during construction phase (returns over the past 2 years have been approx 18-20%)
Sell on Price 140,000 euros
Net profit 30,000 euros
Return on investment 100%
(prior to completion)
Your profit is 40,000 euros less costs which is obviously a gross 40% return on the 100,000 euro asking price. However, since you have only had to pay 30,000 euros in deposit, your actual return on the funds invested is 100% taking out legal fee’s of approx 2% and a selling commission of 5% to arrive at a net profit of 30,000 euro’s.

Now that we have given a brief summary of the Spanish property off plan investment concept lets explore the reasons behind such an opportunity.

Development Lifecycle

Low prices initially offered
In order to meet financial targets set by the developers bank and actually begin construction up to 50% of a development needs to be sold off plan.The developer is therefore very keen to sell phase 1 as quickly as possible and prices are very competitive.

Best plots go quickly
Another factor at this stage is that the best plots get sold first. These are normally end units,penthouses,top floor and any obvious unique or special plots and styles of property.

Phase 2
Usually phase 2 is launched after 2-4 months and a price increase takes place as the target number of phase 1 properties have been sold.

Construction begins
Once construction starts and the development starts to take shape prices start to increase typically 10-15% as its far easier to see what the finished properties will look like and the general layout of the development.

More properties sold
The development will normally be sold out 6 months into construction and prices will continue to increase which means if you wish to sell on at this stage your property will be worth considerably more than the original price you paid.

Completion
You are now the owner of a brand new property with gardens and in most cases a pool. At this stage there should be a ready supply of prospective clients willing to pay significantly more for a property that they can move into or rent out immediately who would never have been prepared to buy on the basis of a plan and a plot of land.

All Off plan developments

Polaris World 119,000 Euros Apartments Limited release of Polaris World apartments from 119,000 Euros on Condado De Alhama

Trampolin Hills free Golf membership worth 10,000 Euros on first 100 properties-Apartments from 130,000 Euros

Property of the Month in Denia a 143 SQ M Townhouse just 700 yards from an award winning beach.

Low Deposit Offers

Ribera Beach Low Deposit

Lo Alegre Low Deposit

Senoria Low Deposit

Corvera Golf front line apartments 15% Deposit

Guaranteed Rental offers

10% Deposit Villas 3 bed Villa's 200,000 Euros only 10% deposit and 2 year guaranteed rental scheme to cover mortage

Guaranteed Rental 5% for 7 or 9 years and 6 months private usage

Developments in the Costa Blanca South

Lo Marabu ....townhouses from 183000 euros
Los Montesinos ...apartments from 126000 euros
San Miguel ...apartments from 95000 euros
Torremendo ...apartments from 100,000 euros

Developments in the Costa Calida

El Mojon ....townhouses from 214000 euros
Neuva Ribera Beach Club...frontline apartments from 216000 euros
Corvera Golf and Country Club.....apartments from 187000 euros
Roda Golf...apartments from 214000 euros
Sucina...apartments from 104000 euros
Cabo Roig....frontline apartments from 180000 euros
Trampolin Hills...2 Bed Front line Golf apartments from 130000 euros
Polaris World.....apartments from 160,000 euros

Developments in the Costa Blanca North

Altea Hills
Jalon Valley
Denia Developer

Developments in Costa Almeria

Laguna Beach Almerimar

Guaranteed Income Almerimar