Investments

Due to the large number of foreign buyers and the still relatively low prices, the Spanish Real Estate market is an extremely attractive investment possibillity. Below you can find an explanation of how you can realise 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 the show flat is finished they usually increase the price by another 10% and when the complex is almost finished and the gardens are being done and the pool is finished they usually increase the price by another 10%.

Investors who are familiar with this proces 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 30% of the total purchase price during the construction. The remaining 70% will be paid by mortgage, but the investor has no interest in this final payment as they will sell the apartment right before it is finished.

A simple calculation will show you that these investors can reach 80 to 100% profit on their investment.

Example:
1 apartment - € 200.000 purchase price
Payments during construction (1 year) - € 60.000
Selling price before end payment - € 250.000 (25% increase)- € 260.000 (30% increase)
Profit in 1 year- € 50.000 (85%) - € 60.000 (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. Prestigious Properties can advise you with the selection of the development and guide you throughout the buying and selling process of your properties.