Investing in Property in Spain

How does it work?
When buying 'off-plan' as opposed to buying a re-sale property, you get the opportunity to reserve your property at around 30% below market value. The reason properties are offered initially at such a low price is to attract individuals who are in no hurry to take occupation but realise the significant savings of early purchasing. These early purchasers provide confidence in the project and financial security for the bank or the developer who provides the financing for the project. Construction starts with or without these early sales but of course quick sales at this stage enable the developer to make an increase in prices when constructions begins. Prices generally go up in 10% increments during construction. Firstly when foundations are laid, secondly when brickwork begins and finally during the later finishing stages.

Example:
2-bed unit priced at 150,000 euro
Amount paid during 18 months construction - 45,000 euros (30%)
Property value increase during 18 months construction period - 45,000 euros (30%)
This increase amounts to 100% of the original investment but costs such as legal fees, etc must be taken into account and the property will need to be sold at slightly below market value to encourage a quicker and easier resale. Therefore a profit margin of 80% on original investment is suggested.

The figures above are examples of returns that can be achieved by investors who get in first at the very early stages of selected developments. Obviously if the overall overseas property market continues to grow year on year, the returns will be that much higher.

What is the average required investment in these properties?
With the current opportunities that Sunbelt Estates have vetted and selected, you will need to have access to minimum 60,000€ (£40,000) depending on the price of the unit you are reserving. This will include legal and processing fees, stamp duty, title and land registry searches, the VAT (IVA) and legal fees.

When you reserve a property, a reservation fee of 6,000€ (£3,800) is required and this amount is then credited against your equity with 30% of purchase price due within 15 to 40 days. All legal issues, securing the investment, preparing contracts and arranging for an overseas bank account (if required) can be handled by one of our recommended lawyers with years of experience in the buying and selling of property and all aspects of law.

Sunbelt Estates works hard to ensure that we only bring you developments offering high returns as well as the best possible security. As such they are few and far between. We go to great lengths to ensure that each investor is provided with the opportunity to make the very best returns that the market has to offer. Our off-plan investment portfolio is constantly changing, in order to keep up to date with the best offers please contact us on +34 952 77 25 87.

Costa del Sol Property in the following areas: