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Property Investment in Spain

A guide to property investment in Spain

With offices in Manchester , UK and Marbella , Spain escapes2 is an independant portal offering properties for sale throughout mainland Spain , the Balearics and the Canary Islands .

In today's unstable economic environment, investing in property in Spain is a sensible idea. Risk is minimal provided you take on expert advice and returns can be significant.

Escapes2.com is an independent property portal offering properties for sale throughout Spain.

We are here to point you in the right direction, answer any questions you may have and assist you in carefully choosing an investment property from our portfolio of selected projects. We believe we can achieve returns on your investment which you cannot achieve elsewhere.

 

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 brick work 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 Escapes2 have vetted and selected, you will need to have access to 60,000€ (£40,000-£100,000) 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 3-6,000€ (£3,800) is required and this amount is then credited against your equity with 10-20% of purchase price due within 15 to 40 days and a balance making up to an average 30% of purchase price being due over the construction period. However, there are developments available with as little as 20% to be paid before completion.

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.

Escapes2 Limited 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.

We have our own in-house Mortgage Advisors and we recommend to all our clients they obtain a mortgage in principle before placing any deposits.

You can browse over 500 new development projects in Spain and her islands by using our adjacent property search facility . From this extensive database of new developments we hand pick two or three which we feel offer the highest potential capital and / or rental returns for our clients . Our off plan investment portfolio is constantly changing so please call our office on 0161 351 2160 or e-mail investments@escapes2.com for details of the very latest properties .





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