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It’s no secret that the Spanish Costa’s offer a fantastic opportunity to
make money in the property market. However, as with all business
investments there is risk involved and although it’s rare to lose money in
property you can end up with a stale investment that proves difficult to
sell or rent out.
The key to successful real estate investment is to keep it simple. Your
primary concern will be timing, with the property prices increasing month by
month you cannot afford to hang about… buy off plan!
The big benefit of buying off plan is that you don’t need to come up with
the whole finance amount. You’ll only need somewhere between 15% to 50% up
front depending on the promotion. If you want to make money the earlier you
get in the better you need to buy before the foundations have been dug or a
brick is laid. By getting in early you also take the pick of the properties
available, good orientation with good views perhaps a corner plot with a
view of the pool, sea or even the golf course if applicable. Then you sit
back and wait for the completion date, normally 12 to 24 months later, (if
you want good return the longer the better). Over a couple of years there’s
no reason why a smart investment couldn’t grow by 30 to 50% before
completion.
So you’ve done well with the timing and you’ll keep doing well as long as
the property prices keep rising steadily. So what about making money off
your investment month by month once it’s built? You’ll want it to provide
you with a steady income, not just something to cover the mortgage but a
little bit more as well. We’re talking rentals and once again the fact that
you got in early and chose a good position will now pay dividends. You want
people coming back year after year and if your property ticks ALL the
holiday boxes they will.
When choosing the right investment, put yourself in the shoes of someone who
is going to want to rent a holiday home. Firstly you’re in the best
country, Spain is now so easy and affordable to get to from most parts of
the UK. Not to mention the 300 days of sunshine that it remains to this
day, the average Britons favourite holiday destination. Then think about
what your customers want. Top of the list comes the beach, then bars and
nightlife and family things to do. You’ll also have to bear in mind that
most coastal resorts shut down in the winter, so some of those expensive
front line investments may be surrounded by closed shutters and stand empty
for 7 months.
So how do we get those premium winter rentals in? In a word golf, Britain’s
fastest growing participation sport. By purchasing an apartment on a golf
resort you’re guaranteeing yourself not only a safe property investment but
a guaranteed all year round rental income. Furthermore, the Costa Blanca is
famed for its golf courses, not to mention the new golfing Mecca that is the
Costa Calida, making this an ideal area to invest in when new opportunities
become available. There are a number of golf resorts to choose from but
once again location dictates and finding one close to the beach is not easy.
However, they are there if you know where to look.
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