Is it wise to invest in Spanish resort property right now?
By Chris Edwards
Honestly, there might not ever be a better time. Almost every market in the world experienced a major slow-down during the economic crisis not long ago, and though world markets have been recovering steadily overall, growth has been spotty, uneven, and not without setbacks in every major region – every region but one.
The Costa Del Sol has always been strong for rental incomes, and demand for high quality vacation properties has far outstripped supply since the 1980s. The fact that we were able to secure such premium land for the development is remarkable in and of itself.
The Spanish economy has sailed through the economic crisis, and the various recessions, adjustments and fallbacks that followed. It is currently seeing the kind of long-term, sustained economic growth rates that raise eyebrows, and rightly so.
The property market is in a truly prime position, as the world recession deflated property prices substantially, and luxury real estate prices have only just started to rise. Experts tell us that those prices will soon begin to skyrocket as well.
The local government appreciates the position it is in, and the huge advantages that will accrue to it if it can keep or accelerate the last few years of economic growth rates. High rents mean more taxes, even at lower tax rates. For that reason, they are making it possible to do something that has become nearly impossible anywhere else in the developed world: Buy prime property with a 100% mortgage!
This is simply a market where profits are almost inevitable. So what can we do to make it even more attractive to investors? We can make profit literally inevitable.
We are offering 5 years of guaranteed rental income to our investors. We’ll take on the entire burden of renting, advertising, maintaining and managing the property, and pay you the agreed quarterly rent, in advance, every 3 months. Of course, you could rent the property out yourself, and potentially earn more.
Better still, once those 5 years are up, we fully expect property prices in the region to have grown dramatically. You could sell out at that point, and walk away with a small fortune. The smart money would probably stay invested, but it’s always nice to have a short-term exit strategy in your pocket, just in case you need it.