|
Post a reply ||
Back to Message board
Investment Property Costa Blanca
Submitted by Edmond La Roche on 09/Oct/2004
Message:
There are countless off-plan projects currently under way on the Costa Blanca and these can prove a lucrative investment, even in the short term. Different developers set different terms but you normally make an initial payment of between 30-40% on a property which has yet to be built.
http://tmsonline.info/property/enquiry.cfm?entered_by=reeu%20Costa%20Blanca%20Investment
The last payment is made on completion but by that time there's a good chance that your property has already increased in value. All payments are fixed at the outset so there's no danger of you having to fork out more money to allow for the fact that the property is worth far more on completion than it was at the outset. Many investors sell their "option to buy" at a considerable profit shortly before completion.
Developers of a building project is always keen to sell as many properties as early as possible to improve cash flow, minimize development loans from banks and give the project some forward momentum. In order to sell before construction has started, the developer sells 'off plan' at extremely competitive prices because investors only have plans, computer simulations and a plot to view at this stage.
Apart from the fact that the developer will be selling at less than current market value to attract investors, the real key when buying 'off plan' is that you only have to pay 35% of the purchase price as a deposit. Thereafter, no further payments are required until the project is completed, at which point it can be financed with a 65% mortgage or sold.
http://www.real-estate-european-union.com/costa-blanca-property/
Replies to this post
|