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Buying Off-Plan Properties in Murcia, Spain

Rest Assured Properties specialises in off plan developments which offer the best value for money. Investing in Off-Plan properties give the largest returns on your investment.

A well maintained property in a good area should double in value every seven years.* The Economist recently reported that over the last twenty years Spain has enjoyed the fastest growth in property prices anywhere in the world. A property bought two years ago for example, will have likely increased by 20% to 30%.

An off plan property bought at a price well below the market value and then sold at the current market value would have made an excellent return on investment. Murcia is the investment hotspot in Spain - read more....

Read on to see how you can make a handsome profit!

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Over recent years, properties in Murcia in Spain, purchased in good areas and properly maintained have doubled in price every seven years.*

The Economist recently reported that Spain has enjoyed the fastest growth in property prices anywhere in the world over the last twenty years.

property experts say Murcia is the property investment hotspot in Spain For example, a property purchased two years ago for example, will have probably increased in price by 20% to 30%.

An off-plan property bought at that time, and at a price well below the market value and then sold at the current market value would have made a very handsome profit.

Click to read why property experts say Murcia is the property investment hotspot in Spain!

The Most Lucrative Return on your Property Investment

One of the most lucrative ways to make a good return on money invested is to buy a property "off plan." This means simply buying a property before it is built.

The property can be sold at a good profit before completion, or the purchase can be completed and sold later when the price of the property will have increased even further, or an income can be generated from renting the property. Read more about earning rental income from your off-plan property in Murcia.

Right property in the right location - the key to good investment.

It is shown that well kept resorts and gated developments are the best investment opportunities that will give a good return on money invested. Nobody wants to find themselves in a run-down place once the boom is over!

With a golf development, it is inevitable that the facilities will continue to be maintained to a high standard, as this is the mainstay of everyone’s income.

Purchasing off-plan means that a property can be purchased at well below the completed market value and a return of between 20% - 100% in just two years is achievable.

Why Off-Plan is such a Good Investment

The reason why buying off-plan is such a good investment is that the developer of a project is always exposed to risk. The developer must cap this risk as quickly as possible, limit bank loans and other debts and secure the best possible interest rates from banks and investors on the development loans they need.

To do this, they must sell their properties off-plan, at good prices. The best time to buy is in the very early stages of the development. At this time, prices are well below the market value because purchasers cannot actually see a physical property and have to rely on artist impressions and floor plans.

The finance structure that is offered is also very good – a buyer will only need to pay between 30% - 50% of the price of the property and nothing more until completion, which may in some cases be two or three years ahead. A high number of purchasers release equity from their existing property to fund the initial payments so that they do not actually have to find any liquid cash.

During the development period, the developer will increase the price of the properties several times as the project progresses (between 8%– 10% increase, three or four times, making a possible total increase of between 30% and 40%).

These price increases coincide with the level of risk the developer is taking throughout the project. So as the project progresses and the risk diminishes, the developer increases his prices. As an example, when the construction starts and a show home is completed, the price of the properties rises. From the buyer’s perspective, he will now be able to see a physical property and have to rely less on artist impressions and floor plans.

As more and more properties are sold, the price of the remaining properties will also rise. As the resort matures, properties will be more and more desirable, pushing the prices up even further.

How to Make a Handsome Profit - Sell Before Completion!

Many investors decide to sell the property they have purchased prior to completion and make a handsome profit. Take the following example:3

A property is purchased in the early stages of development at 100,000 Euros.
30% of the price (30,000 Euros) is paid in the initial stages, the remaining 70% is due on completion in 2 years.
The property is put on the market just before it is due to be completed.
It sells at 130,000 Euros. (this is an example, a property bought at this price could sell at a much higher price).
The deal yields a profit of 30,000 Euros on the initial investment of only 30,000 Euros.

This deal produced a staggering 100% return on the initial investment!

If the purchase continued to completion, the remaining amount could be financed by a mortgage and even larger profits realised over the ensuing years.

*Important Note.
Rest Assured Properties offers no guarantee that the price of a property will increase in value year on year, nor that past performance of property prices are a guarantee of future performance. All purchasers must assure themselves of their ability to complete their purchase before signing any contract otherwise their home will be at risk.