Investments

Reason to Buy New Build Property

Due to the large number of foreign buyers and the relatively low prices in the valencia region, the Valencia Real Estate market is an extremely attractive investment possibility. Below you can find an explanation of how you can realize high returns on your investment.

A new development has a number of price increases during its construction stages.

The first increase is when the company has received their building license and can start to build. They usually increase the price by 10% at this stage. When the show apartment or villa is finished they usually increase the price by another 10% and when the complex is almost finished and the gardens are being done and the pool is finished they usually increase the price by another 10%.

Investors familiar with this process can use their money to gain a handsome profit. They can reserve one or more apartments/property off plan before the building license has been given. They usually have to put down 30% of the total purchase price during the construction. The remaining 70% will be paid by mortgage on completion although on many occasions the investor may be able to sell the property before completion so as not to pay any final payment.

Example:

1 apartment – € 200.000 purchase price
Payments during construction (1 year) – € 60.000
Selling price before end payment – € 250.000 (25% increase) – € 260.000 (30% increase)
Profit in 1 year- € 50.000 (85%) ? € 60.000 (100%)

There are many things to consider when looking to invest, ie is it near to the airport (normally no more than 1 hour) is it near the beach, golf course etc. What is the future for this development? will it be a holiday resort etc. ValenciaProperty.co.uk can advise you on what are the possible “good for investment” properties and maybe which are not. Valencia is not the only good place to buy investment property and you will see by joining our property club that there are plenty of other overseas and uk investment property about at the moment.

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