| How to invest
The Spanish property market is currently appreciating by more than 18% per annum. This growth rate can be utilised to provide investment returns in
two different ways.
Buy to sell
For a low initial deposit (20-30%) clients purchase a property.
There are no stage payments to be made with regard to this purchase
and a guaranteed mortgage is in place (non status) if completion
is necessary. Property under construction appreciates very rapidly
during the build period and clients are able to sell their contract
on at any point during construction. This enables the client to
realise their profits without ever completing on the property or
being registered on the property register. For example, a property
purchased at €100,000 would entail a deposit of only €20,000
plus iva (7%) and legal fees. If the property price at sale increased
to €120,000, the original purchaser recoups the full deposit
of €20,000, plus iva and the increase of €20,000 on the
property sale – a return of nearly 100%.
Buy to let
For a low initial deposit (20-30%) clients purchase a property.
There are no stage payments to be made with regard to this purchase
and a guaranteed mortgage is in place (non status) if completion
is necessary. On completion of the property the client is able to
activate the mortgage and take possession. The client is then able
to let the property on either a long or short term basis and realise
an annual return on investment of between 8-10% which will cover
the mortgage payments with a considerable excess. The property is,
of course, enjoying the same levels of appreciation as other properties
in the areas and the underlying investment is always growing whilst
providing a monthly cash flow. If the property is let on a holiday
only basis it is also available to the client for free vacation
use.
After a short period of time, it will be possible to refinance
the property to a much higher level than purchase price which will
enable the client to release significant funds for either reinvestment
or lifestyle options.
Either of these 2 options are available to SUNSET ESTATE clients
and are supported by our full administration/legal teams and associated
property management companies.
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