| 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.
Please
also visit our sister site worldpropertyinvestor.com
for other possible investments.
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