This page is a guide to investing in homes, given from our own experience of what has been best and… worst!
Our purpose here is to encourage ethical and equitable investments that contribute to local communities.
Being frank, we do not seek to encourage investments that are solely for speculation. If anything these can (but not always) have a damaging effect on communities. We do encourage investments made where there is a commitment to investing in lives, with the investors receiving an equitable return.
For example, we intend to work with people in our own projects (see item 1.) who will also most likely live here, investing themselves and their families into the community. We are particularly interested in helping with investments/projects that provide jobs, and with those who bring an expertise to the community (e.g. medical, in particular nursing, of which there is a significant shortage in Spain at this time).
“Where the wealthy help subsidise the worthy, and with equitable returns”.
⇑ This image: affordable housing projects.
The best investments (in our view).
1. New developments – with our own new proposals for equitable affordable housing. (new tabs)
2. Land with an existing structure (aka. “land with ruin”).
3. Land not yet with permission to build, but likely.
4. Partnership and co-funding with developers at the outset.
5. The BIG question now is… where and when?
1. New developments.
For future home owners, with a little patience and understanding it is undoubted that new developments provide the highest value in the medium term. This is one of the reasons we will be increasing our attention on these in the coming months. Specifically areas that we believe will blossom. These areas will play a major roll in our own new proposals for building developments that incorporate affordable housing for young professionals, families & older people.
Why does this seem to be a common pattern with new developments?
Firstly, when only partially completed new developments are offered at a lower price than when finished. Take for example the Luxury Villas shown here in Benahavis (new tab). These are now fully completed and being offered for €5,300,000.
However, before construction began, whilst “off-plan” they were being offered at half this price. When all the legalities were finalised, and work commenced, they were priced at 30% less than the price today. If you had bought at the outset, you would already have doubled your investment in less than 3 years. That… is good ROI!
Having said that, there is still room for increase with properties such as these. They remain a good investment, because when they are all sold (which won´t be long now), this will be taken as a sign of confidence. Fully established. If then placed on the market it will almost certainly be at a higher price. How much we can not say for certain. Not as much profit as at the outset, but still significant.
2. Land with an existing structure.
Usually referred to as “land with ruins”, a very good form of investment if you are able to be a little more “hands on”. Why? Firstly it is almost certain you will receive consent to replace the “ruin” with a new building of the same size. Also likely, but not guaranteed this could be increased, expanded and replicated.
We have witnessed many occasions where open-minded local authorities take the view that change is going to happen anyway, they want it, and so they allow it to multiply. That is the practical view. The more romantic view, equally valid, is that this once used to be a family home, and now we allow it to become home to many.
3. Land not yet with permission to build.
Probably the highest risk, but not if you carefully take into account the location and ask a few questions.
- a) Is it close to other land that has already been developed – or will be soon?
- b) Are the local authorities keen for investment, and is it for commercial or domestic – or both.
- c) Are there any developers who have recently gained licenses but have not yet started.
There are quite a few who are keeping it “in their pockets” for the future. We know who they are.
4. Partnership and co-funding with developers at the outset.
This is the top end of the scale. Not all developers welcome this, but some do. If you can get your foot on the ladder at the very beginning, the rewards can be even more substantial.
Most developers rely on selling in stages, thereby enhancing their cash-flow from deposits and primary completed sales. They progress step by step. But we know that those with a keen eye on the ball will be open to co-funding entire projects in one go. It is so much easier.
It means they do not need to rely on selling in stages, nor are they that concerned about deposits or early sales. Smaller margins for them perhaps, but only very slightly, and with less pressure and a greater ability to progress onto the next project without worrying about the current one.
The bottom line is not so much about margins, it´s more about turn over, consolidated profit and faster progression.
5. THE BIG QUESTION?
The big question now is: where and when? We are watching with intensity. Candidly this is where our own future profits will be invested. We will tell you when, where and why. You can join us in partnership, or go it alone. Either way, if you link with us everyone, including the overall community will benefit.
CONTACT
Classic examples of varying prices.
On the Costa del Sol.
On the costa Blanca.
I´m Anthony writing this page. Here is my personal conclusion:
I am very interested in seeing how the Costa Blanca in particular is coming back into fashion. Why? Because it is less expensive than the Costa del Sol, but probably won´t be for long. The Costa del Sol is fabulous, exciting, vibrant. Well established. The Costa Blanca is, I believe, on the brink of a very promising new day. Just my opinion!
This could possibly all be summarised by saying to potential investors:
“Bring yourself, your family, your wealth and/or your professional expertise. You will be very welcome here. You will fulfil your benevolent ambitions, and will have made a solid investment from which either to move on to your next stage in life, or to leave as a legacy to your family and friends.”
Be very well, and with best wishes for success. Anthony.
Next: Proposals ⇒
Requiring the usual “disclaimer”. These are only our opinions, you should always take legal advice before entering any transaction. Better still, have your lawyers (attorneys) chat with me first. They will want evidence. We have it.
Wikis: The Costa del Sol | Costa Blanca | Spain (external: new windows)