H&G BELOW MARKET VALUE (BMV) PROPERTY REPORT 2020

In News by redsocks

The whole point of property Investment in Spain in the current market is to make a healthy return on your investment.

Property investment in Spain is currently the One Thing which you should be contemplating in 2020.

There are a plethora of opportunities available to the wise investor. The current climate affords you the opportunity to generate large upside returns via cash flow from buy-to-lets, with the potential for significant capital returns once the market bounces back. And the market will bounce back as sure as eggs are eggs.

Location and timing MUST be your guiding light.

We believe that in the current property market climate, the only effective strategy for any investor is to buy BMV and well below the market value. Furthermore, investors must areas where the rental demand is permanent and solid, in order to rent their properties as soon as they have completed the purchase.

Buying BMV will guarantee you a very healthy return in the long term. If the market falls further before beginning to rise again, which we doubt now, your property investment will still be protected from negative equity. To assure your protected we will find you a property which is at least 25%BMV.

Wake up, and face the facts.

“Paying for expert advice is a lot cheaper than learning from your mistakes”.

There is a huge void between property investment in Spain, property speculation or a second home/residence with investment aims tagged onto it.

They are simply not the same thing, these are entirely different investment strategies with totally different goals and outcomes.

An investment is there to make you money, period.

A second home-retirement property is there as a holiday home for the family or somewhere to retire to in later life.

While it may be possible to realise a yield and thus some financial return on your original purchase in high season/holiday season, by maybe renting a room out, a holiday home will not return a constant profit to you. For starters, they are taxed in separate ways.

Location:

Most retirement properties are chosen on their suitability for long term living. If you’re choosing a home to retire to, you are not usually in an area of high footfall, and bright lights. We would argue that you would prefer quiet, relaxation and serenity.

The best investment / rental properties are close to the action, restaurants, nightlife the usual comings and goings. Properties on the coasts and in tourist towns are always very attractive propositions. Most will be located close to sugar-white beaches, restaurants, waterparks and the nightlife. 

Décor:

The decor inside your investment property must be to the highest standard possible, it must be maintained, the property should be spotless inside and out. First impressions count, you will not get a second chance to make a first impression. Aim high, position the rental at the correct level and you will make money.

The negative argument has always been thus: there is a major oversupply problem on the Spanish coasts and there is insufficient demand to meet the rental and sale oversupply.

This is total nonsense, there is an oversupply of squalid 2 * property, only fit for 18 / 30 parties and clients who couldn’t care what they slept in, as long as it’s cheap, safe and relatively clean, usually backpackers, students and the like.

There is, in fact, a serious undersupply of top-notch, boutique, trendy 5* type property, whether this is apartments or Villas. The key to making serious money in Spain is to position yourself in the market at the top of the tree, offer quality and location and the money WILL find you, every single time, 365 days a year.
If you have serious ambitions about investing to generate high yields, look no further than Marbella, Puerto Banus, Malaga Old Town, Cabo Pino, or Mijas as examples.

All of these towns/resorts have been hot spots since the 1980s. A recent poll has identified Marbella as the number 3 worldwide destination for millionaires and now billionaires. The harbours are home to some huge yachts including the Saudi Royal Family and the Sultan of Brunei’s yacht to mention just two. Lord Sugar, Simon Cowell and many more British and American celebrities call it home.

The property prices are up 12% from the prices of the crash, and there is no sign of it slowing down. The knock effect is being felt in small surrounding villages like Puerto Cabopino, so the time to enter the market is now. Average prices are on the move, the ROI(return on your investment)is assured, and it will come. The market has recovered so you rent the property out for € 1200 Euros a week 30 weeks of the year minimum if you are in the district of Marbella.

Because your property is 5*, boutique and stunningly well presented it will be no problem.If it isn’t looking stunning, why isn’t it?  Get a grip, stand out from the crowd! Your property needs to be the best that it can be internally to realize the best ROI.

Be careful:

Try not to go it alone if you are not an expert or seasoned professional.

Yes, you must be careful, but it’s not rocket science. On the coast and in tourist towns, it will be possible to rent your property for as much as €1,200 Euros per week for a 3 bedroom luxury apartment, if you follow the rules. And at 25 % BMV, we can find you a property for as little as € 120,000 Euros, ish.

Base your calculations on rental income first and foremost, the capital return will take care of its self, you cannot affect the market, you are not Warren Buffet.

The market will move at its own pace, if you are very diligent and your property is extremely well-sited, H&G may be able to forward sell the property for you to the growing number of Chinese, Asian and Angolan investors currently entering the market.

For now, though we would advise you to make the property as aesthetically beautiful inside and out as is humanly possible, employ a great photographer, advertise it in all the right places both national and Internationally and sweep up the rental yield.

If you are a first-time buyer and need help to decorate, furnish, advertise and market the property, H&G will happily step in and do all of the hard work for you.

In conclusion:

H&G are perfectly positioned to help you turn your dreams into reality.

Turning your dreams into reality takes expert help and very good timing. If you would like expert advice, or you need help to locate and purchase a BMV property, please do not hesitate to call or email us.

We also retain (At great expense) One of the best Property Investment Brokers that the industry has ever created. TT.

Do not hesitate to contact us for help.

Kind regards.

H&G.

www.harriet-george.com

Tel. 01832 864020