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INVESTMENTING
IN NEW DEVELOPMENTS
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With European
law changing building standards nowadays, new developments are where
people are buying. This is because all new construction comes with damp
proofing, sound insulation, air-conditioning/heating, fully fitted
kitchens and bathrooms with 10 year building guarantees. Moreover you
will receive bank guarantees with all payments made to the developer
until time of completion. Buying something new and off-plan also means
that you are buying at the original and first price and not paying for
an overpriced resale with plumbing and damp problems. Remember when
buying off-plan the payments are spread over the construction time and
this allows you to plan ahead; more importantly by the time the
construction is complete you will have earned good capital appreciation. |
PROPERTY PRICES CONTINUE TO
RISE, and there are no signs that this is likely to change with many
experts predicting a 20-30% growth. Official figures show an average of 20%
and it now costs around 70% more to buy a property than it did 4 years ago.
Reasons for this strong and
continued growth can be contributed to a number of factors including:
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Market demand from Europeans and
the Spanish markets
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Low interest rates
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Low cost flights
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Increase in flight availability,
from more regions in the U.K. to Malaga
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Pension inactivity, more people
are choosing to invest in property that can offer sound long term
investment that could create a rental income if desired.
Malaga Airport's new terminal project
will have the capacity to double its current use by 10 million passengers
over the next 15 years and such long term investment creates confidence
within tourism. This is reflected by the number of new low cost airlines
offering routes not only from the London areas but also regional airports
including Bournmouth, Cardiff, Bristol, Birmingham, Cork, Glasgow, Edinburgh
and Leeds.
This winter has also seen a 20%
increase in take off slots reflecting a higher increase in passenger
numbers, proving that tourism, particularly in the Costa del Sol, is no
longer seasonal. This increase also brings with it a buoyant economy as a
longer season is good for new jobs and local business.
Many of the new developments, selling
off-plan, are reporting busy sales offices. This is good news for the
developers, but can mean that potential buyers need to visit quickly, as
many of the well priced properties are being snapped up. Some of the
recently released beachfront developments, are currently offering some
re-sales that will be ready later this year, so if you want to benefit from
a new build but don't want to wait a long time for it to be completed, these
could be for you !!! |
