Investment Rationale
Click on the icon below to download a PDF document below detailing more detail on the opportunity for Investors.
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The Village Investment Analysis (1.69MB)
The benefits to investors are split into 3 areas:
1. Potential for Off-Plan pre-completion gains
Buying off-plan offers investors the maximum potential for quick gain. Off-plan developments are usually discounted due to the speculative nature of the investment and typically grow strongly in value once the property and the surrounding development is completed. The investment is also leveraged. As an investor, you can enjoy a low deposit of just 20%, but receive capital growth on the full 100% of the property value.
Example:
Buy 4 x EUR250,000 (£170,000) apartments off plan for a deposit of £136,000
The total value of the 4 properties is £680,000
Property prices rise by 20% during the 2 year build period
The total value of the 4 properties is now £816,000, a profit of £136,000
This represents a 100% return on the original investment of £136,000 over 2 years. In many cases initial investors never have to fully complete on the properties. You are free to sell on before they are fully completed.
2. Potential for Capital Appreciation
The Estepona region is developing strongly. A new Marina development is now complete and the area is attracting significant commercial investment. Properties in the region are expected to close the gap with the Marbella and Puerto Banus region 20 minutes away, where prices are already between 60-80% higher on a square metre basis.
3. Potential for Rental Maximisation
It is a stipulation of the planning permission that The Village has a Management Company in place to manage the property and rentals. Part of the deal may include a rental guarantee package which is as yet TBC. Generally, the amazing list of facilities at The Village, combined with leading football clubs and celebrities visiting the site should ensure the rental demand remains high.
