The beauty, climate, lifestyle and ever improving infrastructure of the coast has created an unprecedented demand for homes, not only from residents of Northern Europe, but from all over the world.

In 2003 property prices on the Costa del Sol rose by more than 18·5%, similar to the year before. In the last 3 years, many owners have enjoyed increases in value of more than 50%, and this pattern is set to continue, making Southern Spain the must be place for investors.

Last year, housing sales in Spain exceeded 500,000. That is more than the figure in Britain and France - combined. And it is one-third of the total in the U.S., a country with seven times Spain's population. Since 1998, rising employment and income levels, falling interest rates and a growing population have fuelled demand and nearly doubled housing prices in this country of 41 million people.

The boom underscores the enormous effort the country has made to catch up with its wealthy neighbours since it joined what was then the European Economic Community in 1986. Spain cut its debt, deficit and inflation levels as it prepared to enter Europe's single currency in 1999, leading to low interest rates and rapid growth for one of the continent's leading tourist destinations.

As the demand for building land is very high it is fast becoming scarce. The potential is for growth to continue at its current rate for at least five to six years, and still not meet the prices in the other strong markets. Spanish infrastructure is still developing, EU funds are pouring in, creating the environment for substantial future expansion of the economy. Given this, the Spanish property boom is set to last for a far longer period of time than the more mature markets of Ireland, Holland and the UK.

The latest forecast from FEDUR (Federacion Andaluza de Urbanizadores y Turismo Residential), states "an estimated 800,000 European families will buy a home in Spain over the next 5 years; other analysts are predicting as many as 2 million." The reason so many foreigners are choosing Spain for their permanent or holiday home is not just the sun (although the climate in itself might be worth the move).

Take the following into consideration:

• Pensions in Northern European countries are getting less. Not only the amount of Pounds, Euros or Kroner pensioners are actually getting, but because of ever rising prices there is even less they can buy.
• More than half of endowment policies are now showing shortfalls, according to the latest figures.
• Instability of the Stock market.
• Politics.

On the positive side;

• It is extremely easy to get loans with low interest rates.
• High prices for houses in Northern Europe and abundant possibilities to get a second mortgage, if necessary. House owners are sitting on a gold mine but while staying in their country of residence they are unable to profit from it.
• Houses in the UK and other parts of Northern Europe are worth a lot of money, so much money that they can easily finance an apartment, townhouse or villa in Spain.

Why Spain?

Spain is one of the cheapest countries in Europe with an extremely high living standard. Everything is organized as it is at home; infrastructure is perfect, with running water, and electricity readily available. On top of this, from Malaga or Alicante it is just a 3 hour flight or less, to every major city in Europe.

Residents of most European countries are better off in Spain. Worst case; they'll considerably improve the living standard they had in their country of residence. Best case; they'll live the life of their dreams.

Unlike many holiday locations throughout the Mediterranean, the coast enjoys international and Spanish visitors all year round, with no sense of it 'shutting down' at the end of the summer.

Firstly, the cosmopolitan ambience of Marbella, the local microclimate, and the unmatched cultural and sporting facilities throughout the area continue to attract discerning visitors throughout the year. Most prefer the freedom of a private rental to the rigidity of the big hotels.

Secondly, golf and all its related activities has become a multi-billion pound industry throughout the region. Visitors to the 60 plus courses fuelling demand for private rental properties, particularly on or near the courses.

Finally the ever-growing commercial infrastructure of the coast and the nearby city of Malaga is attracting Spanish and European middle management and young professionals who frequently require a medium to long-term rental quite often paid for by their employer.

Making money the easy way

People are currently becoming increasing concerned about the investment opportunities currently available in the UK. Financial equity markets around the world continue to disappoint investors with no sign of any real upturn. The so-called financial experts have continued to talk up these global markets over the last three years; however the upswing has failed to materialise. This has caused investors to become increasingly nervous and sceptical, with many now looking for alternative, and less speculative, forms of investment. With pension plans falling, higher rate tax at 40% and low interest rates meaning that inflation is eroding the purchasing power of ones capital.

The simple facts are that it is getting harder to make money in the UK.

There is a solution to this.

Why invest in property on the Costa del Sol?

The property markets overseas, and in Spain (Costa del Sol) in particular, are providing fantastic opportunities for investors. For the last three years property investors have been making gains of between 30% and 100% on money invested over a 12-month period.

The Facts are;

• 2003 saw 18.5% capital appreciation
• Specific area increases of up to 35%
• The fastest growing area in Europe
• Public awareness, via the media, has shown the ease of buying property overseas
• 800,000 families are set to emigrate to the coast in the next 5 years
• 11 million people in the UK have sufficient equity available to release
• Tourism continues to increase to Spain, by 1 million a year

It could not be simpler

The saying that "you cannot beat bricks and mortar" is used all the time in the UK. There is another train of thought in Spanish property. "You cannot beat buying off-plan", and it is the way to invest in property in Spain. This is especially relevant when, as an investor, you get in a development in the first few weeks of its release. Developers on the Costa del Sol are aware that many people looking to buy their home have little vision, and still need to see "bricks and mortar" before committing their funds. Due to this, fantastic opportunities arise for property investors, as developers recognise and reward clients that get in at the early stages, giving huge discounts. For as little as 30%, with nothing to pay for two years (until completion), a property investor can build a substantial portfolio which is 100% Bank Guaranteed. There are then further property price increases, which are guaranteed by the developers pricing strategy.

How property price increase are guaranteed by the developer

As mentioned the developer will reward the client who invests in his project at the earliest possible stage, by giving a discount to the true market value of the property, as if it was built. Price increases are implemented when the development hits key trigger levels (on average this is 6% a quarter). The triggers are normally around build completions and availability. Using an example of buying off plan on the early stages of release shows the profits that can be made. By purchasing a property at 200,000€ off-plan with a deposit of 30% (60,000€) with nothing to pay for two years the following would occur. Even using conservative estimates of 6% increases every 6 months (and not every quarter) over the two years, the profit on the investment would be 48,000€. That is a profit of 80%. There is also the natural growth of the Spanish property market that has grown at an average of 18% per annum over the last 4 years.

The day you buy is the day you sell

The most important part of any investment is a strong exit strategy. Property that is recommended must have strict criteria. Including location, quality, value for money and rental potential. The best time to sell your contract, to maximise your profits, is just before completion. Our resources will ensure that for the serious property investor, off-plan contracts will be sold on at a profit.

Why NOW?

Most people are currently unaware of the massive investment potential that is currently available in the strong and flourishing Spanish property market. Price increases are phenomenal and continue to grow on a daily basis. This trend is set to continue, however the only investors that will reap the full benefits and these fantastic opportunities and enormous returns are those that have the vision. Just as many very, very rich people made their money investing in the London property markets in the 1970´s; it is now the turn for those who wish to make the same kind of money on the Costa del Sol.

Timing is essential and the timing is NOW!!!

A word of advice.Investment property is not for everyone. It is only for people with the gift of vision.