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Investment in Property Projects in Fuerteventura and Tenerife
Building Projects are now restricted on Fuerteventura due as a result of the moratorium, however this is having the effect of increasing property prices. Consequently, for people investing now, there are very substantial gains to be made. Taking a theoretical, but typical scenario, say at the beginning of a two year project, a property is for sale for €200,000 and the builder asks for 20% initial payment. In twelve months he asks for a second payment, also of 20%. So in the first 12 months you invested €40,000 euros (20% of 200,000), and the following 12 months another €40,000 euros. However the property, as it is being built, will increase in value by at least 10% per year on the total value of the property so after two years by the time the buyer takes title to the property, it has increased in value by 40,000 euros plus another 40,000 euros that was discounted off the price in the first instance. In broad terms, you should double your investment in two years. So what’s the downside? Well the only way you could lose is if property values dropped by more than 20%,
but with the aforementioned moratorium on building, and the huge level of demand, there is not one property professional on Fuerteventura who is predicting anything other than continued steady increases. If you have a serious interest in Investing on Fuerteventura, and would like some further information without any need to commit to anything other than a useful chat, please give us a call. | |
