Spanish Costa Properties
Newsletter
March 2003

In this issue

1. INVESTMENT OPPORTUNITY - BUYING TO LET PART 2.
2. INVESTMENT OPPORTUNITY - BUYING OFF PLAN PART 2.
3. WEB SITE UPDATES - NEW DEVELOPMENTS.
4. INSPECTION TRIPS - TRY BEFORE YOU BUY.
5. ABOUT SPANISH COSTA PROPERTIES.
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1. INVESTMENT OPPORTUNITY - BUYING TO LET PART 2
In last month's newsletter I wrote about the advantages of buying
of plan for investment purposes. It is possible to get 50-100%
return on your investment over 2 years buy buying off plan in the
early stages of the development. There are still good returns to
be made by buying to let. One of our properties that we bought to
let in 2001 has recently been valued at 50% more than we paid
just 18 months ago. We took out a 50% Spanish mortgage which has
been covered by the rental income so if you take "gearing" in to
consideration we have doubled our investment in just over a year.
For example, if you purchased a property for £100,000 last year
with a 50% mortgage, the property is now worth £150,000 an
increase of £50,000, therefore you have doubled your initial
investment of £50,000. The mortgage repayments would be around
£600 per month for a 10 year repayment plan. Rental income is
between £300-£500 per week depending on the season so if you work
on renting for 50% of the year this would give you an income of
just over £800 per month.
If you have not got £50,000 to invest consider re-mortgaging your
UK property to raise a deposit and then getting a Spanish
mortgage over 20 years.

2. INVESTMENT OPPORTUNITY - BUYING OFF PLAN PART 2.
After the article in last months newsletter I have had a number
of enquiries asking where to find one of these "buy off plan"
investment opportunities. So I sent my Spanish partners out to
look for the latest developments. The best bargain they found
was in Rojales, a brand new development of 2 bedroom apartments
near the Quasada golf course, ten minutes from Torrevieja. The
initial price for these apartments is £52,000. We forecast that
these apartments will be worth between £70,000 - £80,000 on
completion if not more. If you are interested in this development
drop me an email and I will send you further information as soon
as I receive it.

INVESTING IN THE UK
Compare the investments above with investing in the UK. A report
in last weeks Sunday newspaper named and shamed PEPs investments,
the worst performer returned only £130 for a £1000 investment 3
years ago! The best performer returned £1300 for a £1000
investment 3 years ago. Not too bad if you managed to pick this
particular fund. The problem is how do you pick the right fund?
The good fund managers tend to change companies quite regularly
so even if you manage to pick a fund that is doing well there's
a good chance that the fund manager will move on and your
investment will stop performing. PEPs are just as risky as
investing directly in the stock market, you have to watch your
investment and move it round on a regular basis. You've seen all
the hype about property investment in the UK which is still
fairly reasonable but does not compare with Spanish property in
Costa Blanca.

WHEN IS THE BEST TIME TO INVEST?
75% of our enquiries are from people who have £50,000 - £100,000
to invest, At the moment this will buy a reasonable property but
in a few years time the average property in Costa Blanca will be
a lot more and too expensive for most of us, just as most property
in the Costa Del Sol now is. Money is still cheap to borrow and
will be for the foreseeable future, so buy sooner rather than later.

3. WEB SITE UPDATES - NEW DEVELOPMENTS
We are constantly updating our web site with new developments so
if you haven't visited lately have a browse through our property
pages. Over the last few weeks we have added properties available
at two developments just south of Torrevieja, Vista Azul and
Agua Marina which are just 10 and 15 minutes from Murcia airport.
www.spanishcosta.co.uk/vistaazul.html
www.spanishcosta.co.uk/aguamarina.html

4. INSPECTION TRIPS - TRY BEFORE YOU BUY.
We have a few vacancies for some of our rental properties up to
the end of May so if you would like to go on one of our inspection
trips we can arrange for you to stay in a luxury villa to get the
feel for living in Spain. Our representative will pick you up from
the airport, show you around the area, show you suitable properties
and make all the necessary arrangement if you find the property
you want to buy.
So if you are thinking about visiting Spain before the end of May
let me know what type of property you are looking for and I can
arrange a villa stay inspection trip.

5. ABOUT SPANISH COSTA PROPERTIES
Spanish Costa Properties provide you with a totally personalised
and flexible property consultancy service. Together with our
Spanish partners we use a number of reputable developers and
estate agents thus offering you an unrivalled selection of
properties to suit all budgets.


All the Best
Roger Weavers
Spanish Costa Properties
www.SpanishCosta.co.uk