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Off-Plan

 Here we are nearing 2006,after yet another busy year, and demand is still high for properties overseas. The market for Spanish property alone sold to UK consumers is set to reach  £21 billion in five years time,

According to new research commissioned by a leading UK overseas property agent. By 2009 it is estimated that there will be 99,000 new properties bought by Brits alone as Spain continues to be the favoured destination for UK residents seeking sun, sea, sand and, increasingly, a home from home. According to the European Central Bank, property prices are continuing to rise faster in Spain than in any other Euro Zone country.

The research by Mintel shows that the trends in Spain are representative of the entire UK overseas property market with the number of Brits owning a property abroad growing in a number of destinations. 41% of overseas properties owned by UK residents were in Spain, making the British the largest non-resident group to own properties in Spain. Several factors influence the growth in the Spanish market:

• Increasing number of low cost airlines opens up new opportunities.

• Increasing number of retirees – 55-64 year old age group is expected to increase by 22% by 2009.

• Rapid growth in property prices has left a large number of consumers with considerable sums of equity in their properties.

Data for 2004 shows that 2004 may be another record year for equity release – more than £30m was released in the first six months of the year alone.

• Weather – 90% of Brits stated that they would prefer to live in a milder climate and a further 80% said they would enjoy having reliably hot summer.

Buying property off plan is securing the most favourable prices and terms by buying something that hasn’t been built yet.

( see investment opportunities)

Demand for property in places such as Marbella has meant that most buyers end up having to wait for their “ideal” property. Hence the queues outside sales offices of popular new releases! When reserving a property off plan you have a number of options open to you.

The beauty is that, unlike most investment products you will have between 18 months and 2 years (the construction time) to decide which option to take. This allows the investment to track and reflect your own particular life needs, desires and changes.

Normally developers will ask for between 20% and 50% of the purchase price within 1 month of reserving a property, after this there is usually nothing to pay before completion, which could be in 2 years’ time.

For your protection, new legislation demands that all promoters have bank guarantees and insurance prior to building licenses being issued.

Whether you are looking for a long or short-term return on your investment, our team of investment specialists here will help you to build a portfolio that will set you up for life.

Contact:

Stephen Selby or Heather Wilkinson

Telephone: 0151 356 5096

Mobile 0797 943 5406

email: info@cheshiremortgages.com