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BUYING REAL ESTATE FOR INVESTMENT AND TURNOVER
by Fuerteventura Properties Professionals

Buying  new build property Off Plan and selling before completion is an extremely good form of Investment which can show substantial returns on your capital invested, but like all forms of investment that offer higher than normal returns there are always risks attached.
Caution should always be attached when buying off plan and must be thought through thoroughly before embarking on such investments.

Which are the potential Financial Benefits?

As an investor and using an approximate return for the right development, you should see a payback on your capital invested of conservatively between 15%-20%  of thetotal intial capital invested, which relates to some 50% return - because as a guide you are only investing approximately 30% - of the total original saleprice.
Other points any investor must factor in is costs such as selling fees- tax liabilities etc, which will all have an ultimate effect on your final returns.

Timescales - How long should you have your money invested?
Because you are buying at the first price release you should expect to have your money invested for anything between 18 months and two years.
The above information is only a guide and any examples given are only for illustration purposes and must never be taken as a guarantee.

With all high return investments there is always an element of risk and like all investment opportunities, unless you can afford to have your capital tied up fro at least two years and have the ability to take title should the property not sell before taking title, do not do it.

 

 

 

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