The region of Murcia and the Costa Calida is showing the highest rate of economic growth in the whole of Spain. With affordable housing, superb transport links and an existing infrastructure of facilities and amenities, the region looks set for spectacular growth. Many people are predicting great things for the area, with some expecting it to mirror the recent investment returns achieved on the Costa del Sol.

Some of the reasons for the demand for property on the Costa Calida are:

These are the pure ´lifestyle´ reasons for purchasing on the coast. When you add to the equation the relatively low purchase prices and the great financial returns that are expected, the region of Murcia and the Costa Calida adds up to a superb multi-faceted investment product.

Many people have heard about the phenomenon of buying property off-plan. All that this means is that you are securing the most favourable prices and terms by buying something that hasn´t been built yet. There is a huge demand for quality golf-resort properties in the Murcia area, with points of sale located throughout the world.

Developers will normally increase the prices of their units at certain stages of construction, and most notably once a show home is erected. It is not uncommon for some developers to increase prices by around 5% per quarter, or even if their weekly sales targets have been reached!

When reserving property off-plan, you have a number of options open to you - the beauty is that, unlike most investment products, you have between 18 months and 2 years (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 a sum of money, normally between 25% - 50% of the purchase price within 1 month of reserving a property. Usually, there is then nothing to pay before completion in, say, 2 years time.

Many investors decide to retain the property on completion for their own personal use. Many also decide not to rent the property - some fall in love with the place and would rather other people didn´t enjoy it too!

However, if you choose to rent the property, you should be aiming to cover the cost of bills, maintenance, mortgage costs, and be left with sufficient surplus to enjoy a couple of visits to the property each year. Some investors have been seeing income returns of up to 10% on occupancy levels of 20-30 weeks per year. We always advocate a mixed approach to marketing a rental investment. Very often the most receptive audience of potential clients will be those closest to you…family, friends and business associates. It is amazing how word spreads after someone has had a great holiday in a wonderful property!

Remember that if you are purchasing on a quality golfing resort, the rental season can run for 12 months. Once the summer season is complete, the golf season begins for enthusiasts from all over Europe from September to May, and the Costa Calida is set to be a golfer´s paradise. So one property´s high season may be the summer, whilst another´s may be the winter. Cloud Nine will help you in choosing the perfect property to suit your rental and personal requirements.

There are 2 distinct sets of buyers in the market - the speculative investors who will snap up the best units on the best developments at the lowest prices, before selling on their option to purchase to a lifestyle investor who would prefer to ´touch and feel´ the product and be set to occupy the property within a couple of months, rather than a couple of years! Obviously the secondary buyer will pay a premium to buy, but in effect, the premium is simply the asking price at the time.

Some of our clients have seen returns of 40% - 70% on an initial investment of as little as £40,000, just by securing a well located off-plan property and selling it before completion.

Nearly all of the costs payable at completion are avoided in this scenario.

As a footnote, we often find that our speculative investors become lifestyle buyers, falling in love with their chosen properties, and deciding to keep hold of them. And likewise, we also find that our lifestyle buyers are often attracted by the potentially rewarding returns enjoyed by the speculative investor. The options are open to everyone.