How much profit can I make on my investment with off plan property?

The answer to this question depends on various factors, all of which are discussed in fuller detail throughout this guide.

As the guide explains, prices of the correct profile of property in the correct location in Spain are set to rise still further.

The profit potential realized from our recommended investments can be in the region of 50 to 100% or more return on your original investment i.e. Invest £20,000 now and down the line receive £30,000 to £40,000 back or in many cases even greater returns are possible.

This phenomenal rate of return is made possible due to the gearing of the invested capital and it is this gearing that makes off plan investment so attractive.

Gearing can be explained very simply in the following example:-

Imagine an investor that has £100,000 to invest in property (NB spectacular returns can be achieved with significantly less capital than this with our recommended investments).

Option 1
The investor decides to purchase a resale property in Spain to the full value of his budget.

A suitable property is found and £100,000 is invested. Two years down the line, our investor decides to sell for £135,000 to realise a profit of £35,000.

Ignoring costs for the moment, £35,000 profit within 2 years represents a great return of 17.5% profit on capital each year.

Option 2
The same investor instead decides to invest his £100,000 capital in an off plan investment. Most of our recommended investments require a 30% deposit, however in order to make the figures easier to work with, we will assume that the deposit required will be 33%.

Our investor decides to invest in 3 new off plan properties each with a value of £100,000.

The investment required for each property is the deposit due which is £33,000 to give a total investment of £99,000 (Approximately the same as in option 1).

Two years down the line and the properties are about to be completed and our investor decides to sell each property, again for £135,000.

So with this “geared” option, each property will realise a profit of the same £35,000 only this time the investor has 3 properties to sell with this level of profit and not just one.

Total profit (again ignoring costs) £35,000 x 3 total £105,000 Three times the profit within the same time frame achieved with exactly the same amount of investment capital representing an amazing 52.5% profit on investment for each of the two years.

Next Page- What is an off plan property?

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