Why should I be considering this? “Buying off plan”

For the last few years in the United Kingdom making money from property has been relatively easy.

Anyone, even those with little understanding of property investment, could buy a reasonable property in a reasonable location, and sit back as the value has increased almost daily. If they have been able to let the property and cover their holding costs (including the costs of finance if they have bought using a loan) they would have been almost guaranteed an increase in their wealth, on paper at least.

But of course, this could not last forever.

Although the long-term trend for property prices in the UK is upwards, growth is not constant. Concerns about ever higher prices keeping first time buyers out of the market, about the amount of consumer debt, and the possibility that an aggressively rising property market could result in a property crash, prompted the Bank of England to raise interest rates to cool the market.

In December 2004 The Nationwide predicted:

“Following the increase of around 13% in house prices during 2004 we expect price growth in the 12 months to December 2005 to be in the range of 0 to 5%. However, the likelihood is that annual price inflation will end next year towards the lower end of this range. In contrast to 2004, monthly price increases are expected to be much more uniform across the year, although we are expecting to see small price rises in some months and small falls in others.”

If, as expected, the housing market is flat or stagnates during 2005, then obviously property investors will not be able to count on the UK property market with as much confidence as previous years.

In contrast Spanish coastal property prices have risen by at least 15% per annum since 1997 with even greater rises in the more sought after locations.

FACT: The Economist reports that house prices in the last 20 years have risen faster in Spain than anywhere else in the world.

The main Spanish airports are predicting a sharp increase in traffic over the next few years as budget airlines make it even more convenient to escape for a few days or weeks in the sun and this has started to take effect already.

The Spanish National Statistics Institute predicts that the immigrant population (British, German, Dutch etc) will rise to as much as 5.5 million by 2010, representing in the region 12% of its population, compared to just 5% in 2001. Many people believe that the current rate of development will not be able to keep pace with the increased demand for private and holiday accommodation.

The result is? House prices 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% return on the original investment or in many cases even greater i.e. invest £20,000 now and down the line receive £30,000 to £40,000 back or possibly more!

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

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