If you buy before developers start marketing the new project, you can make 10-15% in the space of days if you time it right. Of course make sure you use a reputable developer and check out their previous projects.
Eg. Property price 200,000 euros (30% deposit put down, guaranteed mortgage starts upon completion of property).....4 weeks later 15% rise due to the start of heavy marketing and more buyers.....decide to hold for 1 year, another 15% rise in prices that year......property now worth 260,000euros.
Heres the interesting bit (and completly legal in Spain, done through lawyers).......You market your property for a BARGAIN 250,000 pounds. The buyer now has to pay you the 50,000 euros + your deposit in CASH ( both parties lawyers are present at exchange of cash). This leaves the buyer with the mortgage which will only start upon completion of build.
The buyer gets 10,000 euros discount and a property that will increase X% in the time it takes to build.....and you get a pocket full of cash to lay as deposit on your next purchase...
This process happens all the time in Spain, and until The Spanish Goverment put in solid laws, people can carry on making money TAX FREE.
Once you have accumulated enough cash, and want to start spending some (aswell as re-investing of course), you open an offshore account.
You are still a UK resident,paying UK tax from your occupation in the UK!
1. You need someone in the know, to get you on board early.
2. You must be careful and pick a plot/apartment that is one of the best in the development. This will make getting rid of it alot less stressful, as you will sell it quick.
3. You must use a good lawyer that you can trust.
4. You must use a big developer with a reputation to uphold.
After making a bit in UK property over the last 5 years, I am now investing in Spain, I think annual returns will be better over the next 5 years at least. Thats just my opinion, so good luck to all you investors out there whatever your investing in...
