High Interest Investment in Estepona and Costa del Sol

High Interest Low Risk Investments in Malaga.

High Interest Investment in Estepona and Costa del Sol, it is a good moment to bear in mind.

Do you waste time with your money in the Bank?

Years ago you got 2% or 3% just having an account in the bank with high remuneration. Those times gone, now nothing new in your balance month after month, and probably your bank phoned you to offer a fund, or long term deposit.

There are two facts that make buying a property a good option.

Rental Market High Demand

The situation in places like Marbella, Estepona or Malaga city is that a new rental property last in the market less than one week. So now is difficult to find something below 600€ per month. An increase of a 13% in turistic visits to Malaga compared with the year before contribute to the robust demand for rentals.

So many client look for properties to be easily rented. Minimum price is around 600€ long term, but if you look for summer weeks, and depending on the property you could be paying thousands per week.

I spend a few weeks per year and I rent it  rest of the time.

Forecast for Pricing is a Slightly and steady Increase

Different experts foresee between 3-5% increase for next years in prices.

The BBVA Research Service expects the cost of housing to rise by 3.5% in 2017, Servihabitat raises this figure to 4.3%, Bankinter handles a 3% -5% hairpin, Axis Corporate and the Spanish Association of Value Analysis (AEV) foresee an increase of 3%, Solvia speaks of 3.1%, etc. Percentages that ponder a sustained and healthy growth of the quotation of the floors.

High Interest Investment in Estepona and Costa del Sol

 

A Real Buying Case

A good apartment, not far away from beach, could cost 155.000€. Let´s say a conservative case, you can find bargains and of course more expensive ones, but also you will increase what you get from rental.

So including taxes, notary and year expenses let´s take 173.000€.

In the other hand, a long term rental with  650€ per month makes 7800€ a year.n If you decide to go for a turistic apartment you can make much m0re money, but with also more job to do.

This means 4,5% profit, in a conservative scenario. But do not forget that you will also have an appreciation of your property of 3-5% per year.

This is a minimum profit. That is the reason we are witnessing a number of investors looking for less than 200.000€ apartments.

Contact us for detailed ROI calculation or more information.

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