Buying Your Investment Holiday Home That Can Pay For Itself

There are few things you must get right when making a decision:

• Location
• Rentability
• Saleability
• Potential growth
• Price
• Purchase process

And guess what...Montevideo hills has it all:

We have been working close with this development over the past few years and discovered that it ticked the entire box's for all the above and can now offer these to our clients who wish to purchase.

Location

Located just off the coastal road known as the "new golden mile" this fabulous development is situated in the peaceful settings of El Campanario golf resort which has one of the most stylish and exclusive clubhouses in the area.

• Close To Amenities
• 10 minutes from the world renowned Puerto banus
• 15 minutes to Benahavis village the Michelin starred gourmet capital of Andalusia
• 30 minute gentle walk to the playa Andaluzia beach which is also used by the 5 star Marriott hotel

If You're near a 5 star hotel its a good sign that you are in the right location as these business's very rarely get the locations wrong.

Rentability

Some people may not wish to rent their property out and just have it for personal use; however, it's nice to have peace of mind that if your personal circumstances change the option is there for you.

Now, this is not by any means guess work. The 6 properties we control here were fully booked through out June, July, August and due to the poor summer in the UK (again!)We are nearly full in September. Also 3 townhouse villas are fully booked for May 2009 so there is an urgent demand for more.

As you will see in our rates we charge £1350 (1700 euro) per week in peak season, so the return for investors is excellent and when you are not using the property yourselves or for friends and family. Your mortgage and costs are being mostly covered if not all!

Saleability

Montevideo hills is a small development of 55 townhouse villas which are unique to other townhouses in the area. they are double fronted and are 160m2.

They are architecturally designed and constructed in true Andalusia style and boasts inspiration from a typical Spanish street in Rhonda.

Once all are sold there will be very little to compare in the area, Unlike, developments consisting of many apartments that look very similar to each other, and suffer price wars with sales and rentals.

Price

As we are all aware property prices are falling in the UK and have bottomed out in Spain, so there has never been a better time to buy.

2 years ago we had a bank valuation of 703,000 euros for a property in Montevideo hills and now we can purchased these townhouse villas from just 450,000 euros! So that's 250,000 euro saving or discount!

Potential Capital Growth

FACT:

• Property has doubled every 10 years since records began.
• Property prices have to come down to create a demand which causes a boom.
• Property prices in this development are very low compared to others locally.
• Infrastructure is excellent in this area and Malaga airport is doubling in size to cater for more visitors
• Increase in tourism + low property price=demand
• DEMAND=PRICE RISES

Purchase Process

We can help with the purchase process of these properties and will recommend reputable lawyers, mortgage brokers and even take the stress out of furnishing your new property.

What You Will Need To Be A Part Of This Deal.

• 15 to 20% deposit depending on individuals
• Typically 12% for purchase costs

Finance Example Based On 5% Interest Only

• Purchase price 450,000 euros
• Deposit 90,000 euros
• Mortgage 360,000 euros
• Monthly payments 1,500 euros

Rental Prediction

12 weeks high season 2009 rental prices based on 1.25 conversion rate:

• Easter week @ £995 = 1240 euro
• Whitsun week @ £750= 935 euro
• June 4 weeks @ £995 = 4975 euro
• July 4 weeks @ £1350= 5400 euro
• August 4 weeks @ £1495= 7475 euro
• September 4 weeks @ £995= 4975 euro

Total rental income 25,000 euros and that's not counting weeks booked out the rest of the months.

• Total mortgage 12 months 18,000 euro
• Cleaning and laundry 18 weeks 2,340
• Rental agents fee typically 20% 5,248

• Total income 25,000
• Total costs 25,588

So this property will cost you as little as 600 euro per year and in ten years time could be worth double.

If you have never stayed in one of these properties why not take advantage of our "try before you buy" offer.

Book a townhouse villa for a holiday and if you purchase we will refund the cost of accommodation and 500 euro towards flights.

For more information please email barry@luxurycostarentals.com

Can Buy-to-Let Really Work In Spain?

The fact is that the British buy to let market is moving over seas and many investors feel comfortable in Spain due to its marvellous infrastructure. It’s the most popular destination for brits and Europeans alike especially the Costa del Sol which boasts warm a climate all year round. The rental market is strong as long as your property is furnished to a high standard and you get the location right.

If you are looking for a particular property please click here to search for a property.