FINDING A MORTGAGE

The approval is a simple calculation that considers several factors, but primarily your income. The mortgage formal approval by the lending entity enables you to have a feel of the price of the property you can afford, knowing that, where approved, you will be able to borrow a percentage between 60 and 80 per cent of professional valuation price.

TOWNHOUSES

A townhouse is a good investment given its all-year-round high demand. They require little maintenance, have low running costs and are comfortable to live in. Against this choice is the prospect of living door to door with other property owners.

VILLAS

A villa is a choice for those seeking tranquillity and independence. They require a higher investment in maintenance and the higher prices have the logical effect on annual running costs. Countryside villas or ‘fincas’ have low running costs, at times ridiculously low. These however tend to be located at some distance from towns or cities. For those buyers with a good amount to spend, villas are the choice.

SMALL PROJECT DEVELOPMENTS

It is happening in coastal resorts. Investment buyers place deposits on all of the units of a project development and put them for sale straight away. The investment buyer then liases with the project developer in order that legal exigencies such as bank guarantees are met. It is a cheap and safe way of investing and can give high returns in a short time. Engaging a good real estate company is a good choice when choosing this form of investment.

RESALE VS NEW SALES

From a strict investment point of view, new sales are more promising in terms of making a gain when selling. Resales have already been squeezed for a gain, and thus the gain to be made is less predictable. There are however no fixed rules in this respect, which makes the gain predictions a bet for the future. Certain buyers will necessarily choose a resale: villas are not normally for sale from a project developer, although the building restrictions in some areas and the demand for one-family villas are encouraging developers to build these close to other kind of developments.