The
earlier we can lock a prime unit in any investment project the
better, as we can then optimise the situation by not only selecting
prime units but also by securing our purchase at aggressive
prices. The aggressive pricing is the Developers way to encourage
early sales, the power of this gives him leverage in negotiating
his own funding for the construction of the project from his
own bank.
Of course not everyone can lock their investment unit at launch
time and although this represents a fantastic opportunity it
does not in any way suggest that the growth from any given project
has been missed by getting on board a little later.
In most cases the construction period for a project will
be 24 months which provides an excellent time frame for
capital growth on the investment.
By
selecting an investment property via Costa del Homes you
will be able to rest assured that all safety measures
and guarantees are in place so as to protect your monies
invested.
By being able to
select a unit early you can reap the benefits of the following:
- Maximum Capital
Growth period.
- Choice of prime
units.
- Launch prices.
- Staged Payment
Schedule through construction period.
- Up to 70% mortgage
available should you complete the purchase of the property.
When working on
the selection of an investment unit you will only work with
a more senior member of our team who has tried and tested knowledge
of this area of the market.
A
worked example.-
-
Investment Unit Price = 300.000 plus 7% IVA
- Reservation
Fee = 6.000
- Payment
Schedule = 30/70
- Payable
at Private Contract stage = 30% + 7 % IVA less 6.000
-
Amount Payable = 90.300.
Based
on average growth of property purchased during construction
over last 12 months of 25%.
-
Amount invested = 90.300 X 25%
- Gross
Profit = 22.575
However
the likely return is potentially better than that as the
25% growth is based on the actual original purchase price
of the property.
This
then presents a scenario as shown below:
-
Purchase Price 300.000
- Amount
Invested 90.300
- If
Property Value increases by 25% then gross return = 75.000.
This will mean that
a profit of more than 50% on the money invested will be realised.
To maximise the
gains to be made selling on prior to completion when certain
taxes are payable in connection with the purchase and subsequent
sale is advantageous. However these taxes can to some degree
be mitigated by the increased growth in value of the property
after completion.
*(A
good Lawyer will help you at all times to mitigate any tax liablilty
in connection with a pre completion sale or post completion)
