Tips for purchasing your dream Spanish property at a discount

There is an enormous glut of properties in Spain at the moment, and we are very picky regarding the types of developments we choose. My top tip for those seeking the perfect mix of investment and vacation is our new 288 unit development in Granada. We have negotiated exclusive discounts jointly with the bank and developer and independent research forecasts net rental yields of 8%. It is a beautiful resort in an unbelievable location with access to beaches (10min), golf courses (15 min), ski slopes (35 min), airport (25 min) and the historic town centre of Granada (20 min). You can find further on our website.

Generally speaking, I would advise buyers to stay clear of large developments (I get nervous when they are bigger than 300 units) and high density developments (more than 3 storeys). You should be purchasing units that are least 30% lower than the previous purchase price and that are at least 65% sold (to avoid risk that community fee system will collapse). And of course, don’t even think about purchasing offplan, with hundreds of thousands of unsold finished properties available all over the country at bargain prices, there’s simply no need to take that risk.

Torcana Ltd is a property investment consultancy dealing with investments in foreclosed property, distressed property, and discounted property in USA, Spain, UK, and Panama. For more information please visit: – http://www.torcana.com

An Irishman promoting discounted European properties to American investors

I was in Brazil a couple of weeks ago, not to look at local property developments (although I did do that too) but to deliver a series of presentations to a large real estate conference attended by international property investors. I was the only person there promoting European property and the only person discussing the strategies available to those seeking to purchase highly discounted property from distressed sellers.

Hardened investors who had arrived with the intention of purchasing offplan condo hotel or vacation property in South America were surprised to find themselves very seriously considering purchasing city centre property in Birmingham or vacation homes in Andalucía instead. They simply weren’t expecting an Irishman to stand up and offer them high quality finished properties in these locations at lower prices and higher rental yields than their offplan South American equivalents. It was a great success for Torcana overall, and if any of our regular clients would like to view one of the presentations I delivered please click here.

Torcana Ltd is a property investment consultancy dealing with investments in foreclosed property, distressed property, and discounted property in USA, Spain, UK, and Panama. For more information please visit: – http://www.torcana.com

Regards

Colin Murphy

Torcana Ltd

Travel schedule of an international foreclosed property specialist

Apologies for the longer than usual delay between issues – a very hectic travel schedule over the past 10 days taking in conferences in Brazil, meetings in London and site visits in Granada, Almeria and Birmingham has robbed me of the time I usually set aside to write these newsletters and blog postings.

However, our website www.torcana.com has been updated daily with great new projects and my colleagues have been kept extremely busy from a large influx of enquiries from PR exposure in Business & Finance Magazine, The Sunday Times and Homes Overseas Magazine.

I wasn’t in Fortaleza Brazil last week to look at local property developments (although I did do that too); I was actually there to deliver a series of presentations to a large real estate conference attended by international property investors. It was a great success for Torcana overall, and if any of our regular clients would like to view one of the presentations I delivered please click here.

Torcana Ltd is a property investment consultancy dealing with investments in foreclosed property, distressed property, and discounted property in USA, Spain, UK, and Panama. For more information please visit: – http://www.torcana.com

Regards

Colin Murphy

Torcana Ltd

Offplan Emerging Market vs Discounted Developed Market

A new trend seems to be emerging in certain property circles. Several times in the past six months I have seen evidence of hardened investors who have always pursued an offplan investment strategy considering a radical change.

The profitable strategy of the past decade is fairly simple on paper – find a reputable builder, reserve an apartment in a great location which will be built in 2-4 years time, negotiate preferable payment terms and wait for capital appreciate during the construction stage. Definitely not as easy as it sounds, but hundreds of thousands of people have been doing it successfully.

Times are changing though, and these same hardened buyers are now pursuing a new strategy with equal vigor – instead of offplan apartments or condo hotels in emerging markets, they are snapping up completely finished properties in developed markets at discounted prices.

Why? The credit crunch. Developers are struggling to sell excess stock, which means they are under pressure from the banks that financed them. This forces them to drop prices dramatically to stimulate supply and boy are they doing it. I’ve seen prime urban properties in very wealthy cities selling cheaper than an offplan resort in an area with a fraction of the income per capita.

Spain is one area where big discounts are available, but you must be careful not to purchase the wrong kind of property. Generally speaking, I would advise buyers to stay clear of large developments (I get nervous when they are bigger than 300 units) and high density developments (more than 3 storeys). You should be purchasing units that are least 30% lower than the previous purchase price and that are at least 65% sold (to avoid risk that community fee system will collapse). And of course, don’t purchase offplan – with hundreds of thousands of unsold finished properties available all over the country at bargain prices, there’s simply no need to take that risk.

Surprisingly, the United Kingdom, the world’s 6th largest economy, is another area where both domestic and international investors are taking advantage of record low prices. Demand has dropped dramatically in the past 18 months, but so has supply, there was less than 6000 properties completed in October 2008 in the whole United Kingdom, the lowest since records began. With 30%+ discounts available in central London and 40-50% discounts in Birmingham, many are taking advantage of favourable rental yields and are patient to wait 4 years+ for capital appreciation.

Changed times indeed.

Torcana Ltd is a property investment consultancy dealing with investments in foreclosed property, distressed property, and discounted property in USA, Spain, UK, and Panama. For more information please visit: – http://www.torcana.com