Investment Club stands apart in the real estate market in Marbella, occupying its own niche, not competing with the many companies offering similar services.
This niche investment in luxury real estate. If the purpose of the investment is not just to buy a property for resale and get the standard rate of return of 15-20%, and investing in projects of really unique property, with a rate of return of 50% to 100%. It may sound paradoxical, but it is really possible, if you know how to achieve this approach.
Another type of service offered by the Investment Club is the renovation of old villas to significantly increase the selling price. Such an investment can change the sales value of a home from 25% to 35% of the original appraised value of the property before it was renovated.
High-Yield Real Estate Investing
Let's consider in detail how such opportunities are achieved.
The first rule is to invest only in the construction of new real estate. With elaborate design and thinking in advance of all the nuances that can significantly affect the profitability of the project, you can get another level of real estate. We call it collectible real estate.
The practice of such objects sale shows that their asking price depends little or nothing on the construction cost and the average selling price in the market with regard to its location. The estimated market value of such properties is based on other parameters. To get a collectible property, its exterior and interior appearance should be visually more expensive than the proposed sale price.
For those who would like to explore this topic in more detail, we recommend reading our other 2 articles written about the subject. They are able to uncover many of the mysteries of this non-standard approach to the development of investment projects.
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It is impossible to buy cheaply on the market for a built collectible property, which means that its sales price cannot be an attractive investment. Therefore, it only needs to be built! And that is when this astonishing effect of making a profit, incommensurate with all the offers of the market arises.
If you evaluate the real estate market in Marbella, for example, the situation is approximately the following. About half of the buyers are investors. They are investing in the purchase of real estate for resale. The second half - is the buyers of real estate for themselves. They use it for permanent residence and as a holiday property at sea.
This means that with this distribution, we always have a demand for such properties, taking into account the fact that the offers on the market just do not exist. Mass development of the so-called luxury villas and apartments are not suitable here.
As we have written many times in our articles, the markets are ruled by stereotypes, and it is the stereotypes which force the consumer to accept the so-called new trends. There is a great explanation for this phenomenon.
A new trend, the so-called "boxes", houses in modern minimalism are quite cheap to build, they consist of universal blocks. These houses have a high percentage of glazing, which also reduces the cost. Despite the fact that developers try to put up such houses with ready-made interiors, the cost of such quite universal interiors is insignificant.
Then market mechanisms come into play. The cost of architects' work, versatility of layouts, market propaganda presenting such real estate as luxury, all this leads to a new fashion for minimalist style houses. Views, clean lines, maximum space and minimum furniture are being promoted. Realtors have to support such a trend, otherwise, there simply won't be anything to sell.
But the question remains. What happens to this property next, after the realtors managed to sell it for millions of Euros? Is it really a good investment and whether the owners would be able to sell it if necessary later on? Costa del Sol has about 30,000 listed properties built or under construction! Open the listings and you will see that the advertising slogans almost all declared as luxury. Open the websites of more than 200 real estate agencies on the coast. Try to analyze those hundreds and hundreds of photos of finished properties and newly built properties. How much difference will you find in all those? Colorful descriptions and nothing more.
Why is everything like this? Stereotypes. Breaking stereotypes is a very time-consuming task. No one wants to be the first, and the market continues to breed the trend of the modern home described above. This will continue to happen until someone makes a breakthrough and shows the market something different, and until the market realizes that this new thing brings in much more revenue. And then, the market wakes up and starts to create a new trend and a new stereotype.
The Investment Club is a black sheep in the market. We want to be a few steps ahead of the market and offer what the market inevitably comes to, being saturated with monotonous architecture. That's why we offer projects that are geared toward tomorrow.