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.
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.
Our niche is to create only collectible properties, ones that can be put onto the market at any price. If there's not even a counterpart on the market, there's no established price.
It doesn't matter what purpose the property is bought for: for personal use or for resale. Collectible real estate is characterized by high liquidity, its price is not down, but only grows over time, it remains a jewel in the market. Firebirds do not fly in flocks, and there are not many palaces. This directly reflects our approach to creating such properties.
Investment Club has a sufficient number of projects of this level in its database.
In addition, to a completely different level of creativity, capable of creating such real estate projects, we have another huge advantage: everything we use in our projects is made in own factories in Asia, where the cost of production is still incomparable to production in Europe.
Not many people know luxury goods from China, for example, although that is the only thing you really need to buy there, in our opinion. Of course, to find factories where the quality would be comparable or higher than in Italy and France is not an easy task. Such factories are very few, they do not need advertising in the market, they usually cater to the local elite. Those who are even slightly familiar with the country know that the demand of the rich Chinese for quality is much higher than that of the Europeans. These industries are in the niche, they are not in the open market.
Why do we all know this? Because I have worked in such a market for over 25 years. It was during these years that the Joint Venture was created, through which we can get phenomenally low production costs today.
The second advantage is that in Asia the demand for luxury goods is not going down, and this stimulates further development and support production, whereas in Europe we see the opposite trend. The cost of luxury goods is becoming prohibitive.
When we are asked if it is really possible to get this level of goods, the reader can be sent to our article:
Buy your luxury property in Marbella
We have looked at the construction of a completely different class of real estate. These projects really allow you to get a return of 50% to 100% of the invested capital.
Next, we would like to examine another issue that may be far from uninteresting for those who are looking for a personal home near the sea, in a completely unique location. If your purchase budget is between 8-15 million Euros, we may offer you projects to build your own house, which could really cost you 3-4 million instead of 8-15M.
Many people may think that building new properties is a very time consuming process? In part yes, but only in the part that has to do with timing. Yes, it takes us 2 years to get a collection level property. But that's the only kind of property we're talking about in this article.
Collectible Real Estate
What do we call collectible real estate?
The first is the idea of architecture, interiors and landscape. There shouldn't be an alternative on the market.
The second is an unusual visual perception of the property where there could be a sense of slight euphoria and an impression that its sales price is much lower than it really is.
Third - the property as an object of art. The exterior and interior finishes use decorative objects of a level that is comparable to art galleries. All in the above articles, detailed about such effects.
Fourth - turnkey luxury interiors
Fifth - landscaping works, the analogue of which is not on the market (for example: the creation of unique fountains, artificial ponds instead of traditional swimming pools, non-standard planning of the site and the creation of visual effects, significantly expanding the area of the site)