Spanish Leaseback

Despite being the centre of investment attention for nearly three decades, the Costa del Sol continues to provide some excellent investment opportunities even today. It still ranks as the top destination for foreign property amongst British buyers. Rental yields of around 5% or more can be achieved in many areas of the Costa del Sol. Property values continue to rise strongly year on year too, the highest capital appreciation being reserved for villas and apartments at the more luxurious end of the market.

The hottest investment opportunity right now in the Costa del Sol though is not to be found in the traditional communities of Spanish villas around Marbella, the Marinas and Golf courses that are so familiar to real estate investors in the South of Spain. Instead, it is to be discovered in a new investment concept that would be more at home in France -- leasebacks!

Leasebacks

Leasebacks are a unique type of property investment that allows you to buy a freehold property and then lease it out via a management company on a long lease initially of say nine, ten or eleven years. In return you as the investor receive a guaranteed income from the property and a guaranteed profit or rental yield for the term of the lease. At the end of the lease you can sell the property or you can re-let it for an additional nine or ten years either privately or sometimes through the same company! It could make you a fair amount of money, that's for sure! You can on some developments occupy the property yourself - typically 2 to 4 weeks of the year.

In France lease back properties are a very popular investment. In Spain, the leaseback concept is not so well known. This though is about to change. Here is an example of such a development.....

Terrazas Leaseback Opportunity on the Costa del Sol

Terrazas is a new Spanish leaseback opportunity that hopes to put the leaseback concept in Spain on the map. It is a 328-apartment village in Bahia de las Rocas in Manilva on the Costa del Sol coastline between Sotogrande and La Duquesa, and has been designed to recreate the look and feel of a genuine Andalusian village.

Prices for apartments start at just 174,000 euros, and include furnishings. The development is set to produce a guaranteed rental yield of between 4% and 5% per annum for 10 years. An introduction to the development can be found at Terrazas Leaseback << click here

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