Here at La Manga Club we’re delighted with the news that foreign investment in second homes in Murcia continues to grow. While of course we stand 100% behind our properties, it’s still satisfying to have hard data to back up our claim of the unique value proposition offered by a residence at La Manga Club. Over the past few months we’ve spent some time with tourism and real estate investors sussing out what makes these resort properties so attractive. Our conclusion? Intelligent homeowners seek investments that offer the following five key characteristics, all of which our apartments and villas have in spades: opportunity, benefits, unique attractions, incentives and location.
Much noise has been made over the impact of Brexit on sales to British buyers in Spain, and the value of the Pound is of course of extraordinary importance. But crisis can also breed opportunity, and one should never turn away blindly from an offer without fully considering its merits. Despite Brexit, for example, the Las Lomas flats are currently available under one of the best financial packages ever put together: financing of up to 70% with a down payment of less than £33,000. Considering that these flats’ rental incomes are estimated to cover the mortgage expenses, these apartments are interesting even in a tough economic climate. Our real estate experts recommend that if you’re likely to be in the market for a second home at some point, you should always keep an ear to the ground for that special deal.
It’s also important to keep abreast of new analyses in the real estate market. Earlier this year, for instance, the Royal Spanish Golfing Federation released a study in which it was revealed that golf contributes almost 750 million Euros annually to the value of Spanish real estate located in its proximity. What’s more, the appreciation of a property near a golf course was, on average, nearly 25% greater than those not near golf courses. The leisure activity you thought was a nice bonus may have a very real impact on your investment.
Unique attractions are one of the keys to an investment’s staying power. They work to make your new community a destination rather than just a collection of houses. They bring in non-residents who may, after repeat visits, become residents. In short, they guarantee the longevity of your investment.
At La Manga Club, our properties already benefit from their location in a resort. According to Professor Diego Donnelly, a tourism expert at the IESE Business School, purchases of resort residences are on the rise because they offer their owners security, infrastructure and other amenities that a stand-alone home cannot. Here, we have the added benefit of La Manga Club being one of the most well known sport and leisure resorts in Europe, with a large range of dining and shopping options, and visits every year from professional sport teams that train in our facilities. As a potential landlord, you should seek out a property that will consistently bring in visitors year after year.
Look also for other types of incentives unique to your investment that could have an indirect positive benefit. If you are buying a vacation home, one that you don’t plan to occupy for the majority of the year, find an ownership structure that truly benefits you. Our serviced apartments, for example, offer a hassle-free experience because our Property Management group can rent them for owners when they are not in use. But our owners are also able to themselves enjoy their homes for a number of days per year, under a flexible schedule, without giving up the investment component of their ownership arrangement. These types of structures vary widely from community to community, so spend some time digging into the specifics of potential buys until you find one that matches your needs.
They say that location is everything. It may be true, but it’s important to look at the long-term projections for a destination, not just its current popularity. Quality is also a factor that directly contributes to the return on your investment. Opt for a destination that has prioritized quality over quantity or expediency, and you will be rewarded in kind as the destination continues to develop critical mass of the right type. As tourists become more and more informed and demanding, destinations that offer a wide range of experiences are those that will continue to prosper and attract visitors.
Finally, let’s not forget the importance of that most basic factor: whether your home is a place you want to be. If the weather is grey and rainy year-round, you may find yourself trying to escape your dream home rather than enjoying it. Believe us when we say that the views from our seaside paradise in Murcia never get old.