What To Buy
A popular unit size for ‘buying to sell’ is a two bedroom, two bathroom apartment in a complex with communal ‘tropical’ gardens and pools. Developments of villas and apartments on and around golf courses have enjoyed the best capital growth, in recent years. Several more golf courses, complete with club houses, restaurant, bars, shopping facilities and even a bank, are currently on several of the developers’ drawing boards.

Price Ranges

Two bedroom units are available from about £130,000 in the Fuengirola and Calahonda areas, ranging up to £200,000 towards Marbella, with front-line properties on existing or yet-to-be-built golf courses costing somewhat more.

This means that with £50,000 to £60,000 an investor can enter a market where recently values of newly-built properties have increased by as much as 50% over a two-year construction period.

A £75,000 increase on a £150,000 purchase, where £52,500 of capital has been committed, represents a 142.8% return over two years, or 71.4% per annum. (Past performance is of course, no guide to future returns).