It might be hard to believe but it’s true that the decisive decision making property investors are making money whilst the part time investor still dreams of doing so!
This was recently illustrated by two amazing sales that recently took place a Villa in 400 M2 built in Puerto Banus area selling for an Incredible 600,000 Euros when it was worth well over 1 Million and a 3 Bedroom apartment in Bahia de Banus selling for just over 370,000 Euros when the cheapest other property in this prime location development is selling for over 600,000.
Both of these properties could now be sold by the investor who could expect to sell at a profit including the high selling and buying costs in Spain and still offer the new buyer a fantastic deal. For example if you bought the same unit in Bahia de Banus for 525,000 you would have still got a brilliant deal but the investor would have made 20% on his money inside 3 months.
Saying this some investors have different exit strategies some would make a quick exit and some would hold on to prime location assets expecting as much as 100% profit before costs taking a two to three year view.
So how do these investors manage to get these deals before other would be buyers? In reality it’s all about good business decisions, preparation and professionalism.
Firstly those good business decisions include finding a professional company to represent their interests and not trying to work with lots of agents. Professional people are able to locate the right business partner and put trust in them. Whereas a part time investor would probably register with 100s of agents because they would be frightened of missing out on a deal. The other reality is that some investors won’t even visit the property and will act on the advice of their agent they have decided to work with.
Secondly a serious decision making investor would have everything in place and ready to act so that when the right property or opportunity became available they were in a position to act before anyone else. This would involve having chosen a Lawyer and having the necessary funds in place to put down the required deposit immediately.
Lastly is the degree of professionalism when choosing the company to work with and doing their homework and understanding what they want to achieve and at what level below market value they are prepared to enter the market at. These investors after taking advice from their advisors will know when to act and in reality they do act.
Unfortunately the part time investor or buyer looking for an amazing deal doesn’t follow the same professional approach. The biggest mistake they make is to approach in excess of 10 agents which shows a complete lack of understanding of the property market in Costa del Sol. Also it’s pretty clear that an agent is going to look after clients that are exclusive to them before they look after the client who is working with several agents, that’s just normal good business practice. What this means is that the part time investor is always likely to get the crumbs from the dinner table.