Medina Elvira

This is mentioned in S Independent today.

Concept seems simple, 10% now, 10% in 12months time and balance on completion 24 months later again. Seems to have a yield of 5%, which would virtually pay interest only mortgage at current rates.

I am not familiar with buying in Spain.

Does anyone have views on this development?

Saw in the Indo today too, and I looked in vain for a heading that would say "advertisement feature" but couldn't see it. The guy who wrote this, purporting to be giving advice on money matters, is actually an agent for it!! Surely the Indo didn't give him a fee for the piece as well as not charging him a few grand for this "infomercial".

The obvious thing about this property is how expensive it is. 315k for a typical 2-bed apartment on an inland golf development is very high, you would expect to get good coastal stuff for that kind of money. Similar projects in the Murcia area for instance are available at about 150k.

He is right about the fact that there is some bouyancy in the Spanish market and that gains are to be made year on year, but only if you buy right in the first place! If you pay these kinds of prices, you will have to wait a good while for the market to catch up with your "investment."

Auto320 is right that property prices in Medina Elvira are high for the area but the development is totally unique in Granada Province. Medina Elvira Golf & Country Club in 1.3 million m2 of fabulous Granada countryside which is adjacent to an amazing lake. The Developers have now bought the land at one end of the lake and intend to build chalets and a water sports centre. Within the gated community of Medina Elvira will be a Five star boutique spa hotel, commercial centre with restaurants, international school and an equestrian centre. The complex is also 6km away from Granada city centre and highly commutable for young professionals wishing a quick getaway from the city.
How do I know so much about it? I have so far bought and sold three units in th past 18 months showing an ROI over 200%. The initial contract payment is 10% and growth in the Granada area is currently running at 15.6% pa. This is very different from the Costa del Sol where there is a glut of property at vastly overheated prices.
The 5% rental guarantee at Medina Elvira is a great safety net for the hesitant investor; as Ravima says it would at least cover an interest only mortgage. It is also possible to borrow the 2nd 10%, interest only, and to then convert to a final mortgage based on future value. This offer is for UK or Spanish homeowners.
If you need any further advice please do not hesitate to contact me...

Peter Mitry (Manilva, Spain)

I hope for your sake that you sell it all Peter, but it's still too dear! Even if you knock off the guaranteed rental element of the price, it is still way too expensive for that area.

If I can join in on this and put this question to Peter. On investing, I would always be looking for an exit strategy....how difficult to sell on this property in say 5 years time. Would locals be interested or just future investors. There is usually a big advertising push to sell new developments and no-one interested when it comes to re-sale

"The obvious thing about this property is how expensive it is. 315k for a typical 2-bed apartment on an inland golf development is very high, you would expect to get good coastal stuff for that kind of money. Similar projects in the Murcia area for instance are available at about 150k.

He is right about the fact that there is some bouyancy in the Spanish market and that gains are to be made year on year, but only if you buy right in the first place! If you pay these kinds of prices, you will have to wait a good while for the market to catch up with your "investment."[/quote]

Auto.Can you give me details of similar projects as I was interested in this complex but your sensible comments have put me off this particular one.