Would you like 100% profit within 24 months, zero capital gains liability? Well here’s an investment opportunity in the fastest growing property market in Europe.

Buying 'off plan' property in Tenerife, Spain can benefit you in three ways. Firstly, it is entirely possible to achieve genuine returns in excess of 100% of your initial outlay within 24 months. Secondly, your profit can quite legitimately be free of any capital gains tax liability. Thirdly, if you hold on to the property and complete the purchase it means that you have bought a property well below market value and also can benefit from the fastest growing property market in Europe. (A further bonus is that you have a great holiday destination while your investment is appreciating).

The developer of any new building project is always keen to sell as many of his properties as early as possible to improve his cash flow, minimize development loans from the banks and give the project some forward momentum. To enable him to sell before construction has started, the property developer sells 'off plan' at extremely competitive prices simply because investors only have plans, computer simulations, artists impressions and a plot, to view at this early stage.

Apart from the fact that the developer is selling at less than current market value, to attract investors, the clinching benefit when buying 'off plan' is that one only has to pay around one third of the purchase price as a deposit. Thereafter, no further payments are required until the project is fully completed, at which point it can be financed with a mortgage (which is usually already in place) or sold. In fact it can be sold at any point between paying the deposit and completion date.

Buying off plan in Tenerife

As an example, let’s say that the current purchase price (off plan) for an apartment is €110,000 and that the project is scheduled for completion in around 24 months. Initially you'll pay approximately one third deposit of say €36,000. The project proceeds according to schedule and you sell the virtually completed apartment (the prospective buyer can now see what he is getting) for €146,000. You pay the developer the balance owed of €74,000 and pocket €72,000 - a 100% return on your initial investment of €36,000 in 24 months, also, because you sold before the project was completed, your capital gains tax liability is zero.

This is a conservative estimate of the potential gains available. There are also developers who take the deposit in stages. With many property prices in Tenerife increasing annually at a steady 25%, imagine the possibilities if you also 'buy low' in such a market. Additionally, many purchasers arrange to finance the deposit(s) by remortgaging their UK property/ies and so are able to achieve higher than average capital returns, with zero tax liability, and no cash liquidity problems.

We have agents specializing in this type of investment and would be pleased to put you in touch.