• Why Property?
• Buying Off-Plan
• Current Developments
• Reports & Research

Why Invest in Property?

Investors look to property because it has historically proven to be one of the most reliable options for investment and can offer lucrative returns. While other investment options such as shares can provide decent returns, they tend to be more volatile. Property investing is not as unstable and therefore has fewer risk implications. With conventional pension funds and savings accounts providing such low rates of return, many clients have turned to property to build up substantial funds on a more consistent basis. No other investment allows such flexibility in terms of staging payments.

• One of the main advantages that property investment has over all other investment vehicles is the ability to gear the investment. Gearing enables an investor to enjoy the benefits of returns based upon the full asset value having invested a much smaller percentage.
  For example:
  An off-plan property costing €100,000 requires only a €30,000 initial investment.
• A property worth just €4,000 just 30 years ago would today be worth around €270,000. However, with the right combination of location, quality, design and amenities, Majestic Group Investments has been able to provide investors with far greater returns. Historically, we have seen our investors gain in excess of 100% return in a two year period.
• On average, the value of a property doubles every seven years.
• Equities or stocks can be volatile, as with the dotcom crash. Long-term investment in property however is historically stable.
• 50% of individuals mentioned on ‘The Times Rich List’ made their money through investing in property.
• According to figures from FPD Savills Research, the total net return (including capital appreciation) on prime central London property was 18.6% last year. In the UK, the total net return was 16.3% and Spain was even higher with Casares in Spain at 26%. (Source TINSA).

World-wide, investors are now turning to global property markets as an alternative to traditional investments. Emerging markets come with higher risks and uncertainty with volumes of end user purchasers (people purchasing a property for own use/rental) still not established.

Majestic Group Investments believes that to ensure security of funds, investment should be based on a proven marketplace with a stable economic and political climate. This is why we offer investment opportunities in countries such as Spain. Spain has high levels of legal security surrounding property purchase, within a proven off-plan and rental marketplace, and sustained levels of economic and property growth. While various additional areas are attracting investors, Spain has a continuing and proven track record. With a combination of low Spanish interest rates, stock market uncertainty, and with the UK housing market showing signs of slowing down, investors continue to turn to property on the Costa del Sol as a safe investment that has given them impressive returns.