New investment trend: Holiday home becomes investment home
It isn’t just the 300 days of sunshine and the relaxed lifestyle that draws Scandinavians to the Costa del Sol. It’s also the good investment opportunities.
“The trend is clear; people are looking more to the Excel sheets now than to the flooring in the bathrooms”. The words come from Per Mønsted from Mojo Estates. Today he notices a huge desire to invest in property on the Costa del Sol. “People are investing their home equity right now because there are great opportunities along with a good return of investment. And especially Northern Europeans currently have large equities in their houses.” According to Per Mønsted, the possibilities for a reasonable return of investment within the housing market in Northern Europe will be decreasing, which is the exact opposite on the Costa del Sol.
“We have a really interesting market. The Costa del Sol has a great vibe – and property prices are just as great. An investor can easily get a return of investment of at least ten percent through rentals and the increase in value,” explains the Danish broker, who will happily unveil where and how to make a good investment.
“Buy off plan – and preferably as early as possible,” Per Mønsted explains. He is particularly fond of the new projects Las Lomas and Stupa Hills in Benalmádena. “They are built in modern Scandinavian style with the best views and at good prices. In addition, the infrastructure is perfect, the new constructions are luxurious and there has also been a handful of new beautiful beach clubs opening. The area is moving forward towards a completely different level, ” the Danish broker believes. He still has several tricks up his sleeves for investment enthusiasts.
This time we are going to Mijas, which right now has an unheard amount of villas for sale. “The location is excellent – and the prices are low. But the properties are older and need to be renovated. It takes time and some decisions must be made, but the investment opportunity can’t get much better. And today they are spread all over the Mijas mountain,” says Per Mønsted, who thrives in the market of investment properties. Therefore his company, Mojo Estates, is launching the new investment company Mojo Capitals, in December. With a capital of 8 to 15 million euros yearly the company seeks to purchase, reform, rent and sell properties on the Costa del Sol. The minimum deposit for private investors will be 100.000 €.
“I believe in the future of the Costa del Sol and can not imagine that we’re ever going to go through a crisis as bad as the one we are now coming out of; first Brexit, which drew dark clouds over the housing market, and then the Corona pandemic. The market has reached its bottom now, so now it’s time to move forward,” concludes Per Mønsted.