There has never been a better time to invest on the
Costa del Sol! | Mojo Invest
According to the Mojo gents, ‘with the right partner, sun can turn into gold’. if you invest in the Costa del Sol, with their help, it just may do…
This month, Per and Jacob are back to talk about Mojo Invest, the fourth component of their real estate business. If you’re thinking about investing in property, land, or development projects in Spain, then listen up, because Mojo are experienced and trusted partners, who can help make things happen.
“You don’t need to be a resident of Spain to invest in the country, or to come to us for assistance,” says Per. “In fact, everyone who has enlisted with us are from overseas. They’ve got an eye for the property market, they know what they want but they just don’t quite know how to get there.” “Whether they want to reform, rent out or are looking for a quick turnover, we can help.”
Investing in the Costa del Sol has always been a lucrative opportunity. But now, it’s even more attractive. With Mojo’s help, investors will be able to get a better return on investment (ROI), than ever before. What is usually 3-4% in Northern countries, in Spain is double digits. Think +10% easily. It’s all about knowing how to navigate the market.
“Since 2015, house and property prices have been steadily rising – a trend that seems set to continue. The Costa del Sol has a great diversity of property, and as a holiday destination, it’s only growing in popularity. So as long as people are investing in the right locations, properties, and land, the risk is minimal,” adds Per. “That’s where we can help. Our in-depth knowledge of the local market coupled with years of business and investment experience, means we have the necessary competencies to help investors make all the right moves.”
Mojo has established relationships with highly reputable building companies, not to mention their own in-house lawyers, which can come in very convenient in Spain with all the licensing issues that will undoubtedly crop up. Moreover, with their help, you can greatly lower the ITP you have to pay, from 8%+ down to just 2%. Of course, all of this depends on the amount you’re investing, how long you want to keep the property, and how fast you want to flip it.
There are over 200 new developments on the coast but Mojo has selected only a few for their portfolio, all of which have passed a due diligence process and meet the right location, building qualities, and price requirements. So once you are rolling with Mojo, you’ll only be presented with good opportunities without wasting any of your valuable time.
Prior to any viewings or location discussions, Mojo team talks through your budget, financing, risk diversification, expectations on the return, time-frames, and tax implications (sometimes they will advise to create a Spanish company for tax efficiency).
“There are a lot of factors in play. We take time to understand exactly what our investors want. And once we know this, the better we can manage their expectations and bring them the most lucrative investments,” says Jacob.
Mojo team creates a financial simulation on every project proposal. Over 18 sheets of excel files, from the purchase and refurbishments, costs to the rental projection and market forecast, before and after taxes; to finally reach the number every investor is interested in: the ROI percentage. “We go full circle following the money string, including a cash flow simulation. We benchmark the m2 prices on different developments and we compare these with others” explains Per. “This provides investors all the information they need to make a solid decision.”
“At the moment, we have around 30 investors in our database looking for projects on the Costa del Sol. On a weekly basis, we send them different cases with their respective ROI. This also helps us grow a profile for each investor, get to know them better.” Says Jacob.
“Unlike Mojo Capitals, these are active investors who want to be involved in the whole process”.
Mojo Invest CLUB
Per and Jacob are ready to put their money where their mouths are. Mojo Invest Club is a new initiative where the gents are looking for partners in bigger-scale projects.
Mojo team searches for similarities between investors and matches them together, creating a limited company, where they could be personally share holders as well. “It’s a business tinder” Per jokes, “we are growing a network of like-minded people and creating investment teams”