We’re constantly telling you that it’s a buyers’ market on the Costa del Sol and there are bargains to be had. But we’re also constantly reminding you that it won’t last forever. In fact we can already see that the tide is turning as several UK national newspapers have contacted us for comment on the Spanish property market in preparation for positive stories on the Costas, and we all know how the press can change the fortunes of a property market. Likewise of primelocation.com’s one million international searches in January 2008 – Spain took 27.8% of them. In times of economic uncertainty – i.e. now – established locations remain popular with overseas investors and Spain with its tried-and-tested market is certainly a place in which people feel comfortable. With the implementation of Decreto 218/2005 which you’ll read about in this newsletter, buyers like you will feel even more comfortable. Adam Gale, Managing Director, Duchy Estates. Click the headlines to read more... Kasamia Pueblo Acantilado Suites - Let them Rest while you Invest Decreto 218/2005 - Spain Gets New HIPs Martin Hall, A Case Study - Rugby Legend Takes a Sporting Bet on Southern Spain Four Under 250,000 euros - Who said Spain was Expensive? Pueblo los Monteros - A Safe Spanish Investment Kasamia Pueblo Acantilado Suites - Let them Rest while you Invest We’re always taught that we have to work hard for our money but there always an exception which proves the rule and in this case it’s condo-hotels. A freehold purchase within a luxury suite hotel is one of the easiest but most lucrative property investments you can make. A single management company handles all the headaches from occupancy to maintenance whilst all you have to do is reap the rewards, what could be simpler? Duchy Estates has teamed up with global luxury lifestyle brand, Kasamia, experts in the hospitality sector, to launch their flagship condo-hotel – Pueblo Acantilado Suites. The charming cliff-top resort is close to Alicante in southern Spain and provides a dreamy romantic hideaway for its guests as well as a rewarding opportunity for investors. Fully approved for SIPPs with all the associated tax benefits, Pueblo Acantilado Suites is forecast to return more than 5% from year one and that excludes capital appreciation. This is the investment vehicle of the 21st century. Following a 10 million euro refurbishment, the 96 exceptionally appointed one to two bedroom suites with separate living rooms and kitchens as well as high-speed internet access and flat-screen televisions, have access to a wealth of on-site amenities. Swimming pools surrounded by spacious sundecks, a Roman-esque amphitheatre, a 600m² Spa and gymnasium and Kasamia Tapas & Martini Lounge are all set against a backdrop of dramatic Mediterranean Sea views. A concierge is on hand to arrange à la carte services from in-room massage to housekeeping and laundry plus event catering, childcare and personal shopping whilst there is also a 24-hour reception. Guests will be shuttled in comfort between Pueblo Acantilado Suites and the nearby sandy beaches and first-rate golf courses. Headed up by Jean Robert Reznik, former CEO of international brands such as Club Med and Accor, Kasamia is more than equipped to generate the maximum income from your investment. Kasamia has the leverage of a close relationship with Amadeus which links more than 600,000 travel agencies worldwide as well as 50 of the world’s best reservation websites such as LastMinute, Expedia and Opodo ensuring that the accommodation is seldom left unoccupied. Investors stand to gain a sizeable split of the Gross Operating Profit – 90-10 in favour of the owner on a pro-rata basis according to the property owned – a figure which is arrived at having deducted the running costs from electricity to maintenance and travel agent commissions to staff wages. With fewer staff and fixed costs thanks to the à la carte service system, profits are substantially higher than with traditional hotels. The larger suite-style accommodation with five-star services not only commands higher room-rates but also appeals to both business and leisure travelers therefore boosting occupancy rates. Aside from real estate taxes, insurance and mortgage payments (if applicable), the only costs to be borne by the owner are a regular fee to cover maintenance of the unit, furnishings and common areas plus a reserve fund. And, of course with your name on the title deed you are free to sell on at any time enjoying any associated capital gains. Investors can also become guests, enjoying up to eight weeks’ personal use per year, generally at no additional cost, and reveling in all the on-site amenities. At just 25 minutes from Alicante International Airport which is accessed directly from virtually every airport through the alphabet in the UK – Aberdeen, Bristol, Cardiff, Doncaster, Exeter... – by no frills carriers such as RyanAir, EasyJet, Monarch and Jet2, weekend breaks in the Spanish sunshine will soon become a way of life. Freehold prices at Pueblo Acantilado Suites start from 180,280 euros (141,682 pounds) for a one bedroom suite. 70% LTV mortgages are available and the current 10 million euro refurbishment programme will complete ready for opening on 20 June 2008. Meanwhile a showflat is available for viewing. Contact Duchy Estates for details of subsidised inspection visits to the resort. Decreto 218/2005 - Spain Gets New HIPs Duchy Estates ‘enjoyed’ an unannounced visit from a Decreto 218/2005 Inspector last month and received a fine of several thousand euros for ‘non-compliance’. You may think us odd for airing our dirty linen in public and notifying you of our misdemeanour in this newsletter, but what hurt our pocket has actually improved our business, and we’d like to explain why. Andalucian law, Decreto 218/2005, was recently passed in order to safeguard the consumer against unethical and inaccurate practices in the real estate industry. In the same way that the UK has its HIPs (the controversial documents which intend to give consumers a clear upfront picture of what they are buying but seem to have created nothing more than headaches), Andalucia now has its DIAs and FIs. Documento Informativo Abreviado (DIA or Summarized Information Document) – this version applies to new-build properties, properties under construction, resales which have undergone architectural alterations and rental properties. Contents include location, number of units, developer, quality report, taxes and duties, price and method of payment, licenses, maps and floorplans and so on, dependent on which type of property is being referred to. Ficha Informativa (FI or Home Inventory) – this document is for resale properties, i.e. those where a second or subsequent transfer of title has taken place but which haven’t undergone any architectural alterations. Contents include location, price, nota simple (extract from Land Registry), community fees, copy of IBI (Council Tax), utility connections, year of construction and so on. As an agent we must now have these documents at our disposal and each consumer who asks for any information about a property should be given the paperwork free of charge. In fact, they don’t even need to ask for the documents, just by making a simple enquiry about a property we are obligated to pass over the relevant DIA or FI. Just so this is crystal clear – Duchy Estates also has to display two signs in visible places within our sales offices to state that we are adhering to legal regulations and consumers have the right to request these documents at any time. Hopefully these new measures will reassure the consumer that when they decide upon a new home they are making an informed decision with accurate information at their fingertips. Furthermore, it’s yet another nail in the coffin for rogue real estate operators who won’t be able to evade the law and the Costa del Sol’s recent turbulent times will finally become something of the past. Martin Hall, A Case Study – Rugby Legend Takes a Sporting Bet on Southern Spain Professional sportsmen are under no illusion about the fact that whilst their careers may be immensely rewarding, both personally and financially, they are also short-lived. Whilst the rest of the population is just getting into the stride of their careers, athletes are having to adjust to a new life and seek a substitute income. Property investment often emerges as a hobby cum income generator and several sportsmen, or at least those who are shrewd and take the best advice, have become as famed for their property portfolios as they have for their sporting careers. Consider the chants of “We all live in a Robbie Fowler house” which echo around Anfield referring to the footballer’s £30m-strong portfolio of buy-to-let properties. Rugby League legend, Martin Hall, 39, may not have the same lofty aspirations as Mr Fowler, but he too has taken up a career in property development to fund a future for him and his family. Former Wigan Warriors, Halifax and Wales hooker and current Head Coach of the Wales National Rugby League Team as well as Director of Football at Halifax RLFC, Martin has dabbled in the UK property market acquiring land for apartments and houses, but in 2007 decided to broaden his horizons into overseas investment. Martin picks up the story, “I’d visited Spain’s Costa del Sol a few times and always enjoyed it so decided to take my wife and young family there last year for a combination of a holiday and a look-see at property. In a recent edition of national broadsheet home section I’d spotted a private advert for a plot for sale in Los Flamingos Golf Resort and this was logged in mind as somewhere we should tick off the list. Keen to avoid any pressure we visited the resort under our own steam. We were instantly impressed and started ringing around local estate agents for some guidance.” Martin continues, “The initial game-plan had been to buy an apartment or villa as a mid- long- term investment but it soon became clear that a self-build villa plot would offer the best returns, not only from capital appreciation on the land but also from the fact that we could build a luxurious property for far less than the cost of a comparable off-the-peg resale villa therefore giving us built-in profit. A mutual contact led me to Adam Gale, MD of Duchy Estates, a local company specializing in Los Flamingos Golf Resort with an office on-site, and he showed us a new phase of building plots with phenomenal views across the golf cousres, Ritz-Carlton hotel, Mediterranean, Gibraltar and Africa and that was that, Adam had a sale.” Los Flamingos Golf Resort is arranged around the focal point of golf and this is important to Martin. “The resort offers plenty of space for the children to explore in safety and with three 18-hole golf courses currently in play within its boundaries and a fourth nearing completion we can all put in plenty of practice. The kids love using the pitch and putt back home in Oldham and I have two fine sets of golf clubs, it’s just the person that’s using them who’s rubbish – although hopefully that’ll soon change. The Ritz-Carlton Villa Padierna with its Spa, swimming pools, restaurants and gymnasium is another bonus whilst the beach and Puerto Banús, Marbella and Estepona are all available in less than 15-minutes a-piece. The location is hard to beat, especially when you consider that the likes of Jet2, easyJet and Monarch can all deliver us here from Manchester Airport in less than three hours.” Martin has plans to build a four to five bedroom villa fusing Mediterranean and contemporary styles, with plenty of glass to absorb those captivating views, and whilst his immediate and wider family can enjoy holidays there, the prime motivation is investment. Rough calculations suggest that a little over a million euros spent on the land and build could translate into a sales price in excess of two million euros upon completion. It seems that sportsmen who have experienced the highs of career success have a built-in sense of ambition and wanting to be the best. Whilst at Wigan Warriors Martin won pretty much every major honour in the game including the Challenge Cup, World Club Challenge and the League Title and not wanting to come second governs his daily life. It looks like his acquisition at Los Flamingos Golf Resort might just help him to continue his winning streak... Plots within Los Flamingos Golf Resort start from 375,000 euros. Contact Duchy Estates on spain@duchyspain.com, visit www.duchyestates.co.uk or telephone UK freephone 0800 849 8089 or call the Spanish office on 00 34 952 906 944. Four Under 250,000 euros Snap up a bargain before the tide of positive press coverage and wave of regulatory legislation in the Spanish real estate industry translate into price hikes... Top floor at rock bottom prices – this two bedroom two bathroom penthouse has been totally refurbished whilst remaining sympathetic to its traditional features. Rustic wooden shutters and beams are now in harmony with a fully-equipped kitchen, hot and cold air-conditioning, alarm system and ADSL. Set within El Paraíso, the 95m² property has an on-site pool and palapa bar and the beach, shops and restaurants are within minutes. Price a jaw-dropping 190,000 euros - approx 150,000 pounds. Ref DEA1022. Big floorspace, small price tag – a whopping 169m² built one bedroom one bathroom duplex penthouse including 100m² of terraces set within Los Flamingos Golf Resort. With every comfort from satellite TV to private Jacuzzi and barbecue to underfloor heating in the bathrooms, this is a truly luxurious property in a select complex of only 78 units. Minutes from beach and golf. Price an absurd 240,000 euros – approx 188,000 pounds. Ref DEA442. Ideally located and priced – charming two bedroom two bathroom apartment with sunny south facing terrace in an established residential area just minutes from shops, restaurants, cafés, bars and the beach. Lovingly maintained and an ample 75m² of floorspace. Communal swimming pool for refreshing dips. Price a realistic 215,000 euros – approx 169,000 pounds. Ref DEA1071. No expense spared but no inflated price – tastefully renovated three bedroom two bathroom apartment now with a brand new kitchen, extra bathroom and covered terrace ideal for winter sun. Just west of San Pedro, the popular location is close to golf, shops and restaurants and the beach a five minute walk. Priced to sell at 219,000 euros – approx 172,000 pounds. Ref DEA1043. Contact Duchy Estates on spain@duchyspain.com, visit www.duchyestates.co.uk or telephone UK freephone 0800 849 8089 or call the Spanish office on 00 34 952 906 944. Pueblo los Monteros – a Safe Spanish Investment Comprising two distinctly styled ‘villages’, a Pueblo Mediterraneo in terracotta tones and a Pueblo Andaluz in traditional whitewash, Pueblo los Monteros is a multi-faceted resort set in a privileged location overlooking the southern Spanish hotspot of Marbella. Commanding panoramic views of the Mediterranean and across to Gibraltar and Africa, this community is a refuge from the bustle of the coast yet just minutes from the action. Pueblo los Monteros has an array of leisure and pleasure facilities on site. There is a Clubhouse with buffet bar and games room, a 3,500m² commercial area, 160-room four-star hotel, a Spa with sauna, Jacuzzi, Turkish bath and massage rooms, heated indoor pool, gymnasium with fitness equipment and aerobics studio and three tennis and three paddle tennis courts. Several spacious freeform outdoor swimming pools serve each cluster of apartments. Whilst the Pueblo Mediterraneo is yet to be released, phase one of the Pueblo Andaluz with 89 apartments is currently available for purchase and full of Andalusian charm. Characterized by arches and fountains, patios filled with bright potted blooms and washed with the scent of jasmine blossom, Pueblo Andaluz offers one, two, three and four bedroom apartments distributed on one, two or three floors, all with spacious terraces and some with private gardens up to 100m² in area. Telephone, satellite TV, alarm and wireless broadband come as standard as does pre-installation of home cinema in the living areas. Pueblo los Monteros offers buyers the utmost security, backed by the third largest savings bank in Spain and the resort features in the 1986 Marbella General Plan (PGOU), the only plan currently in force approved by the Andalucian Regional Government (Junta). Completion at Pueblo Andaluz is scheduled for December 2009 and prices start from just 270,000 euros for a one bedroom apartment to include underground parking and full access to the resort’s leisure facilities. Payment terms are 6,000 euros deposit, 15% on signing of private purchase contract and then the balance on completion in the fourth quarter of 2009. Contact Duchy Estates on spain@duchyspain.com, visit www.duchyestates.co.uk or telephone UK freephone 0800 849 8089 or call the Spanish office on 00 34 952 906 944. With Easter ticked off the list (how fast is 2008 passing?!) property buying season is well underway and perfect house-hunting weather cloaks the Costa – not too hot with haze-free views across to Gibraltar and North Africa. Book an Inspection Trip with Duchy Estates and come and enjoy a blossom-filled landscape scented with wild-flowers – oh and maybe look at some houses too... Duchy Estates - Research Trips Adam Gale, Managing Director Contact Duchy Estates by phone 00 34 952 906 944 or email spain@duchyspain.com or visit our website www.duchyestates.co.uk for further information.