Spanish golf properties are always popular with golfers but Polaris World resorts are also attracting holidaymakers who don't even play golf. This is due to the high level of services, the restaurants and the security of the resorts.
(PRWEB) January 17, 2007
Brace Oakley International, the UK's leading re-sale agent for Polaris World Golf Resorts, are advising investors that the current bargain properties available on Polaris World resorts will not be available for long. Anybody thinking of buying should act now.
What is Polaris World?
Polaris World is a Spanish owned company developing luxury golf and spa resorts in the region of Murcia in South-East Spain. Polaris World started in 2000 and is now Spain's number one property developer. You can find out more about Polaris World at http://www.resalepolaris.com. The Murcia region is traditionally an agricultural area but investment in recent years has meant that the region has an advanced modern infrastructure. The region now boasts an excellent motorway network and two international airports. Murcia bathes in an average of 320 days of sunshine per year and boasts a wealth of unspoilt beaches on the Mediterranean and the Mar Menor - Europe's largest saltwater lagoon. The wonderful climate, the space and the ease of access (no more than 2-3 hours from most European countries) have resulted in Murcia becoming the 'hot spot' for investment in Spain.
Since 2000 Polaris World have sold over 8,000 properties and they expect to sell a further 3,000 properties in 2007. Many of the purchasers have been small investors hoping to make a return by investing 'off-plan' and selling the contract on before completion, known as 'contract flipping'.
So has buying on Polaris World been a good investment?
In theory, 'contract flipping' can work. A buyer can put 40% deposit down on a property but benefit from the capital growth on 100% of the property value. An investor needs to consider selling fees and incorporate these into profit expectations, but the principle works provided that the property values increase, which they have. However, what these investors and agents didn't consider were three things -
1.In order for a new buyer to take over a contract, he or she will need to pay the 40% already paid plus any profit - a potentially large sum of money. This limits the market to cash-rich buyers - the type of buyers who are usually after a 'deal' at less than market value.
2.The simple economic principle of 'supply and demand' - with such a large volume of property sold 'off-plan' by Polaris World over the last few years, it was inevitable that quite a number of contracts would be placed on the market for sale shortly before a resort is completed. More properties for a buyer to choose from means it is a buyers market.
3.There is competition in the area. Peraleja Golf Resort is situated next door to one of the Polaris World Resorts. Peraleja Golf Resort offers luxury contemporary villas built to the highest standards set around a Seve Ballesteros championship golf course. Corvera Golf & Country Club offers luxury apartments, townhouses and villas set around a Jose Maria Olazabel golf course. Peraleja Golf Resort and Corvera Country Club are proving to be very popular with European buyers. And a new resort called Novo Carthago Beach & Golf Resort is due to be launched in February 2007, with two 18 hole golf courses right next to the beaches of the Mar Menor. For details and free brochures on these resorts please contact Brace Oakley International via http://www.resalepolaris.com
These three factors have meant that while Polaris World continue to sell off-plan properties at market value, sellers of contracts often have to sell at much less in order to achieve a sale. For example, an 'off-plan' two bedroom apartment on La Torre Golf Resort costs around €195,000. One can buy a contract for an identical property for €170,000. The original buyer probably paid around €140,000 and is therefore making a profit, only maybe not as much as they'd hoped. In 18 months this property is likely to be worth over €200,000. So is it best advice to complete the property purchase, furnish the property and rent it to holidaymakers until the resort and the Polaris World concept is complete?
Polaris World have their own property management company but the most successful rental company for Polaris World properties is Brace Oakley Holidays, which has an online booking system at http://www.polarisholidays.com. Matt Oakley, MD of Brace Oakley Holidays, says, "Spanish golf properties are always popular with golfers but Polaris World resorts are also attracting holidaymakers who don't even play golf. This is due to the high level of services, the restaurants and the security of the resorts." (see http://www.braceoakleyholidays.com for more information).
The first Polaris World resort - the Mar Menor Golf Resort - was introduced to the market in 2002 and the first properties were handed over in late 2004. Within 2 years the resort was finished and property prices had stabilised. Owners who had bought off-plan now had assets that had grown considerably in value and are increasing all the time. Polaris World's other resorts - La Torre Golf Resort, El Valle Golf Resort and Hacienda Riquelme Golf Resort - are likely to experience the same price stabilisation over the next two years.
The re-sale market for these properties is currently very busy as investors snap up bargain properties. To maximise returns Polaris World owners should consider holding on to their investments until the concept has been completed, around the end of 2008. For those thinking of investing in Polaris World, NOW is the time to buy - it is unlikely that there will be these 'bargains' available for too much longer.
Brace Oakley International are the UK's leading real estate agents for Spanish golf resort property, re-sale and off-plan. For further information on Polaris World, Peraleja Golf Resort, Roda Golf & Beach Resort, Corvera Country Club or Novo Carthago Golf Resort, please call 0870 850 1656 or visit http://www.resalepolaris.com.
Brace Oakley International
0044 1293 565808