Crisis + Marbella + Real Estate = Investment Opportunity

There is a crisis, no doubt, but the latest news on banks and financial entities having a hard time in some of the planet's strongest economies is driving investors to property as a means of safeguarding and increasing their portfolio. In a recent article by the Times Online, "Frightened investors pile into property" one can find statements such as:

Ten days ago a wealthy, well-known businessman seeking to buy a mews in Chelsea told me, 'I feel my money is safer here than in the banks'.

The above article has generated many comments, some against but many in favour.  Some even from investors who reveal that they hope to double, if not triple, their investments by 2015.

In Marbella and in Spain there is a crisis of course. However, there aren't any Banks in imminent trouble, and isn't this a good market for real estate investors?  And if it is, isn't the Spanish market one of the safest ones (at least until now) as its economy has shown? And while we're at it, isn't Marbella and the Costa del Sol one of the most atttractive destinations for these type of investors?

What do Marbella and the Costa del Sol have to offer?

We could list the well known: quality of life, unbeatable climate, luxury combined with tranquillity and security, its people's friendliness and extreme attention to tourists and foreign residents, a wide range of services and entertainment, good health care services, its cosmopolitan feel, etc…

But we could also mention others such as the strength of the local economy, its good infrastructure and communications (with the expansion of the Malaga airport) with direct flights to most of the main European cities, the AVE, or high speed train, an important banking and International finance community, and also, that the region represents a frequent meeting point for executives and businessmen and therefore of professionals with experience in real estate markets and investments not only in Marbella but at international level.

At DM Properties we believe that it is "nearly" always a good time to invest. We have accumulated an important amount of experience over 3 decades, but like everything in life, one must be well informed and, in this case, well advised by a team of experienced professionals with deep knowledge on the local market as well as the international market.

Not all that glitters is gold, not all property whose price has been reduced is a "bargain" and at DM Properties we are very much aware of that. In the past, there has been a clear overvaluation of many properties that is being corrected now, and will do so even more. But this doesn't mean that one must wait to plant the investment seed. Having all your funds in a bank, besides generating little income if any, can even be dangerous.

One of our staff has a friend living in Scotland who recently told him: "I had some savings in a bank and was worried about the financial crisis, so I bought a property with them. Maybe in a few months I could buy it for ten percent less but I do not mind, I feel it is safer to have my money in a property, it is a tangible asset, I can rent it, I can live in it and enjoy it.  Moreover, when the crisis ends, prices will increase and it will be the moment to collect the gains.  Historically, property has appreciated over the years in spite that there may be times of ups and downs."

Diana Morales, 19 Nov 2008 - Intelligence