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Moratalla Finca El Cano – Murcia

The old saying "location, location, location" was never more relevant. Murcia is a beautiful part of Spain and the area around Moratalla is stunning. The area generally has benefited from European funding and is one of Spain's fastest growing economies. House prices are considerably less than the nearby Costas Blanca and Calida and even more significantly value for money when compared with prices on the Costa Del Sol. Moratalla is a true Spanish community where one can sample and enjoy the traditional ways of life.

However, it is close to the cosmopolitan city of Murcia and the brand new airport that is under construction and due to be opened during 2009. In addition, the area continues to increase its significance as a golfing destination, with over 30 golf courses currently under construction. Moratalla has been approved within the regional development plan for residential purposes and the full necessary infrastructure is being created already. Similar status has been enjoyed by the neighbouring town of Calasparra and an article in the Press Articles section confirms a development by "Your Place In The Sun". This development is almost sold out and after just six months, before construction is completed, prices have risen from €175,000 to €250,000.

This area of Spain has been opened up to the UK market by the low cost airlines who all fly into Alicante and/or Murcia St Javier airports. Average flight times to the UK are less than 2½ hours and return flights are readily available for less than the cost of a return train ticket to London from the North West of England. The Regional & Area Authorities in this part of Spain have recently set aside the area around Moratalla for residential development and recent approval by the Regional Government of Murcia has confirmed that the proposed scheme set out in our project will fully satisfy all of their requirements.

This is an up and coming area of Murcia and is of particular interest to both Spanish families and discerning ex-patriots who wish to move slightly inland away from the ever-increasing hustle and bustle of the coastal resorts. If, for any reason, full planning consents are not obtained, then the plot purchase monies will be returned to investors in full. The scheme involves the buyer from the outset and he will participate in the purchase of the land as a whole, enjoying immediate title to his piece of Spain.

By joining the project at the outset, the investor can participate fully in the development profit from the site, thus maximising the business and residential opportunities. The cost of each individual plot will be £35,000 and only the release of just 100 plots will be available at this introductory price. This exceptional value is available because of investment right at the start of the project and because full planning and building consents have yet to be obtained. There is no risk attached for the investor, who can enjoy all of the added value created by planning and building consents as full refunds will be available if the necessary permissions are not obtained. As soon as planning approvals and building licences are obtained, the project will move forward. A fixed price fee will be negotiated with a local builder, who has already given an indication of construction costs at just €700 per square metre.

The final piece of this exciting jigsaw is the funding package to complete the development. Initial discussions with local banks suggest that full funding can be obtained from them, so that the development can be completed without the investor having to contribute any cashflow funding, other than his initial plot purchase price. When the villa is completed, the investor will have the opportunity to retain the property for his own use, or to sell to third-party buyers. Mortgages on completion will be readily available to UK investors and at present are set at a very attractive 3.5%.

MORATALLA SUMMARY OF POTENTIAL RETURNS           £ Assumed Rate €     1.5           Cost of Land 35000   52500         Build Cost 56000   84000         Infrastructure costs   10000    15000         Finance and other costs 2800   4200         Management cost 5600   8400         Total 109400   164100         IVA    7% 7658   11487         Total 117058   175587         Selling Price 160000   240000         Profit 42942   64413         Margin 123% 123%
Build cost are estimated based on current values. The plot owners will be required to choose the chosen builder for the whole site. This will ensure that all properties are built to the required standards.           Should any person be dissatisfied with the build cost when received, they will be entitled to a refund in full.         A management cost of 10% of the build cost will be included in the final contract price.         Finance costs at 3.5% have been added to the cost of the project. IVA charges total 7% of the build cost. Other completion costs will total around 3%.                 For further information or dicusssion with one of our representatives, please respond on the web form.