Frequently asked questions

• General questions
• Caribbean (Margarita Island)
• Portugal
• Spain

General Questions

If I buy 'off-plan' with the intention of selling before completion, what are the success rates for 'flipping' properties before the 18-24 months?

It is very important to us that our short-term investors have the greatest opportunity to sell on before completion. We therefore only sell a specific % of each development to those wishing to sell on ( typically 20-25% ). This greatly increases the ability to sell on.

We will also actively market the client's unit to clients visiting us wishing to purchase near-complete property.

What options are there for financing my property?

There are several ways to finance your property abroad. It is very important to have your funding in place prior to your reservation as properties are normally exchanged and completed within six weeks.

If you require finance to fund the purchase of your holiday home the two most common ways are to release equity in your UK property by re-mortgaging or by obtaining a mortgage ( we recomend OK Finance ).

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Caribbean (Margarita Island)

Are there any tax incentives associated with the purchase of a property in Margarita?

Margarita Island is a tax and duty free zone. There is also no VAT on the island. The purchaser of a property does not pay any taxes on the purchase. There is a minimal annual property tax of USD $100.

How popular is Margarita as a holiday destination?

Margarita is very popular for its all year round weather, beautiful beaches and very friendly people. Playa el Yaque is one of the worlds most popular places for windsurfing. First Choice Holidays take UK holiday makers to a number of high quality all inclusive hotels.

Where do the tourists come from?

Visitors come from all over the world, the main countries are Germany, Netherlands, Spain, Switzerland, Canada, United Kingdom, Venezuela and Russia.

How easy is it to get flights to Margarita Island?

There are direct flights to Margarita from Canada, Germany, Denmark, United Kingdom, Finland, Netherlands, Russia and Argentina. The majority fly through Caracas, Venezuela, from there it is only a 35 minute flight to Margarita Island. Many airlines are now operating daily flights.

Is it easy to get around Margarita Island?

Getting around the island is very easy. There are several car rental companies, taxis are also available at low cost.

Do the developments have the support of the Government and local planners?

The developments have full support of all government offices on the island. The development company have also secured full legal title to the land.

Can I live on Margarita Island and do I need to apply for residence?

Anyone can own property on the Island regardless of their nationality. There is no need for residency to live on the island. The process is very easy, a temporary residents visa is issued for the first five years, renewed annually. After five years the status changes to permanent residency.

Are there modern facilities on the Island?

Margarita Island has all the facilities you would expect from a vibrant holiday island. Large modern shopping centers, with all the well known stores such as: Bulgari, Versace, Tommy Hilfiger (all of which enjoy duty free status). There are a great number of restaurants and bars, many specialising in seafood, but also international cuisine, such as Japanese, Chinese and Argentinean food. A good choice of hotels including five stars hotels with casinos. Cinemas, cultural centers, museums, amusement and theme parks can also be found on the island. The island also has an international airport, several marinas and is a favorite stop off for cruise ships.

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Portugal

What are the average property price increases in Portugal?

According to the Royal Institute of Chartered Surveyors' European Housing Review 2005, average property prices in Portugal increased by 7% in 2004. Prices had increased by 10% in 2003.

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Spain

Do you have details of the mortgages on offer in Spain?

There are virtually no exchange controls in Spain, which means that whether resident or not, you are free to obtain a loan or a mortgage against your property in any currency and from any bank in the world. Spanish banks are quite willing to lend to non-resident purchasers of Real Estate, most Spanish banks will lend up to 70% of the purchase price, this does not include the 10% to cover legal fees and taxes.

We can assist you in arranging a Spanish mortgage prior to your trip to Spain but you will need to take the following information with you:

1. A photocopy of your income tax return.
2. Three months salary slips.
3. A breakdown of assets and liabilities.
4. Last three months bank statements.
5. If self employed, statements of accounts.

Spanish mortgages are in the local currency of the Euro, the exchange rate fluctuates with the pound and therefore if your mortgage is funded by rental income you should either set up a direct debit from the UK or ensure the rental income from your property is paid into your Spanish bank account.

Dependent upon the price and type of property, what kind of rental income can be expected from the developments and are there case examples?

For some developments we can supply specific analysis showing rental potential. We will also supply you with some general rental advice and examples of short or long term lets.

As a general principle in the Costa del Sol, all the annual costs associated with finding on apartment will be covered by 16-20 weeks rental per annum (i.e. Cover mortgage, letting/service fees etc).

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