The Balearic Islands stand out as a highly attractive real estate investment destination within Europe, owing to its status as a coveted holiday locale and the keen interest from international buyers in acquiring properties there. Investing in The Balearic Islands offers promising real estate returns, characterised by substantial rental income that tends to appreciate steadily over time, alongside the appreciation of property value.
To illustrate this trend is a recent case study involving a client of Enness's seeking to invest in The Balearic Islands. With a targeted investment property price slightly exceeding 1,500,000 EUR, our client had approximately 500,000 EUR as a deposit. They wanted to invest in the property and re-sell when market conditions were ideal. However, due to the client's status as a self-employed individual with fluctuating income, it was not easy to identify a lender by themselves without bringing over 1,000,000 EUR in assets under management to a private bank.
Enness successfully identified a lender willing to finance 70% of the acquisition cost through a fully amortised loan structure spanning approximately 25 years. As this was an investment, other than the rental income, the client also anticipated a future sale after the 7-8 years of ownership. For this reason, we opted to fix the interest rate for the initial seven years, transitioning to a variable rate to mitigate early repayment penalties. The client expressed satisfaction with the competitive interest rate offered, recognising that despite the monthly repayments of a fully amortised loan being marginally higher compared to those of a 5-year interest-only loan, the overall cost of the loan was much less.
Enness can understand your financial planning expectations and find tailor-made solutions, facilitating successful real estate investments even in challenging circumstances.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
