Below are some real case studies giving examples of capital gain on investments.

CASE STUDY 1

Mr A from Lancashire bought a property, off plan in Hacienda del Alamo, in phase 1 of the project, in September 2002.  The price of the property was € 209,000  (plus VAT). Once phase I was sold out, the prices for phase II rose by 15%. During the sale of phase II prices were increased by 8%.  When phase III was release in April 2003 the prices rose again by 10%. Prices rose another 8% during the phase III sales.  From the start of the project to the end of selling phase III, the price of Mr A’s property rose by 47.5% in a little over a year.  Mr A took delivery of his property in September 2004 and has just sold it for € 350,000 which is an overall gain of 67.5%

          € 209,000  + 15%   =  € 240,350

          € 240,350  +  8%    =  € 259,578

          € 259,578  + 10%   =  € 285,535

          € 285,353  +  8%    =  € 308,353    

Throughout the period Mr A paid:

          Reservation deposit            € 3 ,000

          45 days after reservation    € 35,756 = 15% of the property sale price (includes 7% VAT on the 15% less € 3,000 deposit)   

          April 2003                            12 monthly payments of € 3,214 = to total 15% of the sale price of the property (including VAT)

          September 2004                  € 146,298 = delivery of property and remaining 70%.

          Total price of property including VAT = € 223,630

CASE STUDY 2

Mr B from Ireland bought a phase I property off plan, at Mosa Trajectum in October 2001 for € 100,000. He took delivery of the property in October 2003.  Re-sale properties similar to his are now selling for € 275,000.

CASE STUDY 3

La Torre is a Polaris World resort which was launched a last year and is over 90% sold. Phase I of the development is due for completion in mid 2006, and prices continue to rise throughout the developments lifecylce. At the end of August 2004 Polaris were selling an Enebro detached villa for € 401,700 and at the beginning of November 2005 Polaris were selling the same villa for € 442,714,  an increase of just over 10%.