Purchasing an overseas property provides unique challenges and can often be confusing due to the amount of different properties available across many locations. Without extensive knowledge of the area and the current market, buyers can find it difficult to establish the best products available to them.
The issue of property developments and local area knowledge is also relevant to the real estate agents. They must know everything there is to know about new developments in order to assess its quality and value. Unfortunately, some agents do not investigate thoroughly enough, instead adopting a “list as many properties as possible" attitude.
In order to help clients narrow their search to only the best property developments in the most attractive areas, Casas de Luxe applied its 30 years market experience to create a rating system that assesses a property's current market value and its potential for the future. The award for the highest rated developments with the best properties are awarded the title “Casas de Luxe Hot Spot".
The developments with the Hot Spot award are considered the gold standard of currently available products. Potential purchasers can use this as the benchmark by which to compare properties. The Hot Spot rating system allows clients to focus their search on the best properties they can afford without wasting a great deal of time and resources exploring options that do not satisfy their needs.
WHAT DOES IT TAKE TO ACHIEVE A HOT SPOT RATING?
The Hot Spot rating considers the important details that separate great overseas properties from the pack. We rate properties and developments based on several key criteria, awarding points in each area according to their performance. If a property scores 80 or more out of 100, it achieves the Casas de Luxe Hot Spot award. Here we will take you through the scoring system.
LOCATION OF DEVELOPMENT Total points available, - 20
• Located on a golf course or within 5 mins of a beach (or theme park) - 5 points
• Located within 30 minutes of an international airport - 5 points
• Located within 5 minutes of a motorway and / or train station – 5 points
• Located in an area with low-mid density building regulations – 5 points
SERVICES & AMENITIES lifestyle enhancing features - Total points available - 20.
Daily needs - at least five of the following must be available on site – convenience store, bar and/or restaurant, car hire, ATM, reception area, Golf or beach, gym, spa, hair & beauty, bank – 5 points.
Leisure facility – 5 of the following within a 10 minute drive: Tennis and or padel courts, Theme park, children's entertainment area, water sports, cycling, hiking, mountain biking, bowls, football, basketball or volley ball courts – 5 points
Infrastructure – 1 point for each service within a 10 minute drive: Doctors/Medical Centre, Pharmacy, Hospital, Dentist, Sports injury clinic – 5 Points maximum
Nightlife – A variety of evening entertainment is required. Must have all within 15 minutes drive. Nightclub/Discoteque, a strip of bars and restaurants (minimum 15 to choose from), hotel and restaurant, cinema, and casino – 5 points
DESIGN CHARACTERISTICS Total points available - 20 points
Latest specification - a phrase that can be easily included in the description of a property. The team at Casas de Luxe use their 30 years of experience to assess if a project is being built to a market leading quality standard and if so can award up to 5 points to any project.
Added extras – beach, golf or outstanding views. Features such as off road parking or garage space, private garden or roof solariums, a further 5 points may be awarded.
Quality of Design – This is a factor that requires a judgment based on several items. This includes the layout and use of space by the Architect, the flow of the interior of the home to the outdoor space, property orientation and “wow factor".
Add-ons such as indoor and outdoor swimming pools, smart home technology, security, internet supply and more are all assessed with up to 10 points available.
TRACK RECORD OF DEVELOPER Total points available - 20 points
This is highly important, especially in the new build sector of the Spanish Real Estate industry. A developer with 10 years of experience receives 5 points.
Automatic issue of bank guarantees for “inbuild" projects, gains a further 5 points
Mortgage packages for completion of purchase and demonstrable capital assets ten times the value of the project in question both also receive a further 5 points each
RETURN ON INVESTMENT SCORE (ROI RATING) Total points available - 10 points
As a rule of thumb the total scored by a project in the first four sections of our assessment process is divided by 10 to give the projected ROI forecast on a project as our years in the rental sector have shown us that this is a fairly accurate guide when projecting the future rental income potential of a new development. With more than five existing property´s already operating within our rental pool may increase their score for this section if actual returns are higher than the projected figure.
EXIT STRATEGY POTENTIAL Total points available, 10 points
The ability to exit an investment is key in all areas of full and true assessment. To gauge this the speed of recent sales, the proportion of sales made off plan and during build, and the number of properties that have been completed and are not sold are all considered. The exclusive nature of a project, future phases that may be released also add to the calculation. When all is assessed, a total of up to 10 points is awarded to a project that is seen to provide a ´money back´ opportunity, within six months of completion of a purchase.
Discover more about Casas de Luxe Hot Spot property locations and the best buys available by contacting the sales team on 0034 965 02 02 04 or at firstname.lastname@example.org