Magazine

In recent months, at Brickstarter we have chosen not to publish new opportunities because of the current situation of great uncertainty. This is because, as promoters of our opportunities, we did not want to invest in a falling market until we had at least a little more information.

With the high season over, and the experience gained over recent months, we now have enough experience to begin making decisions, or at least to start clarifying our thinking.

These are based not only on our numbers, but also on what we have observed together with other professionals in the vacation rental business. These are our main conclusions:

1. Our average income in Cádiz has experienced an average drop of 5% compared with 2019 (historical data; it does not guarantee future results). Due to the pandemic, most new bookings are made at the last minute, which makes it very difficult to make decisions. However, we expect September to be a good month in Cádiz, without any guarantee, since it remains an attractive destination for domestic tourists. We will be on the lookout for new investment opportunities, now that the market appears to be correcting.

2.     In Alicante, unfortunately, we had to lower our rates in order to maximize occupancy (and income), and that had a negative impact on the final result. We are receiving bookings for the last quarter of the year and we are feeling positive about 2021. If we find a good opportunity, we should probably also take advantage of it, especially given the downward pressure on prices in the real estate market.

3. The performance of Málaga and Sevilla has been below forecast. Unfortunately, we are not receiving many bookings for the coming months, and this is why we are considering accepting mid-term rentals (less than a year), with the aim of giving more stability to income until the market in these cities recovers. We will continue scanning the city, but we will probably not invest in these cities over the coming months.

New investment categories.

To diversify, which does not eliminate the risk of loss, we are studying the inclusion of other investments in addition to vacation rental properties. That is why we are also working on new investment categories.

We are working to add new investment categories, with no confirmed date. Among them, coliving spaces, remodeling projects and even projects with developers. 

Obviously, whether we publish them will depend on their meeting our standards of return and risk.

We will keep you informed.

Investment opportunities in vacation rentals:

The real estate market is falling due to the pandemic. We expect tourism to recover, although this is not guaranteed, and we have already observed that travelers increasingly opt for vacation apartments to avoid crowds. Now that there is downward pressure on prices, it is time to analyze the market and look for opportunities that meet our criteria.

Our goal now is to look for new opportunities in Cádiz and Alicante, while we work on new types of opportunities.

We will look for well-located opportunities whose purchase price is below their market valuation, which does not guarantee any result.

Past or estimated returns do not guarantee future returns. Investing involves a risk of total or partial loss of the invested capital.