10 September 2020
As you know we´ve not published any new opportunities for the last few months. The reason behind this decision is the fact that, as first investors in all our opportunities, we don´t want to invest in a downtrend market till it hits rock bottom.
The Coronavirus crisis has had a massive impact on our lives and also on the real estate market. This is why we decided to wait in order to have a clear picture of what was going to happen.
Now that the holiday high season is gone, and with the experience gained during these last months, we have now enough experience to start taking decisions. These decisions are not only based on our numbers, but also in the discussions with other colleagues from the vacation rental business. These are the main ones:
1. Cádiz performance has been outstanding, coronavirus considered. Our average income in Cádiz has been an average of 95% in comparison to 2019, which was a very good year. Due to the pandemic, travelers are only making last minute bookings and this is one of the reasons it is so hard to make predictions, but September looks like it´s going to be a good month in Cádiz. In our opinion, we should continue investing in Cádiz if we find the right opportunity.
2. Alicante has been our second best city in terms in revenues and occupancy rate. Unfortunately we had to lower our rates, and that had an impact on our revenues. We are receiving bookings for the last quarter of the year and we are positive regarding 2021. If we find a good opportunity, we should probably take it.
3. Malaga and Sevilla performance has been bad, as forecast. Unfortunately, we are not receiving many bookings for the following months, and this is the reason we are considering accepting midterm rentals for the next 6 months. Things are changing very quickly but our objective is to have them all rented by October, 1st. We will continue scanning the city, but we won´t be likely investing in these cities for the following months.
In order to reduce risk and have a diversified portfolio it is necessary to include other investments besides vacation rental properties. This is why we are also working in new categories of investments
Now that the real estate market is going down, due to the pandemic, it is time to scan the market and look for the best opportunities. Tourism will recover and travelers rather stay in vacation rental properties, while hotels are transforming themselves into coliving spaces. It is time to invest, before the market goes up again.
Therefore, our goal now is to look for new opportunities in Cádiz and Alicante. As usually we will be looking for opportunities with great locations, being sold under the market price.
We are very excited to announce that new categories of investment categories will be added to Brickstarter very soon. We are working on coliving spaces, remodeling loans and even loans to developers. We will keep you posted.
Soon you will receive an email to confirm your Brickstarter account.
We hope to see you soon!