Magazine

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 promoters of 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.  In Cádiz, our average income has been around 95% of 2019 levels (past data, not a guarantee of future results). 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 bookings for September are currently in line with expectations, although this may change. In our opinion, we should continue investing in Cádiz if we find the right opportunity.

2.  Alicante has been our second city in terms of 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 hope for a better 2021. If we find a good opportunity, we should probably take it.

3.  Malaga and Sevilla performance has been below 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.

Next investment opportunities

Diversifying across different types of investments may help spread risk, but does not eliminate it. This is why we are also working in new categories of investments.

Vacation rental investment opportunities:

Now that the real estate market is going down, due to the pandemic, we will keep scanning the market for opportunities that meet our criteria. We expect tourism to recover, but timing and extent are uncertain, while hotels are transforming themselves into coliving spaces. We will keep assessing opportunities case by case; all investments involve risk.

Our goal now is to look for new opportunities in Cádiz and Alicante. We will look for well-located opportunities whose purchase price is below their market valuation, which does not guarantee any result.

Other investment categories:

We are working on new investment categories that we plan to add to Brickstarter, with no confirmed date. They include coliving spaces, remodeling projects and even projects with developers. We will keep you posted.

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