Editor’s note: This article was first published in October 2010, after the Spanish property crash; the bargains, halted construction and Costa del Sol market it describes belong to that period.
Two sectors, estate agencies and travel agencies, have been hit hard by the crisis, which has forced them to look for new ideas and find fresh business opportunities. Some Spanish-speaking countries have already copied a system from the United States: the repossession tour (la ruta del embargo).
This business idea can be carried out either as a joint venture between an estate agency and a travel agency, or independently.
The repossession tour consists of bringing together property bargains, usually luxury flats or villas that are about to be repossessed because their owners can’t keep up with the payments. In some cases these properties can be bought for up to 70% less than their real value.
The idea has been so successful that trips are being organised from abroad to the country where investors or private buyers want to purchase property.
The biggest repossession tour is on the Costa del Sol, in Andalusia. Since construction ground to a halt, it’s now possible to buy genuine luxury properties for a ridiculously low price.
If you put it together properly, with the right contacts and a good marketing campaign, this business idea will be very well received. So if you run an estate agency or a travel agency and the repossession tour hasn’t reached your country yet, you could be an innovator and a pioneer.
Gather the properties and draw up a programme to organise the itinerary. Just as people on package tours pay to visit museums, in this case they’ll be delighted to pay to see those property bargains.
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