Paul, 38, and director of his own marketing company, was first to invest in the resort, buying two townhouses for 220,000 euros (£150,000) each and an apartment for 160,000 euros (£110,000). Paul's recommendations of the scheme led to five of his friends and family also purchasing property at La Torre, including his father, who has recently bought a two bedroom apartment overlooking the 18th green.

The properties on the resort are due for completion in 2005, but the payment schedule means that, to date, Paul has only had to pay a total of £164,000 for all three properties.

Paul has bought the homes purely as an investment. He believes that the resort's properties are ideal to re-sell to holidaymakers and second-homers, and that the lower price paid when purchasing them off-plan will result in a greater profit margin.

"The only way to pick up a genuine bargain when investing in overseas property is to be there at the beginning, when the properties are being sold off-plan, as they are in La Torre.

"With property prices and building quality rising, investing in Spain is, in my opinion, a surefire winner. Its popularity as a holiday destination is on the up again and Brits are flooding back to the country because of cheap flights and easy accessibility.

"The Polaris World developments meet all the selection criteria most people are looking for: they are private, gated communities with views across the golf courses and space between the properties. There are restaurants, bars and shops all on-site, and the properties are located in a region of Spain that has more than 300 days of sunshine a year."

These are certainly among the credentials that attracted his father to the resort. Peter, 60, and semi-retired, lives in Thornton, just outside Blackpool.

"My wife and I have always wanted to live abroad and we like the fact that La Torre has 24 hour security. We have owned property in Spain before, but we wanted to be close to other people in a secure environment. As a keen golfer, the fact that the resort has a private golf course was also highly attractive."

Peter admits that he has "never been worth a fortune" and that he paid for the property by releasing equity from his bungalow in Blackpool. He says, "Why have the money sitting in a bungalow in the UK when it can be sitting in the sun in Spain?"

He took advantage of the off-plan payment structure, which means that purchasers only pay a 40% deposit, with the 60% remainder not due until the keys are handed over.

Peter's property is currently being built and will be completed next year. "I used to be wary of off-plan, but we used an agency of independent advisers who were with us every step of the way, helping with financial advice, inheritance issues, and so on. The cost savings and investment potential have outweighed any fear I used to have about buying off-plan."

Peter Smith believes buying off-plan represents an excellent opportunity for investors.

"New developments bought off-plan means there will be a period of time until the building has been completed. This can be anything from six to 24 months, with only a handful of new-build properties being available for completion within a six-month period.

"Purchasing early on in the project can pay dividends for capital appreciation alone. Additionally, the payment process for new-build represents a very exciting opportunity for the investor to achieve further capital growth. The payment process for new-build means that up to 50% of the purchase price is paid within the first four to six weeks when the contract is signed; the balance being paid on completion, say, some 12 months later.

"If the value of the property in that 12-month period increases by a modest 10 per cent, for example, this amount actually represents a 20 per cent improvement in the capital employed to purchase the property up to completion day, because you will have only paid 50 per cent of the total purchase price to that date. Recent experience has shown an average annual return closer to 30 per cent. Usually, the earlier you invest in a new development, the greater the return realised."

La Torre is an exclusive golf resort forming part of the Polaris World resorts in southeast Spain, 45 minutes from Alacante airport, which is only a 2 hour flight away from the UK. The resort covers almost 1.4m sq m (15m sq ft) of land, including an 18 hole golf course designed by Nicklaus Design and a genuine fishing village built around a large lake. There's also a hotel and range of properties, starting at 120,000 euros (£80,600).

Lorca Golf Resorts