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Turnkey Rental Income Property Investments
 
   
 
The Opportunity

The developer is one of the UK’s leading international property developers focusing on 5 star spa resorts in the best locations in the Caribbean and vacation destinations worldwide. Private investors are given the opportunity to buy overseas property ranging in size from studio apartments to luxury villas, at significant discounts to market, providing investors with hassle free strong capital appreciation, high yield and excellent returns on investment.

This is a featured opportunity because this property investment model is truly unique compared to traditional developer opportunities.

Here are some of the salient features:
The developer is debt free worldwide. All land is owned free and clear by the developer with no debt secured against property.
The developer is one of the largest builders in the Caribbean and going strong despite a challenging economic environment.
The developer has substantial assets. Jjust the property it owns in St. Vincent is currently valued at over $350 million with no debt. This strong financial position allows the developer to provide investors the financing needed to complete their purchase.

100% Financing available - The developer will pay your monthly repayment on the loan for the 30% deposit.

The developer will pay 6% income on your 30% deposit until completion of the project.
Free Usage - Each owner/investor gets 30 days of free use of the property per year.

Rental Guarantee - Two year 10% Rental Guarantee followed by 50/50 share of the net room rate.

5 Star Amenities - The developer has partnered with world class top 5 Golfers, ex Wimbledon Tennis Champs, Football Club Soccer Schools, leading international SPA brands in each resort. In addition, the developer has partnered with a tourism company that owns over 50 jets and has its own travel agent network and flies guests in from all over Europe.

The developer has entered agreements with the U.N. and other global agencies to actively promote the production of local produce for use in their resorts.

The developer builds strong relationships with the governments of each respective island, planning how they and the local people can maximize the benefits of being associated with the brand.

100% Financing

The Developer guarantees investors that the developer will assist investors in obtaining financing for completion

Developer guarantees two year rental guarantee of 10% followed by a 50-50 share of net room rate revenues

Developer guarantees 30 days free usage of the property each year

Discounted Purchase Price - By purchasing prior to completion, investors pay a lower price for property than it will be valued at completion. Developer also guarantees there will be several price rises during the build period which means investors will see the value of property rise over time. Investors can sell property at any time after exchange of contracts.

100% Financing - Example

If an investor uses a loan to fund the 30% deposit amount, the developer will make the interest payments on your behalf. See the example below:

The 30% deposit is required (less £1000 reservation fee) within 45 days of reservation.

Should you choose to borrow the 30% deposit, the developer will pay the loan repayments, including interest, for the 30% deposit until completion of the specific unit you have reserved. These payments are then added to the purchase price upon completion.

Example (Sterling): Property price £200,000. £1000 reservation fee paid. The deposit = £200,000 x 30% = £60,000 - £1000 (reservation fee) = £59,000.

Interest on £59,000 @ 6% p.a. = £295 per month, paid for 24 months by the developer = £7,080 added to the purchase price upon completion.

At Completion

Due to the aggressive discount contract price prior to completion and the capital appreciation during the construction phase, it is anticipated that the £200,000 purchase price will grow to a property value at completion of around £325,000.

At this point a 70% loan to value mortgage will be required and an investor can borrow up to £227,500. This is clearly ample to pay for the £199,000 (purchase price less £1000 reservation fee) as well as the accrued interest of £7,080 in the example above.

Assuming the investor borrowed £227,500 the annual interest payment would be £18,200 based on a rate of 8%. The developer's rental guarantee of 10% of the purchase price of £200,000 will generate a 2% spread resulting in an annual income of £20,000 each year the first two years after covering your mortgage payments. The initial £59,000 loan an investor used for the deposit can be paid off at this point if the investor so desires or the investor can use the money to invest in a further investment property purchase.

*Subject to status. Terms & conditions apply.




 

Purchase Price   £200,000 Interest paid on 30% deposit 6 %
30% £60,000 Completion in Months 24  
O/S to developer on completion  £140,000 Rental Yield 10 %
Interest per year £3,600
Interest per Month   £300
LTV Completion 70 %
Interest on compln Mortgage 6 %
Stage Payments approx 7.25% £5,800 Room Rate £300
   
Net nightly rate £150
Occupancy % 70
New Valuation at Completion   Costs
      Price of unit £140,000  
New Value of Property £325,000   Interest on 30% £7,200  
      Stage Payments £5,800  
Mortgage Raised on Completion £227,500   Total £153,000  
Year 1 & 2 Rental Guarantee 10% £20,000
Running Costs  
Mortgage   £13,650 Cash Back/Deficit £74,500  
Maintenance approx 1.5% p.a £3,000  
   
Total   £16,650      
Year   Income Costs Profit/Loss
Year 1 £20,000 £16,650 £3,350
Year 2 £20,000 £16,650 £3,350
Year 3 £38,325 £16,650 £21,675
Year 4 £38,325 £16,650 £21,675
Year 5 +   £38,325 £16,650 £21,675
All negative values are in Red. Only change available boxes
This is an illustration and The guaranteed income is correct as 10% of purchase price. From year 3 
onwards figures are based on assumptions as in the above example and cannot be guaranteed.

 

   
 
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