Overseas Property, is it the little things that matter?
What really attracts people to purchase an overseas property, apart from location, price, and dimensional suitability? I would argue that it is normally the LOVE factor. Most people fall in love with the property they want to purchase and will normally go with the one that just feels right when they go to view it, sometimes even in spite of it not being “the best deal.”
The reason for the question is, believe it or not, to do with overseas properties and what developer’s currently use to entice buyers to part with their hard earned cash. We have just experienced something which we feel is a fantastic idea from the developer of our Barbados Property Investment.
As I said, I believe it’s the little things that matter when it comes to a purchase, so what if a developer gives you the chance to fully customise your apartment when you purchase it? On our apartment in Barbados, because we purchased early, we were given the option to change the layout of the apartment by moving non load bearing walls as well as specifying if we wanted air conditioning in extra rooms, fans in extra places, different styled lights, the list is endless!
The reason I write about all of this now is that all purchasers on Weston Resort and Ixora Resort are given their own personal secure area on the developer’s website, which details all correspondence, construction progress, legal documents and now… “Interior styling” the interior styling tab is a new feature and we think it’s just great! We are now given the chance to customise the whole colour scheme of our apartment as well as choose between different finishes in our kitchen from the worktops to the tiles even down to the washing machine.
We think it is vitally important for clients to feel happy right the way through their purchase of an overseas property, this is why we stay in contact with all of our clients, offering advice and updates right up to completion.
Please use the link for more details on our Barbados Property.
Barbados – Things are heating up!
Barbados, probably one of the most revered holiday destinations in the UK and arguably the world. The traditional busy period in Barbados tends to last from around the end of November to the end of January and with this, British Airways are advertising their Barbados winter holiday packages in order to convince some of those tourists to fly with them.
British Airways announced earlier this year that they would be increasing their services between London Gatwick and Barbados as a result of the increased demand currently being shown for the Caribbean island this is great news for anyone that has a vested interest in property in Barbados.
Although Barbados has a strong economy away from tourism it also relies heavily on the industry and all of the money bought into the country and spent in the country by tourists from around the world. This money can be invested into the local economy to promote future growth, which is good for the country as a whole.
All this is good for those investors that have purchased in Barbados or are thinking of purchasing in Barbados in the near future.
We are working (and investing) with a pioneering developer in Barbados that is offering excellent investment opportunities as well as properties ideal for a lifestyle purchase. All of the properties are priced far below any other comparable properties in similar locations. There is a unique system in place to ensure that maintenance costs are kept affordable and the developer has multiple offers from top hotel operators to run the development on completion. This gives purchasers – a low purchasing cost, low ongoing costs and high rental returns! Win, win, win!
Please click the link for more details of our Barbados Property Investment.
Where’s your winter retreat?
With summer coming to a close, where are you going to be jetsetting off to this winter to get away from what is already being named a “brutal” winter??? With snow forecast as early as next month (October) I can see why many of the destinations causing a buzz at the moment are those with high levels of sun every year and minimal rainfall.
One such location which has been causing a stir in the property industry recently is Cape Verde, the most searched for investment location last month. We have been a preacher for investment in Cape Verde for some time now. With its excellent location in relation to Europe and the fact sun is almost guaranteed with 360 days per year! This is just the type of location you need if you are looking to go away for a short break in the depths of winter. The flight is almost directly south from the UK which means there is very little time difference and a day is not lost due to jet lag.
Cape Verde is an archipelago of 11 islands of which we believe the prime island for investment is “Sal” due to its present infrastructure and a successful international airport. In Cape Verde we wouldn’t invest with any other developer than The Resort Group, their performance over the last couple of years in this location has been phenomenal!
The Resort Group are the pioneering developer behind projects like Tortuga Beach Resort and Dunas Beach Resort, both sitting on the beautiful west coast of Sal on Ponta Preta beach. Tortuga Beach Resort which was their first development is now a fully operational holiday destination in its own right.
The importance behind The Resort Group’s sterling success on the island of Sal in Cape Verde lies with their new investment proposition in Llana Beach Hotel & Spa.
Llana Beach Hotel & Spa is TRG’s newest project on the island of Sal. Llana is a development of 601 hotel suites that are available for purchase by any investor be it through Cash, mortgage or a Self Invested personal pension.
Here’s how it works:
The Resort Group offer investors the chance to purchase a unit in their development off-plan, (prior to build completion) there are 3 purchasing options with 3 different deposit levels from 45% right up to 85%. By purchasing a unit with only cash they will actually give a 15% deposit, hence the no 100% option!
The Resort Group pay interest at a level of 3% on the first 45% of the property price for a period of 3 years, or until completion.
Upon completion of the suite the purchaser will benefit from being a member of the rental pool operated by a top hotel operator* meaning very high rental returns for years to come. The purchaser is also given 5 weeks free usage per year of their unit in a top 5 star resort in a beautiful location.
Here’s why it works:
The Resort Group have a long and established reputation in Cape Verde and can not only promise to deliver a high end development on time, they can prove that they’ve already done it once this year.
The Resort Group have partnered with the largest resort operator in the industry (Sol Melia) to ensure that rental returns are high and consistent. This has already been proven to be the case, with their first development Tortuga operating successfully and consistently at a level of around 80% occupancy.
The Resort Group have now sold out on both Tortuga and Dunas, which puts them in a very strong position for this, their third development on the island.
When a developer is partnering with companies as large and respectable as Sol Melia, your investment is in safe hands!
For more details of any of our current investment opportunities, please contact us on +44 (0) 1243 527 327 or at info@freshinvest.co.uk
Barbados still holds strong in competitive tourism industry
News released by the Barbados minister of tourism earlier this week, is sure to put a smile on many of our clients faces! Even in tough times economically, Barbados is thriving as a tourism hotspot and still growing in terms of its tourist arrivals.
Any investor that is looking for maximum occupancy rates in their purchased property in Barbados will be happy to hear that Tourism numbers are increasing as it ultimately means there are more people visiting the island and there is more chance of their property being filled and thus a higher rental return.
Figures released this week stated that there was “250 385 stay-over visitors recorded during the period of January 1 to May 30, an increase of 13 724 from last year’s numbers, representing a 5.8 per cent increase in arrivals. Cruise ship passenger arrivals also grew 3.4 per cent for the same period in comparison to 2010.”
The above is great news for property investors however; apart from the increase in the stay-over visitors through this period, could there be an underlying message? To be able to determine this, I would like to see the figures for the traditional busy period of December to January when room rates tend to be higher. If these figures have stayed stagnant, or decreased, it may prove that holidaymakers are still going to Barbados, just at the times when it becomes more affordable, in a bid to save money.
As saving money is on most peoples mind at the moment , the case has to be bought forward for purchasing on one of our developments in Barbados.
Both Weston and Ixora Resort are both located in St James on the West Coast of Barbados. Anyone that has visited the island will know that St James is truly the most luxurious and arguably beautiful part of the island. Property prices in this area of Barbados are traditionally sky high! However “A keenly negotiated land purchase price, innovative construction methods and very well managed build costs are the key elements to this development. The developer is renowned for delivering high quality apartments in premium locations at exceptional value. Their choice not to embark on expensive marketing campaigns and to avoid costly gimmicks often associated with overseas property sale has kept the project lean and helped to deliver high value.”
It seems there are two ways this latest news can be interpreted:
1. People are looking for cheaper alternatives to their yearly holiday in Barbados, which is exactly what Weston and Ixora can provide. We have worked out that even with low room rates and occupancy rates compared to other developments, our purchasers will still have yields in excess of 10%pa
2. Tourism in Barbados is increasing, which is great news for the whole of Barbados, including both of our developments where, even on pessimistic figures by today’s standards you will receive rental yields of 10%
If you would like some further information on any of our property investment opportunities, please contact us.
Llana Beach Hotel and Spa – Cape Verde
Llana Beach Hotel and Spa in Cape Verde is now nearing release as Dunas Beach Resort gets closer to becoming completely sold out and Tortuga Beach Resort strives on as a top class holiday destination in Cape Verde.
Llana Beach Hotel and Spa will be The Resort Group’s third development in Sal, Cape Verde and will provide purchasers with all the security of investment, Capital Growth, Rental Yields and amenities which have come to be expected from a developer of this stature.
With 3 sites fronting the pearly white sands of ponta preta beach on the west coast of Sal. There is no better location or place to purchase for sun seekers of Europe at present. With 360 days of sunshine per year, Cape Verde is ideally located for those sun worshippers that look for a hassle free property with GUARANTEED sun.
Llana Beach Hotel and Spa will again be managed by the largest resort operator in the world, Sol Melia. Sol Melia, have proven themselves time and time again as a world leader in the holiday industry and wherever they base themselves, tourists follow, which is exactly what has happened at Tortuga Beach Resort, which had to be opened early due to the heavy demand from Holidaymakers!
Llana Beach Hotel and Spa will offer the same fantastic rental prospects as Both Tortuga and Dunas Beach Resort. Clients are offered very high rental yields after management costs on these fully managed 5 star Resorts, along with free use every year. The rental yields for investors will be determined by the tourism figures that are achieved by the hotel and the island of Sal in general.
Sal is in an unrivalled position for future growth in the tourism industry, just a short distance from Europe and with regular and increasing flights from most major European cities, tourism is expected to top 1,000,000 visitors pa by 2015. The real pull of this island is the guaranteed sun and beautiful beaches. The fact there is only a 1 hour time difference means that short breaks are entirely possible, without the need for a lost day to jet lag.
We will be releasing full details of Llana Beach Hotel and Spa in the very near future.
Interested? Stay informed.
New world heritage site – Barbados
As news surfaces of Bridgetown being named a world heritage site by UNESCO. What does this mean for Property owners in the country and future investors in Barbados Property?
There are many factors which affect property prices in the Caribbean and Barbados in particular. Barbados has a more established economy than many of its Caribbean counterparts, this can be attributed to its history of food production and the fact that many people don’t just come to Barbados for a holiday, they buy property there and many decide to settle upon retirement. The country can therefore be less reliant on tourism; however it is still heavily reliant on tourism which is as always, strong.
The World Heritage news is a good sign for the island and should affect property prices positively. Not only this, but the increased tourism to the island should lead to better occupancy rates for anyone renting their property, which we are particularly happy about. Our property on the West Coast of Barbados, was purchased at a fraction of the price of others in a similar location and for precisely that reason we are confident that rentals achieved by the professional hotel operator will not only pay our mortgage, but provide us with a healthy net income every year.
We have already received projections from various hotel operators on what room rates they believe they could achieve. We took the room rates per night and multiplied it by various occupancy rates and the results were quite frankly, astonishing. At just a 38% occupancy Annual Rental Revenues after management costs were £12-£30k! After mortgage repayments on a 55% LTV mortgage, income would be £8k-£25k, dependent on apartment size. Another point to take into account is the maintenance fees applicable to various properties in Barbados, where fees can easily be US$12,000 per year for just a 1 bed apartment! Both Weston Resort and Ixora Resort will utilise an owner’s cooperative upon completion which will take charge of the maintenance, thus eliminating costly providers taking a large profit. For more information on maintenance figures please contact us.
Barbados is an established market with a stable political system, huge regular tourism fan base and is a great investment or lifestyle property purchase, even better when you purchase through us!
Availability across our 2 fantastic sites on the West Coast of Barbados is as follows:
Weston:
Block 3 apartment 2 – A raised ground floor 4 bed apartment right by the pool and one of the closest apartments to the beach. $432,000
Block 6 apartment 2 – A raised ground floor 1 bed apartment with sea views! This apartment is a large 1 bed with a partial sea view. $270,000
Block 7 apartment 6 – A first floor 2 bed apartment with full sea views. This apartment is an excellent opportunity for a couple or smaller family looking for excellent views of the Caribbean Sea. $340,000
Ixora:
Apt 3 & Apt 4 – Both of these apartments represent a great opportunity for someone looking for a “bolt hole” property in Holetown, Barbados – $215,000
*All prices in US$
Golf Property in Barbados
A = Weston Resort, B = Royal Westmoreland, C = Apes Hill, D = Sandy Lane
Property near to a golf course on the West coast of Barbados can be:
a) Far cheaper than you’d imagine,
b) A stones throw from the beach,
c) A great investment for years to come.
Weston Resort in St James Barbados is not only a great property investment but can provide an excellent getaway for the golfing enthusiast.
With 3 top class golf courses all within 6 kms of the properties, these will be a welcome sight for any holidaymaker looking for reasonably priced accommodation on the West Coast of Barbados, with easy links to the local golf course.
The three courses within close proximity to the properties are Royal Westmoreland (2 km), Apes Hill (6 km) and the Sandy Lane golf course (5 km). There are many more on the island though, for those willing to travel slightly further.
This is great news for us, for the simple reason that we have purchased on Weston Resort ourselves and are looking forward to playing once we get out there! Below I have highlighted a few of the reasons that led to us purchasing on the Weston Resort in St James, Barbados:
- A fantastic location just 100m from the beachfront at Alleynes Bay,
- The developers have achieved a very successful pre sale, leaving the development financially secure,
- Prices that are far below anything comparable on this coast,
- Attractive maintenance fees, far lower than any other developments on island,
- An offer from a top hotel operator in Barbados to manage rentals,
- Attractive payment plans that can be designed to suit the individual.
At present there are just 3 apartments remaining on the development all of which represent a great buy for investment and lifestyle purposes.
- Block 3 apartment 2 – A *raised ground floor 4 bed apartment right by the pool and one of the closest apartments to the beach. $432,000
- Block 6 apartment 2 – A *raised ground floor 1 bed apartment with sea views! This apartment is a large 1 bed with a partial sea view. $270,000
- Block 7 apartment 6 – A first floor 2 bed apartment with full sea views. This apartment is an excellent opportunity for a couple or smaller family looking for excellent views of the Caribbean. $340,000
There is another reason I believe these apartments are a great purchase at the moment and it lies on the investment side.
As I see it, I believe the demographic for holidaymakers in Barbados may begin to see a change soon, with prime beachfront land on the west coast all but developed, I believe large price rises could be on the horizon in areas just in land. I also believe that the rental market may begin to look towards the self contained apartments in search for a lower cost holiday that gives more freedom to travel when on the island.
Completion is set for February 2012 and construction is progressing well see here. With 10%+ yields available at just a 38% occupancy rate and purchasing prices as far as 40% below nearby comparables I am personally excited for the future of this development.
Please click the link for more information on our excellent West Coast Barbados Properties
Build Progressing on Weston Resort Barbados
As many of you will know, Weston in Barbados has been our most successful development to date. After being recommended this development by a client of ours we have successfully transformed this developer’s sales focus to investment as well as holiday home buyers.
At first glance, Weston seemed like a low priced development, one back from the sea front with sea views to many apartments, perfect for holiday makers but with no obvious investment characteristics.
However, after digging further we realised that it’s low prices and fantastic position mean’t room and occupancy rates could be set at a premium and even on a 20 week occupancy would provide yields a lot higher than many other competitors.
Fast forward 6 months and we are now due to launch our 3rd development in Barbados, both Ixora and Weston having sold out in record time.
Weston is due to complete in November/December 2011 and build is progressing nicely.
Above is a picture of the front of phase 2, about where the swimming pool will be, coming along nicely…
Back corner of phase 1 ground floor with sea views possible, 1st and 2nd floor views should be fantastic!
Back corner of phase 2 with the sea viewable, a lot of the apartments in phase 2 will have sea views thanks to the height increase between phase 1 and 2.
This will be the view available from 2ft below where apartment 7-6 will be on phase 2.
As construction progresses we will bring you pictures from the 1st and 2nd floor showing even better views. The sea is just 200 metres from the entrance to Weston meaning the beach is only 5 minutes away.
There are still 3 apartments remaining for sale:
1 bed sea view apartment – £166,050*.
2 bed sea view apartment - £209,100*.
4 bed apartment – £265,680*.
* Subject to exchange rates.
If you want further details please contact us on info@freshinvest.co.uk or call us freephone on 0800 043 69 56.
The Changing Face of Cape Verde
It wasn’t long ago that you could be mistaken for thinking that certain parts of Cape Verde were akin to a desert…
With little infrastructure and no direct flights from most European countries, Cape Verde as a holiday location was only for the most hardcore of travellers.
Fast forward a few years and Cape Verde presents a very different image. None more so than Sal.
Being only 5 and a half hours from the UK and now benefiting from a direct flight from many major cities there is little doubt that Cape Verde is the future winter holiday destination for most of Europe.
Through increased interest and build Cape Verde have been able to push more money to the infrastructure of the country, building roads and bringing power and water facilities up to European standards.
Cape Verde is now being talked of in the same breath as the Canary Islands and the Caribbean as a winter holiday destination. This is in no small part due to a handful of developers that have managed to build affordable quality property that offers high yields and low entry costs.
With the Completions of Villa Verde and Tortuga Beach Resort slowly but surely the face of Cape Verde is changing.
Tortuga Beach Resort brings the first of three 5* hotel resorts to the Island, all operated by world class operator Sol Melia, the quality of these properties have to be seen to be believed.
Many overseas developers promise a lot and deliver little, this is certainly not the case with Tortuga Beach, with the development going live to the public next month pictures of the finished product are now available for all to see.
Located right on Cape Verde’s famous Ponta Preta Beach, many apartments and villas have direct sea views and easy access to the beach and beyond.
The emergence of hotel companies managing developments built and sold on to investors is fairly new and as with every walk of life, as time flows these precesses are refined. I say this because there are plenty of developers that build with the intention of bringing a 5* hotel company in to manage but only a handful that actually manage it.
9/10 the hotel company realises the increased cost in terms of added specification of doing this and decided to go it themselves or attract a lesser hotel company to do this for them. Not in this instance! Sol Melia is well known for it’s 5* brand and it’s evident that Tortuga Beach Resort fits into this perfectly!
With a 5* Hotel branding also comes the benefit of increased specification and leisure facilities:
Tortuga’s Features and Benefits include:
- Stunning beach-front location
- Occupancy density of less than 25%
- 12 luxury front-line single storey 4 bed detached villas
- 40 luxury two storey 3 bed detached villas
- 306 two bed apartments
- 358 properties in total
- Two communal pool areas
- Lush green landscaped gardens
- Luxury 5-Star Hotel
- Apart-Hotel facilities for all villas and apartments
- Superb 150 seat restaurant
- Elegant Wine Bar and Piano Bar
- Luxury Spa and state of the art Gymnasium
With only limited availability left on this stunning development you may look towards this developers next project, Dunas Beach Resort. Ready at the end of next year and with build already underway you can be assured this will be bigger and better than it’s predecessor!
Or if you prefer, wait for Llana Hotel and Spa, the developers third resort which is due to be released next month.
Whichever you choose, Cape Verde as a destination is here to stay and these three developments will become a massive part of it.
Barbados property investors will see the benefit
As news keeps flooding in regarding the increase of flights to Barbados we thought we should share our opinion on how we feel it will be a positive impact for Barbados property investors… that includes us!
Barbados remains a strong location for investment at the moment and with news that British Airways are putting on even more flights to cope with demand, we feel strongly that now is as good a time as any to invest, particularly in one of our excellent developments on the famed West Coast.
Unlike many overseas property investment destinations, Barbados’ property prices are not solely determined by a commercial factor, in occupancy rates and tourist arrivals, don’t get me wrong, it has an effect, but is not the only factor to take into account… What I mean by this is, many people purchasing in Barbados are not just doing it for a rental yield and Capital Growth, they purchase because 1. It has a stable economy and 2. It is somewhere they genuinely want to live in the future. Many of the purchaser’s on Weston Resort and Ixora Resort in Barbados invested for exactly that reason; they want to retire in Barbados in the future. Because of all of this, property prices in Barbados are stable i.e. a small drop off in tourist arrivals will not saturate the market with underperforming properties. However an increase in tourist arrivals and occupancy rates will still benefit owners on our developments handsomely.
Weston and Ixora Resort offer investors the chance to purchase in Barbados at an attractive price, with brilliant payment plans and most importantly in an excellent location. The most important factor with regards to Weston and Ixora Resort is the fact that the property prices are kept low enough to enable investors to take a mortgage if necessary and have that mortgage paid by rental income, with a net profit as well! Actually, through research of rental prices on the west coast of Barbados we envisage that a 55% LTV mortgage on these properties could be paid with just 6 weeks rental occupancy! Couple all of this with the fact that, the developer has an offer from a top hotel operator and you have a very strong property investment indeed.
For more details on any of our property investments in Barbados please contact us.
Holetown, Barbados – The Limegrove effect
Property in Holetown did not really need any further boost to its desirability, with its excellent location, right on the west coast, comparatively cheaper property prices to many other West Coast Barbados towns and it’s excellent character. But Holetown has definitely received a boost. The new Limegrove shopping and lifestyle centre which is now complete and operating successfully is sure to have a positive effect on property in Holetown.
Barbados has long attracted many of the wealthiest celebrities from around the world. The reason for this could be down to a couple of things.
1. Money attracts money – Many of the original celebrities purchased in Barbados because it was the closest Caribbean island to Europe, was not in the hurricane belt and had a stable economy and political system from its long British rule. Because of this, other celebrities soon followed.
2. Property prices have been very robust because of the calibre of individuals that have purchased here and the fact that purchasers that were looking in less established locations went for security through the recession, which is exactly what Barbados can offer.
Holetown has proved a very desirable part of Barbados this can be partly attributed to the Sandy Lane Hotel, which has been a long time favourite of many wealthy individuals. The new Limegrove shopping and lifestyle centre is sure to attract even more interest and wealth. With names like “Cartier, Breitling, Armani, Dior, Ralph Lauren etc” taking positions in the new shopping centre, footfall and property interest in Holetown is sure to be kept high.
We predict Holetown is soon to be the “go to place” for many holidaymakers and Bajans alike. The Limegrove will, when under full occupation, offer shops, restaurants, bars, a night club and even a cinema, all within 400m of the stunning beaches of St James.
It is with this we would like to present Ixora Resort in Holetown. Ixora Resort is a development of 10 x 1 bed apartments and 1 x 2 bed apartment right in the centre of Holetown, with 1 bed apartments from $198,000… a price far below any local comparables, whilst also offering excellent rental returns. Ixroa Resort is no more than 200m away from the new Limegrove shopping centre and 500m from the beaches of St James and interest has already been very high with 5 apartments already sold. Apartments were actually selling before full planning was even achieved! Such is the reliability and trustworthiness of this developer from a UK background.
For more details of Ixora Resort, or any other property in Barbados, please contact us.
X factor’s over and Simon Cowell’s off to Barbados!
Do you blame him? As we wind down into the Christmas period I can’t help but think, this time next year we will be able to hop on a plane and go and stay in our brand new apartment on the West Coast of Barbados… actually, at only 100m to the beach, I could be wrong but, I think it’s closer to the sea than Cowell’s place 
although his may be a bit more extravagant!
Now people may think to own a holiday home in Barbados, you need to be extremely wealthy, but I would beg to differ. There are developers out there that can deliver reasonably priced apartments, to an excellent specification, but you need to check their track record and you need to know that you will get what you pay for.
The developer we are working with is Candelisa Resort’s a UK based company that originally sprang from a successful architectural practice. After completing many developments in the UK they ventured overseas and began developing in Austria, where they have delivered numerous developments at excellent prices on ski resorts.
Seeking warmer temperatures, Candelisa then purchased their first plot of land in Barbados. A prime piece of land on the West Coast of the island, often called the platinum coast, due to the prices and the people that frequent the area. That piece of land is currently in the process of being turned into The Weston Resort, a development of 45 apartments of which, at this moment in time, all are currently sold! The reason I say currently, is that, during the times we are currently living in, it is impossible to say that not one person’s circumstances will change throughout the build process, meaning they need to either re-sell or pull out entirely.
This development sold so quickly because of the fantastic prices offered in comparison to all other developments available on this coast and the excellent and verifiable track record that the developer has achieved over the past few years.
Another reason for the success of this development is something we have spoken about in previous posts and that is the hotel operator effect. Candelisa have an offer from a very reputable hotel operator on Barbados to take over the running of their properties once complete. This benefits purchasers in two very important ways: 1. A hotel operator will only offer to run a development that they are sure is going to be finished to their (very high) standards! 2. Hotel operators (this one in particular) have a very good international presence in the travel industry, which makes sure your property is rented as often as possible, which ultimately means maximum returns for purchasers!
If you would like to view details of the Weston Resort please click the link.
If you would like details on the next development by Candelisa of apartments in Holetown; With 1 bed’s available from $198,000 please click the link.
Winter Sun on your doorstep!
As the days get shorter, winter closes in and the thermals re-appear many peoples thoughts turn to their chosen winter sun retreats. For many it is the Caribbean , others the U.S, some Dubai and a few even further afield!
Lets face it, we live in one of the least sunny countries out there but i don’t know many people that don’t run for the beach at the slightest sight of sun!
Ask any of the holidaymakers what the worst part of their trip was and i guarantee most will say the flight. Unless you are an Oligarch, paying £10,000 for a first class seat to Barbados is well out of their budget. So there you are, packed in like a sardine for your 10 hour flight….God its bringing back memories as i write this!
But we have no choice i hear you say!
Well actually you do, what if i told you that guaranteed sun is only the length of Les Miserables away and you probably haven’t even considered it!
Today as i write this Cape Verde is a balmy 29 degrees and sunny….the same temperature as Barbados, but in Barbados it’s raining!
Don’t get me wrong, i love the Caribbean, i have an apartment there. The difference is, i couldn’t go to Barbados for a long weekend!
I love the idea of hopping on a flight out of Gatwick and within 5 and a half hours i’m sitting on a beach in 29 degree heat! For someone who likes to take his holidays in short sharp bursts instead of long marathons it just makes sense.
It seems i’m not the only one, Tourism numbers are expected to hit over 500,000 this year from just 150,000 3 years ago!
With increased tourism inevitably comes increased flights and hotels, with 2 new Sol Melia hotels named Dunas Beach Resort and Tortuga Beach Resort under construction and a further named Llana Beach Hotel and Spa due to start construction in March next year, Sol Melia certainly believes in the longevity of the Islands.
You can now fly out of most major European cities including London, Manchester and Birmingham.
For those of you thinking of investing in a holiday home, properties on Dunas Beach Resort, Tortuga Beach Resort and Llana Beach Hotel and Spa are available to buy.
With investors able to purchase at one of these 5* resorts with just £33,000 it’s no wonder they have already sold 80% of their first 2 resorts.
Being part of Sol Melia’s 5* brand means all resorts will have an impressive list of amenities including numerous swimming pools, tennis courts, bars, restaurants, spa facilities etc…
We have are proud to say we are one of The Resort Group’s oldest agents so if you are thinking of investing, pick up the phone and we’ll talk you through the opportunity.
What is the future for Cape Verde?
Cast your mind back a few years and Cape Verde was the “buzz word” with many overseas property investors.
Year round sun, economic grants, low prices and the promise of increased tourism mean’t the future looked bright!
The last 2 years have seen highs and lows for this particular country.
The slow down and in some cases obliteration of many countries economies has indeed affected some of the developments in Cape Verde.
Personally i think it weeded out the developers who were indeed sailing a bit too close to the wind! With any overseas property investment, the scariest part for any purchaser is the chance the developer dissapears with your hard earned deposit.
Well i would argue that any developer still building on Cape Verde has definitely seen the worst of it and if they are still building now you can feel fairly sure you’ll have a property come completion!
A point worth considering …… Cape Verde still has year round sun, they are still taking advantage of economic grants, their prices haven’t really changed and you can now fly direct from most european capitals!
I’d argue the title “the caribbean for europe” is still warranted, after all i haven’t seen any other countries rising from the waves recently!
In fact, in one way its definitely better than the Caribbean, no hurricanes!
So if you do invest there, what are your options.
Well for me there are 2 and they depend on what you want to get out of your ownership.
1. You just want a holiday home and won’t want to rent it.
Maybe your best option is to buy either an apartment in a smaller resort or alternatively a residential property.
Pro’s
Cheaper
Can decorate it as you wish
Can buy now
Con’s
No swimming pool
Tennis Court
Restaurants and Bars on site etc…
Doubt over the quality of the build
No security
No management
2. You want something you can use but also want to derive an income from.
It’s worth considering a property on a managed 5* hotel resort.
Pro’s
Large list of communal activities inc…
Swimming Pools
Tennis Courts
Spa’s
Restaurants and Bars etc…
Fully Managed
Security
Needs to comply with 5* european standards so spec will be high
Higher rental can be charged
Marketed for you
Ready for you when you arrive
Con’s
Probably more expensive but can be easily mortgaged
Need to specify your dates to visit in advance
Management costs
If like me you want the benefits of owning a property abroad without the drawbacks of actually having to manage it then option 2 is for you.
The Resort Group is one such developer, they have 2 existing developments, Dunas Beach and Tortuga Beach Resort. These are both 5* hotel resorts which can be invested in for under £34,000!
These 2 developments offer 1 beds apartments right up to 4 bedroom sea front villas.
Another option is to wait for The Resort Groups latest development, Llana Beach Hotel and Spa. Details are limited at the moment but the site is again beach front and will be nestled neatly between Dunas and Tortuga beach Resort.
If the past is anything to go by, Llana Beach Hotel and Spa will definitely stir the emotions, The Resort Group has made a name for itself in Cape Verde by offering affordable holiday property on a 5* resort that is not out of reach of the standard investor!
We are taking expressions of interest for Llana Beach Hotel and Spa now, so to be first in the queue please contact us.
Skidding along the bottom!
There are so many comprehensive USA property listing sites available in the USA that can aid the property investment process they can show you the “tone” of the neighbourhoods and compare one with another. They also show what’s for sale, what’s to rent, what’s been sold and what you can buy if you want to offer. So why can’t we call “the bottom of the market”?
Take a look at the 2007-2010 reduction in the value of 3 bed single family homes in tourist areas in Florida the loss in value is scary from $250,000 to $75,000 and in many parts the fall in value slope is still downwards or flat.
Rental value for these units hover around the $800 – $900 per month and demand is good and at this level the gross returns are over 13%, that will still net to 10%+ and where can you get that in the UK?
Some reassurance can come from the American mindset “a property owning democracy” land of the free, home of the brave, incentives have been made available to encourage families back into ownership. BUT more forclosure releases are on the horizon and this could keep the slope downwards again.
One interesting point to note is the price of new homes, compared with that of the existing stock and where there are new homes being constructed. There is a bit of a shortfall of new builds and prices for new builds are well above existing empty stock. When the time does come for a mass buy of US property it will be the “existing stock” that people are buying.
Property wire report Fannie Mae and Freddie Mack the largest mortgage providers in the USA has the view that although sales are subdued this is the bottom and they are predicting a small rise in 2011. Interestingly the amount of property sales to foreign nationals accounted for 7% of sales a massive 66 billion dollars worth………Time to Invest? Take a look at our USA Property Investments.
Llana Beach Hotel and Spa – The Resort Group’s Latest Project
Following the massive success of Tortuga Beach and Dunas Beach Resort, The Resort Group will launch Llana Beach Hotel and Spa early next year.
The Resort Group seem to be transforming the face of the island of Sal in Cape Verde single handed!
As you will remember, Tortuga and Dunas Beach Resort offered guaranteed returns on deposits, fully managed properties in a 5* Hotel Resort.
With Dunas and Tortuga Beach Resorts, investors could choose from purchasing fully in cash, whereby they would benefit from an additional 15% discount, or deposit options of both 35% and 45% with a mortgage on completion to cover the remainder. Investors could even invest with an existing pension through a SIPP.
Many of our clients decided to utilise redundant pensions that were not giving them the returns they had expected, they spoke to our SIPP provider who moved various pension pots into one Self Invested Personal Pension scheme.
Payment plans on the new resort are likely to be just as innovative as before, so we are waiting with baited breath!
As with all Overseas Property Investments it pays to invest early and benefit from the capital growth that this will bring with it, as more and more investors jump on board through the build period, prices will often rise quickly.
For further details on overseas property investment opportunities please contact us!
We at Fresh Invest are happy to be a main agent for The Resort Group and as such, will be offering Llana Beach Hotel and Spa, the moment it becomes available… so register your interest with us ASAP!
No snow for me next year! – Barbados Property
As I sat at home yesterday unable to get to the office, I could not help but let my mind drift to warmer climates, particularly that of Barbados, where my siblings and I have recently purchased our latest overseas property investment
Now, Weston Resort is not just a great place for us to holiday but we have done some conservative figures for rental returns and the results are absolutely staggering!
Barbados is a great country for investment, but it is imperative that you find the right development in the right location! Weston Resort is a breath of fresh air on the normally, very expensive west coast of the island. As many reading this will know, there are two things you really want to achieve with a property investment and they are: Yield and Capital Growth.
Capital Growth has, for a long time not been a hard thing to achieve in Barbados, It has always remained popular with sun seekers and particularly English sun seekers; however, yield is a different matter. Where prices in Barbados have traditionally been high it is hard to achieve a rental income that will. 1. Service the mortgage repayments and 2. Provide you with an income on top.
This is where Weston separates itself from other developments in Barbados. Because of prudent cost management, the developer’s long background in construction and their knowledge of planning systems, they are able to offer apartments in their development at around 40% below the market value of similar properties in the local area. This alone gives you the upper hand when it comes to renting your apartment out as you will receive a larger return in comparison to your purchase price.
Because of the low purchase price, we are able to take just a small mortgage, which means that repayments are also low. On just a 38% rental occupancy and room rates that undercut the competition we have worked out that we should receive a rental yield of over 10% and a net return after mortgage repayments of over £10,000!
Rather than battling the snow next year, come and join us on the beach at the brilliant Weston, Barbados Property Investment.
The developer is currently working on another Property Investment in Holetown click the link for more details.
The West Coast of Barbados. So good I purchased there myself!
One of the benefits of being the director of a property investment company is that you generally get first dibs on the property opportunities you source!
For years this has helped some of us acquire good sized property portfolios. We generally need them as not many of us have pensions!
Now over the last few years the property investment market has got increasingly hard to operate in, there simply are not the funds that there were a few years ago. This means that we all have to be a lot smarter about where we invest, we can’t just take a chance!
Well as of yesterday I am the proud owner of apartment 6 block 4 at the Weston Resort, Barbados.
I thought I would write a brief summary on why I decided to invest here as opposed to any of the other investment opportunities we are offered on a daily basis.
1. The Location
In a market where yield really is king, I make sure I concentrate on areas that are already established. Areas that I know people will holiday at no matter how dire the financial market is. For me the West Coast of Barbados has this.
The types of people that regularly holiday here are not bothered that their mortgage rate just crept up a few percent. Most probably don’t have mortgages!
2. The Developer
Another important point for me is the quality and financial stability of the developer.
I have met the directors of Candelisa on numerous occasions, in London and at their fantastic glass fronted offices in Leeds.
I know that they have the facility to not only build this out but also deliver it on time.
3. Its Rental Return
I have holidayed in Barbados before so have an idea of the amount you pay to rent on the West Coast.
Before offering Weston to yourselves, we took some time to delve into rental values in the area, as well as reading through the information provided by the developer. We found that with just 38% occupancy a return after mortgage payments of over £10,000 per annum was achievable. This amount of return in such a quality area is almost unheard of.
In the UK you would not expect the same amount of rental return in Kensington as you would in Manchester, at Weston we have achieved exactly that!
4. Its Re-Sale Value
The final straw came when I conducted further comparable research on competitors resorts in the area. Quite simply, nothing came close.
The fact that I could purchase a 2 bedroom apartment within walking distance of Royal Westmoreland golf course at just £200,000 sealed it for me. Especially when I realised they were selling 2 beds at Royal Westmoreland at over £1m! The closest comparable I could find was over £50,000 more expensive!
5. My Long Term Goal
I don’t actually plan to visit Barbados in the near future, I will put my apartment in their management scheme and plough the profit back into the mortgage. I have worked out that I should be able to clear the mortgage in just over 10 years taking into account renting for just 20 weeks out of 52. If I manage to rent for 40 weeks out of 52 this is reduced to just under 4 years!
Why have I mentioned this?
I know if I was looking at purchasing abroad, the fact the guy offering me the property was in the same boat would definitely give me some comfort.
As of today there are just 11 apartments left at Weston. (One just came back to market)
4 X 2 bed apartments (1 with sea views) Invest from just £62,000.
4 x 3 bed apartments (3 with sea views) Invest from just £78,000.
3 x 4 bed apartments (1 with sea views) Invest from just £92,000.
Remember these are selling quickly, the sooner you come back to me the sooner we can secure your chosen apartment.
Cape Verde voted 4th best place to visit in 2011
This week the islands of Cape Verde were voted number 4 on a list of the top 10 places to see in 2011 by Lonely Planet. Now, anyone who has travelled to an overseas country should know the importance of “Lonely Planet” in the travel industry. They hold a massive share in the travel guides market and with this they have a strong influence over travel decisions for many intrepid travelers.
The news that Lonely Planet put Cape Verde at number 4 in their list did not completely surprise me, the reason for this is: The islands have long been a relatively undiscovered location, an Archipelago of 15 islands and the largest and fastest emerging of all of these islands does not have one full, European standard, 5 star resort. The islands boast truly stunning beaches, seas and a global position that gives some 360 days of sunshine every year and for these reasons it was only a matter of time before they started to appeal to the flocks of Europeans looking for guaranteed sun in the winter.
These islands are really stirring up a storm in the tourism industry recently. They are located just off of the West Coast of Africa and because of this location; they are only 2 hours behind GMT and are only a 5 hour flight away from the UK. This accessibility to Europe has lead to a real surge of tourism interest and further, development and inward investment.
The secret to capitalizing on this exponential growth is to be positioned in the correct market and our investment in Cape Verde is ideal for just that.
Our investment offers purchasers the chance to own an apartment in a 5* Resort on the Island of Sal in Cape Verde. The Resort will be managed by Sol Melia who are the largest resort operators in the world. Sal is the fastest growing of all islands with an average occupancy in hotels of 80% and in 4* resorts 95%. We have worked out that using the same rates and occupancy figures as a 4* resort our resort will return a massive 18%+ to our investors.
Flights to Cape Verde are priced fairly low at the moment but with the growth in demand from tourists, more and more flights are being put on every week and as a result prices are coming down.
So we have a country in an unbeatable location, with high praise from a global travel company, politically stable, with rising tourism figures and an investment perfectly positioned to capitalise on this growing market.
For more information on our Cape Verde Property Investments click here.
Barbados property news
British Airways last week announced that, as of summer 2011 they will be putting on more flights to Barbados.
Barbados, as a holiday destination has traditionally been a favourite for the British public. These extra flights from BA can only mean one thing. The demand from the UK to holiday in Barbados is increasing and hasn’t wavered throughout the recession.
Barbados is an inspiring holiday destination. The East coast offers rugged shores fronting the Atlantic Ocean, where keen surfers can enjoy themselves on some very highly regarded breaks. As a contrast to this however the West Coast which fronts the Caribbean Sea is regarded as one of the most tranquil and beautiful coastlines in this part of the world and as such, prices are at a premium and have been steadily rising year on year for a very long time.
The west coast is our primary area of interest today. We have carefully sourced an investment opportunity on this prestigious coastline in the Caribbean and we are ecstatic about it.
The opportunity is to purchase an off-plan apartment on a site which is due for build completion in November 2011. The apartment, on completion, will be run by a top class hotel operator and on this basis, investors can expect rental returns of 10%+ on just a 38% occupancy. The apartments start from prices of just £183,000. These prices are unheard of in this location and through lots of market research we feel they represent a discount of around 40% from other local comparables. Not only this, but we have devised some very attractive payment plans which means you can purchase on this resort for as little as £83,250!
Another unique and exciting option with this investment opportunity is that when clients purchase a unit, they are given a login to a website which will allow them to customize the design of their apartment throughout the build period; this can be from the colour schemes right through to the inner walls of the property.
With this latest news and an increasing amount of demand for Barbados holidays, rental returns on this development could be at a level of around 20%. When we put together our expected returns for investors on this resort we worked to just a 38% occupancy achieved by the hotel operator, the average for Barbados is 80% and with this latest news we think this will be easily within reach for this resort.
We have been operating in the overseas property market for a long time and feel that these are an excellent opportunity to own property on this very sought after coast, for a fraction of the cost and with the added benefit of seeing a great rental return when you’re not using the apartment.
Please click here for more information on our Barbados property investment.
Florida: paradise lost… or found?
Anybody else see this show? On ITV last night a TV program about British families that have moved to the USA in search of a better quality of life and standard of living, with beautiful weather and what they thought were endless opportunities all looked rosy! The program highlighted a couple of contrasting scenarios one, a family that had moved there and taken on a home cinema business and another, a property developer (with the most annoying wife in the world I might add) who had gone there to take advantage of how far his money could stretch.
The home cinema business did not work in the slightest and profits were on a consistent downward spiral and the property developer had actually done really well… which may contradict what I’m going to say later on in this article.
All of the increased demand from overseas and the ease of credit in the US had increased house prices substantially, which wasn’t a problem as long as inflation was present, banks were still lending and credit was still flowing. However once the flow of credit stopped the US began to see some problems. House prices dropped and businesses began to struggle. One of the problems with this in the eyes of the UK family living in the US is to do with the visa they need to live there. A couple of the stipulations are that they need to own a business in the US which is employing US citizens and that business needs to be profitable. Now that second one can be a bit of a problem in a recession and if they cannot reach it, then the family will be told they have to go back to the UK.
So now you have UK citizens being forced back home leaving their houses and businesses, businesses failing, credit drying up and house prices falling, of course this lead to many defaults on home loans and not only from the UK citizens also the US citizens and inevitably the bailout from the taxpayer to save the banks and get them lending again.
After all of this, US citizens were obviously struggling to get a mortgage and those that did have a mortgage may well have lost their jobs anyway. Property prices tumbled and many have seen it as a better bet to rent as opposed to try and fail to get another mortgage.
Now we come to our US properties. You can now purchase properties in Florida that are priced far below the building cost, which have a steady professional tenant in place and are yielding around 15%. The majority of these properties were built by developers and then given to the bank when the developer went into liquidation. The properties we are offering have been purchased from the bank and modernised (they were built recently but never lived in so needed a little tlc) then tenants have been heavily vetted and placed in the properties.
Click here for details of our properties for sale in Florida
Barbados Bound – Why Celebrities flock here year on year!
Michael Winner, Simon Cowell, Philip Green, Trevor Eve, Richard E. Grant, Amanda Burton, David and Victoria Beckham, David Frost, Lulu, Andrew Lloyd Webber, Wayne Rooney, Jemima Khan, Hugh Grant and not forgetting Cliff Richard and Cilla Black!
What do all these people have in common?
They all either holiday or have property in Barbados.
So why is this Caribbean island the second home location of choice for all of these celebrities?
I think firstly it is the idea of security, you are in the Caribbean but as long as you stay on the west coast you are never far from a cocktail bar, mulit million pound house or exclusive golf club.
Over the last 15 years the West Coast of Barbados or the Parish of St James has risen from relative obscurity to command the name ” the platinum coast”. It is now widely known as one of the most exclusive and expensive areas to live in the world.
With the cost to stay at the exclusive Sandy Lane Resort coming in at around £40,000 for a week over Christmas this location is certainly not cheap!
Expect to pay roughly the same in Barbados as you would in central london for dinner at a top restaurant.
So after all of this, why does tourism in Barbados continue to grow year on year?
Well actually its kind of because of this, the average joe would rather pay more to be near these kind of celebrities, they will probably never meet Michael Winner strolling down Sandy Lane beach but its the prospect of this happening that keeps people enthused.
And for the celebrities, its like a home away from home, at Christmas around Sandy Lane the same celebs come back year on year, they all know each other, they know the restaurants they can go to unhounded, they know the areas they can sunbathe without being papped!
Why would this change, the celebs can afford to holiday here, prices can increase as much as you like, your not going to price any of the above out of the market!
So what about the average person?
Well there are still some areas where you can pick up property at reasonable prices.
Just 5 minutes from Sandly lane and 2 minutes from The Royal Westmoreland golf course is Weston Resort, prices here start from just £180,000 for a ground floor 2 bedroom apartment. Fully furnished and ready to rent you are probably looking at £200,000. With mortgage available at 65% loan to value and only needing a 35% deposit you can buy one of these with just £63,000!
With possible rental yields of over 10%, not only could you afford to buy it but it would actually make you money year on year. Compound this with the fact you could safely holiday in this every year and remain fairly exclusive (under 50 apartments on this development) and you begin to imagine why this scheme is nearly sold out with around a year till completion.
For more information on how you can invest alongside the celebrities of barbados call 0800 043 6956 or email info@freshinvest.co.uk.
My top 5 places to invest for 2010 – Part 2!
As you saw in last weeks blog, i delved into my top 5 places to invest in property for 2010.
The first 3 were Cape Verde, Barbados and Barcelona.
Below are the last 2, and perhaps the most interesting.
4. Mallorca:
Known to many, invested in by few….
Mallorca is one of the most visited islands in Europe, most of us have been there be it on a lads holiday or a family one!
What many people don’t know is that because of building restrictions prices have not been effected by the global downturn anywehere near as much as their close neighbour Spain.
We have a villa in Puerto Pollensa and in 15 years have not seen it lose money, also long term lets are easy to obtain in the winter, it yields around 11% per year AFTER mortgage payments!
Combine this with an average 3 weeks use per year and it looks like a great investment.
As the cost of far away holidays spiral and many long haul operators upping prices or going under altogether, holidays closer to home tick boxes for many people.
The fact that more and more people are buying second homes in Mallorca combined with laws on future building means that prices are sure to steadily increase in the near future and with a vibrant holiday market rentals will follow suit.
Conclusion:
Risk = Low
Returns = Medium
Yields = Medium
Minimum cost to invest = £30,000
5. The UK
Well you knew it was coming didn’t you!
Ok the returns may not be as much as the countries mentioned earlier BUT many of you will have the market knowledge to know a “good deal” when you see it.
In this market many property investors that do look to invest are loking at minimising their risk as much as possible, for the masses that means not moving out of their comfort zones.
I’ll always tell you that using a property investment company is the way to go, they charge very little, normally get paid by the developer and have market knowledge and contacts that can only be gained by years in the business.
We have seen some really great stock recently, from tenanted apartments in Chorley yielding over 8% to townhouses in Chichester (where we are based) yielding close to 9% when let to students under an HMO license.
Check out our UK property investments for more information.
Conclusion:
Risk = Low
Returns = Medium
Yields = Medium
Minimum cost to invest = £20,000
To Finish……These are my 5 places to invest in 2010, i would hope that by 2011 i will have invested in at least 3 of them. If you have a location you are looking at and a reason why, post it below!
More strong news for Cape Verde Property Investment
The International Monetary Fund (IMF) have conducted their eighth and final review of the Cape Verde Islands and yet again it is fantastic news for anyone invested or interested in investing in Cape Verde Property.
The IMF have stated that they believe Cape Verde’s growth will continue through 2010 with inflation remaining low. This is good news for the islands that are already showing very strong growth indicators and are becoming a real investment hotspot.
The IMF have shown that they believe that “Real GDP” will be increasing at a rate of around 6-7% pa over the next 5 years (“Real GDP” is the size of an economy with allowances for inflation) meaning that the value of all goods and services produced or passing through the country will be increasing by 6-7% and therefore the size of the economy will be growing and people, on average, will be able to benefit from a better standard of living and companies can begin to grow, allowing more money to go back into the development of infrastructure.
Lots of the growth for these islands comes from increased Tourism and an increased level of investment in property and then infrastructure. Property prices on the island have been rising on average by around 15% per year. The islands have remained a relatively undiscovered gem in comparison to the Caribbean and its northern counterpart, the Canary Islands, where property prices can be as much as 40% higher. They are only a 5 hour flight from the UK, have a time difference of only GMT – 2hours and benefit from 360 days of sunshine per year. Tourism figures have been increasing year on year and the island of Sal has seen increases of around 27.5% per year, as the only island with a truly international airport.
All of this information leads to a great location for investment in property serving the tourist industry. The investment we are presenting at Fresh Invest takes full advantage of the increasing tourism figures and can realistically provide investors with a net rental income of £12,133 per year for an investment as low as £32,294. All of this in a beachfront, 5* resort that gives purchasers 5 weeks free use per year.
To find out more about our investment in Cape Verde click here.
For the report by the IMF click here.
