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The new era of overseas property investment

17th June 2010

In the past investing in property overseas was an arduous process, finding a suitable property was not the problem, it has always been the due diligence involved in an overseas purchase. Are you buying in the right location for Capital Growth? Will you be able to let your apartment or villa for long enough to cover your repayments on any finance used? What is happening to the local property market at present? Is there a long and complicated buying process? Will your apartment or villa be up to the standard promised by the developer? The questions can continue forever.

Investors are of course and rightly so, more tentative about investing overseas because of the reputation that some overseas developers have given the market when they, ran out of money or built a development that was subpar and then scarpered before the investor could so much as ask for their money back. But the thing that attracted investors to the overseas market in the first place is that chance of finding the property in a location that will provide you with capital growth and a large positive cash flow to line your pockets every month, with the added benefit of a free holiday.

Now we carry out a full due diligence test on all of our developments and our due diligence test on overseas property is second to none. However without any request from ourselves or our investors, we have just received one of the best partners for our due diligence tests that money could buy. The hotel operator!

When you purchase an investment property in an overseas development that is due to be run by a hotel operator, as soon as the agreement is made the developer is not now building to the standard of the investor, they are now building to the very high standard of a hotel operator and if they don’t, they risk losing the operator. Not only will the standard of your property be of the upmost quality but you now have somebody with a large web presence to promote your apartment for you, meaning that your apartment or villa is tenanted as often as possible and you are therefore provided with a handsome return. The hotel operators will of course also carry out very strict due diligence on the location to make sure that it is in a location where occupancy can be maximised and therefore your return can be maximised which will, in turn, add value to your investment.

We have 2 overseas developments that fit this bill exactly at present:

Dunas Beach Resort

The developer of Dunas Beach Resort has recruited “Sol Melia” to run the resort upon completion. Sol Melia are the largest resort operator in the world and are constantly winning awards for their dominance in the market and the quality of their resorts. The build cost of this resort in relation to any others on island is double and they have already completed one resort on the island and the results speak for themselves.

West Coast Property, Barbados

The developer of our properties on the West Coast of Barbados has recruited Mango Bay Resorts to carry out the hotel operations on site. Mango Bay constantly receive fantastic reviews for their operations on Barbados and their average occupancy is 80% which, in our resort, would give investors a return of up to 23% per year! The developer also offers purchasers the chance to help with the design of their apartment on line throughout the construction period.

Ladies and Gentlemen this is the future of overseas property investment!

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