Overseas Real Estate Blog

Well you may have just read previous post and thought it cant get better than that but it looks like we have a matching deal using exchange bond for another Cape Verde development, Vila Jardins Do Oceano - a small development of 40 top quality villas on the south western coast of Santiago - Vila Jardins Do Oceano. Arguably the risk is even lower here as the picture here shows work well under way. and we have the exchange bond scheme which requires just 10% to pay and the final amount on completion. Obviously all due diligence completed and these excellent value villas will be further enhanced by a man made beach built up in front

We have the ability to offer a discount for the next three sales (not on exchange rental payment scheme)

With now just over half sold and the prospect of being able to buy something and by August 2009 everything will be complete, so this development is perfect for those who do not want to wait

Vila Jardins is a front line resort and offers a number of 1st's on Cape Verde:

1st development on Santiago to be totally Complete - Under 12 months (July 2009)
1st to offer off plan finance - Completed Cases - Recently obtained 6.9% interest rate.
1st to be built in Santiago's Future Unescos World Heritage Site - Cidade Velha
1st to use the ICF build Method - Highest quality build developed in Hawaii.

Our prices start at 299,999 euros for a 2 bed Villa and 369,999 euros for a 3 bedroom Villa.

All the Villas are detached, in their own plot (approx 400 - 500 m2 ), have their own private fresh water pool and are built right on the coast - all villas have stunning sea views.

The Villas are of the very best quality and in fact the 3 bed Villas are actually larger than some of the competiting front line 4 /5 beds Villas on Sal yet amazingly half the price!

The resort also boasts Cape Verde's first Infinity pool (communal), 2 tennis courts, bar / restaurant and a small supermarket.

So with construction well under way obviously all the licenses in place. Special permission to build right on the coast. In fact we still have one 1st line villa available which is literally 10 metres from the sea!

The real clincher is that there is a small town with real character just 5 mintes away. In addition the new golf course is on target to complete in 2010.

Contact Jet2Let Property for ebrochure, plans and prices, info@jet2letproperty.com or call 0113 3131000 for more information.

So Why Santiago? Well first off it does not have the white sandy beaches of Sal and Boa Vista. What it does have is spectacular scenery, existing infrastructure, excellent rental, excellent communications with the most flights and it has the culture. It has the real tropical island feel and for many this makes it the most interesting island in the Cape Verde archipelago. the infrastructure is far more advanced than Sal or Boavista, from water supply, to ports for shipping to labour supply (over 250,000 inhabitants) will mean that tourism will have the support it needs.

In addition the islands offer real rental potential as front line villas with sea views are most in demand.

As a place to provide more than hust a beach with all year round climate Santiago island is well worth investigating. Even better go out and see for yourself.

Following on from the recent announcement from the developers of the six star Palm View Resort on the new structure whereby we have one of the lowest risk investments we can find in Cape Verde.

I know some have discussed with me as to whether is a good time to be investing but remember we are looking at completion over two years away with NOTHING MORE TO PAY and with the 7% guarantee, the risk is very low. The bond guarantees that the developer gets paid. The bond issuer is FSA regulated. There is even a partial refund of the bond if for any reason you are not granted a mortgage at the end,

After a villa? The villas are all sold in this phase one but there are still a few second phase villas available - but be quick. Naturally your reservation deposit is refundable. Contact me for more info on these and any questions you have on Palm View Resort.

OFFER:

Want to buy a property on a 6 star resort from as little as € 6,000?

Now you can... just reserve your property on the 6 star Palm View Resort, Boa Vista island and pay nothing else until completion - expected October 2010 (approx).

How? on completion the developer guarantees a 100% mortgage on the purchase price.

There is a 7% guaranteed rental for 5 years with the option to renew. So on completion you own a property without paying out any of your own cash and you are guaranteed a mortgage that will pay for itself with the 7% guaranteed rental offered by the developer.

To cap this off the whole development is bonded (insured) which means that this is probably the lowest RISK development around.

Most emerging markets demand a sizeable percentage of money invested up front with Palm View Resort this is not required.

This payment plan and structure suits both jet to let investors and lifestyle buyers as it tackles head on the area of risk when investing money into off plan projects. Palm View Resort will be one of the most sought after properties on the island and off plan investors can now do this what many would argue as very low risk.

Palm View will offer just this one purchase plan - not lots of different ones, just one !

Palm View purchase will be via an exchange bond system and proceeding on completion to 100% finance package covering all costs for 5 years.

A total of a 7 year investment with nothing to pay other than the cost of the exchange bond, which is then refunded from the purchase price at completion.

The exchange bond will cover the purchase of the unit - this is via exchange bond.co.uk - http://www.exchangebond.co.uk/

The purchase amount required for the units available will be as follows, this includes res. fee and exchange bond :

Studio unit €6,000
Ground Floor Middle Unit €9,000
Ground Floor corner unit €14,000
First Floor Middle Unit €15,000
First Floor Corner Unit €16,000

This would be the total amount required to secure the unit.

This amount would be reduced off the purchase price at completion. At completion there will be offered 100% finance, based on 85% LTV mortgage by BCN bank and a simple credit check at reservation. So the assumption is there will be at least a 15% capital appreciation before completion.

The developer will underwrite the valuation to ensure that the 100% finance is available. There will be written and contracted guarantees of this.

The loan will be interest only for 5 year fixed period at 7%. The developer will give 7% guaranteed net rental for 5 years. After this period mortgage and rental will be re-evaluated.

This is great as a property investment as well as for lifestyle purposes.

Firstly, my apologies to regular readers for not posting in a while. I have been traveling for business and pleasure and working on the new jet2let property website redesign.

Because of the redesign there is a large back log of properties awaiting entry and in particular if you are looking in Hurghada, Cape Verde islands or Bulgaria do please contact me for latest properties

A break also gave me an opportunity to speak to apartment owners on my travels and I have been surprised that around 50% of the people I have spoken to do not have an any insurance at all for their property. All of these people do for their own property.

Why do I think you should insure your overseas property? There are three main reasons:

1/ Well the risk may be low for a typical apartment with 24 hour security but I have heard people losing all their furniture the day after it has been delivered. Delivered waiting installation!

2/ Third Party liability cover. Even if you only rent or give for free your property to relatives or friends of friends then you are still at risk of being sued. The minimum claim is usually around £12,000. A slip on a wet bathroom floor, even too wet grass (yes that has been a successful claim) you name it there is a no win no fee industry on day time TV to tempt the injured or, dare I suggest, the dishonest on making a claim. Remember it will always be you as the owner that the tenant will look for. Even if a tour company has taken your whole block you will be the target for a claim.

3/ Buildings insurance cover for natural disasters is a must Most of us underestimate risk, and remember nothing is a problem until it is a problem. The floods in the UK last summer showed that many did not even have their primary residence insured.

If you do not have it covered then drop me an email (lance.nelson@jet2letproperty.com). We are have negotiated discounts with two overseas insurance companies. However I am unable to confirm discount levels until I can guarantee the amount of business. That's why I can't reveal insurance company name yet.

Finally if you own property in an emerging country, I urge caution when using local insurance companies. Laws and judicial systems are generally considered to fall short of western European standards so even if they are cheaper (and they often are not and rarely include third party cover as standard) then how sure are you they will pay up when you need them to?

Khamsin Beach, Hurghada is a brand new pre launch beach front line development in Hurghada.

With beach front a scarce and expensive resource I believe that Khamsin Beach represents excellent value for money with prices ranging from £469 per m2 to £825 per m2.

In pre launch phase many units in this pre launch come with free air conditioning and free furniture.

Direct sea views from £719 per m2 up to £825 per m2 which is excellent value for the Hurghada front line location.

Pre Launch One bedroom 55m2 NET area and 60.5m2 GROSS gives pre launch price of £26,023 (£430.13 perm2). This include free air conditioning and furniture - a discount worth between 10% to 15%.

Under market value for the area with direct sea views from £719 per m2 up to £825 per m2 for Hurghada front line location.

£500 reservation. Refundable up until 21 days after receipt of contract.

Escrow account established for buyers.

First payment 40% (less reservation fee).

Project completes May 2011.