Overseas Real Estate Blog

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.