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Semelhante a High Yield Property Investing in Top Caribbean Resort
Semelhante a High Yield Property Investing in Top Caribbean Resort (20)
High Yield Property Investing in Top Caribbean Resort
- 1. High Yield Property InvestingHigh Yield Property Investing Andrew PhillipsAndrew Phillips
- 2. Back groundBack ground • IT ConsultantIT Consultant (CITP MBCS CEng)(CITP MBCS CEng) • Investor for 18 yearsInvestor for 18 years • Buy to letsBuy to lets – Students / HMOStudents / HMO – ProfessionalProfessional • RenovationsRenovations • AbroadAbroad • Property sourcing for othersProperty sourcing for others
- 3. Investment CriteriaInvestment Criteria •Good rental return 4% 10% 15% ??Good rental return 4% 10% 15% ?? •Capital growthCapital growth •BMVBMV •Low deposit or NMDLow deposit or NMD •Mortgage or fully financedMortgage or fully financed •Hassel free managementHassel free management •Hassel free maintenanceHassel free maintenance •Low VoidsLow Voids •Low RiskLow Risk
- 4. This InvestmentThis Investment •Rental return :-Rental return :- Guaranteed 10%Guaranteed 10% 2 Years2 Years 5 Years5 Years 10 years10 years •Capital growth :-Capital growth :- appreciating at between 10 – 15% +appreciating at between 10 – 15% + www.Propertywire.comwww.Propertywire.com
- 5. This InvestmentThis Investment •BMVBMV Currently 40% +Currently 40% + •Low deposit or NMD :-Low deposit or NMD :- 30% deposit30% deposit Complete financingComplete financing •Loan :- payments paid for you byLoan :- payments paid for you by Developer affectively providing NMDDeveloper affectively providing NMD •SIPPSIPP
- 6. This InvestmentThis Investment •MortgageMortgage GuaranteedGuaranteed •Hassel free managementHassel free management Fully included in rental schemeFully included in rental scheme •Hassel free maintenanceHassel free maintenance Fully included in rental schemeFully included in rental scheme •VoidsVoids Fully included in rental returnFully included in rental return
- 7. This InvestmentThis Investment •Satisfied investor wantsSatisfied investor wants • Free HoldFree Hold •Resort ManagedResort Managed •Who would like to own a VillaWho would like to own a Villa •UK ResortUK Resort •CaribbeanCaribbean •BrazilBrazil –Free 30 days accommodation at your 5 star resort every year.Free 30 days accommodation at your 5 star resort every year.
- 13. Due DiligenceDue Diligence • DeveloperDeveloper – UK based, family owned companyUK based, family owned company – One of the largest developers in the CaribbeanOne of the largest developers in the Caribbean – All land unencumbered: Debt free.All land unencumbered: Debt free. • Development recently valued at $450 millionDevelopment recently valued at $450 million – Building contractors 5 A ratedBuilding contractors 5 A rated – Projects supported by local government – Some taxProjects supported by local government – Some tax benefits granted for investors*benefits granted for investors* – No banks involvedNo banks involved
- 14. Due DiligenceDue Diligence • Suitable for SIPPsSuitable for SIPPs • Liverpool Football soccer schoolLiverpool Football soccer school • Gary Player Golf course and SignatureGary Player Golf course and Signature HotelsHotels • Pat Cash Tennis AcademyPat Cash Tennis Academy • Oasis Hotel Chain managementOasis Hotel Chain management – Asian resort trainersAsian resort trainers
- 15. •Day 45 Balance of 30% deposit = £29,000 •Day 1 Reservation fee = £ 1,000 How to BuyHow to Buy •1st floor Studio Apartment at Las Canas Beach Resort - Completion 2012 •Purchase Price = £100,000 If a loan is used to source the 30% deposit, developer will make the monthly payments on the investor’s behalf. No further funds will be required from the investor until completion.
- 16. ExampleExample •Funding the 30% deposit •The investor raises a loan to pay the 30% deposit and developer will pay the monthly loan repayments until completion •Loan repayments @ 7%* = approx £175 per month x 42 months = £7,350 •This amount will be added to the final account at completion. * Subject to Status
- 17. Redeem original deposit - £30,000 Total - £114,650 Final account at completion: Balance of purchase price - £70,000 Stage Payment Interest - £7,300* CompletionCompletion • Estimated property value at completion - £175,000 30% Loan Repayments - £7,350 * Approx interest due
- 18. Balance required by investor - £114,650 Completion – What do we need? Unit Value - £175,000 70% LTV Mortgage*- £122,500 * Anticipated LTV
- 19. Balance required by investor including deposit return - £114,650 Completion – What do we Get? Unit Value - £175,000 (60350 equity) 70% LTV Mortgage*- £122,500 Cash back - £7850 * Anticipated LTV
- 20. Property Original Purchase Price = £100,000 Mortgage taken out = £115,000 (no CB) Int Rate = 7% = £8050 P.A (int only) Mortgage Income* Year 1 £8050 £10,000 Year 2 £8050 £10,000 Year 3 £8050 ???? * Excluding Costs Rental Income
- 21. Year 3 Occupancy rate = 70% Room Rate = £150/night £150 x 365 nights = £54,750 £54,750 x 70% occ = £38,325 Property Investors 50% share = £19,162.50 Rental Income
- 22. Property Original Purchase Price = £100,000 Mortgage taken out = £115,000 Int Rate = 7% = £8050 P.A (int only) Mortgage Income* Year 1 £8050 £10,000 Year 2 £8050 £10,000 Year 3 £8050 £19,162.50 * Excluding Costs Rental Income
- 23. £150 x 70% Occupancy = Income of £19,162.50 £200 x 75% Occupancy: £200 x 365 nights = £73,000 £73,000 x 75% occ = £54,750 Property Investors 50% share = £27,375 Rental Income
- 24. Property Original Purchase Price = £100,000 Mortgage taken out = £115,000 Int Rate = 7% = £8050 P.A (int only) Mortgage Income* Year 1 £8050 £10,000 Year 2 £8050 £10,000 Year 3 £8050 £19,162.50 Year 4 £8050 £27,375 * Excluding Costs Rental Income
- 25. Studio apartmentStudio apartment Purchase Price =Purchase Price =£100,000£100,000 unitunit Therefore mortgage costs = approxTherefore mortgage costs = approx £8,050£8,050 If Occupancy =If Occupancy = 70%70%, nightly room rate must be minimum £, nightly room rate must be minimum £6363 perper nightnight Buccament bay figures from ExpediaBuccament bay figures from Expedia These properties have availability for 9/8/2010 - 15/8/2010These properties have availability for 9/8/2010 - 15/8/2010 Tamarind Beach Hotel & Yacht Club from £132.93 per nightTamarind Beach Hotel & Yacht Club from £132.93 per night The Palm Island Resort from £444.99 per nightThe Palm Island Resort from £444.99 per night Cotton House from £340.29 per nightCotton House from £340.29 per night Break even pointBreak even point * These figures exclude management charges
- 26. SummarySummary • Good investment on both return and capitalGood investment on both return and capital growth.growth. • Fully FinancedFully Financed • Commercial so can use a SIPPCommercial so can use a SIPP • Developer Debt freeDeveloper Debt free – All Land Unencumbered.All Land Unencumbered. – No Banks involvedNo Banks involved • 5 Star resort chains + celebrity endorsement5 Star resort chains + celebrity endorsement
- 27. Exit StrategyExit Strategy • Opportunity to resell the contract prior to completion – 100% finance offered to new buyer – subject to status • Complete on the property and restructure the finance – End mortgage – 70% loan to value developer loan - reinvest • Complete on the property enjoy the rental income • After completion resale office on each site
- 28. What NextWhat Next • For Brochures & info http://www.fugabella.co.uk/investments-abroad.html • Call Andy Phillips for full financing information 07799 475037 • Visit head office
Notas do Editor
- Start with 1 buy to let, made good money and looked for more “ no Brainers” Rode the wave on student lets in Manchester (Use notes of Student stolen furniture, with holding rent militant tendencies) Market changes and the big boys move in so sell up at the top of the market Did a few posh flats, but had high turn over on those and you have high competion too and the fashion thing happens Now have houses across uk. Did a few renovations Last few(4) years uk property not really adding up with rental income. Looked aboard bought in , usa, turkey, brazil, failed to buy in Marrakesh Friends started asking for information on deals, from that I started running a property sourcing web site and from that this deal From that led on to this opportunity.
- Start with 1 buy to let, made good money and looked for more “ no Brainers” Rode the wave on student lets in Manchester (Use notes of Student stolen furniture, with holding rent militant tendencies) Market changes and the big boys move in so sell up at the top of the market Did a few posh flats, but had high turn over on those and you have high competion too and the fashion thing happens Now have houses across uk. Did a few renovations Last few(4) years uk property not really adding up with rental income. Looked aboard bought in , usa, turkey, brazil, failed to buy in Marrakesh Friends started asking for information on deals, from that I started running a property sourcing web site and from that this deal From that led on to this opportunity.
- Good return 7% 8% 9%10% 15% ?? Which says BTL average Gross annual income is between 4 and 10% Capital growth (Not on average houses in UK at the moment) (see prime location)
- Capital growth 10% to 15% per year at the middle of the market and often higher at the luxury end, even during these harder economic times
- 30% deposit nothing more until completion Completely financed what does that mean? If you use a loan to finance the deposit then they will pay the loan payments while the property is being built. It gets rolled up into the asset final cost. If you use cash they will pay you 6% on the deposit while it is being built. Or you could use a SIPP (do they pay interest then?)
- Are there enough figures there to get the head satisfied? How about we throw in a 30 days in a Caribbean resort free every year? Any tennis fans how about the resorting having a Pat Cash tennis academy Any Football fans, how about A Liverpool football youth training academy Any Golf fans, how about a Gary Player designed gold course And a Spa Barbados, St Vincent & the Grenadines, Dominican Republic, St Lucia, Brazil,
- Come bank to the students credit card example for the banks Dave Ames Marketing Director
- Oasis Hotels Over 50 Hotels worldwide (including the Caribbean) Owned by Globalia – 2nd largest privately owned Spanish company 2007 turnover of 2 Billion Euros Own over 2000 travel agencies worldwide
- Taking the smallest mortgage and no cash back, it makes about 500 a year difference if you want to take out the cash back and do 70% 122000 7% = 8540. 115000 is what you need to make it NMD. What costs are not included in the income figure as stated above.