Featured Properties

Royal Residence Cairo: Interview

Royal Residence in Cairo is one of the few “green contract” developments I have seen.

So I decided to interview Maged, the developer, to explain why this project makes such good financial sense in the current environment. This detailed interview with the developer is probably a first of its kind for a Cairo development.

Click play below to hear the interview.

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Maged talks about his background, the firm’s history from 1964, past projects and then on to the reasons for this location. Build schedule, payments plan, rental guarantee, legal structure out of the UK, finishing.

Take a listen. I think you will be impressed that this investment represents an opportunity that in Cairo property at sensible prices.

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Bacolet Bay, Grenada: Caribbean Profit

Bacolet Bay on Grenada is launched by Jet2Let Property. Bacolet Bay ticks the boxes like no other in the Caribbean right now.

Bacolet Bay is pure exotic Grenada. A beach front location. All homes with huge sea views. A fully financed project with the first phase 70% sold out and well under construction. 70% finance and full rental guarantee available, the minimum payment is just $100,000 for a hotel cottage.

High end brand partners:

• Cameron & Cameron (Finance)
• High End Resort Operator - Announcement Soon
• Howard Consulting - Spa Design
• Bovis Lend Lease
• Peter Silling Interior Design

Bacolet Bay: Access & Location

• direct flights from the UK, USA and Continental Europe
• two cruise ship terminals
• 20 minutes’ drive from Point Salines International Airport
• 20 minutes’ drive from the capital St George’s.
• secluded location on the southern part of the island
• white sand and clear water

Bacolet Bay Description

Imagine a two hundred metre white sandy beach, a secluded bay with world class hotel facilities set in forty one acres of tropical gardens. Then think of the highest possible levels of service with every five star resort appeal from the best restaurants, top holistic Spa, private jetty.

Bacolet Bay, Two bedroom Villa

You are then getting an idea on how special Bacolet Bay is, and how it can be your piece of paradise.

But you need to also be sure that  the project steps up to the mark financially. and that occupancy, and therefore rental yield, will be higher than competing destinations. The answer, is that the handful of current 5 star hotels achieve eighty nine per cent peak season occupancy rates. And with with conservative estimates of future avaerage occupnacy rates at sixty five per cent, then the research from Cushman and Wakefield says income will be in excess of $65,000 after management expenses.

Why Grenada?

Property investment in Grenada makes sense, as it is one of the less developed islands in the Caribbean and unspoilt. There is a shortage of high-quality property, and therefore Grenada is a wise choice as a property investment destination.

The World Travel and Tourism Council has predicted tourism growth of 2.8% per year between 2008 and 2017, reaching annual tourist arrivals of over 600,000 by 2017.

A progressive government has now implemented tax exemptions and customs concessions for investors in tourism. The substantial infrastructure investments are helping to improve even further the appeal fo the island.

In addition to Bacolet Bay, there is a new high end marina from Campell & Nicholson, commercial centre, duty free shopping mall, golf resort and the opening of international hotel brands.

How Can I Finance My Purchase?

This is a project for canny investors, as well as those looking for a place in the sun. Mortgage Finance is from Royal Bank Trinidad and Tobago. Only 30% cash is required. So from $129,000 for a €430,000 property. Optional guaranteed 8% rental return. Four weeks own use. Avoid all taxes. Pay Just legal fees. Save up to 9% on the only government approved scheme on this magical “spice” island.

Frequently Asked Questions - Financing

1. Do I contact the bank directly?  Or via the lawyer? Yes Direct, we will supply details and application.
2. What are the set up costs? Depends by bank, but is usually 1% arrangement fee, plus bank legal expenses
3. What info do I need to provide? Three years’ evidence of earnings (pay slips / tax returns etc). Credit check undertaken
4. What happens if I only have assets and/or are self employed, rather than fixed monthly income? If you have sufficient assets then the mortgage can be provided.
5. What does ”mortgage paid for life” by the developer mean?  You hold the mortgage BUT the property management  leases the property from the property owner for a rent which is equivalent to their costs.
6. Is there a likelihood that the 70% Loan To Value is going to be more than 70% of the Price? Or will it be just 70% of the SPA price max?  Max 70% of the purchase price. Can remortgage at market value once the property is 2 yrs old. However, RBTT will finance to 90% with mortgage indemnity insurance.
7. We mention 8.5% IR, is that fixed? If so for how many years? What are the interest rate conditions? Typically 0.5% below Grenada prime rate. Will be variable rate.
8. Is the “Mortgage Paid for life” going to continue for all of Phase 1 properties Yes - will it be available on Phase 2? Not at present.

Reservation Process and Payment Plan

1. $5,000 reservation fee
2. Initial Mortgage application
3. 30 Days after reservation, and after finance approval and the legal work is complete, the Purchase Agreement is signed along with with 30%.
4. The next three 20% payments are covered by the draw down. The developer make the payments for this part of the loan.
5. On Completion the Mortgage converts to a 70% LTV.

Contact Jet2Let Property.com for more details. Special offer due soon.

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Is Palme Royale With Fractional Ownership A Good Thing?

Palme Royale 5 Star Beach Resort, Hurghada

Why would you buy Palme Royale 5 star Beach Resort Hurghada with the Fractional Ownership Option?

Some say ultimately right now, we all want pretty much the same thing with our overseas property. Namely, the lowest possible priced property that satisfies our requirements. But is fractional ownership for you and can it help buyers get what they want for less money?

Will Fractional Ownership Grow?

Some industry experts have been predicting that fractional property will take over from freehold sales in Europe within 5 years. For the average income, non-retirement, buyer a fractional ownership offers some tantalising benefits over freehold ownership:

• larger and better located property than could normally be afforded

• long own use periods not required for many in employment

• higher property utilisation

• much lower entry cost to property ownership

• is the season long enough to satisfy all four owners?

• is the back office administration of high quality?

• are you compromising your ownership due diligence?

• are you happy to forgo some individual input into the property?

• are you generally happy to share property?

• what is the premium you are paying for administrating the scheme over outright purchase?

• provisions for exit and resale of your fraction

What Developments Are Suitable For Fractional Ownership?

Look out for developments that try and launch fractional ownership to make them poor projects into good ones. Check carefully the details of administration.

Proper Due Diligence Is Still Vital For Fractional

Be sure to download the free guide on this site and also receive the forthcoming podcast from one of the UK’s top overseas property lawyers.

Right now, Jet2Let Property are launching Palme Royal Five Star Beach Resort in Hurghada, Egypt with a fractional ownership option. This development of mainly on the beach sea facing apartments, front line villas and townhouses set the standard for five start luxury in the area.

The resort is to be managed by a five star Swiss hotel chain will mean affordable luxury.

Final Thoughts

Beware of sun and beach locations where the August peak holiday season dominates. This happens in many of the traditional holiday areas of Spain. Cold winter temperatures do not earn rental - unless you are in ski resort.  Go for Egypt where the infrastructure is already in place. Prices are very low.

The season is all year round.

Other interesting fractional schemes area to be found in the new David Lloyd on the Mediterranean coast in Saïdia in partnership with Le Jardin de Fleur.

Fractional ownership can be the perfect way to get the property you want at a fraction of the normal price. Just make sure it is what you really want before committing as you can buy jointly with other people to achieve a similar reduction in cost.

And if you are part of a larger family looking for a prime beach front location, then take a look at Palme Royale Resort in Hurghada.  Its year round rental and own use during all the popular holiday periods in winter, spring summer and autumn mean that there are plenty of school holiday weeks to share between four owners.

What do you think? Will fractional ownership grow as fast as many think? Please let me know what you think and comment below.

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