This investment property is available from a UK Hotel and Resort Developer. There are a choice of Resorts throughout the Caribbean and Resorts in Thailand and Brazil. A range of properties are available from Studios to Villas with prices ranging from £120,000.

A 30% deposit is required and if you finance this the developer pays the interest which in effect creates a 100% Finance scheme (see notes below)

Example based on £200,000 property

• Reservation deposit £1,000

• 30% After 45 days £60,000.

Note 1 below.

• 70% Mortgage available £227,500.

Note 2 below.

• 2 Years guaranteed rental £40, 000.

Note 3 below .

• 50% Rental share thereafter £59,000 pa.

Note 4 below.

• Estimated mortgage cos £18,000 pa.

How it works
A £1,000 non-refundable fee is only needed for the reservation of a specific property.

Note 1 An additional 30% deposit is then required (less £1,000) within 45 days of reservation. Should you choose to borrow the 30% deposit; the developer will pay the loan repayments, including interest, for this deposit until completion of the specific unit you have reserved. The interest element of these payments will then be added to the purchase price upon completion. (Example, Property price £200,000. £1,000 reservation fee paid. The deposit = £200,000 x 30% = £60,000 - £1,000 (reservation fee) = £59,000. Interest on £59,000 @ 6% p.a. = £295 per month, paid for 24 months by the developer = £7,200 added to the purchase price upon completion). Due to the significantly discounted off-plan price and the likely capital appreciation during construction, it is anticipated that the £200,000 purchase price will have grown in value, on completion, to circa £325,000.

Note 2 At this point a 70% loan to value mortgage is available and you will, therefore, be able to borrow up to £227,500 against the £325,000 valuation. This is ample to repay the outstanding £140,000 (the purchase price less £60,000 deposit paid) as well as the accrued interest of £7,200 and to repay any loans used to finance the £60,000 deposit. Assuming you borrowed the maximum loan to value i.e. £227,500 the annual interest would be £18,200 based on a rate of 8%.

Note 3 The rental guarantee of 10% (payable in the first 2 years following completion), based on the purchase price of £200,000 will generate an income of £20,000 p.a., which is sufficient to cover your loan interest charges.

Note 4 Alternatively you could retain the £59,000 loan taken out for the original deposit, pay the interest yourself each month, from completion onwards, and use it to invest in a further investment property purchase.

You are free to sell your property at any time, although you are likely to receive an optimum price once your unit has been built and you are in receipt of a guaranteed income stream.

Please Enquire Quoting Reference: Har001