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Fractional, Cape Verde.

Fractional, Cape Verde

Capital Growth, Income, Lifestyle, Return - High
Cape Verde Fractional Investments

The general view of property investment has started to alter in recent times. Although it is well known and publicised that a strong portfolio of investments can lead to lucrative returns and long term financial security, individuals often feel that the best deals are out of reach for the average investor. With requirements of high deposits, the recent restrictions on access to capital and the large costs incurred through legal and admin fees, its unsurprising that prospective investors feel alienated when it comes to acquiring the best opportunities.

Fractional investments are often confused with the same ‘tarnished brush’ that is associated with timeshare’s and pressured timeshare selling seen mainly in Spain in the 90’s. However Fractional ownership and Timeshare ownership could not be further apart.

Timeshare – You’re stuck with one week a year in the same resort that you were convinced would offer spectacular year on year holidays at one of the worlds top resorts. But with maintenance levels dropping, facilities dwindling and boredom kicking in, its no wonder that you’d look to cash in to avoid the torturous holidays for another 10 to 20 years. The likelihood is that by now the ‘great investment’ that you thought you had is nothing more than an unsellable venture with little to no market value. Coupling this with the ‘very reasonable’ annual management fees, it didn’t really turn out to benefit you in the way you thought it might!

Fractional – Firstly, the primary reason of fractional ownership is not for you to holiday, although some investments do offer this as a bonus, its for you to purchase a share of a freehold property and benefit from the rental returns and capital growth that overseas investment property can provide. Fractional ownership is great for either benefiting from an investment property you cant afford to own outright or to enable you to spread your portfolio across a broader range of investments, providing additional financial security and stability for the future.

Again, the main difference is that you own your share of the investment in-perpetuity. The aim of an investment property is to provide an income to you for many years to come. An investment property should also always carry a level of resale value too. Fractional investments tick both these boxes, not only by providing a above average comparable annual income which but also offer a realistic opportunity for capital growth on your initial investment.

Furthermore, due to the nature of a fractional investment, individuals have the ability to invest either with cash savings or as part of their pension planning, or often both!

Est. capital growth 5% p.a. with projected income of

7% p.a. no closing costs, no mortgage required, supported by signed hotel operator Melia International.

Income

As a fractional owner you receive a proportion of the rental revenue derived from the property.

The amount you receive is determined by the size of the fraction or membership that you have purchased.

As well as the rental income, all fractional investors receive a 3% interest payment during the pre-completion phase.

Depending on how long it may take to build the resort, this payment will be made for a maximum of 3 years or until the property is completed, whichever occurs first.

In other words, your money is working for you from the moment you make the investment.

7% per annum net yield is projected quarterly as well as the aforementioned 3% throughout the construction phase. In order to deliver these figures The Resort Group need to achieve 70% occupancy which is already the worldwide average. This has already been achieved in their first Tortuga Resort.

Llana Beach Hotel is based on the Paradisus range of hotels which are some of the best in the world. It’s this kind of high end product that has a long term value.

Melia International have over 100,000 hits to their booking site every month and The Resort Group are already working with Thomsons as well as being in talks with Thomas Cook and other holiday operators.

The system is viably low risk because of the track record of the developer, this coupled with the investment process and the ongoing hotel success.

 

Chris Mansfield

Managing Director

Fractionals are a solid way to use smaller investment amounts in order to purchase a strong asset. This is a fully commercial property purchase with no leverage required.

Capital Growth

5%p.a. considered to be achievable, as the first resort (Tortuga) has already achieved an average of 10% growth p.a.

There are a variety of fractional investments. You can invest into anything from a quarter to a twelfth, depending on the size of your budget. In fact, there are more than 40 different investment levels to choose from, with some prices below £20,000.

You can purchase a fraction using your SIPP: a process that involves a full independent review, prepared and advised
by an FSA approved company.

Exit

There is no guaranteed exit route as such and as with other hotel investments any future exit will be subject to the investment producing the anticipated returns for both the developer and then investor.

Security

Fractional investments differ slightly from an outright property purchase. The property itself is acquired using a private limited company structure, from which a specific and fixed number of memberships are sold.

Each membership effectively represents your fraction of ownership in the property.

 

I recently purchased a property from Davenport Property Investment.

Chris Mansfield and his colleagues guided me through the process.

Firstly they invited me to a seminar. I was able to look in depth at the property options and ask questions to an experienced guest speaker who had hands on knowledge about the scheme in question.

I have been to several seminars held by Chris, the latter being September, and they have all been extremely professional and informing.

Next Chris guided me through the various options. He went through the risks involved, the potential rewards, and details such as payment options, completion dates and associated paperwork.

Under no circumstances was I in a position where I felt misguided or at the end of a hard sale.

I am extremely pleased with my purchase and the seamless transition from enquiry to completion.

Thank you Chris, I would recommend you to anyone who wants to look at overseas property as a home or investment.

Sincerely,

Mark Christie

Independent Financial Adviser
Positive Solutions

An enticing enterprise: How the recession has made pretty Cape Verde a wise investment
Daily Mail
Click here to view the article.

Tourist Development in Cape Verde: The policy challenge of coping with success
Overseas Development Institute
Click here to view the article.

Africa Investor Report
UNIDO
Click here to view the article.

Cape Verde sees tourism growth by 27.4%
Cape Verde
Click here to view the article.

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