Investment in the Caribbean 5 star beach resorts is an excellent way to achieve short and long term returns on your investment and it is even more rewarding buying with the 100% finance option. Below is explanation of how buying with 100% finance option might be at your advantage.

BENEFITS OF INVESTING IN THE RESORTS

HOW TO FINANCE YOUR INVESTMENT PROPERTIES
The developer offers investors:

Purchasing off-plan means you pay a lower price for your property than it will be valued at completion.

There will be several price rises during the build period which means you will see the value of your property increase over time.

You can sell your property at any time after exchange of contracts.

£1000 ($2000) non-refundable reservation fee* required for reservation of a specific property – you must pay the 30% deposit within 45 days of making your reservation. 30% deposit i.e. 30% of the purchase price.
Developer will assist investors to obtain finance for completion.

All you pay is £1,000 reservation fee** – nothing else to pay until completion because we pay your monthly interest payment on the 30% deposit
*All options for finance available will be explored, i.e. unsecured, secured, mortgage or re-mortgage. The developer does not guarantee which method of lending will be offered. If we are able to obtain finance, from whatever means as previously mentioned, and the client refuses this for whatever reason, or decides not to proceed, the reservation fee is non-refundable. If a client arranges their own finance and is unsuccessful, The developer then reserves the right to try and obtain finance through their own contacts. In all instances, if we are unable to obtain finance the reservation fee will be refunded.  *This is subject to status. Developers terms and conditions applies.

EXAMPLE OF THE 100% FINANCE - How it works

If you raise a loan to fund the 30% for your deposit, the developer will make the payments for this amount on your behalf. See the example below:
30% deposit required (less £1000 ($2000) reservation fee) within 45 days of reservation. Should you choose to borrow the 30% deposit, the developer will pay the loan repayments, including interest, for the 30% deposit until completion of the specific unit you have reserved. These payments will then be added to the purchase price upon completion.
Example (Sterling): Property price £200,000. £1000 reservation fee paid. The deposit = £200,000 x 30% = £60,000 - £1000 (reservation fee) = £59,000. Interest on £59,000 @ 6% p.a. = £295 per month, paid for 24 months by the developer = £7,080 added to the purchase price upon completion.
Example (US Dollar): Property price $370,000. $2000 reservation fee paid. The deposit = $370,000 x 30% = $111,000 - $2000 (reservation fee) = $109,000. Interest on $109,000 @ 6% p.a. = $545 per month, paid for 24 months by the developer = $13,080 added to the purchase price upon completion.
Due to the significantly discounted off-plan contract price and the capital appreciation during the construction phase, it is anticipated that the £200,000 ($370,000) purchase price will have grown to a property value at completion of circa £325,000 ($601,250)
At this point a 70% loan to value mortgage will be required and therefore you will be able to borrow up to £227,500 ($420,875). This is clearly ample to pay for the £199,000 ($368,000) (purchase price less £1000 ($2000) reservation fee) that you owe as well as the accrued interest of £7,080 ($13,080) - from the above example.
Assuming you borrowed the maximum loan to value mortgage, available from the example above, you would borrow £227,500 ($420,875) on which the annual interest payment would be £18,200 ($33,670) based on a rate of 8%. The rental guarantee of 10% of your purchase price of £200,000 ($370,000) will generate you an income of £20,000 ($37,000) each year, should cover your mortgage payments. If you wish you could retain the £59,000 ($109,150) loan you took out for the deposit, pay the interest yourself each month, from completion onwards, and use the money to invest in a further investment property purchase.
* This is subject to status developer’s  terms and conditions applies.

INVESTING WITH SIPP
A Self Invested Personal Pension, known as a SIPP, is a personal pension for which the person investing for retirement decides what their pension fund is invested in. Traditionally, pensions are managed by a pension fund manager who may invest in volatile stocks and shares or boring old cash and the investor has no control or influence on this decision.

Any type of pension can be transferred into a SIPP. For instance many people have several 'frozen' pensions from previous employment or businesses and/or personal pensions that they can transfer. This is a complex area and it does need professional advice. Our developers have teamed up with one of the UK’s leading independent wealth management companies which specialises in pensions and investments. They will carry out an initial review completely free of charge for potential investors to assess whether their existing pension plans may be transferred into a SIPP.

If an investor already has a SIPP, or once the SIPP has been set up, the investor selects the property they wish the SIPP Trustees to invest in. It is also possible to increase the amount of funds available in a SIPP by borrowing up to a further 50% of its value.
For example, if a SIPP has funds of £200,000, it can borrow another £100,000 making available £300,000 to invest.

An investor using a SIPP can make further contributions ongoing into their SIPP and is entitled to full tax relief which means that if a 40% tax payer paid in £100,000 it could only cost him £60,000.

For further details please contact us on 020 7096 0807 and we will be happy to introduce you to an independent pension specialist


We do not provide advice on SIPPs directly. We will introduce all interested clients to an authorised FSA firm for this purpose.
We are not regulated by the Financial Services Authority and do not offer financial advice.