Caribbean Investment Property
At Global Property Investors we offer investors a range of exciting Overseas investment opportunities. One of our most popular areas is the Caribean with locations such as St Lucia, Domincan Republic and St Vincent. We work closely with the developer to offer our investors an excellent selection of properties for sale in these areas.
What really makes these investment so exciting is the hugely discounted prices which we are able to sell them for. As our investors are purchasing the properties off-plan the developer can give discounts up to 50% below current market values. We can also offer a 100% finance option which enables our investors to purchase a freehold property on any of our 5* Caribbean developments using none of their own money.
Please see below for an example of how the 100% finance option works.
If you raise a loan to fund the 30% for your deposit, the developer will make the interest payments for this amount on your behalf. See the example below:
30% deposit required (less £1000 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.
Due to the significantly discounted off-plan contract price and the capital appreciation during the construction phase, it is anticipated that the £200,000 purchase price will have grown to a property value at completion of circa £325,000
At this point a 70% loan to value developer loan will be required and therefore you will be able to borrow up to £227,500. This is clearly ample to pay for the £199,000 (purchase price less £1000 reservation fee) that you owe as well as the accrued interest of £7,080 - from the above example.
Assuming you borrowed the maximum loan to value mortgage, available from the example above, you would borrow £227,500 on which the annual interest payment would be £18,200 based on a rate of 8%. The rental guarantee of 10% of your purchase price of £200,000 will generate you an income of £20,000 each year, should cover your mortgage payments. If you wish you could retain the £59,000 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.
For more information on the Caribbean investments we have on offer, please call us on 0207 228 0259 or click here and to request a call back.
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Name : Jennie Smith
Location : London
Age : 55
Occupation : Housing Officer
First Time Investor : No
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Name : David Picknell
Location : Liverpool
Age : 51
Occupation : Joiner
First Time Investor : Yes
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