By Rob Jarrett, CEO at The Resort Group PLC
The main advantage of a buy-to-let investment is that you are purchasing an asset, which has the potential to grow in value as well as deliver a regular level of return. Property investment has always been popular for this reason, and is a main advantage over savings accounts.
The buy-to-let model is a good idea because it is accessible to the new and experienced, especially when the property is managed for you. Investors can take advantage of various payment options – they can pay for a property using cash or buy through their pension. Properties can be purchased outright (with deposits starting as low as 45% on a new property), and fractional investments are available for those with fewer funds to release.
Typically, people who invest in a property through The Resort Group receive a yield between six to nine per cent per annum, which would be an income of £6-9k on a £100,000 investment. Even off-plan properties can bring instant returns and, importantly, a high level of security. Again, The Resort Group guarantees an off-plan incentive of as much as seven per cent per annum return during the construction phase.
Property investment isn’t exclusively for wealthy and expert investors
Investment opportunities in destinations with political stability, consistent growth in land values, and a sustained level of government investment can offer individuals excellent returns on their cash savings. And it’s far more accessible than you might think. With a good management or estate agency, people investing in an overseas property can enjoy healthy financial returns over a long-term.
There are regular incentives from respected developers, like The Resort Group, that show that property investment is within reach for anyone looking to make their money work harder, and establish wealth in the future.
Consider investing in up-and-coming destinations
Every smart investor will be thinking about the long-term, and it will be up-and-coming destinations that will offer a high level of return. There are of course numerous bargains in established markets like Spain and the Canaries, but research shows that consumers are looking to travel to new countries. Data from the World Travel & Tourism Council (WTTC) recently illustrated which countries could emerge as holiday hotspots.
Cape Verde, which is listed at number 10 in the WTTC’s list, has earned a reputation as one of the world’s hottest property investment locations. Its beauty, culture and stability all lead back to one main reason – and that’s tourism. Put simply, more and more people are jetting to the islands for a holiday. This boom is creating high demand for rental property from private villas right through to beachfront holiday resorts. As long as people continue travelling to Cape Verde, all property types can expect high levels of occupancy.
Buy into a hotel management scheme
Buying into a hotel management scheme offers huge benefits to property investors. The beauty of investing in a property associated with a well-known hotel operator is that the resort will be marketed on a global scale through travel companies, agents and tour operators. Once a holiday resort is completed and operational, investors can expect ongoing rental income and consistent capital growth.
Images courtesy of The Resort Group PLC