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Page
Contents
-
Investment Overview
- View Payment Plan
Investment Overview
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Guaranteed
Rental Income of 7% For Three Years. |
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The
price includes:
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| Fully
furnished apartment. |
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| Solicitor’s
fees, when using our approved
independent solicitor. |
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| Stamp
duty. |
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Reservation
fee of $5,000 secures a two
bedroom apartment and is refundable
for a period of 10 days. |
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Deposit
of 30% is then due on exchange
of contracts, this equates to $112,500,
so a further payment of $107,500 is
required. |
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The
total deposit of $112,500 is held in
an Escrow account and will
only be released upon completion of
your apartment |
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Balance
of 70% ($262,500) is due
on completion of the property.
Summary
of Payments |
US$ |
Reservation
Fee |
$5,000 |
Deposit |
$107,500 |
Balancing
Payment |
$262,500 |
Total |
$375,000 |
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Mortgages are available from
numerous lenders. Mortgages
on your Jamaican property of up to
70% Loan to Value (LTV) are generally
available. For more information please
contact your own Independent Financial
Advisor (IFA) or refer to the following
independent web links:
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7%
guaranteed rental yield for 3 years.
Therefore, the guaranteed rental income
should provide sufficient funds to manage
mortgage repayments. Currently the average
interest rates for Jamaican properties
offered by Conti Financial Services
Ltd who operate www.mortgagesoverseas.com
are 7% (May 2008). After the three year
period we can continue to let the property
out on your behalf, subject to a management
fee. |
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Use
of your apartment during the guaranteed
rental period for 2 weeks per
year at any time of the year, subject
to adequate notice being given. |
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There
is an annual service charge of $1,500
per apartment; however this
will be not be charged during the 3
year guaranteed rental income period.
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Exchange
Rates fluctuate but for comparison
purposes outlined below are the sterling
and euro equivalents of the various
payments based on the exchange rate
as at 23rd May, 2008: -
23
May 2008 |
US$ |
£1
= $1.97613 |
€1
=$ 1.57586 |
Reservation
Fee |
$5,000 |
£2,530 |
€3,172 |
Deposit |
$107,500 |
£54,399 |
€68,216 |
Balance |
$262,500 |
£132,835 |
€166,575 |
Total |
$375,000 |
£189,764 |
€237,963 |
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With
£1 currently worth almost $2
and the historically high strength
of the euro against the dollar,
means that the buying power of both
currencies is significantly enhanced,
this is illustrated in the table below,
which shows how much the apartment
would have cost in STG£ and
Euro€ in earlier years.
Date |
Cost
of Apartment US$ |
Cost
(£) |
Cost
(€) |
23
May 2008 |
$375,000 |
£189,764 |
€237,963 |
31
March 2007 |
$375,000 |
£198,077 |
€281,214 |
31
March 2006 |
$375,000 |
£208,637 |
€310,533 |
31
March 2005 |
$375,000 |
£203,307 |
€290,337 |
31
March 2004 |
$375,000 |
£221,382 |
€307,932 |
Source:STG£
rates used are average exchange
rates for the year taken from
HMRC’s website. The Euro
rates are average daily rates
sourced from www.onada.com.
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Whilst
movements in exchange rates are unpredictable
and can move in either direction,
if sterling and the euro were to fall
back in value to historically normal
levels against the US Dollar, as the
property is valued in dollars, capital
gains could be made even without any
capital appreciation of the property.
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If
you are concerned about any possible
change in the exchange rate
between paying the deposit and the date
of completion, Foreign Currency Direct
can secure the exchange rate right up
to the date of completion. Foreign Currency
Direct are one of the UK’s leading
independent currency brokers and further
information can be obtained at:-
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The
apartments have been independently valued
by Century 21 (one of the worlds
largest estate agents) at between
$425,000- $450,000 upon completion
(quotation provided 27th May, 2008).
If realised would result in an instant
capital appreciation of between $50,000
-$75,000, or 44% -
66% ROI respectively based
on 30% investment at the time of completion.
Thus an Investor who financed the purchase
of the Jamaican apartment with a mortgage
of 70% LTV would have invested $112,500
of their own money, thus potentially
realising a significant return upon
their investment. |
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The
3 year, 7% net rental guarantee
is expected to cover any mortgage costs
thus affording greater Capital Gains
and ROI over the medium term whereby
investors with a mortgage of 70% LTV
would be expected to realise significant
Capital Gains growth without investing
more than the initial $112,500 in a
growing property market. |
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Jamaica
has no Capital Gains Tax, but
foreign investors may be subject to
Capital Gains Tax in their own country.
Jamaica has no restrictions on the movement
of capital, profits and dividends, the
country has virtually no exchange controls
and no approval is required for repatriation
of profits and dividends. |
Payment
Plan and Breakdown of Costs
• Apartment Price: USD$375,000
•
7% guaranteed rental yield for 3 years with
use of your apartment for 2 weeks per year.
| Year
1 |
= |
USD$26,250 |
| Year
2 |
= |
USD$26,250 |
| Year
3 |
= |
USD$26,250 |
| Total |
= |
USD$78,750 |
•
Price includes:
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Fully
Furnished Apartment |
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Solicitors
Fees |
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Stamp
Duty |
Payment
Plan
• USD$5,000* Reservation Fee
•
30% on exchange of Preliminary Contracts**
– less reservation fee
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70% on Completion – Mortgages available***
*NB:
Reservation Fee of US$5,000 is refundable
for 7 days only.
** Normally takes 4-6 weeks to complete.
***Mortgages of up to 70% (loan to value)
of your Jamaican property are available
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