Bacolet Bay Hotel Cottages
A stunning, award winning development on the Caribbean Island of Grenada, offering predicted yields of up to 14%. Set conveniently close to the capital St Georges, this 5* project boasts a fabulous position in an idyllic bay, bordered by lush rainforest, warm seas and white sand beaches. The resort is situated just 20 minutes from the Point Salines International Airport and will be the first 5* resort to be completed on this area of the island.
This fully managed project offers a 20 year transferable rental program in addition to interest free, stage payment mortgages. 70% LTV mortgages are also available at completion. Clients are also able to enjoy 4 weeks personal use per annum. Investors are required to put just 15% down at exchange with 30% being paid out at completion, returning to the investor the initial cash input they have invested. How does this work? The client reserves with $5000 and, within 30 days, signs the contract and pays 15% minus the $5000. The developer makes an interest free loan to the client of 15% of the purchase price. At completion, on target for Q4 2010, the client receives 3 years 10% rental in advance, equating to 30% of the purchase price. The client is repaid the initial 15% deposit & the developer is repaid the 15% loan.
The mortgage (up to 70% LTV, STS) is paid for the first 3 years by the developer. No maintenance or management charges are payable by the investor for the first 3 years. The client is entitled to 28 days personal use per year and the project is set to be managed by one of the leading luxury US hotel operators and has been designed to meet the growing tourism industry - the island is enjoying increased levels of tourists from the US and the UK. The introduction of daily flights from the US and twice weekly flights from two British airlines has also made the island even more attractive to tourists.
By regional standards, the Grenadian market is considerably undervalued and most spectators predict annual price rises of 10% or more in the medium term. The limited supply of high quality resort property and growing demand from the tourism industry is pushing up prices and yields in this sector. Planning restrictions on Grenada allow only a low density of build and and restrict the height of buildings to two floors. There are underway at the moment 5 main developments on Grenada and this restriction means that there will not be any more significant developments. These planning restrictions preserve the natural beauty of the island and assist in ensuring that the market place does not become over supplied and that there is demand to service these developments.