Resort Group International Investor Guide

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Resort Group InternationalInvestor Guide

• The International Property Consultancy"

Parkshot House, 5 Kew Green, Richmond, TW9
2PR Tel [phone] Fax [phone] email
www.rgintl.co.uk
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Contents

• Who are Resort Group International?
• Stocks Shares Vs Bricks Mortar?
• Pensions.
• Financing an Overseas Purchase.
• Types of Investor.
• Off Plan vs Built
• Additional Costs
• Case Study Aphrodite Hills
• Case Study Humber Valley
• Case Study St Endreol
• Case Study Discovery
• Why Resort Group International?

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Who are Resort Group International
Number of Households Owning Property Abroad
Resort Group International is one of very few
Management Consultancies specialising in the
development and ongoing sales and marketing of
leisure related real estate. With over 50 years
combined experience in Italy, Spain, Portugal,
France, Cyprus, the Caribbean and Florida, the
principals of the Company has been responsible
for the sale of over 4,800 second homes during
this period with a combined value in excess of
500,000,000
The company prides itself on its ability to take
new resorts from a standing start to a fast and
successful launch. First, we help clients
establish the right goals and develop the right
products. Thereafter, our marketing efforts
support strong sales initiatives to achieve
revenue targets within budget. Great emphasis is
put on planning the overall strategic approach to
the launch and sales cycles of each new phase.
The overall plan is then broken down into
deliverable solutions, each with its own budget
and timescale. Accountability and control are of
particular importance and targeting the right
audience with the right message to generate
quality leads, which our sophisticated web based
database tracks and manages throughout the entire
re-solicitation and sales process.
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Stocks Shares vs Bricks Mortar
Investing in property has now become one of the
most secure and efficient ways of making money
especially as stocks and shares are not producing
the security and returns that has done in the
past. Overseas property in particular is becoming
increasingly popular for investors in recent
years there has been a 250 increase in the
number of Britons buying property abroad strictly
for investment purposes.
This perceived unreliability of the stock market
initially fuelled the domestic buy-to-let market,
but we are now seeing these UK investors put more
of their money into overseas property. It is not
just investors who are buying property overseas.
We are now seeing increasing amounts of retirees
opting out of retiring in the UK and moving
abroad and the overseas property market opening
up to the average man on the street.
Because of these changes owning an overseas
property is not restricted to film stars and
footballers! By 2010, there will be an estimated
750,000 millionaires through rise in property
prices!
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Pensions
The British government is taking far less
provisions regarding the health of pensions in
the UK. This has now led to individuals taking
matters into their own hands and are having to
look elsewhere to guarantee they have the
retirement that they deserve and have worked hard
for.

• Pensions are looking increasingly unattractive
  for two main factors
• Increase in pension age for men from 65 to 68
  years old.
• Women currently take their pensions at 60 but
  under new legislation this will creep up to 65
  with the first increase starting in 2010.

• Overseas property is now seen as the ideal
  solution to this pension problem and retirees
  have 3 options available to them
• Sell overseas property upon retirement to gain
  extra cash flow.
• Rent property out to have regular income to
  supplement pension.
• Live in overseas property in a country with lower
  living costs than the UK and rent UK property.

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Financing an Overseas Purchase
There are 4 main methods of raising finance to
purchase an overseas property
UK Mortgage Option Some UK financial
Institutions will offer mortgages for overseas
property. Purchasers may feel some comfort when
dealing with their existing mortgage lender and
you can repay the payments in sterling therefore
you are not getting exposed to any fluctuating
exchange rates. Overseas Mortgage Option This
involves taking a mortgage out in the country of
purchase. This means you do not have to pay any
money transfer fees and in some cases interest
rates can be significantly lower.
Remortgage Option Many investors may opt to
remortgage their existing properties. Novice
investors may also be in for a pleasant surprise
as UK property prices have risen sharply over the
last few decades, you may find you have a large
sum of money at your disposal Equity Release This
is becoming an increasingly popular option for
people who only have a small mortgage or fully
own their property. Equity release gives
investors the option to access their equity but
still live in the property.
Our experts can give advice on what may be the
best way to raise finance for a property.
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Types of Investor.
Investors can be broadly separated into 3
different groups
Lifestyle Investor This is someone that isn't
necessarily investing in a property for financial
gain but more of an investment in their
lifestyle. The lifestyle investor puts less onus
on how much money they can make, but will be
quite particular about what area they purchase in
as they will want to spend a significant amount
of time in their property and the surrounding
area.
Pure Investor All decisions are taken from a
financial stance. The pure investment buyer is
only interested in how much money they can make
and often will never even visit the property or
country where it is located. Pure investment
buyers rely heavily on advice given by experts,
there own research, and their own experience.
Investment/Lifestyle Investor This type of
investor is a combination of the two above. They
want to use the property for some part of the
year and would have visited the area, but also
want the property to produce some kind of income.
Buy-to-let products that offer an amount of weeks
usage with a guaranteed return attached to it are
very popular with this type of investor
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Off Plan Vs Built
The vast majority of Resort Group Internationals
portfolio is off plan as we believe this is what
provides the investor with the best deal.
Off plan properties enable investors to purchase
at the earliest possible stage thus benefiting
from the lowest prices and the smallest deposits.
The earlier you purchase, the lower the price but
quite often the higher the risk but this is
where Resort Group step in. Resort Group only
works with reputable developers where we have
done full due diligence to ensure they are
financially stable. In most cases we insist the
developers offer some kind of guarantee to ensure
that your money is safe.
Built or resale properties are aimed at investors
who wish to have something tangible before they
part with any money. The price of off plan
property grows considerably more than the current
market increase whereas built property only grows
at the current market increase. However built
property is perfect for an investor who wishes to
move into the property immediately and has no
intention of waiting several years.
Property Value
The graph emphasises just how much profit you
can make when purchasing off plan properties
can be purchased off plan below market value but
when complete it is at market value
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Case Study Aphrodite Hills
Aphrodite Hills is now an established resort
development in Cyprus that encompasses a
selection of villas and apartments, 18 Hole
Championship Golf Course, 5 hotel and is widely
regarded as the premier resort development in the
whole of Cyprus. Resort Group International has
worked with Aphrodite Hills since its launch in
2000.

• 2001
• 2 bedroom apartment 80,000
• Plot of land approx 45,000
• Villa approx 312,000

• 2004
• 2 bedroom apartment 220,000 Capital Gain of
  175 over 3 years (equivalent to 58 p.a.)
• Plot of land 150,000 Capital gain of 233 over
  3 years (equivalent to 77 p.a.)

• 2007
• 2 bedroom apartment 375,000 Capital gain of
  368 over 6 years (equivalent to 61 p.a)
• Villa 1,412,000 Capital gain of 352 over 6
  years (equivalent to 58 p.a.)

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Case Study Humber Valley
Humber Valley is another luxury resort
development in Canada and Resort Group first
started working with the developers in 2002. The
resort now boasts an 18 hole Championship Golf
Course, Health Spa and a 5 hotel.

• 2002
• 11 acre lake front plot 40,000

• 2004
• 11 acre lake front plot 200,000
• Capital gain of 400 in 2 years or 200 p.a.

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Case Study St Endreol
St Endreol is luxury 5 development in the
Provence region in the South of France. The
properties meander around the 18 hole
championship golf course and the boutique hotel.
Resort Group have been working with the
developers at St Endreol since 2001

• 2001
• 3 Bedroom townhouse 185,000
• Villa 240,000

• 2004
• 3 bedroom townhouse 370,00 Capital gain of
  100 over 3 years (equivalent to 33 p.a.)
• Villa 550,000 Capital gain of 129 (equivalent
  to 43 p.a.)

• 2007
• 3 bedroom townhouse 510,000 Capital gain of
  175 over 6 years (equivalent to 29 p.a.)
• Villa 900,000 Capital gain of 275 over 6
  years (equivalent of 45 p.a.)

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Case Study - Discovery
Discovery _at_ Marigot Bay was a luxury development
on the beautiful Caribbean island of St Lucia.
The 2 3 bedroom apartments were sold on a
buy-to-let basis guaranteeing purchasers a
guaranteed 6 rental return p.a. for 2 years and
rental income split between the purchaser and the
management company there on. This means that
purchasers not only benefited from the capital
gains seen below but also on average 15,000
rental income! Resort Group worked with the
developers from its launch in 2003 until it was
sold out almost two years later.

• 2003
• 2 bed apartment 186,000

• 2004
• 2 bed apartment 261,000
• Capital gain of 40 over 12 months.

• 2007
• 2 bed apartment 400,000
• Capital gain of 115 over 4 years (equivalent to
  28 p.a.)

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Why Resort Group International?
Resort Group International is a Management
Consultancy specialising in development
consultancy and ongoing sales and marketing of
international, leisure related real estate. The
principals of the company have over 50 years
combined experience in the industry and Resort
Group specialises in providing informed,
impartial advice to its clients. The company
specialises in offering resorts located off the
beaten track in both major destinations and also
within the emerging nations.
Our involvement with resort developers from the
very early days of master planning and property
designs means that Resort Group is able to offer
its personal clients the opportunity to invest in
overseas resort property pre-launch and
pre-construction when prices are at their lowest.
We also only work with reputable developers who
have a track record of producing the high quality
products we expect for our clients.
Because of these reasons the company has earned
an enviable reputation for the quality of its
resort clients and the ethical way in which it
conducts its business.