Hi Woody:- Flights into Santiago will depend on supply and demand, at the moment there is little demand from Britain for flights into Santiago. There is a lot of demand from Portugal into Santiago, thats why you have the supply from Lisbon. Of course once Ponta Bicuda,Sambala,Santiago golf etc are built there will be plenty of demand.
What community have you bought in Ponta Bicuda.
Does anyone have any information on the development of flights into Santiago from the North West of England? – We keep hearing that it will happen in time but I wondered if anyone knew of any plans or even rumours – Ponta Bicuda runs bookings in weekly blocks so I’ve my fingers crossed that flights align with the changeover days of the hotels!
I’m convinced that sufficient demand will be there in time, I’m just looking for any positive news that indicates the belief is accurate.
I’m looking forward to spending time in an apartment in Cor Di Mar in 2009 to see how closely it matches the glossy brochures – Have you signed up yet & if so which community/hotel?
Its a good bet that we will get direct flights, the question is probably when, my guess is way before the completion of Ponta Bicuda.
We have also purchased in Cor di Mar, central, top floor.
At the moment the stage payments are 40% before completion and 60% on completion, which is a lot less than most developments in Cape Verde. If we get direct flights to Santiago property prices, will then be on a par with Sal, where prices are higher than Santiago at the moment.
Therefore say you spend 150,000 EUROS now on an apartment in Cor di Mar, which involves putting down 60,000 EUROS before completion. Late 2009/2010 your apartment is worth 240,000 EUROS. You can then get a 75% mortgage on your apartment, which will return your 60,000 EUROS to you, there is 5% net income for the first 5 years, which will pay most if not all of the mortgage payments(depending on rates at the time).
I really hope your guess is correct regarding the flights commencing before the build is complete
Your suggestion that a 60% capital growth is likely by the time the build is completed is appealing but I’m interested to know the basis of the figures.
I keep reading wild capital growth predictions, mainly from developers or agents who have a vested interest in talking up the figures and wonder if they are realistic projections or fantasies. I really hope everyone is correct but I guess I’m being a little cautious & trying not to get carried away – After all an increase on paper is no use except in the case of mortgaging as you mention – Its when you sell that it matters – so if you are not a speculator & want to use it, any increase becomes academic.
What it would do is enable us to sit back & enjoy the sun feeling even more smug for getting in at the right time!
Of course what I am quoting is only a prediction. The figures will either be higher or lower.
The basis of my predictions are:-
1) When we get direct flights prices will increase.
2) Cape Verde is a Carribbean destination you can reach in 6 hours.
3) Ponta Bicuda is a high class development.
If you look at the good developments on Sal(which has direct flights), prices of studios, 1-bed, 2-bed apartments, townhouses, and villas are much more expensive than Santiago.
There will be 9 communities in Ponta Bicuda…..Cor di Mar,Tedju and Coladera are the 1st stage. Expect to see price increases when the next stage is released….a lot of the early investors in Ponta Bicuda are sitting on paper profits.
Astraseus airlines are starting direct flights to Boa Vista in the autumn…..if they can fly to Boa Vista, they can fly to Santiago.
The reality is that none of us have any real idea about prices, however, where you can be confident isthat Ponta Bicuda will be a high quality development from a reputable company on a lovely site. I have met Vergilio from the developers, he is a good guy and I believe you will end up with a quality product. You will complete in 2009/10 and then have a net 5% return for 5 years, so you have very little to lose in the short to medium term. Your gamble is; will the property be worth more in 2015 than it is today. It will then sit on a finished 5* development with almost certain direct flights on a lovely island with year round weather. For me, it is a ‘no brainer’, but everyone will have their own view. Good luck with your investment. Hello optiontrader. Hope you are well. Watched my son play cricket yesterday in the p**** rain, so bring on Sambala.
The upsides are definitely the pulling features but people should remember the downsides are the pretty steep monthly maintenance fee, more future builds (supply and demand), and a possible world recession.
it won’t be like the Costas of the 90’s re capital appreciation, but should be seen as steady investment
Sunny Sussex goes south
I fully agree with all the sentiments of the previous comments – I think the location and the 5* quality are likely to be the key differentiators – I also think anyone investing must view this as a medium to long term journey but at least we will be able to enjoy it whilst it establishes its niche.
Last I heard, about 30% of Cor Di Mar was sold – Does anyone have a view on what is normal at this stage (less than 6 months to commencing build) or an update as there has already been some redesign & reduction in the hotel size which may be just about right sizing but could also indicate slow sales.
Seagulls.Correct e if I am wrong, but my understanding is that the 5% g’tee is net of maintenance fees. By the way, are people opting for the 21% discount or the 5% for 5 years?brookieMember
Just to help your conversation regarding price increases.
Sambala have just increased their prices and therefore if we were to sell at their current price we would be looking at a profit of over 40%. Not bad for 2 years
Hope this helps
i’ll prob take the 21% upfront to as the purchase will be partly financed by a mortgage, and so the 21% would go straight back into reducing that amount.
should be interesting to see if they raise prices after the first foundations are laid at the end of the year.
Sunny Sussex goes south
My understanding is the same as hammersteve in that the 5% is net of all hotel running costs (obviously not tax though) and is actually a minimum rather than an absolute return – It is possible that a higher return could be achieved with high occupancy rates – I wouldn’t expect that in the first couple of years whilst the hotel establishes itself but in years 3 – 5 that should be perfectly achievable
Taking the 21% up front discount obviously removes that upside possibility but it does reduce the initial outlay/size of mortgage
By the way, I understand the Cor Di Mar hotelier is likely to be Hotelgal which I can only find limited info on and what there is seems to be predominantly Portugese – Does anyone have any more info?
i think i’d go for the 21% cashback as apart from reducing the mortgage ,from a rental perspective i see it that whilst building continues on the other areas of the resort that may put potential renters off from being on the edge of a building site, whilst when the other ‘hotel’ areas are complete that could also suppress room rates due to more supply. also with the 5% tie in guaranteed for the first 5 years, the later ones will be offered first then as ours pass the 5th anniversary 5% guarantee
i personally see the best returns as being in later years once the whole resort is fully established. once the 10 year lock in ends, the best option would be to get a group together of owners and co market their places together and get a seperate cleaning company in to clean the apartments. Being freehold we call the shots.
If thats not viable, at least they are going to have a residents committee , so we’ll have a good call on future charges and maintenance fees.
Sunny Sussex goes southbmwMember
seagull….wake up….you are buying in AFRICA not in EUROPE….where do you think that yiou are going to get the cleaners from??????In Santiago???
one day…I`ll sign
well 2 miles from a town on over 120000 should have a few cleaners kicking around. I didn’t realise that cleaners could only be traced in Europe and not in Africa – so who cleans hotels in the African tourist destinations of Tunisia , Egypt, the Gambia , Kenya ?? –
its called market forces – filled by business people. Cleaning firms, other hotel management firms will crop up over night.
‘BMW’ says its all really, so i do understand 🙂
Sunny Sussex goes south
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