Tortuga beach resort

Forums Cape Verde – Property / Invest Forum Tortuga beach resort

This topic contains 2 replies, has 2 voices, and was last updated by  rh08ers 6 years, 10 months ago.

  • Post
    rh08ers
    Member

    Currently looking into investing at tortuga beach resort having recently been on holidays there, just wondering if anyone has any figures on their returns on investments and being part of the rental scheme etc….. Are payments made on time to owners etc……

    Any information would be great full

    Thanks

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  • Replies
    pontapreta
    Member

    When The Resort Group initially started selling Tortuga they forecast returns of around 36,000 euros to be split 50/50 with the hotel management scheme.

    Tortuga opened in May 2011 and as all hotels do had some great offers that meant owners didn’t necessarily get fantastic returns – they did get a return equating to about 6% pa which as an initial investment seemed OK.

    The returns kept coming and to be fair, they were always paid within a month or so of the previous quarter, ie if a quarter ended August you would get your return by 1st week in October at the latest.

    What became apparent though is that the projected income of 36k split 50/50 is still some way off the mark. There are a lot of failed projects in CV and Tortuga isn’t one of them. However, the way in which returns were originally forecast have been a little misleading. If you bought originally off plan, you were told that you would earn an income based on a pool of where your apartment was, i.e if your apartment was near the pool, that would generate a higher income than if your apartment was overlooking the car park – this has not proved to be the case – the returns are generally 6% based on the price at notary. i.e if your apartment at notary was 150k then you could expect 9000 euros p.a but if you buy an apartment at 100k euros then your income would be 6000 Euroa pa

    Out of this you have “management” fees to pay of £143 GBP per month and CV tax ( no deductibles allowed) of 20%. There is also a clause in the contract stating that if the management company decide the furniture needs upgrading then they have the authority to do so at whatever cost they attribute to such – and it just so happens that the company that supplies the furniture is owned in a roundabout way by the management company.

    I would also point out that the returns have been made out to appear that The Resort Group have split the returns in favour of the owners – i.e 100%, but I would suspect that once Dunas & Llana have been completed, they will have carte blanche to charge whatever they like as the management company is out of UK jurisdiction and is governed by the laws of Gibraltar/Cape Verde/??? wherever the business is domiciled.

    All I would say is “Caveat Emptor” Do you own due diligence. Tortuga is a brilliant place for a holiday, you need to make your own mind up whether you should invest your hard earned cash into something you haven’t fully researched. The best bits of advice I ever saw was “don’t be seduced by the sun”

    rh08ers
    Member

    Thanks for reply!

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