Hi Amo
I expect cost for villas in VVT8 will be no more than 30% to 40% of the average price and the same will probably hold for VVT6. While there's a large element of guess work in that estimate, I looked very closely at prices in other developments 12 to 18 months ago. Some of these will / are producing comparable end products, its just they don't have the same on site facilities. The prices for them lead me to believe PL could build and furnish VVT8 properties for well under 100k Sterling and probably near the 80k mark.
Fully understand your nervousness about putting 100k on the line and potentially losing it. You are doing the right thing to mitigate for the risks as much as you can. There's a long time between now and the build being complete, so if you can't become comfortable with the risks you would be better walking away. No point having kittens over it, there are plenty of opportunities out there that will provide you with a holiday home come investment.
I didn't look into insurance products. If you do look into these be careful to see exactly what is and isn't covered. For instance, two fully comp car insurances aren't neccessarily comparable in what they cover. Additionally, it would likely be preferable to take the insurance with a UK company that is regulated by the Financial Services Authority. That way you can approach the Financial Ombudsmen should you have any difficulties with the insurer.
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