High yielding property 8% and above

[Goldberg Global]

Does anyone know of high yielding property 8% and above? Anywhere globally. Legitimate, Authentic offers only.

[andyk2]

Originally Posted by Goldberg Global

Does anyone know of high yielding property 8% and above? Anywhere globally. Legitimate, Authentic offers only.

Sahara Beach & Spa on RT6 at Saidia. The projections being suggested by PL are coming in at just over 8%. If you need guaranteed, Banyan Curve in Malaysia - 8% guaranteed for 13 years.

[Goldberg Global]

Andy 2k can you elaborate.

Lisa Nic, Good point, I got very excited about Banyon Curve, I called Malaysia today.Now I understand.

Ok on the surface it looks very good. 8% 13 years. That is all your money back. Ok, now look at currencies.

The Malaysian currency dropped 70% in Value over 10 years to the Pound Sterling, and 40% against the dollar. So that is why they take your money, and put it in Malaysian currency, and pay you back in Malaysian currency. It is quite clever but still not so great.

eg. Each year you lose 7% on average for currency depreciation. And gain 8% in revenue. So in real terms you gain 1% per year. Unless Sterling drops and Malay currency grows.

Thanks.

[andyk2]

Hi Darren,

Sent you an email

AK

[Investy]

Ive invested in a second Plan Azure resort in Morocco.

The first is Saidia - LeJardiDeFleur (mentioned above), the most recent is Port Lixus - the condo hotel called LaPlage. Both for me are yield plays.

Everyone thinks thier investment is unique but for me 99% are pretty much the same, so why did I choose these 2?

= GOLF + BEACH + IMMENSE FACILITIES + MEGA MARINAS + MULTIPLE ONSITE HOTELS BRINGING EYES TO SITE.

In other words the pull will be year round. Nothing in Spain can touch these resorts. People often challenge me for example I was told about a new one in Murcia called Novo Carthago and what do I find? - no marina, no immense sport and leisure facilities, no beach to speak of, inferior golf offering, 95% less shops, and 70% less onsite hotels.

Dozens of premiership footballers are buying in Saidia (Lejardindefleur specifically which is the product I bought) - this really counts in the celeb driven world we inhabit.

The condo I invested in in Port Lixus has similar attractions to Saidia. I expect a yield of 9 - 13% (I ignore the first 2 year guarantee of 6%).


To be honest I consider all other investments far inferior to these resorts. You either get it or you dont.

[Goldberg Global]

Thanks Investy.

[The Soup Dragon]

There are many such opportunities! If your strategy is to get high rental yields then target places like Thailand, Sri lanka, India and China. Some have guaranteed rentals, some do not. One I considered in Pudong (financial centre of Shang Hi) has about 10% rental guarantee for 10 years or so, of course 10% of purchase price is good today but not a few years down the line when your property has hopefully appreciated in value. (Think it was called G Bridge and guarantee was by company that owned Accor hotels - you'll struggle to get a higher guarantee from a more solid company. Think construction of hotel finished about a year ago and there were still units available a few months ago. I'm not suggesting you look into this 'opportunity', its just an example of a good rental guarantee in a country with good growth prospects. If you do look into it and are interested then remember how long these units have been on sale. You should be able to knock quite a bit off the asking price.)

My strategy - if you can call it that - is to go for property that will appreicate in value while generating rental income that should cover all expenses for 60%+ mortgage. I like the Baltic nations, Poland, Montenegro and Morocco (of those places 3 to 4 hours from UK.)

[Andrew - Alpha]

Hello, interesting you mentioned the Baltic nations. We have been opporating just round the corner from there putting forward situations in Germany. 8% yields are still achievable in parts of the former east whilst retaining good prospects for capital growth (and not exposing yourself to the mercy of a fledgling legal system). Two areas to look at would certainly be Leipzig or Dresden. Follow link below for current example.

http://www.alphare.net/memos/AREI-LPZ1.pdf

We have found that in any investment the potential returns are always balanced of by the risks involved. For example you may get high yields and potentially very impressive capital growth in Leipzig but the market there is linked very closely to the continuing economic recovery in Germany.

But, yes you are right. The strongest case for capital growth in Germany has to be by far central areas of Berlin. There you are looking at investments washing their own faces, with little surplus. For the private investor this should make by far the most sense, as you said, yourself you are always looking for capital appreciation.

Cheers,

Andrew Stanley
Alpha Real Estate Investments
Berlin property, German property, Slovakia Property -

[Goldberg Global]

Thanks Andy, thanks Soup Dragon.

A question to Soup Dragon. Did you go ahead with the investment in China? If so how was it for you. I thought there were restrictions on foreginers buying there. The chinese currency is going to appreciate I think too. It sounds very good Shanghai is very busy commercial area, great returns. What did you do?

regards Dc.

[Ivana06]

Dear Goldberg,
The Croatian market is looking very strong at the moment. Property prices are increasing by at least 10-15% each year. When I bought my apartment near Split last year, property prices were averaging 1.400euro/m2.
This year they are typically 1.900/m2.

With their entry into the EU this will only increase further. There is also a good rental yield of 6-7%, depending on location and marketing.


Ivana

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