What is the current best overseas investment for rental returns?

[Goldberg Global]

Yes Berlin is good but the financials and leverage is bad, you need to be a cash buyer.

[Horizon Property Group]

The Canary Islands have always been a region where good rental potential is available. Also now the Cape Verde Islands are well worth looking at as most developers are offering guaranteed rental contracts to all buyers.

[Lysos]

Guaranteed rentals are invariably factored into your purchase price. So, you are paying over the odds to get your own money back, on which you may be liable for tax !.

[Horizon Property Group]

In most areas guaranteed rental returns are "built" into the sale price, however with Cape Verde this does not seem to apply. The islands need to increase their tourism to continue building their economy and with a greater range of developments coming onto the market every month the developers need to compete. So as one developer started offering guaranteed rentals to entice buyers all the others have started following this trend but without a noticable price "hike" to compensate. This can only be good news for the schrewd investor.

[Investy]

Apart from Berlin Ive also invested in the Government mega resorts of Morocco, namely SAIDIA.

I am an overly careful investor but this definitely surpases all other touristic developments.

1) Strict laws guarantee the development will be bustling year round - almost no toher resort Ive ever seen can boast this. The Government insist 70% of the properties go into the rental pool and many are expecting yields of over 10%. On site rental agents of the highest calibre are insisted upon by the Government.

2) The largest marina in the Med able to take 300 foot yatchs

3) Leisure facilites have no compare, thats why dozens of Premeiership footballers bought property in Saidia

4) 11 onsite 4 and 5* hotels bringing bums on seats - yet a relatively small number of rental properties compared to the 30,000 guest per week staying at the site

5) The new trendy middle class place to be seen (once finished in 2010)

6) 500 shop onsite shopping centre plus souk etc, including many trend setters such as Gucci, Channel and Budha Bars

7) On site hospital

8) 3 hours from the UK YET A YEAR ROUND RESORT

9) Spectaculor 6km private beach

10) 2 onsite Carrefour supermarkets

11) 3 championship golf courses ON SITE - not down the road

12) Swimming lagoons and Olympic standard swimming pools

13) 10 yr European build quality guarantees

14) Provisions ensure these properties are immaculatley maintained.

15) The King is batting for your team as this is his showcase to the world (the pinnacle of a huge plan called Plan Azure)

16) 17 on site Club Houses with very refined lounges etc

17) Multiple helipads

18) Small football stadium

19) Cinemas and bowling alleys


I bought a property by LEJARDINDEFLEUR. Owners can use all the facilities for free which LJDF have been involved with (11 different development in the one site) to include the luxury 5* Sahara Sands hotel.

Whilst I appreciate there are some good development in Cape Verde - nothing comes anywhere close to this and the same can be said of Spain and Portugal.

COMPARE THE PRESTIGIOUS LA MANGA CLUB IN SPAIn WHICH IS 4 X MORE EXPENSIVE = no beach (to speak of), no marina (this is a crucial factor), 2 hotels (not 11), fairly run of the mill sports and leisure facilities, not a year round resort, no Government backed interest in the site, a few shops, no hospital - just no where near as .. ermm...... flash really.

I dont like flash but this place will definately keep many people attracted all year. Imagine everything you could possibly want in one site come rain or shine.

[The Soup Dragon]

Horizon Property Group.

I looked at Cape Verde some time ago and noticed more and more offerings having guaranteed rentals. In my opinion, the most upmarket resort at the time had comparable or even lower prices than those that emerged with guaranteed rentals. That was around 2 years ago and the development was on Santiago Island, not far from the capital. On a gentle hill, perhaps a kilometre from the ocean, the site afforded terrific views over 2 or 3 golf holes and onto the ocean. Front line 3 bed golf villas had their own pools and could be picked up for little more than £100k.

I didn’t invest as I had concerns about:
1) Hurricanes. (Didn’t get a satisfactory explanation for those making their way to the Caribbean missing the Cape Verde islands)
2) Construction quality of new builds on the island.
3) Infrastructure not being good.
4) Front line properties on above development were all taken and non front line properties were more expensive. (Due to having larger plots.)

[najnaj]

Hi, guys, yes, all of these places are exotic indeed, but let's back again in Europe. Having in mind temps of economical development of new member-states of EU, the biggest potential for money back investment is in Bulgaria.
beautiful nature, no disasters like earthquake or hurricanes, natural phenomenons, very rich cultural-historical heritage, not explored market with many opportunities for inovations, cheap properties etc.

[Investy]

I did Bulgaria 5 years ok, now the investment thinkers have moved on.

2 important downsides 1) inadequate state legal infrastructure and weak natural law mean crooks abound 2) short season means rent for just 2 or 3 months - thats not an investment

Morocco is also as close as Gibralter so closer than many parts of Europe are to the UK.

Year round rent, safe Government backed mega resorts far better weather than Bulgaria

[Horizon Property Group]

I know the developments that you mention on Santiago and these were a good investment. It is a pity that at the time you did not find answers to the concerns you mentioned so I will answer them for you now.

1) Hurricanes - All the hurricanes that affect the Caribbean and the South USA are born off the east coast of the Cape Verde Islands and then go towards the Caribbean they have never turned around and hit the Cape Verde Islands as the atmospheric conditions that create them take them in the direction of the Caribbean.

2) Construction Quality - All the developers that we work with are all the major players in the market, they all construct to European standards or above.

3) Infrastructure - The has been a company created called Cabocan, this is part Cape Verdean and part Canarian. This company has the responsibility to make all the infrastructure across all the islands. It has even received official recognition by the USA´s Millennium Challenge Corporation, which has invested 2.5 billion dollars so far, with a further 3 billion dollars pledged for later in 2007.

4) Developments that we have at present have front-line properties available and 2nd line properties are less expensive because of the position.

[The Soup Dragon]

Thanks Horizon Property Group.

I’m still concerned by the hurricanes. It doesn’t take much of a deviance to their routes for them to hit the islands. (It’s a while since I researched this but I think the hurricanes were originating to the South East and missing Cape Verde by around 200kms or miles (sorry, can’t remember which) on their way North West to the Caribbean.) I still don’t feel comfortable about this, though I found much evidence that hurricanes were passing the islands by rather than hitting them.

I hadn’t realised that so much was being pumped into the infrastructure. (Had realized the new international airport on Santiago Island was open, but that was about it.)

Point I was originally making was that 2 to 3 years ago the developments that were being sold out didn’t have the rental guarantees. Those that came along about 2 years ago with the guaranteed rentals were more expensive and I see many are still on the market.

One of the positive notes from my research was that expats from the Canaries were upping sticks to the Cape Verde islands. That was a while ago though, the timing might not be as good now.