Guaranteed Rentals

WHAT TYPE OF INVESTOR ARE YOU?

In order to accommodate the wide differences between each of our investors, Elite Property has a number of rental solutions for investors. These include investors seeking guaranteed rentals as well as capital growth. We can also assist investors who want a more flexible rental programme that will allow more personal use. The main options are listed below: -

GUARANTEED RENTALS - LEASEBACK

IDEAL FOR: A hassle-free, pure investment for the long term with little or no personal use required of the property for 20 years.

MAIN BENEFITS:

Tourist Developments
Freehold Real Estate
VAT Refund
Non-Taxable Rental Income
Government Approved Program
Fully Managed and Rented
Guaranteed Rental Income
Fully Furnished
Holiday Occupancy Possible

The Leaseback scheme has been around in France for over 20 years and is a government-backed scheme providing a 16.9% discount on the property purchased (in the form of a VAT refund) in return for making the property available for long term let through a long term rental guarantee scheme from a major management company.

The Leaseback scheme offers you a freehold property (typically in a holiday home location such as the Riviera, The Alps, Paris, Dordogne etc) that you wish to rent either purely or primarily on a commercial basis for the long term - this means typically 20 years or so. Most schemes offer the option for the owner to use the property for a few weeks of the year in return for a lower rent. The guaranteed rents vary from 3 to 6% typically with mortgage rates at just over 3% currently. Deposits required are from 20% and the mortgage repayment can often be covered by the rental income - however this is normally the case if you do not use the property at all. If you are happy to make a small subsidy towards the repayment element of the mortgage each month you can achieve greater flexible use of the property yourself. In all cases currently being seen, the interest element of the mortgage is always covered by the rental guarantee as is part or all of the repayment element - if a small subsidy is required, most clients regard this as equivalent to making a payment into a pension scheme as the money you pay immediately becomes additional equity in the property and is not a true cost.

CLASSIC BUY TO LET

IDEAL FOR: Investors who wish to use the property very flexibly but also wish to achieve a healthy income at times when they are not using the property.

MAIN BENEFITS:

Residential Property
Freehold Real Estate
Fully Managed and Rented **
Forecasted Rental Income **
Fully Furnished **
Holiday Occupancy Possible
Personal Residency Possible

** With the assistance of Elite Property

The Classic Buy to Let solution is designed for investors who are looking for a holiday home they can use very flexibly throughout the year and, at the same time, are looking for an easy way to cover some or all of the mortgage with short term holiday let income – with or without personally organising bookings.

Mortgage rates of 3% or so per anum mean that a well-rented holiday property can be very profitable. Usually renting for June, July and August will cover the mortgage before other costs, and renting for the typical 16 weeks or so that popular areas easily achieve can bring in 4-12% returns before management charges. This is at the same time as using the property flexibly according to your chosen personal usage level and rental income target.

CONDO - HOTEL

IDEAL FOR: Typically, condo hotel buyers are vacationers who appreciate the many wonderful amenities available at luxury resorts and investors who recognize the appreciation potential of a revenue-generating vacation home.

MAIN BENEFITS:

Tourist Development
Freehold Real Estate
Fully Managed and Rented
Forecasted Rental Income
Fully Furnished
Holiday Occupancy Possible

Condo-Hotels, also known as apartotels, are typically high-rise, luxury properties located on prime land. They are operated by prestigious companies such as Hilton, Starwood, Trump, Four Seasons, Regent, Le Meridien, Ritz-Carlton, and Sonesta. Most condo hotels feature incredible amenities such as spas and fine dining as well as four or five star guest services.

The appeal is not limited to US buyers. The concept has received international attention and buyers from Latin America and Europe are competing with Americans for the best properties. Additionally, the weakness of the dollar has enabled many international investors to obtain upscale condo hotel units for what amounts to bargain prices in Europe. Lastly, international buyers seek to invest their money in a stable environment and a flourishing economy. US real estate meets this need.

RECEIVE RENT REVENUE, CAPITAL APPRECIATION

Here’s how the condo-hotel concept works. You can purchase a condominium in a world class hotel or resort. Use your condo hotel unit whenever you like. When you’re away, place it in the condo hotel’s rental program and receive a portion of the revenue. As part of the rental agreement, the hotel pays for most operating expenses such as renting, housekeeping, maintenance, administration and marketing. The condo hotel owner typically pays the real estate taxes, insurance and capital improvements.

By capitalising on the hotel’s name recognition, advertising, national affiliations, centralised reservation system and management expertise, condo hotel unit owners typically receive a higher level of rental income than they would from a traditional vacation home. A condo hotel represents the best of all worlds. It’s a hassle-free, luxury vacation home in a fantastic destination like Miami Beach, Orlando or Las Vegas. It generates rent revenue that offsets its costs and it’s an investment with great potential for capital appreciation.

Before you buy a condo hotel unit, there’s a lot you should know, like how to find the best properties, how to select one that will likely appreciate, which amenities are most important and how to obtain favourable financing.

HOW ELITE PROPERTY ASSISTS YOU:

Elite Property carefully selects developments for our clients from all the available schemes - we do not sell all properties available as it is important to only select developments that have an excellent location, long-term capital growth potential, a very high-quality rental company providing the rental guarantee, a good quality lease that is fairly balanced between the management company and yourselves and a very reputable builder. Making mistakes in any of these areas will be very costly for you long-term and Elite Property takes this selection process very seriously.

We will assist you with all the paperwork with which you will be involved during the purchase - from the reservation contract, furniture order, act of sale, miscellaneous correspondence received, notary correspondence, bank correspondence and much more - in summary we provide a full after-sales service to make your purchase as simple as possible. This is a free service to our clients.

Elite Property has developed long-term relationships with key service providers that we can recommend wholeheartedly, including English-speaking solicitors to independently help you through the process should you require this and international banks offering the most flexible investor packages and the lowest rates at any given time to make sure your investment offers the best return.

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