High yielding property 8% and above

D

DC

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

andyk2

New Member
Goldberg Global said:
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.
 
D

DC

Member
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.
 
I

Investy

Senior Member
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.
 
T

The Soup Dragon

Senior Member
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.)
 
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Andrew - Alpha

New Member
Another Location For 8%

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 -
 
D

DC

Member
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.
 
I

Ivana06

New Member
10-15% in Croatia

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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D

DC

Member
Dear Ivana, I have had clients ask me for Croatia, are you active in this market? Do you have some good contacts here?

Nice stats, but are we too late??? Is Asia offering more spectactular returns?
 
I

Ivana06

New Member
Croatian Interest

Dear Goldberg,
Unfortunately i have not looked into the Asian market in any great detail.

However, i have gone through the process of buying in Croatia and so have some friends of mine. We looked at all areas up and down the coast and found that the northern (Istria) and southern (Dubrovnik area) coastal regions were too saturated and priced too high for any significant return on our investment.

We also looked at the islands but felt that while priced competitively, getting to and from them was too much of a hassle for people that want to do some sight seeing along the coast.

Therefore we refined our search to the middle of the coastline (northern Dalmatia) in particular between Zadar and Split as there has been an increase in budget airlines flying to this region (Ryanair/EasyJet/Wizzair) together with some German budget airlines (Germans are one of the main visitors to Croatia). This all helps towards our chances of increasing our rental yield.

We used a company Domus Property who have a rep based in London, who were extremely helpful to us in the whole process. If it is a development investment you are interested in, they can also help you with that.

I can really recommend them. We are still in contact with them when we go over and visit!

Please do ask me if you require and specific info, or go and speak to Mario at
the Domus website.

Good Luck :)

Ivana

Holiday Bubbles Home
 
I

Ivana06

New Member
p.s.

I forgot to mention about your comment on being too late!

I don not think you are too late at all.
Prices are still increasing but i believe the biggest spike will be when the announcement is made for their entry to the EU.

There are a lot of building and development investments around that can easily give you a 20% equity growth. It just depends on how much you have to invest and what sort of investment you are looking for.

Anyway contact Mario at Domus and he'll be able to give you some moe up to date figures/properties.

Bye!
Ivana
 
L

laxmi

New Member
European Property Fund

Goldberg Global said:
Does anyone know of high yielding property 8% and above? Anywhere globally. Legitimate, Authentic offers only.
Yes, I can advise you to invest in closed end private placement european property fund, which is registered in US securities exchange regulations.
offering 8% Fixed dividend and 20% IRR in 6 years.
so you may expect 48%+ 100% appreciation of your fund in 6 years.
for more details contact
 
D

DC

Member
Break it down for me. In component parts
eg. 8% dividend in what dollars or what currency.
The property fund what is it invested in? What do the fund managers charge, do they have their own money in it?

Break it down fully. Please.
 
R

RAM2

New Member
8% Rental Returns- A List

Goldberg Global said:
Does anyone know of high yielding property 8% and above? Anywhere globally. Legitimate, Authentic offers only.
German Commercial Properties[/B] may offer you a healthy 8% plus depending on the location. All the fundamentals of the German markets are right to give you a safe option and possibly good price inflation over the next 10 years. downside- only 60% LTV so not ideal for leveraging.

In some of the smaller towns in Poland it is still possible to get an 8% rental return, however, you will notice that most of the bigger cities you are looking at levels of around 5% if you are lucky. The only way really to just about break even is to get a cheap Swiss Frank Mortgage.

Caribbean Properties- with possible occupancy levels of around 87% in come locations it may be possible to achieve in excess of 8%. Downside- high CGT, in order to get the 10 year tax exemptions this means you might have to purchase by means of a company- reselling may be difficult.

Malaysian properties- Kuala Lumpur can offer you high rental yields in this region. Following the Asian crises in the nineties it finally appears that the market is improving. Recent changes in the foreign ownership laws is favourible and as of the 1st of April 2007 CGT was scrapped. Major Downside is the fact that interest rates are relatively high.

I dont know if you are aware but it is now possible to arrange mortgages through Janapese Banks with interest rates as low as 0.5%. Now depending on you capacity as an investor it may be possible to get this product. This makes many markets a whole lot more attractive.

Brazil- in certain locations like in the North East 8% yields are achievable, however, there is a major negative aspect to a purchase here. The currency is very volatile and there is no local financing available for foreign investors (not hedge)

Bulgaria- no chance especially in the tourist resorts- season is way to short. I you are offered this guaranteed rental level you are paying for it.

Turkey- while there are guaranteed rentals available on the market of 10% for 10 years you are beign overcharged for the property. With new financing options available out there you will make only a small net return.

Slovakia- friends of mine invested here 2 years ago and bought a place in Bratislava, for around €100,000. They have an arrangement of a corporate let and is getting €750 per month. I am not sure if you can still get such good deals by rental levels in this country still seems good.

Canada- This is one of my better investment locations- this market is based on solid principles- no boom- no excitement, however, vacancy rates of only 2.6% (and decreasing) and rental yields of upto 8% can be achieved in some of the city centre locations. Thousands of tourist are flocking over there.

8% Rental Yields are extremely high type of income will mostly be in markets that are undervalued- your safest bet is Germany Commercial- I believe this will work for you.

Enough of me.
 
D

DC

Member
Very good and comprehenisve breakdown

A couple of comments.

1. Japanese banks ( how can they lend you on assets outside of Japan) I did not know or think was allowed eg. To use borrowing at 0.5% to finance something in Malaysia.

2. Commercial real estate in Germany, I have seen yields 8% +, but most investors, or alot dont want to buy commercial as the resale market is much smaller. Germany is becoming more niche now, there are pockets of good high yield things but getting less and less. As prices grow.

Very good comments. So thankyou.
 
C

catalogguy

New Member
Of course

8% is a low target. What kind of project are you seeking? I have a couple of projects in Baja California Mexico for which I am seeking equity and or debt partners. I have a very premium beach front opportunity which will yield 30-40%. But it depends on what you want. If you list some more detail, maybe I can offer you something mutually beneficial.


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

FJCOM

New Member
1. Japanese banks ( how can they lend you on assets outside of Japan) I did not know or think was allowed eg.
It actually is possible to get J-loans at J-rates (for some areas). Only problem is you need to be a resident of Japan.
To use borrowing at 0.5% to finance something in Malaysia.
More like 2% and Malaysian investment property is not permitted.
 
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