PREDICTING RETURNS:
I've been investing for some years now and one thing I can guarantee you is that predicting returns is impossible.
In the absence of a prediciton, we can compare target investments.
The starting point is to consider 'what will be the holiday experience for the end user'?
Lets take SAIDIA Morocco, the Kings largest Plan Azure development which spearheads the whole 'Vision 2010' endeavour.
At the core of the planning going back to 1999, is a desire to extend the season, and specifically to avoid the winter ghost town feel of so many developments found in Spain and Portugal.
This is more or less the key attraction for me. I do not want 3 months rent a year and large maintenance fees that renter any rental profit minimal (Polaris world ownners report exactly this 'loss' occuring right now).
The season should be long in view of the unprecidented facilities onsite which dwarf others.
Many Spannish and Portugese sports developments exist but they do not include a 7km beach on site - this is a key underpinning for the end user.
They also certainly do not have an ultra modern giant marina on site.
The 500 shops( many 'known' brands),French supermarkets, helipads, water parks, open air theatres, and on site hospital really are features you wont find in other developments.
Compare to say LA MANGA in Spain which has very high prices. There is no onsite beach and the nearest beach is a small strip. The interiors of LM are looking dated (think 1980, brass and frilly bits with 1980s faux dark wood kitchens).
I would rather holiday in Saidia as the on site facilities and options are far greater.
RISKS
There's always risks, but I felt they were reasonable here as the King has a lot riding on the sucess of his speraheading Plan Azure world showcase. If Saidia does'nt deliver he will lose face and the whole Plan Azure national endeavour will be undermined.
A developer can go bust so there's never a guarantee.
I worried at first about terrorism but having looked into it I'm very comfortable the risk is small, and in any event if you take the Turkish and Egyptian experience, visitor numbers are not reduced following an outrage.
Saidia is pretty much out on its own and offers a unique end user experience, so I really am sure the investment case is robust.
I bought form Lejardindefleur developers and they have sent me a letter saying they are nearing a deal with a high end tourism proviser to manage and promote the rentals.
Your budget I think will fit the Aethena offering which I do not know much about.
