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Type: Villas

Ref. No: Rental Income Offer

Status: For Sale
Completion Date: 2007
Location: Aphrodite Hills
Price: CYP 178,000

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Description

APHRODITE HILLS,

PREMIUM PROGRAMME

An investment opportunity in Aphrodite Hills Cyprus’ best integrated, award winning resort.

The following apartments will enjoy a minimum rental guarantee of 5% per annum on the purchase price (net of VAT) for the first two years. Thereafter, these properties will participate in a rental pool scheme for 3 years, as explained below.

The rental guarantee will commence when the properties are delivered. For the apartments listed below, delivery is expected in Winter 2007.

Apartment

Number of Bedrooms

Selling Price (CYP)

Price Net of VAT (CYP)

5% Annual Return

BA01

2

258.500,00

224.783,00

11.239,00

BA02

3

331.000,00

287.826,00

14.391,00

BF02

3

309.000,00

268.696,00

13.435,00

BF11

1

204.600,00

177.913,00

8.896,00

BF12

2

275.000,00

238.696,00

11.935,00

BC01

2

269.900,00

234.696,00

11.735,00

BC02

3

335.600,00

291.826,00

14.591,00

BC11

1

217.400,00

189.043,00

9.452,00

BC12

2

289.800,00

252.000,00

12.600,00

BB02

3

331.900,00

288.609,00

14.430,00

BB11

1

219.900,00

191.217,00

9.561,00

CB01

3

308.200,00

268.000,00

13.400,00

CB02

2

259.300,00

225.478,00

11.274,00

CB03

2

268.000,00

233.043,00

11.652,00

CB12

1

201.000,00

174.783,00

8.739,00

CB13

1

203.800,00

177.217,00

8.861,00

 

Description Of The Plan

· For each participating property, the owner is guaranteed a minimum rental return of 5% per annum on the property’s purchase price (excluding VAT and all other duties and taxes relating to the property) for the first two (2) years.

· Thereafter, each participating property will join a rental pool scheme for three (3) years. Over this period, the scheme will operate as follows:

1. The rental income [net of VAT and net of commission payable to third parties (agents, tour operators etc)], will be placed in a rental pool.

2. From this pool, the following expenses will be subtracted to arrive to the net income:

A. Housekeeping, administration, laundry, gardening (where applicable), utilities (excluding telephone), public liability insurance, building and contents insurance and a reserve fund for refurbishments and replacement of furniture, fixtures and fittings.

B. Resort common expenses, including road cleaning, landscape, and resort security.

C. Village common expenses, including maintenance of swimming pools and common areas.

Note: Annual property taxes to the government/municipality are payable by the owner.

· The net income will then be equally divided between the owners and the rental company.

· The net income from the rental pool that is attributable to owners will be distributed to them according to the square meterage of their property in relation to the total square meterage of the properties in the pool.

Key features of the Plan

· The properties will be fully furnished, air-conditioned and fully fitted including linen, cutlery and crockery making the apartment ready for immediate use. Moreover, the properties will be serviced and maintained to a high standard.

· Owners can stay in their property for 6 weeks for each of the 5 years, free of charge —2 weeks in the high season, 2 in the shoulder season and 2 in the low season. Ownership privileges concerning the resort facilities are not affected by this plan and apply as usual.

· If, for two consecutive years following the first two years of the plan, income return is less than 50% of the guaranteed return (as stated above), then the owner has the right to immediately withdraw from the plan.

· The payments for both the first two years and the remaining three years will be calculated and distributed at the end of each year.

· After the lapse of the five year period, the purchaser has the right to withdraw from the plan. Otherwise, the rental pool contract will be automatically renewed on a five year basis on the terms prevailing in years 3, 4 and 5 of the initial contract.

 

Financing

· Currently, the company has available a number of financing schemes for the purchasers. One of these schemes is the Euro mortgage, whereby, the owner pays 30% of the selling price and becomes eligible for a mortgage on the remaining 70% of the balance. The mortgage requires no capital or interest payments for up to 2 years. Thereafter, the owner has 13 years to repay the mortgage at an interest rate equal to Euribor plus 1,75%.

Terms

· All properties will be sold on a first come, first served basis.

· Prospective owners must sign a reservation agreement and pay the amount of CYP 2.000 as a non-refundable reservation deposit.

· A sales agreement must be signed within one month from the date on which the reservation agreement was signed.

· The Development company has the right to amend selling prices at any time and add to the rental pool more properties from a later phase of the development bringing the number of properties to a maximum of fifty.

General

The plan is a great way of acquiring a valuable investment with an initial guaranteed yield as well as attractive holiday usage at various times of the year. Furthermore, the owners do not have to pay any annual charges for five years or as long as they participate in the programme.


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