At a time when pension funds are failing to live up to expectations, a growing number of people are deciding to invest in overseas property as their primary investment vehicle to secure their financial futures, rather than relying on what is fast becoming a pension lottery.
David Allcock and his partner Katie Richardson, from Nottingham, were initially keen to invest in the UK. However, the influence of the current recession on UK banks meant that options were limited and trying to find any sort of investment that would produce future monetary gain proved inconclusive.
They have therefore invested in two Fly to Let properties in the Caribbean. Allcock said: “We chose the Caribbean because tourism is undoubtedly their main industry and also because the Caribbean is still a growing destination. Five star developments in this region are in demand and more often than not there is an under supply of quality accommodation to cope with this demand.
“We felt confident that not only would our investment grow but that it would also provide an ongoing income from the generous rental programmes. Basically the Caribbean ticked all of our boxes.”
The couple’s first investment was a studio apartment at Harlequin’s Buccament Bay Beach Resort on St Vincent’s and The Grenadines. This flagship development is due to open next year. Three months after this initial investment they then decided to buy another studio apartment at Harlequin’s Merricks Resort on Barbados.
Allcock continued: “Overall, we have been delighted with the service and are happy that we have made the right decisions to safeguard our financial futures. Once both developments are completed we will automatically receive 10 percent of the purchase price on both developments for two years followed by an ongoing 50 percent net room rate share.”
Harlequin Hotels & Resorts investors are now using Self Invested Personal Pensions (SIPPs) to fund their purchases. Prices start from just £95,000 and investors will receive a rental guarantee of 10 percent of the original purchase price for the first two years, paid from completion, followed by a 50 percent net room rate share ongoing as well as being able to occupy their property for 30 days during the year without charge (except SIPP investors).
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