If you were told you could buy an apartment in a six-star Cape Verde resort for just €6,000, take ownership upon completion in 2010, have absolutely nothing to pay until 2015 and 100 percent confidence you could get every cent back if the developer ran into financial difficulty you would probably be a bit suspicious that it was too good to be true.

But that’s what GEM Estates claims the Exchange Bond offers
Carley Todd, GEM Estates’ Cape Verde specialist explains. “The Exchange Bond is gradually being adopted by developments across the globe with Palm View Resort on the island of Boa Vista being one of them.

“It is an alternative to making substantial cash deposits or stage payments throughout the build process. The Exchange Bond defers payments until completion which in Palm View’s case is 2010. Purchasers can keep hold of their cash, make it work hard in high interest accounts or other investments, and enjoy several years’ grace to amass closing funds if necessary. And, should the developer run into trouble, the Bond ensures safe return of your monies.

“Palm View Resort offers a double whammy as the need to dip into your finances is further deferred to a distant 2015. Once the minor manageable hurdle of 6 percent completion costs (legal fees and so on) is overcome at 2010, a 7 percent rental guarantee kicks in for five years which takes care of interest-only mortgage payments arranged courtesy of the developer, as well as community fees.

“From 2015 you’re on your own but with prices fixed now and current 20 percent rates of capital appreciation, your property is likely to be worth more than double the loan secured on it, plus the rental market will be well-established by then. Unsurprisingly, since their announcement to accept Exchange Bonds, sales at Palm View Resort have mushroomed.”

Nestled amongst the date palms, the six-star Palm View Resort will be made up of apartments and contemporary villas around a beach. Each property is fully furnished and has an integrated 42 inch plasma TV, DVD and HiFi plus Jacuzzi tub as standard.

On-site there is a six-star boutique hotel, nine swimming pools, four restaurants, beach bars, a disco bar, gymnasium, luxury health and beauty Spa, tennis courts, football pitches, an open-air theatre and boutiques.

Owners are automatically entitled to a Palm View Resort Privilege Card which accesses a 24-hour concierge service. The Card also rewards residents with discounts off dining, beauty treatments, shopping and sporting activities.

Studio apartments are priced from €92,000 and two bedroom apartments are priced from €227,000. The Exchange Bond set-up fee is €6,000 on studio apartments, 15,000 € on middle two bedroom apartments and €18,000 on corner units. Completion is expected for 2010 when 6 percent costs will be due. 100 percent finance is guaranteed subject to status coupled with a five year 7 percent rental guarantee.

Phase II of Palm View Resort is set to launch shortly. Villas will require just €40,000 using the Exchange Bond and carry the same rental guarantee.

• Following a recent survey by Saga Holidays, nearly one-in-10 (11 percent) of over 50 year olds owns a holiday home.

Over 42 percent of those are happy to rent their holiday home out when they don’t use it, with nearly half (48 percent) already letting to their family, and over a third (34 percent) to friends.

However, it’s a different story when renting to complete strangers.

Only one in 10 (11 percent) said they would not feel comfortable letting ‘unknowns’ stay, citing fears over damage and the level of hassle as the main reasons not to.
Those with holiday homes tend to be more comfortable renting the home to older people than younger people – 31 percent were ‘very comfortable’ to loan to someone in their 60s, whilst only 4 percent said the same for someone in their 20s.

In light of the results, Saga has announced the launch of its new Saga Property Rental service where Saga customers can advertise their holiday homes abroad for just £50 a year and rent to other Saga customers.

Andrew Goodsell, CEO of Saga Holidays said: “We know that many of our customers have holiday homes abroad but often feel nervous about renting them outside of friends and family. We hope the introduction of the Saga Property Rental Service allows them to feel confident and relaxed that the customers using their homes are like-minded individuals.”

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