Guaranteed Rent
Guaranteed Rent on Two bedroom apartments Only-
The two bedroom apartments include a five year rental guarantee. This guarantee can be covered by IPI or with the optional bank backed guarantee. The guaranteed rental returns is:
* Year 1: 6%
* Year 2: 8%
* Year 3: 10%
* Year 4: 12%
* Year 5: 14%
Should you wish to have the added protection of a bank backed rental guarantee then the cost for this will be a €50 set-up fee and 1% of the guaranteed amount. With the rental guarantee option you are entitled to six weeks access to the apartment per year which can be taken at any time. You should provide two months notice that you intend to use your apartment in order to ensure its availability. The maintenance fee is covered with the rental guarantee however should you wish to not take the rental guarantee then you would be required to pay the €50 per month charge.
The Development
The Marsa Alam Beach Resort is an exclusive, five star, 1434 unit development. Located frontline, on the sun-drenched Red Sea Riviera it has its own private 500m beach and house reef. Marsa Alam is widely regarded as the world’s premier diving destination, the resort takes full advantage of its enviable location with two private jetties, an on-site diving school, a water sports shop as well as a full range of facilities. Not only does the resort offer the perfect holiday destination, but it also provides an unrivaled investment opportunity. Marsa Alam is the hotspot of the Red Sea and this resort encompasses low entry levels, high rental yields, a bank backed 5 year 10% average rental guarantee, developer funded mortgages, payment plans, an escrow account and a developer with a strong track record in respect to high quality developments throughout the world.
Location
Until recently, Marsa Alam was once a small fishing village located in Egypt, on Red Sea west coast. However, it has rapidly increased in popularity and since the opening of its International Airport, it has started to become yet another favourite holiday destination on the Red Sea Riviera. In fact, most informed observers believe that it is destined to become more popular than Sharm El Sheikh and Hurghada within the next few years. Marsa Alam is situated near the Tropic of Cancer where the Arabian Desert meets the Red Sea and it has the appearance of a tropical paradise with its palm tress, mangroves and sea coasts fringed with barrier coral reefs. It has already gained a strong reputation amongst scuba divers due to its numerous and unspoilt diving sites both along the coast and offshore. Marsa Alam also has some inland attractions such as the Emerald mines and the Temple of Seti 1 at Khanais near the Marsa Alam Airport.
Facilities
The Marsa Alam Beach Resort will encompass a full range of on site facilities designed to cater to everyone’s needs. For the more active the resort will include swimming pools, scuba diving school, multiple sport’s courts and organized beach sports activities. For those that prefer to pamper themselves whilst on holiday, a fully equipped wellness, Thalasso and beauty centre will cater to your every need. An extensive range of on-site restaurants will allow you to sample culinary delights from around the world and why not finish the evening off with a drink at one of the beach bars situated right on the magnificent Red Sea. With tour and excursion services as well as shuttle, limo and car rental, exploring the world outside the resort couldn’t be easier. To make your stay all the more enjoyable, the resort also comprises two designated children’s areas. LAN internet connections in all apartments will ensure that you’re never to far from family and friends should you wish to be contactable, but with all of this on your doorstep you’d be forgiven for not wanting to be.
* 9 swimming pools; both salt and freshwater
* 2 private jetties
* Scuba diving school
* Diving and water sports shop
* 500m private beach
* House coral reef
* Supermarkets and shops
* Shopping mall
* Restaurants, bars and a nightclub
* 24 hr concierge, reception and room services
* Amphitheater
* Cinema
* Children’s playground
* 4 tennis courts
* 2 basketball courts
* Botanical landscaped gardens with brooks and fountains
* In-house serviced laundry
* Travel and excursion services
* Spa, wellness, Thalasso and beauty centers
* Medical and dental services
* 24 hour in house security services with manned gate
* Shuttle service, limo service and car rental
* LAN internet connection in all apartments
* Wireless internet in Suite section
Rental Returns
The rental on the suites will be derived through the use of a rental pool. The rental from all suites is pooled and at the end of each year is divided amongst investors based upon purchase cost and then paid into a nominated account. This ensures that all apartments receive a share of the rental income of the suites as a whole, not just of when their individual apartments are being utilized. The conservative predicted rental income for suites is 10% per annum and this will vary directly with occupancy levels. Therefore the higher the occupancy level of the resort, the higher the rental return you will receive. You have unlimited access to your apartment under the rental pool conditions however, you will not receive rental income whilst yourself, friends and family are using the apartment. Suites will be subject to a maintenance charge of approximately €50 per calendar month which will be deducted from the yearly rental payment. This maintenance charge covers all costs associated with the suite such as: maintenance of communal areas, servicing and cleaning of the suite, insurance for damage caused by guests, utilities, any local taxes and provision of bathroom accessories.
Guaranteed Rent on Two bedroom apartments Only-
The two bedroom apartments include a five year rental guarantee. This guarantee can be covered by IPI or with the optional bank backed guarantee. The guaranteed rental returns is:
* Year 1: 6%
* Year 2: 8%
* Year 3: 10%
* Year 4: 12%
* Year 5: 14%
Should you wish to have the added protection of a bank backed rental guarantee then the cost for this will be a €50 set-up fee and 1% of the guaranteed amount. With the rental guarantee option you are entitled to six weeks access to the apartment per year which can be taken at any time. You should provide two months notice that you intend to use your apartment in order to ensure its availability. The maintenance fee is covered with the rental guarantee however should you wish to not take the rental guarantee then you would be required to pay the €50 per month charge.
Mortgages
Developer funded mortgages are available on 81 of the apartments in the Marsa Alam Beach Resort. These mortgages are non-status, developer funded mortgages and are available on a number of apartments whilst available.
The mortgages are over a 6 year term with an interest rate of 10%pa. The mortgage is secured against the rental income and therefore the client will need to make up any shortfall between the mortgage payable and rental income received. The yearly outgoings for mortgage will be:
Garden apartment: Loan: €30,000 PandI repayment €5,510 p.a
Middle apartment: Loan: €24,000 PandI repayment €6,888 p.a
Penthouse apartment: Loan: €36,000 PandI repayment €8,266 p.a
As a result all apartments with mortgages will become cash-flow positive in year five of the rental guarantee.
Investment options
The Marsa Alam Beach Resort offers various investment options to cater to all budgets including:
Presidential suites from €86,250
Junior suites from €29,500
Executive suites from €39,500
Two bedroom apartments (with rental guarantee) from €43,945
Two bedroom end apartments (with rental guarantee) from €45,945 |
