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Expat Investor : November 2008
PROPERTY INVESTMENT Hassle-free London landlording Invest in some property pampering Former Liverpool striker and football legend Ian Rush has teamed up with Karma Developers to launch Mythical Sands Resort & Spa, a 5-star, year-round luxury health resort in Kapparis, south east Cyprus. The ‘Rushes Spa’ complex will be the central feature of the residential development of luxury freehold apartments and the first luxury spa development in this region. Ian Rush says, “I looked all over London Central Portfolio (LCP) has launched The Opportunity Fund, which stock picks a portfolio of residential properties which will be refurbished, rented out and subsequently divested. LCP says this Fund is the only ‘predator fund’ exclusively looking to exploit the current market opportunity right in the middle of the UK’s capital. LCP launched its closed ended residential fund in London Central (LCPPF I) last year. Investor reaction to this Fund, which is now fully invested, led to the launch of The Opportunity Fund. The Fund has secured what LCP describes as “an exceptional line of credit, tracking at just 1% above UK base rates. At a time of limited investor competition, the Fund is poised to take full advantage of discounted prices.” Based offshore and geared to maximise returns on the equity, the Fund is structured as a medium term investment vehicle, capitalising on long-term market growth and short-term opportunities. It will enable a wide range of investors to access prime London Central without the cost of direct investment. The minimum subscription is £50,000. LCP says the average anticipated return is 15% per annum, equivalent to 25% UK for higher-rate tax payers investing through private pensions. LCP says that the aim is to double an investor’s equity stake in five years through the acquisition of a bespoke portfolio of 20–25 one and two bedroomed flats. The finance will be from Fortis Bank (CI) and the administrators are Allied Irish Bank Jersey Fund Services. London Central covers an area of just six square miles around Hyde Park. Prices have doubled on average every eight years and with London hosting the 2012 Olympics, LCP expects investors to benefit from continued capital growth and rental yields. Fast Facts 99320 A circuitous route to the property ladder Matt Wells, a first-time buyer, bought an apartment in southern Cyprus from property developer, Morpheus Investments. He made a 400% return on his investment and with the profits secured a deposit for an apartment in Manchester and re-invested in a second apartment in Southern Cyprus. Here’s how he pulled it off. area of Larnaca, two years ago. At the time this cost £60,000. He made the purchase by putting down a 15% deposit of £9,000. He recently sold the apartment for £100,000, seeing a 400% return on his investment. Matt says, “I realised that to get on the property ladder in the UK, I’d need to raise quite a large deposit. A friend of mine suggested I buy an overseas property, which was an affordable option for me. I looked at lots of countries and decided these developments in Cyprus had the most potential for growth and a quick return on investment. “I bought a lovely apartment near Matt Wells, 30, from Didsbury in Greater Manchester was a struggling first time buyer in the UK. He works in Cheshire and first heard about Morpheus Investments from a friend who recommended the company after purchasing an apartment in Cyprus through them. Matt invested in a two-bedroomed apartment in the Majestic apartment block, in the Tersefanou Larnaca with views of the sea. It was my plan to then sell it after two years and use the money I’d made to invest in a UK property. “This worked out really well. I sold it to a couple and ended up earning a £36,000 profit. This was amazing. I didn’t expect to make this much.I decided I’d use £10,000 of my earnings as a deposit for an apartment in Manchester and put the remaining £26,000 towards re- investing in another apartment in Cyprus. This is a risk but I know it’s worth it. I’ve been forced to think of creative ways to raise the cash because of the state of the housing market in the UK, but I don’t mind, it’s a lot of fun being a property mogul!” Morpheus Investments is a southern Cyprus property specialist, with a particular focus on the beautiful and historic Larnaca region. Larnanca is approximately 20– 25% cheaper than comparable properties in other parts of Cyprus. The region is currently undergoing a transformation with a new airport, marina and casino. Morpheus is an AIPP approved company and their developments are tailored for those wanting a secure investment and/or a holiday- home without compromising the qualities of local scenery, history and culture. All resorts are within easy reach of the island’s PGA approved golf academy and are a short drive from the beach. Morpheus has a range of different sized properties in either Kiti or Tersefanou, from apartments for €60,000 euros and villas of €500,000. All have access to a private swimming pool, gym, children’s play area and secluded gardens and are near the sea and mountains. Find out more through the fast facts number below. Fast Facts 99322 November 2008 ? EXPAT INVESTOR 21 Cyprus for somewhere to invest and this area has a lot of scope. It’s like the Algarve 15 years ago, where I invested in three villas at Parque de Floresta. They have tripled in value in a decade. I am hoping for a similar growth for my two-bedroom apartment at Mythical Sands, which I intend to use as an investment and holiday home for my wife and two sons.” The 4500 sq/m ‘Rushes Spa’ will incorporate a luxury health and fitness suite with the latest gymnasium and fitness equipment, indoor and outdoor swimming pools, Jacuzzi, steam and sauna rooms, cooling tubs, well-being treatment rooms, massage and relaxation areas. Further complimenting facilities will include a health food café bar, hair and manicure salon, sports shop, pharmacy, broadband internet café and child minding services. Outdoor features consist of tennis courts, an additional communal pool and football pitches, with the latest techno grass playing surfaces – ideal for the football academy Rush is considering as a future project for Mythical Sands. The blueprint for the development comprises 345 two- bedroom luxury apartments, each carefully designed to consider privacy and space.All properties will be fully furnished and features include a marble staircase, two double bedrooms, fitted wardrobes, private verandah, air-conditioning, private parking, and luxury bathroom and kitchen fittings. Prices start from £199,950 for a fully furnished two-bedroom apartment, air conditioning and balcony. Cyprus benefits from tax incentives with a preferential tax rate of 5% on income above €3,417 (£2,713) and no inheritance tax. The double taxation treaty with Britain also means residents are safe guarded from paying tax in both countries. Find out more through the fast facts number below. Fast Facts 99321