Garapua, Brazil

Garapua summary

Unique fully funded, SIPP compliant investment.

• Own the freehold
• £1,000 reservation fee
• 100% finance available
• 30 days free use per year (excluding SIPP investors)
• Assistance available to investors to obtain finance
• Two year 10% rental guarantee
• No Capital Gains Tax or Inheritance Tax

Total investment property package

Entrance Strategy for Investors

• Exclusive developer funded deposit scheme
• Developer pays for the cost of borrowing the 30% deposit
• Reservation fee only £1000.00
• Reservation to Exchange only 45 days
• Free deposit raising assistance provided

Management Strategy on Completion

• Fully managed & maintained by 5* hotel company
• 2 year 10% guaranteed rental, followed by 50% net room rate share
• Fully furnished property
• 30 days personal use per year
• Ongoing support from Ward & Co

Exit Strategy

• Sell your property with a documented, accounted and viable income stream
• Retain your property and benefit from the ongoing rental returns and continued capital growth

The property

There are several different property types available for you to choose from.

• Garden Suite
• Beach Suite
• One Bedroom Suite
• Two Bedroom Suite
• Two Bedroom Suite with wrap-around balcony
• One Bedroom Detached Villa
• Two Bedroom Bali Villa
• Two Bedroom Plantation Villa
• Four Bedroom Plantation Villa
• Island Sanctuary One Bedroom Spa Villa
• Island Sanctuary Two Bedroom Spa Villa

All property types come with a full luxury furniture pack which is in keeping with the style of the island, resort and the luxury nature of the resort. The content and specification will be confirmed closer to the opening of the resort.

The development

Real estate investment is growing due to the increasing popularity of Bahia as the favourite holiday destination of Brazilians because of its year round climate, pristine beaches and the excellent infrastructure already in place. It has excellent accessibility with flights into Salvador from Europe and the USA yet is still underdeveloped as a tourist market internationally and is predicted to grow exponentially. There is a huge demand for tourist accommodation and the property market is booming with foreign investment increasing as there are no restrictions on foreign ownership and inward investment is being actively encouraged by the Government.

Brazil is also hosting the 2014 World Cup and is bidding for the 2016 Olympic Games. The developer is purchasing 1,700 acres of land on the island of Tinhare in Bahia, Brazil with a view to creating a 5 star luxury spa resort called Garapua Beach Resort in which it intends to incorporate a Legends Golf Course, Pat Cash Tennis Academy, Football Academy, Trader Vic’s restaurant, Senor Pico’s and Mai Tai Lounge. Negotiations are underway for these brands to be included in this resort.

The region

Bahia is a tropical paradise covered with dense vegetation of coconut and banana trees. It is one of the 26 states of Brazil, situated on the northeastern Atlantic coast and enjoys a year round tropical climate with little seasonal temperature variation, averaging 27°c and complimented by warm, soft breezes. The coastline with its calm seas is considered to be one of the most beautiful in Brazil.

Garapua Beach Resort will be situated on Ilha de Tinhare, a pretty little island 60km south of Salvador in the Baia de Todos os Santos (the Bay of All Saints). The island is considered to be one of the most desirable tropical destinations in the world and is the tenth most visited place in Brazil. With beautiful beaches and calm, crystalline, warm waters, Atlantic rainforest, mangroves and coconut groves that are home to a stunning array of flowers, colourful birds, monkeys and marine life. The island is home to a few small fishing villages, the largest of which is Morro de Sao Paulo, with beautiful colonial architecture and historical monuments.

Salvador is the third largest city in Brazil and was the first colonial capital of Brazil, renowned for its cuisine, music and architecture. Each February it is home to a week long Carnival which is considered to be the biggest street party in the world. 2 million people celebrate throughout 15 miles of streets, avenues and squares and an average of 800 thousand visitors descend on the city to participate.

Investor data

Payment Plan - Example

• Day 1 - £1,000 reservation fee
• Day 45 - £17,000 balance of 30% deposit
• Developer will pay monthly payments on your UK deposit loan until completion

Build Payment Plan

• Stage payments of approx 7% paid on your behalf

Total Balance Due Upon Completion

• £42,000 – balance of contract price due
• £4,760 – deposit loan repayments made by the developer
• £4,200 – construction stage payment interest
• TOTAL £50,960

What you will need to pay back in total

• £50,960 completion balance due (see above)
• £17,000 UK based loan
• £1,000 reservation fee
• Total £68,960

Capital sum

At this point you now own a property that is worth £105,000 but only has a mortgage of £73,500 so you will have equity or a capital sum of £31,500 plus cashback of £4,540.