Guaranteed Rentals, Guaranteed Investment Satisfaction
An investment is dictionary described as “an asset or item that is purchased with the hope that it will generate income or appreciate in the future”. Note the use of the word ‘hope’.
 No investment is without its risks and property investment is no exception. Some property investors are bold enough to fly by the seat of their pants, dip their toe into fledgling markets and buy up multiple units expecting high returns, but we’re not all that bold. That’s where rental guarantees are ideal for those cautious, or perhaps first time, investors.
Adam Cornwell, Managing Director of GEM Estates comments, “Various developers who have the utmost confidence in the market in which they operate, based on statistics on the growth in tourist arrivals and hotel occupancy rates, are putting their money where their mouth is and offering guaranteed incomes post-completion.
These products offer a safety net whereby the investor can rest in the knowledge that their mortgage repayments will be covered in part or even in full for a substantial period of time. Across our portfolio we have several such examples from Morocco to Malaysia and Brazil to Egypt and some are very attractive.”
 In Morocco GEM Estates can offer guaranteed rental in the trendy city of Marrakech and also in the sleepy hippy fishing village of Mirleft just south of Agadir. Apartments at El Oasis de Marrakech, ten minutes from the International Airport and adjacent to the city centre, start from 131,000 euros and carry a ten year 10% per annum (gross) rental guarantee.
The traditionally modern styled Gardens of Fedala, a ten minute drive from Djemaa el Fna, start from 189,000 euros for a fully furnished unit complete with nine year 7% per annum (net) rental guarantee underwritten by AXA. A nine-year buyback guarantee at the price you paid, also underwritten by AXA, completes the ultimate in sleep easy deals. Sister development Gardens of Fedala Mirleft with fully furnished villas from 149,000 euros attaches the same nine year 7% per annum (net) rental guarantee, backed by AXA.
 Moving to Legends International Water Homes, the Malaysian styled development of chalets perched on the Malacca Straits; these homes each with private pool and priced from 80,000 pounds (approx 112,000 euros) carry a three year guaranteed rental income of 8% per annum (gross) whilst years four to 15 attract a unique profit share scheme expecting to yield 12.5% per annum (gross). In Egypt the five star Pyramisa Hotel at Sahl Hasheesh has a five year 7% rental guarantee, which despite being gross, has such low service charges of just £5/m² per annum that the net figure works out to be 6.41% on a studio suite priced from 39,950 pounds (approx. 55,870 euros). This is a pre-release project not yet on GEM Estates website so please email direct for further details.
 The emerging powerhouse of Brazil is well-placed to offer rental guarantees such is the incredible growth in the tourist industry. The resort of Porto dos Corais priced from 50,000 euros and just 150 metres from the beach in the northeastern state of Rio Grande of do Norte has a two year rental guarantee of 5% (net) whilst Lago Azul, to the south of Natal, priced from 95,000 euros offers a three year rental guarantee of 7% (net).
The fact that GEM Estates’ Caribbean properties attract a rental guarantee may come as little surprise as this string of islands is perhaps the granddaddy of all holiday destinations.
A trio of product in St Vincent & The Grenadines priced from 115,000 pounds (approx 164,500 euros), Barbados priced from 225,000 pounds (approx 322,000 euros) and the Dominican Republic priced from 125,000 pounds (approx 178,900 euros), each have a two year rental guarantee of 10% per annum (gross) and thereafter a 50% share of the room rate (gross). Caribbean projects>>>
The developer who is responsible for all three schemes has also made it possible for investors to participate for the measly sum of 1,000 pounds, contact GEM Estates to find out how.
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Date: 30/11/2007 | 
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