16% annual return from a property investment?

 

 

 

 

 

 

 

Recently I have invested in an alternative investment that according to the prospect will give 16% ROI per year with a maximum investment period of three years. Not bad if this investment will work (fingers crossed!).

The investment is a property development, a luxury eco-resort on an island in the Panamanian Caribbean named Sarani Resort. Panama was voted as the best tourist destination for 2012 by New York Times, and is currently experiencing a tourist boom. Also, ecotourism is among the fastest growing travel trends (http://www.pcbeach.org/ecotourism/ecotourism-in-pcb) and the goal with the Sarani Resort development is to be the region’s most luxurious eco-resort.

I invest through the broker Cavendish Blue (www.cavendishblue.com) that describes the investment opportunity like this:

“A limited opportunity to invest in the early stages of the eco-luxury Sarani Resort and benefit from contracted returns of 16%pa with 100% deposit protection. Investors also benefit from a contractual buy back guarantee from the developer within a maximum 3 year timeframe.”

The investment process has worked well this far. Cavendish Blue has been professional, provided instructions that have been easy to follow how to proceed with the investment (which were necessary – it was a lot of paperwork to fill in!), and gave quick feedback during our correspondence.

So what made me invest in this property development?

·         It seems to be a quite safe investment with attractive potential returns; 16% per annum is very good returns for me, considering that I see the risk as fairly low.  The key factors why I believe this as a low investment risk are:

o   I consider Cavendish Blue as reliable to invest with. Cavendish Blue is a quite new player on the market, but it has a good foundation. The company operates under the same company as IPIN (International Property Investment Network, http://www.ipinglobal.com) which is well known. As I understand it, Cavendish Blue has a short-term investment focus, while IPIN often has a long investment focus

o   Cavendish Blue has worked with the property developer before and that co-operation turned out well. This fact increases the chances for a successful co-operation this time as well

o   Deposit protection against developer default, meaning I should be able to get my invested money back in case the development fails

·         The investment timeframe of maximum three years suits me well for where I am right now from a personal standpoint

·          The investment prospect is approved by my wife J (co-investor)

On top of the attractive potential returns, there is also an opportunity to stay one week at the resort for free once it is completed. I am already looking forward to this great perk! I have 18 month to exercise this right after the facilities have opened.

I will write more about this investment in my future blogs so you will know how it performs. So stay tuned and subscribe to my blog (at the top right on my blog) - don’t miss out on more interesting stories!

Picture above from: www.cavendishblue.com