Wednesday 5 January 2011

Pacific Point Fiji - Property Investment With Your Trade Pounds

Bartercard UK Ltd are pleased to announce a unique opportunity to invest in a prime residential development on the main island of Suva in Fiji. Phase 1 of this gated and secure development will have a limited number of plots available to Bartercard Members. Tim Ashley-Sparks, MD of BCUK, spent over 4 months bringing this project to a point where it can now be released to Bartercard Members. Tim stated, "we saw the immediate potential and have now brought it to a point where we feel it is time to release these unique properties to our Membership so that they can begin involvement and reap the benefits short or long term".


Basic information is as follows:

(1)  Plots in Stage 1 at £120,000 per plot. ( T£60,000 & £60,000).
(2)  £60,000 is payable over 2 year period. First cash payment is x 2. This is interest free.
(3)  Freehold plot,( 90% of all land on Fiji is leasehold).
(4)  Reservation fee of T£2,000 & £2,000 to be held in escrow within UK. This is non-refundable.
(5)  All conveyance fees payable by seller.
(6)  Gated secure development.
(7)  Completed development will have a hotel and restaurant complex sited with a marina.







 
Overseas Real Estate - Frequently Asked Questions



How does investing using Bartercard Real Estate overseas work?

Bartercard Real Estate gives you the opportunity to invest one Trade Pound as if it was a cash pound into investment property or a holiday/residence. All prices are quoted in local currency and in pounds sterling.

What areas overseas ?  

Over the last two years Bartercard has completed on over 80 properties overseas in excess of £16 Million worth of gross property sales to date this includes £6.5 Million Pounds worth of Trade Pounds. The areas we have sold property include Cyprus, Spain and France

What Criteria does Bartercard Real Estate use to select properties to promote?

Bartercard Real Estate looks at the following qualifying criteria prior to promoting overseas properties:
  1. Area of investment – Looking for suitable Investment/Holiday/Residential areas that are known in the overseas investment market as hotspots for investment.
  2. Deposit contribution and Lending – The deposit contribution is determined by the availability of lending in the country the property resides in, the maximum loan-to-value (LTV) in the Cyprus for investment property at present for BTL is 70% of the value of the property this means that the minimum deposit required is 30% in most cases however, in Cyprus the deposit will be 40%, For Holiday/Residential properties the maximum LTV is 80% therefore you would only be required to place a 20% Deposit.
  3. Subject to Valuation – We have the agreement with the seller/developer that if the property valuation doesn’t meet the market price the property will be sold at the valuation price. 



Can I pay the deposit in Trade Pounds ?

Yes. Bartercard Real Estate holds a client escrow account for all overseas investments where deposits can be held. The Deposit usually 30%-40% is used as part payment at settlement. For example, say you were purchasing a €150,000 property with 40% Trade Pound deposit. €60,000 converted at the current exchange rate T£46,000 (approx) (40 % deposit) is put into Bartercard’s client escrow account and will be held there and disbursed on exchange of contracts with the seller your lawyer in Cyprus will noitfy Bartercard that deposit funds are due to be released and the mortgage funds will be sent to the vendor on completion by your lawyer.


How are properties priced?

All properties sold by BCRE are sold with the agreement of ‘Subject to Valuation’ with the vendor, so buyers can buy with the peace of mind of purchasing at the correct price. In the event the property valuation does not meet the Market Price set out by the vendor, the vendor will either reduce the price to the valuation price and maintain the Trade Pound deposit or withdraw from the sale and you would get your reservation and sourcing fees paid back.


How do i obtain finance?

Finance is subject to status, there are no guarantees from Bartercard Real Estate that you will be guaranteed a loan. We recommend speaking with a registered independent financial provider to find you the best interest rate and term that suits your budget. Bartercard Real Estate are able to offer contact details for Accountants Overseas who will be able to provide you company tax, investment and loan advice. In most cases they will be able to appoint a lawyer and act as a middle man to contact the bank and your lawyer.


Will my lender recognise Trade Pounds?
Your lawyer will report to your lender that your deposit is paid into a client escrow account and advise the lawyer that your deposit has been paid.



What are the benefits of investing my Trade Pounds into Real Estate?

Members often forget the real cost of their Trade Pounds in real estate transactions. Say, for example, your cost of a Trade Pounds is 40 pence. If you purchase a property for £200,000 with a 15 % deposit.  That is  £170,000  in cash / mortgage & T£30,000. 

The real cost of the trade = £30,000 * 40p = £12, 000

Do you know the cost of your Trade Pound? if not speak with your Trade Co-Ordinator for a review.



Can I pay some of the purchasing expenses in Trade Pounds ?

If your solicitor is a member of Bartercard you may be able to pay their legal fees using your Bartercard, their fees are usually £650 - £1000 + vat. If your mortgage broker is a member of Bartercard you may be able to pay their arrangement fee and in some cases the valuation fee using your Bartercard.

I want to cash convert my Trade Pounds. Is real estate the answer?
Members often cash convert their Trade Pounds as well as make a capital gain when they sell their investment on. However, Real Estate investments should always be viewed as a medium (5 – 7 years) or a Long (7 – 10) term investment.

Initial outlays such as stamp duty and other disbursements often make it hard to get your money back if you were to sell the next day!

It is also not recommended to sell ‘New Build’ properties when the developer is still selling onsite, would you buy something second hand if you could buy new for the same price?

Bartercard Real Estate promotes stock direct from developers in our membership. Developers do not appreciate buyers purchasing a property using Trade Pounds as a deposit at their cash price only to have them put back up for sale the next day on the cash market. For example. If a developer sells five houses in a 20 house development to Bartercard members and then five are then put back on the market at the same time as the developer is marketing the remaining houses, it can actually devalue the project depending on supply in the area.


How do I find out about properties for sale through Bartercard?

By reviewing, signing and returning terms of reservation you will be aware of your obligations and will also be entered into our email distribution list and notified of all new UK investment opportunities.

We currently have over 250 members registered to receive information on new investments and eligible to reserve a property. All properties are on a first come first served basis and are often not available for long


For more information please either contact your TCO or contact Nick Mathias at Bartercard Head Office on 0845 219 7080 or mail at: nick.mathias@uk.bartercard.com









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