Properties with guaranteed incomes for the ‘cautious’ investor

An investment is best 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 go where no man has gone before and buy up tracts of land in far-flung nations waiting for a market to emerge or bravely snap up multiple off-plan units in the hope that the sale of some will fund the completion of the rest. We’re not all that bold. So what’s out there for the ‘cautious’ or ‘first time’ investor?

Adam Godwin, Marketing Manager of Dream Homes WorldWide, comments, “Various developers operating in steady, growing property markets are prepared to incentivise their prospective customers with a range of guaranteed incomes post-completion. These products are ideal for those who prefer to play-it-safe and 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 and they tend to sell quickly to those after a low-risk investment.”

Winter Flower in Bulgaria’s sunniest ski resort, Pamporovo, is a good example. An investor here can pick up a studio apartment for 53,900 euros (approximately £37,200) in a development set just 200 metres from a brand new four-seat ski lift. Facilities include a computer room, health centre with sauna, Jacuzzi plus on-site shops and restaurant. The developer is offering a 4% rental guarantee for first two years from completion (scheduled for November 2007).

Moving to Bulgaria’s coastline, phase one of Kavarna Hills offers fully furnished apartments from as little as 79,000 euros (approximately £55,000). The development is surrounded by landscaped gardens and large pools and residents benefit from an on-site restaurant and bar, gymnasium, sauna, underground parking and 24-hour security. They are located just five minutes walk from the beach in a tranquil setting with no mass development. Here the developer promises a rental guarantee of 6% (gross) over two years from completion (scheduled for December 2007).

Move even closer to home, to Granada in Spain, and Medina Fairways where one bedroom apartments start from just 183,400 euros (approximately £125,000). This development of apartments, penthouses and lofts in a superb lakeside setting has 18-holes of championship standard golf on-site, plus the Resort’s boutique hotel and spa, horse riding centre, shopping arcade, sports centre and property management office. Investors here will earn a guaranteed 5% gross rental return on their properties, offered over either a two, five or ten year period from completion (scheduled for the end of 2008).

For further information, email enquiry@dreamhomesww.com or visit dreamhomesww.com.