Margarita Property | Caracola Beach Resort

Isla Margarita, known as the "Pearl of the Caribbean" is the most developed of three islands which form the state of Nueva Esparta. Although situated within the Caribbean, Isla Margarita is not in the hurricane belt. Its natural beauty, location and tropical climate make the island an increasingly popular tourist destination. The island itself is currently experiencing rapidly expanding tourism and real estate sectors, where annual investment returns from property are currently reaching double digits! To secure this rate of growth, significant effort has been made by the government to provide incentives for investors. In 1999, a law was passed by the government allowing foreign ownership of property on the island. Essentially, any property you purchase on Isla Margarita is fully secured freehold real estate.

Only 15% of Margarita has currently been developed, yet tourist figures have increased by 40% over the last two years. With a US$350 million Formula One Circuit complete with Race Academy poised for construction, premier golf courses, Nikki Beach and perfect conditions for kitesurfing, windsurfing, sailing and scuba diving, it's easy to see why Isla Margarita is catching the eye of the global tourist market, with 2.3 million arrivals in 2007 alone. Isla Margarita currently has average year-round hotel occupancy of 70% thanks to the presence of both domestic and international markets. With tropical forests, exotic wildlife, verdant plantations, delicious local cuisine, stunning beaches and a plethora of activities, Isla Margarita is the ultimate vacation paradise. According to the latest figures from the World Travel and Tourism Council, the government investment into the development of a sustainable tourism sector is paying off.

The rental guarantee is being offered by the Geneva Hospitality Group, a premium hotel management company with an established presence in the US. The return will be paid in arrears every 6 months and is 100% guaranteed at a minimum of 7% net for the 10 year term, rising to 8.25% after year 5 if above 75% occupancy is achieved.

Non-status finance is being offered by the developer and will be agreed in the purchase contracts.

Buying a property in Isla Margarita usually means very high purchase and resale taxes. However, along with our partners Powerscourt LLC, we have come up with a fantastic tax efficient method of purchasing the freehold through a company structure to avoid purchase and sale related costs. A more thorough explanation of this purchase method is available in our brochure. The investment is also approved for purchase via a SIPP pension, so UK tax payers can benefit from tax rebates from the UK government of up to 66% of their contributions.

Chubb Insurance, one of the largest insurance companies in the world, will honour your agreement and make payments within the terms of the lease, in the unlikely event that the hotel operators are not able to honour their commitment. This insurance policy is to the tune of €100million to cover all eventualities.

As part of the purchase, you have a personal allowance of 28 days usage per year. This can be used by you, your friends or family, or it could even be leased back to the hotel. The only stipulation is that your usage is outside of peak holiday periods.

This is a completely hands off investment! Once the hotel management company leases your apartment, they will not require any involvement or money from you during the term of the lease. It is also worth mentioning that as part of the lease agreement, the hotel must replace furniture and fixtures and fittings, as wear and tear dictate - this is a 5 star resort and will be maintained as such, no matter what the cost.

Although the initial rental guarantee is for 10 years, if the hotel achieve occupancy levels of 75% or more by year 5, the rental guarantee will be increased to 8.25% for the following 5 years. If the occupancy is less than 75%, the rental guarantee will still stay fixed at 7% for the remaining 5 years.

The advantage of Caracola Beach Resort is that you can still have the same return but for a fraction of the price. Fractions of 25% are available at Caracola Beach Resort with the same 10 year rental guarantee and with 1 week personal usage allowance per fraction. You can purchase 1, 2, 3 or 4 fractions and there is an ownership group created per property, which means that you can sell your fraction at any time. Finance is also available for fractional purchases.

Once the first 10 year rental guarantee has expired, you will have the option of renewing your contract with the same hotel operator for a further 10 years.

Prices start from just €79,000 with entry level from €27,800. Construction has already begun.

Caracola Beach Resort will without doubt, be the best development on the beautiful Caracola Beach. As the last apart-hotel to be built directly on the beach in this area, the resort offers four different floor plans to choose from. Populated across three blocks, the Caracola Beach apartments vary in size from 58m2 to 125m2, including sea-facing terraces, which nearly all properties have. Construction will be to the highest standard in accordance with stringent building regulations and comes with a 10 year building guarantee. Each apartment will have a fully fitted kitchen, including white goods, as well as climate control air conditioning systems and all other furniture, as required by the the management company to enter the rental pool. All bathrooms will be fitted out with Roca or equivalent quality sanitary ware. The development will also have plenty of semi-covered parking.

The project is designed to be very eco-sensitive with the use of two layers of bricks with foam insulation, combined with double glazed windows, which make for a thermally efficient environment. Caracola's high standards of construction will set the benchmark for others to follow. There is 10,000m2 of dedicated internal communal space within the resort, with approximately 15,000m2 for exterior communal areas such as gardens, paths, lakes, swimming pools, etc... Caracola Beach Resort will have three restaurants as well as a health spa and a gymnasium with a wide range of sports equipment. There will also be plenty of bars and cafes and in-house duty-free shops. The resort will also include a nightclub, which will be completely soundproofed.

Mar Y Casas Mediterraneas has an enviable position within the sector, being renowned for practical and strategic planning, based on a philosophy personified by the founder Don Gabriel Martinez Verdi, who is still very much involved in the day to day running of the company. The company prides itself on honesty with clients and partners. With 20 years experience the company have always strived to include the latest technology and design in their projects. Past Spanish projects include Palatinum Golf and Spa Resort, located just outside the vibrant city of Murcia and Los Collados situated in Aguilas. Due to the success in the Iberian Peninsula, Mar y Casas Mediterraneas have expanded its portfolio to include the Caribbean, namely Isla Margarita. The company philosophy is based on sound commercial acumen, combined with innovative strategies and products.

Aliva-Stump and Lusmetal Construcciones y Proyectos have been formal partners of Aliplus, for a number of years, working on a number of key construction projects throughout Spain. As a result of this collaboration, they developed large scale projects such as the expansion of the International Terminal of Maiqueta Airport, La Ceiba Shopping Centre in Valencia, the structure of Plansuarez in La Urbina and many more.

Geneva Hospitality are a specialist resort operator and management company, made up of a team of professionals who are dedicated to exceptional service and have a reputation of maintaining the highest standards of excellence in the resort management industry. Successful property management is achieved through experience and knowledge. The team is made up of highly experienced and educated individuals with thorough, hands-on knowledge of resort management, marketing and the hospitality industry. Managing full-service properties in the USA, ranging in size from 100 to 800 units, Geneva Hospitality has successfully achieved profitability for owners through application of solid management principles, diligent marketing and proficient operations. Their success is no accident - it had been achieved through the highest degree of commitment to achieving a single goal through hard work, creative energy and an entrepreneurial background. Geneva Hospitality is an organisation with uncompromising integrity, a roll-up-your-sleeves work ethic and a proven record of profitability. The fundamental underlying advantage which Geneva Hospitality offers is the onsite management team's performance of all daily operations for each individual property resulting in solid returns for owners and providing a superior lodging experience for guests.