Caesar Resort
A luxury beach-side development with extensive facilities. Rental returns of between 8 - 12%. Prices starting from £22,000.
Investment Overview
- A luxury beach-side development with extensive facilities
- Superior payment plan with only 35% deposit and nothing further until completion
- Prices staring from only GBP £22,000
- Predicted capital appreciation of 30% per annum
- Rental returns of between 8 - 12%
- An estimated 65,000 unit shortage in North Cyprus by 2010
- One of the only sandy beaches in the region
- The lowest entry level beach-side property in the Mediterranean.
- Phenomenal capital appreciation expectations
- Easily accessible from several major international airports
- Stunning coastline views
- Award winning firmly established developer
- Fully self-contained resort with an extensive list of facilities
- Current land prices in Northern Cyprus are approximately 25% of those in the south of the island and resale villa prices approximately 30-40%. Southern Cyprus property prices are in turn, considerable cheaper (30-40%) than other Mediterranean countries with similar climates such as Spain and Portugal.
- A new airport (Ercan) opened in May 2004. Once the travel embargo is lifted the new airport will enables planes to fly directly to North Cyprus for the first time since 1974. This will conservatively lift the annual tourist numbers from 433,000 to 2 million people annually over the next five years, which is still far below the 2.3 million people who visit Southern Cyprus each year
- Excellent off-peak rental potential with a student population of 15,000 at the Eastern Mediterranean University only 10 minutes drive from the resort
Development Specifics
There are 440 units over 35 acres making this a very spacious, boutique development. The development also encompasses over 16,000 m2 of manicured lawns.
- Only 40 minutes from the new Ercan International Airport
- Only 45 minutes from Larnaca International Airport
- 10 minutes from Famagusta, a famous historical city
- Strong rental demand with returns of 8-12%
- A unique site, full of attractions and designed in an elegant Roman style
- On-site rental management and maintenance facilities
- One of the only sandy beaches in a region that predominantly consists of rocky coastline
- Caesar Resort is only 600 metres from the beach, providing easy access and excellent views
- Each building has an elevator and there is an optional storage room for each apartment
- Fantastic location: close to the airport, main cities and picturesque villages
- Gated development with 24hr manned security
- A comprehensive list of facilities, including:
- open amphitheatre
- tennis court
- sports court
- outdoor Jacuzzi
- restaurant and snack bar
- hair and beauty salon
- mini-golf
- gym / fitness club
- health spa
- internet café
- children's playground
- arcade
- supermarket
- BBQ and picnic areas
- launderette
- back up generator for public areas
Properties
Studio, one and two bedroom apartments.
Studio apartments:
Total Area: 46.1m2 (39m2 living space)
Price: from GBP £22,000
1 bedroom apartments:
Total Area: 65m2 (57.9m2 living space)
Price: from GBP £28,000
2 bedroom apartments:
Total Area: 76.3m2 – 81.1m2 (69.5m2 – 72m2 living space)
Price: from GBP £35,000
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Financial projections
Case study : 3 bedroom apartment (B-1; 114 m2) 45,000
EXAMPLE COST
|
Description Cost of apartment (35% deposit) Lawyer Fees Stamp Duty (0.5%) Total Cost |
Cost |
EXAMPLE PROFIT: After 18 months (i.e. before completion)
|
Description New Property Value* Cost Balance payment to developer Net Profit |
Value / Costs |
This example illustrates the option of flipping the property before completion. Due to the excellent payment terms and the strong growth in not just the area but also in the development, savvy investors can gain a return on investment (ROI) of just over 100%. An unparalleled return in an 18 month time period by anyone's standards.
EXAMPLE COST: After four years
| Description Cost of apartment Lawyer fees Land Office Transfer Fee** (3% of valuation) Stamp Duty (0.5%) VAT** (5% of valuation) Total Cost |
Cost |
EXAMPLE PROFIT: After4 years
| Description New Property Value*** Cost Net Profit |
Value / Costs |
This example shows the added costs of holding the property post completion and again provides an excellent ROI. It should be noted however that no rental income has been included in this example which will further lead to an increase in profit.
* Calculated on a conservative predicted growth of 40% during the construction phase
** As valuations in TRNC are always lower than purchase price we have estimated a valuation of 50% of list price. As valuation is based on replacement cost of the building and does not include land value we expect this figure to be significantly lower.
*** Calculated on a conservative predicted growth of 100% over four years.
These figures do not assume sale of the property in order to realise these gains. If the property is sold one would have to factor in 3.5% capital gains tax and also any relevant agency fees.