 |
-
How to
purchase a property on La Ensenada
To
reserve a property - Please complete the
reservation form on the button above with your
full contact details
including your telephone numbers . There is a 3%
(non-refundable) reservation fee payable by Wire
transfer or cheque which becomes
payable
immediately on reservation. (without this fee we
cannot reserve any unit) The reservation fee covers
a period
of 1 month from receipt of payment to allow ample
time for
contracts to be drawn up and delivered.
Interest fee Payment
plan available
1st deposit = 30% of the purchase price
at signing of contract stage,
20% paid over
12 months in 3 equal payments - commences as
soon as you have signed contracts in your hand from the developer
and
50% on completion.
Inital payments are made in US$.
With the help of our
currency facilities we can forward book your
rate for the next 12 months enabling you to take advantage
of todays
dollar rate and also so you can budget and know your exact payments
with no hidden extras
Maintenance
charges
Yearly
Maintenance is aprox. US $ 1,250 /£600
Closing
Cost are aprox. US $ 1250/£700 (payable at time
of closing)
Management costs are
For Vacational management 20% of gross income generated
by the property is retained by Century 21 as
their commission. ( includes marketing and administration )
Projected
rental income is based on 50% occupancy over
12 months
$200 for the 2 bed townhouse
per night .
$120 for the 1 bed units per night
$150 for the larger 2 bed units per night
$160-$180 for the 2 bed duplex dependant on location and views
Furniture
packages are expected to start from $11,700= £6500
approx for the townhouse/duplex/2 bed apartment)
Foreigners
can directly own real property in Venezuela the same
as a citizen can. No Venezuelan corporation or fideicomiso
(bank trust) is needed, although you could set up a
Venezuelan
corporation and buy through it if that helps your personal
situation.
All
initial purchase Contracts are in English and
last deeds are in Spanish. We have a translator to help you
with your registration and notary appointments at the time
of completion
Escrow
- the legal term Escrow is not recognised in Margarita
Island and in fact all transactions whether in real
estate or not do not operate in the realms of an escrow
arrangement.
Deposits can be used for construction purposes but
operated under strict laws with stiff criminal penalties
for any
monies spent for any other purpose. It is something
that the state of Nueva Esparta(Margarita Island) is
very serious
about as it intends to keep the island free of rogue
developers and agents and build a good reputation for
growth and investment.
Local
currency is Bolivars but US $ and sterling can be changed
in various locations in Banks and Money exchange booths.
We advise you to take US$'s or Bolivars with you.
Satelite
TV and Cable are available and high speed internet..
New Water pipes to bring water from the mainland are
being
installed
next
year so
Margarita Island will
be able to enjoy piped water and new infrastructure
is being put into place. This may put you off a little
but
think back to Spain 10 years ago and that is where
Margarita Island is now but take a look at Spain now,
with the help
of foreign investors the country has transformed. Along
with transformation came the property boom and property
prices have exploded. This is what is predicted for
Margarita Island and it has already started!.
We
advise all of our clients to open a US$ account in
Florida to operate funds backwards and forwards to
Margarita Island.
Our Bank has full banking facilities and offers a visa
card for ATM use in the UK and internet banking. We
can help you open this account without the need of
visiting
the bank.
We are now offering developer mortgages on the properties in
La Ensenada. 50% can now be financed with the following conditions:
The term is 10 years, the first 3 years is 9% and the remaining
7 years at 12 %. There is no early redemption fee applied if
paid off early. The loans are secured against the property..
We
have ensured that the land is correctly registered
in the name of La Ensenada Inc and
all licences for construction are now in
place.(although this is a spanish document copies can
be sent
by request to any client or lawyer)
Political
situation.
Margarita
Island might as well not belong to the mainland
of Venezuela because what happens in the
mainland tends
to not involve
Margarita Island too much in its day to day
running. The president is welcoming foreign
investment as it
brings
with it more employment for the local people
and therefore more wealth. The recent press
with headlines of land
grab mean in fact when you find out the real
story is Large
farm owners in Venezuela who have let their
ground go to waste or just for cattle-grazing,
the government
is taking
the land for people to work and grow crops
on so many people who otherwise cannot get
employment and struggle
to survive
start to look after themselves.. In fact
it is not unlike the land grab in Valencia
Spain that happened
a few years
ago where the government took the land from
many home owners to give it to the developers
to build more houses
and roads.
So in summary do not be put off this wonderful
island for something that happens a lot closer
to home and
in the
EEC - La Ensenada will not be involved for
land grab as this is constructed land and
already will bring
employment to the local Margaritans.. Buying
property abroad always will have some element
of risk - our complete due diligence
on the company and development of La Ensenada
ensures the risk has been minimalised.
Margarita
is a Tax Free Zone, no stamp duty, no VAT
and nearly a no-tax island.
People
are talking about Island Margarita. That
you can live and work here, or just own a
holiday home as a non-national
expat and not be exploited by the government,
as happens on other Caribbean countries.
The Venezuelan Government
welcomes investors and people who want to
retire here, live here and start a business
with open arms.
This
island has a cosmopolitan feeling and amongst
the Spanish speaking Venezuelan population,
there are communities
of Brits, Spanish, Canadians, Danish, Dutch,
Americans and
Irish. Spanish is widely spoken here and
is advisable to have some knowledge of the
language especially in
the cities.
Spanish lessons are available at reasonable
rates.
What
About Healthcare?
There is excellent private healthcare in
Margarita. There is also plenty of private
home help for those
needing extra care.
So
is it Possible for Non-Residents to own a
home in Margarita?
Yes indeed! All you need is a valid Passport
and an RIF tax identification form which
can be obtained from
an attorney. There are no legal restrictions
for a non-resident to own property on the island.
So
Whats Safe and Available for Non-Residents
to invest in NOW?
La
Ensenada - all of the other developments
we recommend you go and see before you buy - Locations
are not as
advertised
and build quality was not acceptable- very
poor quality with wavy roofs and walls and inflated property
prices
because of rental guarantees- . La Ensenada
is built to American and English standards and the prices
are
in line
with local values of real estate.
Property in Margarita made the headlines
in the UK when a well know TV programme featured
a couple looking
for property until then noone had heard of
this beautiful island. Now it is receiving
a great deal of attention for
vacationing and investment and as a result
the prices are on the increase.
Buying ‘off
plan’ property on Margarita Island
can benefit you in three ways.
1. It is entirely possible to achieve returns
in excess of your initial investment in 24
months.
2. Your profit is free of any liability to
local capital gains tax. Holding on to your
property for the longer term means you can
benefit
from investing
in one of the fastest growing property markets in the Caribbean.
3. In addition to this, you will also have a great holiday home
while your property is appreciating value.
Rental
Program - Century 21 Home owners FAQ
The
following is a list of frequently asked questions
by homeowners who are considering placing their
La Ensenada
vacation
property under Century 21 vacation rental
managment program.
What
are the advantages of putting my vacation home into a rental
program with Century 21?
First, you have professionals managing
your property. We keep you well informed
on the condition
of your property.
We also ensure that it is well maintained.
Century 21 has excellent relationships with
local repair and
service people
who are available to keep your home in top
condition. If your home does sustain damage,
such as a leak in
the roof
you have Century 21 on the site to ensure
that the damage gets fixed and no further
damage occurs.
Services provided to the owners who participate
in the rental program will include:-
Payment
of condominium common charges
Payment of local taxes and utilities
(electricity,Satellite TV, water etc)
Regular inspection of the unit to determine
level of wear and tear and to identify
and schedule
minor repair
items
Minor repairs of the unit (paint,plaster,leaks
etc)
Housekeeping services bother during the
renter's stay and for "turnover" between
renters
A unit maintenance "hotline" will
be provided during extended business
hours so that
renters can call to report maintenance
issues
All direct outlays for common charges,
utilities and taxes will be made and
deducted from the
owners' accounts and will use undividually
accumulated rental
funds for that purpose. Owners can
receive quarterly remittances of their
rental income net of fees.
Second, Century
21 has strong promotional programs that can
offer your home to 1000's of potential
renters. We have large
databases of renters who have rented
from us over the years. By adding
your home to our collection of fine homes
you immediately have numerous qualified
renters considering your home
as a rental.
Third Century
21 and our professional staff interact with
renters on your behalf, which frees
up your time and energy.
Fourth Century
21 offers additional services and amenities
to the people renting your home such as tour
packages, bike
rentals,food
delivery,discount coupons,daily linen services
etc. This adds value to your property and
provides customer
service
for your renters, which is what many guests
expect today. These additional services and
amenities also
place your
home in a more competitive position when
compared to other rentals in the area.
Fifth Century
21 ensures that your home complies with all
local regulations and restrictions and arranges
for payment of related
taxes such as property tax.
What else should
I consider before I consider before turning my property
over to Century 21?
Remember that you are entering into
a business relationship to rent your property.
Century 21 will
supply you and your
home with many services and benefits. You
in turn will have to make decisions, just
as you would in any other
business arrangement. There will be maintenance
decisions as well as decisions with respect
to upgrading or making
improvements to your home. The goal is to
keep your home as comfortable and presentable
as possible so
that it competes
favorably in the short term rental market.
Once your home becomes a vacation rental,
it no longer needs
to just keep
you satisfied; it also needs to keep your
renters happy. Century 21 will inform you
of way to keep your property
attractive to renters. Consider your relationship
no only business, but also a partnership.
and remember
that communication
has proven to be the key to a successful
relationship.
Will Century 21 do a better job marketing our home to potential
renters?
Absolutely. Century 21 not only has the marketing
expertise, we also maintain sizeable lists of qualified
renters
that can consider your property for their
vacation rental. Each
year Century 21 staff attend educational
seminars and conferences to learn about the most
efficient and effective
ways to
market a vacation rental home. As a result,
your home will be presented and viewed by many
more potential
renters
than if you utilized other, more staid marketing
resources or attempted to market it yourself.
Will Century 21 do a better job managing our home than
we could ourselves?
Absolutely. Century 21 has years of experience
managing homes like yours. We know how to attract
renters. We
know how to promote your home. With our extensive
access to
the best and most reliable local resources,
we know how to maintain your home and keep it competitive.
Century
21 has access to the latest research on the
vacation
rental industry. We closely watch trends
and quickly respond so
that the homes in our collection maintain
a competitive advantage.
What if I have
certain times that I want to use the home myself?
Be clear on when you want to use your home and
be sure to work with Century 21 to block those
times for your
use. Remember that your home will be under
contract, so you
are prevented from visiting except during
periods we have agreed to. This is a business arrangement,
you
should treat
it as such, honouring the use of the home
by renters and the management of the home by your
vacation rental
managment
firm. Owners who wish to use their unit during
high season will be required to give the rental
office ample
notice
of which dates they desire in order to make
the necessary arrangements.
When will the
home rent?
Owners will be required to make
their units available for rental
for all but 4 weeks of the "High Season" but may
have unrestricted access to their units during "low season".
In Margarita Island "high season" is
defined as December 1 - May 15 and July 15-September
15 each
year. Vacation
rental homes tend to be rented most often
during this high season. The less you use
your propertty during
high season,
the more your home will be rented and the
more income you will earn.
What about management fees?
Century 21 fees are expected to be 20% of
the gross rental revenue. For owners who
do not wish to fully
participate
in the full rental program, an ad hoc program
will be available providing fewer services.
What Home Owners
Should Know
As a vacation homeowner, there are some considerations
you should make before deciding to contract.
1. Having
Century 21 take care of your home affords you many distinct
advantages. One of the most important advantages is having
somone onsite should something go wrong. A professional
property management firm is on duty 24/7. If any problem
occurs they are onsite to access any damage and get it
repaired as quickly as possible. Renters that may be
noisy or disruptive to neighbours can be easily addressed.
Ensures your property is clean and well maintained. Century
21 safeguards your property and your asset.
2. While
this is your property, it is important to be emotionally
detached and realise that the property is there to bring
you an income and to be rented. Consider it a business
with obligations on both sides
3. You
may not be able to have instant access to your property
if it is rented out - you will have to wait for your
guests to leave before you can take your vacation.
4. If
your home needs to be upgraded with decorating or new
furniture to keep it to a high standard - it is all an
investment to maintain the high rental revenue it can
achieve.
|
|
