A customized guarantee plan for each real estate project. The Property Guarantee Plan (PGP) has been developed to assist your Client in getting return from second home property, or to maintain its value in the market. You as project developer can offer this guarantee at no cost for your Client and in a variety of forms:
- RENTAL GUARANTEE PLAN
- VALUE-PLUS PLAN
- INVESTMENT RETURNS PLAN
- FIXED VALUE PLAN
After a comprehensive analysis of the real estate project, our specialists together with the project developer his team will select and transact the best Property Guarantee Plan for each case.
The concept transform to plan by taking into consideration factors such as : the market, the current status of the project development, the quality of the infrastructure and construction, social and economic facilities, public utilities, etc. Only high-quality real estate projects qualify for the Property Guarantee Plan.
RENTAL GUARANTEE PLAN
Over a period of five years, the Property Guarantee Plan assures a minimum average return on rentals of 3 % to 9 % upon the investment base of the second residence. The exact percentage is calculated at the time the investor apply for the plan and after thorough investigation and profound study of the project, the buildings and the developer.
The guaranteed percentage is related to the Euribor (interest applied between banks, as determined by the Central European Bank), the construction time, the size of the house, used materials, interior design, available home amenities, thz location, etc.
The conditions of the Property Guarantee Plan are very simple and continuously optimised with respect to the degree a holiday home is being rented. After a signed computer application form is sent to us for approval, the buyer will receive notification within six weeks at most. Because the due diligence has been carried out before the developer is allowed to offer the Property Guarantee Plan to the market.
Along with the certificate of guarantee, the owner (or his property, home or key manager) will receive a summary of minimum rental prices for each period. These are part of the guarantee. Those rental prices are stated as a minimum, not as a maximum, so the owner may ask more obviously, within limitations set by the general market conditions.
By all means, the investor can use his second residence for his own purpose whenever he consider it convenient.
VALUE-PLUS PLAN
This scheme assures a value increase of the initial investment. If the investor sells the house under the conditions of the Value-Plus Plan, a minimum value increase of the house is guaranteed. Returns can vary from 10% to 50% per term, depending on the particular Plan. Should the property be sold below the projected price at the end of the term, financial compensation can be obtained under the value-plus guarantee.
INVESTMENT RETURNS PLAN
This scheme combines the advantages of rental profits with the increase in value of the property.
FIXED VALUE PLAN
This scheme helps to avoid a sudden decline in the value of bought property. Should it be impossible to sell the house at a price at least equal to what the investor paid originally, the owner can qualify for a financial compensation, the maximum of which has been previously agreed upon with the project developer.
This strategy is highly recommended if you buy a house and may want to sell it on short term (buy to sell) without generating losses.
