The SIPP factor injects even more excitement into Cape Verde

May 17, 2011 - PRLog -- For many years Cape Verde has been one of the rising stars of the overseas property investment market.

The islands sustained economic strength in the face of the global downturn is a key reason.

In fact, the Cape Verde economy has continued to grow through the downturn and projections suggest a further 4% this year, according to the Head of the bank of Cape Verde.

The growth is reliant on tourism and the formula is fairly simple; Cape Verde has stunning white beaches with clear turquoise waters, great weather all year round, a relaxed way of life, great people and an engaging culture.

This has created a surge in demand from tourists looking for something and somewhere different, a new sunshine destination and a tropical paradise closer to home than the Caribbean.

Sal, Cape VerdeAs an emerging market, the islands currently only have a few recognised and established hotel and resorts on offer, and as demand continues to rise at an unrelenting rate (it will be 1 million visitors per year by 2015, currently around 300,000), the supply of high quality accommodation needs to increase.

And increase it will, with many developers committed to creating stunning new hotels and resorts, with Sal Island leading the way and accounting for over 65% of the all tourists.

That in turn presents an excellent proposition for investors; get in now, right at the start, buy a property and then watch the investment grow as the islands develop over the next 3 to 5 years.

Resorts such as the 5-star Dunas Beach Resort & Spa on the Island of Sal, which has over 1,400 properties on a 14.7 hectare site, is now 70% sold out with construction underway.  Investors are attracted by the projected rental and capital growth returns, its beach front location, and the fact that the Resort will be managed by Sol Melia, the largest resort hotelier in the world – yet more evidence of the lure of Cape Verde.

SIPP Flow ChartAnd the sales success of these Resorts has been unequivocally underpinned by Self Invested Personal Pension or SIPP purchasers. A SIPP offers the opportunity to exert more control over how your pension is invested, as well as offering excellent tax benefits.

And for many people a SIPP has strong appeal, with their pension pot in decline and plenty of doom and gloom surrounding pensions in general right now, they can ill afford to adopt a sit back, watch and hope strategy.

Instead, many have opted to take more control over their future and use a SIPP funded purchase of a Cape Verde property to solve their pension problem.

One such overseas investor is Stephen Clemence (50), a successful business man, who had already bought a holiday home in Cape Verde when the pension funded opportunity came to light.

“With our first property on Sal Island nearly complete, we had the confidence to invest further”

“And when the value of my pension plummeted by almost £10,000 during a four-week period, I decided the time had come to think again about traditional investment routes and was attracted by the capital growth and rental income figures being quoted”

“My IFA presented me with the opportunity to boost my retirement income in the longer term, and we made the decision to invest in two more properties on Dunas Beach Resort through my SIPP in order to achieve that,” says Stephen.

So it seems that Cape Verde’s tropical year round climate is not only appealing to those wanting a holiday home in the sun, but it also delivers an unlikely pension solution for savvy investors.

www.diamondestatesworldwide.com
www.cape-verde-property.co
Tel: 0284 176 4241

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