Cape Verde - Real Estate
The Resort Group PLC - Dont touch!!!
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sarah (217.41.19.38) -
Dear All reading this.If you are approached by the Resort Group please be extremly careful with this group. I was recently approached through my IFA by a sales man for the Resort Group, he was extremly pushy and when I explained that I was not sure he wrote and signed a piece of paper saying that i would have a full refund on my £2k reservation fee(minus the £500 cost)if I went their and did not like it. I returned from my trip and did not wish to proceed with the purchase as I was not convinced they where priced right. I adheared to their terms and conditions and let them know after my return within the 48 hour clause. I had a call from the sales man who then informed me that they would not be refunding ANY of my reservation fee, even when I said I had a signed assurance from him, he simply said the resort group would not be refunding stating the reason that teh tours are expensive to put on!!! This I can assure you is not in line with their T and C. I then tried to conatct the sales Director who was actually on tour with me and again assured me that he would let the relevant people know. He is not returning any of my calls and I am being stone walled by them in all directions. In short they are a group of stysters....stay away from them!!. If this is my finding after the inspection trip imagine if I had a lot of money tied up in a house out there....I think they would provide the same level of service. You have been warned!
Reply #1 Steve (93.96.162.15) - 11/04/09 12:58
"Davis"
For questions and answers regarding your investment please visit: www.resort-answer.comYour investment is not safe.
Reply #2 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:01
"The Resort Group - Questions and Answers - The Real FACTS"
Visit www.resort-answer.com for the real facts about your investment with The Resort GroupHere is some material you will find: Q - What return will I get on my investment? A - There are NO short term financial returns on property investments in Sal. Developers like the Resort Group plc have increased their property costs to a level not sustainable on the island then offer discounts to incentives customers to think they are getting a good deal. The only deal is to get customers to part with a deposit. Investment reports, used to illustrate profits, were produced in 2007 and are now 3 years out of date. This investment data does not reflect current market values and were produced before the recession. Returns, if any, will be many years in the making. Investors MUST be prepared to finance/maintain mortgages they may have to purchase their property. Investors thinking about using their pension fund MUST seriously consider all of the risks. There are NO guarantees your purchase will be a good investment especially in Cape Verde. DO NOT RELY ON A RENTAL INCOME or any sales literature. The information contained within is designed to encourage investors to purchase thinking there will be sufficient rentals to cover mortgages. There is NO historical data to support this claim. AS TO SEE THE DEVELOPER/HOTEL OPERATOR AGREEMENT AND CALL THE HOTEL OPERATOR DIRECT. For more information regarding your questions - Visit www.resort-answer.com
Reply #3 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:02
"The Resort Group - Questions and Answers - The Real FACTS"
Q- How safe is my deposit?A- Your deposit, which can be 30%-40% of the purchase price, is NOT safe unless you receive a guarantee from the developer or even better a bank guarantee. On NO circumstances should you give a deposit to any developer without a guarantee that protects your investment. If the developer has appropriate bank funding this will not be an issue. If the developer cannot provide security this would indicate that they do not have appropriate bank funding and is using the sales deposits to finance their operational and construction costs. This means the developer is not risking any of its own money. Investors MUST understand how the developer intends to finance project. If sales deposits slow together with slow construction and higher construction costs it is likely that the developer will cease to trade unless additional bank funding is granted. Investors should satisfy themselves funding is in place otherwise you WILL loose your money. For more information, visit www.resort-answer.com
Reply #4 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:05
"How reliable are the utility supplies?"
Q- How reliable are the utility supplies?A- The electricity company can not cope with demand on the island so there are regular power cuts up to 24 hours at a time. Investors should ascertain what standby generation the developer is providing. If there are power outages then all facilities are affected from air conditioning, security, CCTV water supplies and sewage pumping. Sal has a serious problem with a lack of water. This means that water can be turned off at anytime causing serious sanitary issues. Investors MUST obtain a clear strategy from the developer to how the water and electricity will be managed. Cold water holding tanks and standby generation should be a minimum requirement. For more information, visit: www.resort-answer.com
Reply #5 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:06
"How much experience does the developer have?"
Q - How much experience does the developer have?A - Investors should satisfy themselves that the developer has a track record of development and construction of similar resorts. Developers like The Resort Group plc have NO experience of ‘in-house’ construction and have only previously sold off plan developments constructed by other developers. They have NEVER managed their own construction works. Investors should be wary of developers boasting an impressive portfolio as selling off plan for another builder is not the same as construction and selling yourself. For more information, visit: www.resort-answer.com
Reply #6 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:07
"What investment opportunities are there in Sal, Cape Verde?"
Q - What investment opportunities are there in Sal, Cape Verde?A - Tortuga Beach Resort + Spa is the only major development started in Sal over the past few years. All other major investment opportunities have stopped as they run out of funding from the banks. All major banks have declined to invest in new Cape Verde developments and currently, not considering any new funding opportunities unless heavily secured. Property values have fallen in excess of 20% as investors scramble to sell on their ‘off-plan’ purchases as they can’t obtain a mortgage. This has produced a ‘glut’ of re-sales as original purchasers fail to complete. Any investors being promised mortgages by any developers should satisfy themselves that a mortgage is available otherwise investor’s deposits WILL not be refunded should the developer fail to deliver on promises. It is rumoured that The Resort Group’s Dunas Beach Resort will commence construction shortly. Caution should be exercised as this will probably be limited to minor works only and these works are only designed to encourage new sales and deposits. If you are interested in purchasing one of these properties it is recommended that you obtain a development programme and ask for confirmation that the project has bank funding. If the developer relies on completion monies to fund construction there will be serious implications if investors fail to complete on their purchases as the developer will run out of money. YOUR INVESTMENT IS AT SERIOUS RISK For more information, visit: www.resort-answer.com
Reply #7 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:09
"What income yield will be achieved? "
Q - What income yield will be achieved?A - All statements concerning yields are 100% subjective and should not be taken as achievable returns. NO developer can guarantee a yield of any kind in today’s market. Advertised yields are based upon data some 3 years out of date and achieved at the peak of an investment property market. Investors MUST insist on reviewing the latest data before making a decision. DO NOT ACCEPT SALES INFORMATION PROVIDED BY THE DEVELPOER. SEEK INDEPENDENT ADVICE. Do not forget that the developers mission is to obtain a sale and sales deposit. Once an investor signs a contract deposits are NOT refundable.
Reply #8 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:09
"What happens if the developer ‘goes bust’?"
Q - What happens if the developer ‘goes bust'?A - Basically, the investor will loose their deposits. It is not unusual for 30-40% deposits to be taken and you WILL loose everything. Make sure your investment is protected with security.
Reply #9 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:10
"Who will complete the development if the developer ‘goes bust’?"
Q - Who will complete the development if the developer ‘goes bust’?A - Nobody as there are ANY guarantees in place. Another contractor could complete the project but this will only be an additional cost to the investor.
Reply #10 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:11
"If the developer offers a rental scheme will this cover any mortgages?"
Q - If the developer offers a rental scheme will this cover any mortgages the investor may have on their property?A - There are NO guarantees of rental income as this will presume that there is a large community of holiday makers wishing to rent. The holiday season in Sal is cyclic and numbers have fallen substantially over the past few years. Investors MUST not rely on a rental income as this is highly unlikely to be achieved in the first few years.
Reply #11 Steve (68) from United Kingdom (Contact Member) - 11/09/09 06:39
"Who will be the resort management company?"
Q - Who will be the resort management company?A - An investor should ask to see sight of the agreement made between the developer and resort operating company. Research the operator yourself as this will be the company managing your rental. Ask the right questions. What experience do they have in this market? Have they operated a similar resort before? What has been their market performance over the past 3 years? Satisfy yourself that your investment will be managed efficiently.
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