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Tunisia, The Dunes Golf and Spa Resort
Ref: 11402
Country: Tunisia
Region: Gold Coast
Risk: Low
Rental yield: 11% per annum
Capital growth: 25% per annum approx
Reservation fee: 50% on contract
ROI: 110%
from
£22,203
EUR27,290

*exchange rate offered as guide only.
 
The Opportunity

The Dunes Golf and Spa Resort is situated conveniently between two of Tunisias busiest airports offering direct and inexpensive flights to major European cities.

The resort is a gated 5 star resort offering 24 hr security and concierge facilities as well as on site amenities including a restaurant, snack bar, supermarket, bank, bakery and a rental management company.

The development itself comprises of studios, one bed and two bed apartments in a lowrise setting in a prime residential area close to all facilities including a 36 hole golf course, marina and restaurants. The Dunes Golf and Spa resort is directly located next to glorious white sandy beaches.

Rental income is very high in this region due to the strength of the local, neighbouring and European markets ensuring yields are between 10% and 14% per year.

Rental Figures

Example based on a 1-bed apartment rented for 13 weeks per year at € 45,000

6 weeks rental in the peak season at € 575
4 weeks rental in the medium season at € 460
3 weeks rental in the low season at € 350
Total annual rental return € 6,340
   
Gross Yield (€6,340 / €45,000) 14.08%
Net Yield (less 10% management charge) 12.68%
   
Full repayment of property (100/12.68) 7.89 years

The above figures show us that even using a conservative rental window of only 13 weeks per year you are able to pay off for the property in less than 8 years using rental income alone.

Capital Growth

Purchase price € 45,000
Initial investment of 50% € 22,500
Value of apartment on completion in 2 years € 70,312
Profit (during construction alone)
€ 25,312

Payment Structure

€ 3000 reservation deposit
50% of balance on contract
10% of balance 6 months later
Remaining balance on completion or before June 2011

Return on Investment

Since only €22,500 was invested, the ROI in only 2 years is = 112%

Exit Strategy

Foreign purchase of property in Tunisia has only just become possible over the last 3 years. This is due to the fact the Tunisian government wanted to ensure their own population could afford to buy within their own country and not to be out priced, as has happened in other countries. Now around 80% of the locals own their homes. Foreigners need to require approval to be entitled to buy however for most Europeans this is only a formality.

This controls and protects the market and also means the investor will have a strong local market to sell to when they wish to sell their properties, realise their investment and have a clear exit strategy.

Available Properties
1: Penthouse - EUR 30,250

Ref: 26743
Type of property:
Penthouse


Prices from:
EUR 30,250 (GBP 24,611)


Bedroom(s):
1

Size:
23 meters sq

Units available:
3

more details...

2: Studio - EUR 34,950

Ref: 26744
Type of property:
Studio


Prices from:
EUR 34,950 (GBP 28,435)


Bedroom(s):
Studio

Size:
28 meters sq

Units available:
14

more details...

Documents & Due Diligence
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