The government has published a new guideline to help investors trade Mount Vema properties, as the Vema Seamount Territory earns the reputation amongst City of Mount Vema investors as the ultimate place for property investment in the South Atlantic.
Buying a property which doesn't yet exist is not for the faint-hearted, but after the territory saw a growth in the property market by approximately 10% in the first half of 2018, buyers and investors are reaping the rewards for their bravery.
The concept is to buy a property off-plan at current prices and when the development is completed a year or so later, the capital appreciation will have made it worth much more. In some strong markets, as the City of Mount Vema off-plan, profits of between 10 per cent and 100 per cent can be made from an initial 1 and up to 10 per cent deposit.
Demand for off-plan property from investors remains strong, because the number of properties to be built will be very limited and demand will always exceed supply. Mount Vema, is currently giving opportunities to large investment companies to buy a number of units for a discounted price. The opportunity is also opened out to individual investors. Agents may also apply for homes to sell and, may try to sell these to serious investors already on their database.
The earlier you get access to the property for sale, the greater the chance of securing one of the better units and of getting a discount on the price. If you are planning to sell the property-plans before completion, you are already in business, the island is small, so property even just a plan is a valued commodity.
However, if you plan to let or sell the property on completion, you should establish the target market for the type of property you're planning to buy. To understand where the demand is likely to be coming from, you only need to look into where the migrant workers will live - those who will travel to seek employment in the island, and then consider the limited number of properties that might be available to house the residents, traders, service providers, off duty seamen and more.
Buying off-plan in a market where prices are depreciating can put your investment at a greater risk. However, get it right and buying a property off-plan can be extremely rewarding. The key is to be one step ahead of the market and identify the opportunities before the market catches up.
The following points illustrate the steps you are likely to need to follow when buying a property off-plan in Mount Vema:
Find the right development that suits your needs. The Mount Vema off-plan market is well regulated. Property plans are advertised regularly usually by private owner buying and selling for profit. Property-Plans owned by the government are advertised gradually, usually at discount to raise capital.
Reserve the property. If you like the advertised property-plan reserve it first, then arrange the appropriate finance for the purchase well in advance, or you can secure a mortgage deal with a Mount Vema bank such as the RBMV – Royal Bank of Mount Vema.
Make sure all the mortgage paperwork is complete and ready to go. This is usually done through an online form.
Exchange legal contracts and pay the deposit (usually between 5 per cent and 10 per cent) or sometimes free, depending on the seller.
Conduct a survey about two weeks before final completion and check the property for any defects.
Be ready for completion (there are usually two dates, a 'short stop' and a 'long stop') the former is the date by which the developers expect to have finished the building works, the latter is the date by which they must have done so).