in ocean's edge vestment focus - global property …s edge is an exclusive st kitts beachfront...

INVESTMENT

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Ocean's Edge St. Kitts - Caribbean

Economic Citizenship Programme Visa-free access to Europe

GLOBAL PROPERTY GUIDE

Ocean's Edgea perfect paradise

Ocean's Edge - a perfect paradiseOcean's Edge is an exclusive St Kitts beachfront community of hillside

apartments, beachfront apartments, poolside residences and individual villas,

spread around the superb beachfront of Frigate Bay in St Kitts.

Covering almost 40 acres, the resort enjoys a real sense of seclusion and

intimacy thanks to the bay's curved beach and the dramatic hillside rising

steeply from the shoreline. With fantastic views of the Atlantic Ocean and

located just yards from the renowned Royal St. Kitts Golf Course, the luxury

St Kitts real estate resort of Ocean's Edge sets new standards for design,

construction and lifestyle on this beautiful, understated Caribbean island.

The Global Property Guide recently interviewed Pauline Bonanni, director

of Select Resorts (Savills International)

Is the Ocean's Edge development nearly sold out?

Not quite yet! Phase One (16 hillside apartments) and Phase Two (14 hillside

and 16 beachfront apartments) are both sold out now.

Phase Three commences construction in early 2011, and will complete

mid/late 2013. There are beachfront studios and apartments, hillside

apartments and poolside residences. These include poolside residences

with a guaranteed income and a free furniture pack offer.

Phase Four is expected to start construction autumn 2013 and will complete

in 2015. Here there will be the remaining poolside and beachfront apartments

to sell. This will complete the project.

http://www.globalpropertyguide.com/


The Economic Citizenship Programme is important?

Yes! It is a tax-oriented programme really. Purchasers making a minimum

investment of US$350,000 in a unit or villa will be entitled to apply for

Citizenship of the Federation of St Kitts and Nevis. The benefits include:

Citizenship for life for applicant and eligible family members.

Applicant not required to reside in St Kitts

Passports issued to successful applicants and any eligible dependants

Visa Free Travel to a number of countries including European Schengen

Countries

Full residency status

Tax free status on foreign income, capital gains, gift, wealth and inheritance

tax

The right to work in St Kitts

Visa free travel across Schengen countries is one of the main attractions,

particularly to Russian, Middle East and Chinese clients.

The tax regime is attractive to European, US and Canadian clients i.e. the tax

free status on foreign income as above.

It must be noted that the Kittitian Government do vet all applicants very

carefully.




The Financial Crisis has not affected Demand / Buyers?

Not at all. In fact there are more buyers all the time. This is because of several

factors - the growth in tourism, easy access to the island, and because of the

Economic Citizenship Programme.

St Kitts has become more accessible, with British Airways adding a second

weekly flight from London Gatwick into Robert Bradshaw Airport (St Kitts),

from March 2010. Richard Tams, head of UK and Ireland Sales at British

Airways, has identified St Kitts as a leading long haul destination for British

travellers and predicted that arrivals into St Kitts would increase:

'It's not all doom and gloom for travel in the current economic climate, as

destinations such as Dubai and the Caribbean islands of St. Kitts and St. Lucia

continue to experience growth and investment, so we anticipate greater

numbers of customers wanting to travel there,' says Tams.

In addition, American Airlines has increased its scheduled flights between

St. Kitts and Miami to a daily flight and introduced a twice-weekly flight from

New York.

St Kitts and Nevis Prime Minister Hon. Dr. Denzil L. Douglas noted that this

increased access to St. Kitts has brought more tourism, and St. Kitts has seen

new ships come to the island.




The market for Oceans Edge is global and the Economic Citizenship

Programme attracts buyers; so the recession has not really had an effect.

Last year prices went up between 5 and 10% and demand and transaction

volumes remained the same.

Is there rental demand?

We have seen that as accessibility to St. Kittshas become easier, and tourism

has grown on the island, there's been a growing need for 4 and 5 star

accommodation for these visitors.

The government, having closed the sugar cane industry in July 2005, is

committed to developing tourism as its economic growth strategy. The plan is

clear and focuses on sustainable expansion as part of a move to make St. Kitts

an upmarket destination.

The administration intends to preserve the character of the island and remain

sensitive to its cultural heritage by allowing only a small number of exclusive

boutique developments, such as Oceans Edge.

How would the owner rent?

Ocean's Edge Resort is offering an interim rental / management program

which provides services to owners whose properties are due for completion

prior to the resort operator coming on board as the rental management

company.




[email protected]

Tel: +44 1202 765011 Fax: +44 (0)1202 763615

The in-house program targets the growing demand on the island for

long-term rental accommodation, and is being coordinated through the

Ocean's Edge onsite sales office.

St. Kitts has put everything into developing tourism; they need tourists,

therefore they need the flights coming in and somewhere for people to stay

when they arrive.

Buying costs?

Oceans Edge benefits from having the Aliens Licence fee of 10% waived by

government for the North Frigate Bay area. Therefore, the legal and buying

costs represent approximately 2% of the purchase price.

Your final conclusion?

Ocean's Edge represents an unprecedented opportunity to invest in an island

whose property market is expected to show substantial appreciation in the

near future.



http://www.selectresorts.co.uk/




Purchasing at Ocean's EdgePurchase costs at Ocean's Edge are unusually favourable, due to a tax

concession by the Inland Revenue.

Normally the Alien's Landholding License would be 10% of the purchase

price, but purchasers at Oceans Edge are completely exempt - a significant

cost-reduction, compared to most properties in the islands. There is a EC$50

fee in lieu, payable to the Inland Revenue.

The purchase costs depend on whether the client has a mortgage

WITHOUT MORTGAGE:

Legal fees payable to lawyer are based on the purchase price

2.5% of first EC$ 25,000 (USD 9,328)

2% of next EC$ 25,000 (USD 9,328)

1% of next EC$ 950,000(USD 354,478)

0.5% of remainder

Assurance Fund 0.2% of assessed value (ensures good title to property)

Registration fee for assurance fund = EC$7.20

Inland Revenue Admin Fee EC$ 50.00

WITH MORTGAGE:

all of the above, plus:

Legal fees payable to bank for mortgage admin are based on the loan amount

2.5% of first EC$ 25,000 (USD 9,328)

2% of next EC$ 25, 000 (USD 9,328)

1% of next EC$ 950,000 (USD 354,478)

0.5% of remainder

1% Stamp Duty (on value of loan)

payable to Government

1% Commitment Fee (on value of loan)

payable to bank

Valuation Fee payable to surveyor


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