24% guaranteed investment return in 12 months

L

Lemurz

Registered User
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Anybody know anything about Sungate Property who were advertising "24% guaranteed investment return in 12 months" in the Indo last week?
 
Any more detail on how they claim to guarantee 24% return in a year!? I'm fascinated. Not to mention very skeptical...
 
Here's the beef direct from the horses mouth...........


Thank you very much for your inquiry about minimum return of 24% within 12
months,19% within 6 months.

We guarantee that after all sales are fulfilled and when the development is
complete (June 06)your property will be sold for you within 6 months with a
minimum investment return of 19%.Let's say we complete a sale today at 52000
Euro,The last unit in the same complex sold 60000 Euro ,our agent guarantees
19% profit top of 60000Euroi.e 71400.

The same applies for the 12mounth / 24% deal.

Unfortunately ,I can not sent the contract out to you due to it's
confidential but when you decide to buy one of our off-plan developments we
can show you the contract and it will be signed between you and the
agent.The contract has certain closes one of them,during the 6 or 12 months
period you can not let the property out.Careless holiday makers usually
damage the property therefore it takes longer time to sale.

I have two off-plan developments in Bodrum ,Gumusluk.Royal Blue is sold
out.Royal Valley has total 36 units 18 Penthouse ,18 Duplex apartment .15
Units is sold out .Unfortunately Brochures are not ready yet but I have site
plan ,room sizes and price list .If you are interested please let me know
with your address so I can post them to you.
 
No explanation of how they "guarantee" a 19%/6 month or 24%/12 month return. No way to check a priori if this is in the contract. The return seens to be based on you paying up now even though the property will not be ready for another year. Not surprisingly everything is almost sold out. Poor English and several typos. Proceed with the utmost of caution is my advice. At the very least get some independent advice/analysis and don't depend on the seller for all the information used to make your decision.
 
Lemurz,

A few things to bear in mind:

In Turkey, some developments--even major developments--build without planning permission. This is partly due to the large amount of foreign buyers who have entered the Turkish property market in recent years, whipping the poor developers up into a frenzy. Some of these developments will never get planning permission because the land being built on is zoned for a different use.

Make sure you understand what the prices they quote actually mean--it’s not unusual for properties to be bought and sold before they’re built. You would typically make a deposit and then 3 additional payments, but you might hope to sell before most of the payments are due. If you can’t sell, there is no financing available in Turkey, so you will have to find the full purchase price yourself. Are they offering 19% and 24%, based on the assumption you’ll only ever invest the initial payment?

You will have to pay 30% capital gains tax unless you hold the property for at least five years.

J.

 
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