Fully Managed Hotel Rooms, Frankfurt, SIPPable, 10% NET Rental Guarantee
EUR €66,746
Ref: 2914
2 Bedroom(s), 1 Bathroom(s) |
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Fully Managed Hotel Rooms, Frankfurt, SIPPable, From Just £67,000 (approx).50% LTV interest free developer finance. Pay off this mortgage in 5 years.Own an hotel room in Frankfurt! One of Europe's largest financial centres!
NET rental guarantee of 10% until December 2008
This is an extremely exciting opportunity for our investors. We are pleased to announce this fully managed, SIPP-friendly, high-yielding hotel room project from just €93,000 in the heart of Frankfurt, widely regarded as Europe's leading financial hub and a prime destination for tourists and business guests. This is an existing hotel that is ready now, and situated in a prime central location.
We have teamed up with a major developer who specialises in the acquisition and refurbishment of hotels to provide our investors with this superb opportunity.
Overview
High yielding, SIPP-friendly hotel rooms in the heart of Frankfurt
Scheme is currently fully managed by a reputable, branded hotel company
10% NET rental guarantee until December 08
Indication of possible net yields of up to 15%
50% LTV interest-free developers finance available.
You repay capital only from income generated but with no deadlines - hotelier/developer must generate maximum revenue as soon as possible to claw back their money
Existing hotel in operation for over 5 years
Can be directly purchased with your pension (SIPP) (subject to your pension company or one of our suggested ones accepting it)
Pension purchase would receive up to 66% income tax rebate / contribution from the government (please seek your own advice for your own circumstances)
Prices starting from as low as €93,000 approx
Hotel containing single, double and triple rooms
Ideally located in the heart of the city with easy acess to the financial district
Fully-furnished to a high standard
£5,000 reservation deposit
Complete and ready now!
The hotel is ideally situated in the heart of the city, close to all major places of interest and provides easy access for visitors to all of the city's shows, events and historical sites.
Invest in a proven hotel business concept but why Frankfurt?
Frankfurt is widely regarded not only as Germany's main financial hub but also as one of the most important financial centres in Europe
It is the 5th largest city in Germany and is home to major multinational corporations as well as being the place of residence for the European Central Bank, the German Federal Bank, the Frankfurt Stock Exchange and the Frankfurt Trade Fair
Frankfurt is an economic and financial metropolis with over 3,000 branches of foreign companies and 600 banks, around 230 of which are foreign
Frankfurt is host to some of the biggest Exhibitions and Media events in the world. More than 3 million visitors attended the approximate 60,000 exhibitions held here last year. (source Frankfurt statistics office)
Frankfurt is equally drained in culture with a number of world-famous festivals taking place here every year such as the Museums Riverbank Festival and Skyscraper Festival
Frankfurt boasts the continent's largest and busiest airport and Frankfurt Central Train station is classed as one of the largest terminal stations in Europe
Frankfurt is commonly known as "the city of the banks". In 2006, six of the ten major German banks had their headquarters in the city including Deutsche Bank and Dresdner Bank
There are around 170 hotels offering a total of almost 24,000 beds to the millions of visitors that stay here every year
The hotel industry in Frankfurt enjoys average occupancy rates of around 80%
The beautiful city of Frankfurt is more than 2,000 years old and attracts millions of visitors all year round who come to find culture, do business and witness its amazing transition from old to new
Finance Example for Direct Personal Purchase:
Apartment £60,000
Take full 50% interest free developer finance, £30,000
Deposit required £30,000 (+ costs)
£30,000 repaid over 5 years from income - £6,000 pa
If income is 10% yield this means the loan is repaid from income fully over 5 years
Following loan repayment in 5 years all the net income is for you to retain
Finance Example for SIPP/ Pension Purchase:
Assuming a new pension set up (from £250) and no other contributions made
Apartment £60,000
Pension can borrow 50% of net assets of the pension so maximum loan is £20,000 and the pension needs to contain £40,000 cash
An upper rate 40% tax payer would need to contribute as little as £24,096 after tax rebates to acheive a cash lump sum of £40,000 in the pension.
Purchase the apartment using the £40,000 cash and £20,000 interest-free loan
Assuming a 10% yield pa (£6,000) this would repay the loan in just over 3 years and after that the pension would receive in the full income for further investments or for drawdown in retirement
Please seek the advice of an IFA for accurate illustrations to suit your circumstances (we can introduce one if required)
Please see financial analysis below.
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