INVESTORS looking for a gilt-edge investment will be interested in Dunboy Castle in west Cork. This new fivestar plus hotel development on the Beara Peninsula has a choice of two investment options, the standard suite and the enhanced suite, both of which offer guaranteed rental return which the selling agent, Bohan Properties, says will cover an interest-only mortgage repayment.
The standard suite offers a capital guaranteed buyback at the end of seven years at the current purchase price and a guaranteed leaseback return of about 15,000 a year over seven years. The unique selling point of this investment however, is that your mortgage cost is 85% hedged against your rental income.
The enhanced suite offers three years guaranteed leaseback return of 25,344 a year and investors can speculate on future hotel rental returns as well as capital appreciation as there is no buy-back policy. All of the suites carry capital allowances of 90% and there are no management fees, fit-out costs or legal fees.
The package also offers investors two weeks' free use of the hotel, including use of the pool and gym.
Price: standard suites 425,000, luxury suites from 496,000 Agent: Bohan Property Consultants, 01-4189922
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