Returns hit 40% at the end of Phase 1 at Elysium
Gross rental yields projected at 9-10%
We are pleased to report that off plan apartments in the Elysium Project we are offering have increased in value by c20,000 USD (c10,000 GBP) at the end of Phase 1.
Capital returns are real and tangible…
We visited the project last week to monitor progress and the developer, confident of future prospects, offered a buy back to any of our clients who wished to realise their investment profit immediately. We strongly advise you to resist the temptation. Although the return you would realise would be around 40% on what you’ve spent (calculated as profit on disposal ÷ first instalment plus deposit paid) and would be considered phenomenal given the timescale (a month), we think prices are likely to increase further and it is worth holding on to till completion. Annualised the capital returns suggest an amount so ridiculously high we won’t bother to calculate it, but you get the (very promising) picture!
…but rental yields are also hot to trot…
Rental yields are also keeping up. We chose Elysium primarily for its attraction to the domestic market (since this is where you, as a foreign investor, will exit). We know the project’s location in prime city centre and top spec fit-out is in high demand but in short supply. Consequently, it’s no surprise to us that Istanbul’s bright, young things are paying top prices for rental in the first Elysium project, at around 1,000 USD per month for a one bedroom, and these prices are likely to be replicated in the apartments under construction. We project gross rental yields (based on Phase 1 entry pricing) at around 9-10%. Together with the capital growth being witnessed, we defy anyone to show us a better, comparable deal in Istanbul!
…there is still time to invest…
For those of you who missed out on Phase 1, there's still time to benefit from this exceptional investment opportunity in Phase 2, but time is limited, as prices are moving rapidly. Given the demand the developer is experiencing, he has now withdrawn the option to pay by instalments for domestic purchasers but dq|dx clients will retain this option. We are also talking to domestic banks to see if they are able to offer foreign purchasers mortgages secured on the apartments and we’ll keep you posted on developments.
…given performance in other sectors, it’s worth thinking about!
Prior to marketing this project, we were pretty sure that the numbers made sense but even we have been pleasantly surprised. Just for interest, we present how some competing investments have fared below – as economists, we know the comparison is unfair, but doesn’t it make you feel good anyway?
| FTSE All Share |
-3.3% |
| UK Commercial Property |
0.2% |
| IPD Pan European Property Index |
1.2% |
| FTSE Real Estate Equities |
6.7% |
Source: Investment Property Databank (IPD)
Important note: The data presented above is sourced for July 2007 except for the Pan-European Property Index where the monthly average for 2006 is given (latest figures available have been used). In line with IPD guidance, the IPD European Index must not be used as or considered a benchmark. All figures presented are for total returns.
Disclaimer: It is important to note that the value of property can go up as well as down. The same is true of rental yields. Please consult with and seek advice from an Independent Financial Advisor (IFA) prior to making any major financial decisions.
While all reasonable care has been taken by dq|dx to ensure that the information on this web page is accurate and current, you should independently verify the accuracy of all information prior to using it.
