So-called alternative assets – i.e. assets that fall outside the traditional categories of stocks, bonds and cash – are becoming commonplace features of modern investment portfolios, with overseas investments in particular gaining increasing favour with today’s knowledgeable investors.
There’s good reason for this. All investments are of course made with a sharp eye towards the prospects of a meaningful return and solid capital growth – but an investment portfolio that’s made up solely of high-risk stocks can’t always be relied upon to deliver on these fronts. Instead, a diversified portfolio – that is, one that contains a variety of investment types – is nearly always key to high performance, which is indeed why, certain overseas investments are proving to be attractive to smart, modern investors who are looking for ways to increase returns and reduce risk.
The Importance of Diversification
New data released by Fidelity International this year illustrates the importance of diversification. In particular, the figures show that the stock market has been leaving investors overexposed for at least the past 20 years – stocks have only been in the top three asset performers twice during this time (once in 1997, and once again in 2009) and often in the worst.
Commenting on the findings, Tom Stevenson, Investment Director at Fidelity International, highlights the importance of asset diversification. “[Over] the last 20 years, no asset class has managed to hold onto its title of being the best performer over consecutive years. A balanced portfolio, split between equities, bonds, real estate, commodities and cash, really can help smooth investment returns and lead to better long-term outcomes for disciplined investors.”
UK Buy-to-let Property Much Less Secure
With so much uncertainty in the stock market, UK buy-to-let property investments have been historically seen as a solid form of diversification. However, today, even this market is experiencing trouble. Recent changes in UK tax laws mean that landlords are losing their right to claim back mortgage interest costs at the rate at which they pay income tax – meaning that landlords now face higher tax bills even if they don’t see their income increase.
On top of this, since April 2016, all second home buyers and investors have had to pay a 3% stamp duty surcharge – meaning that the bill on, say, a £300,000 property has been driven up from £5,000 to £14,000. All this combined, and it’s no wonder that one-in-four buy-to-let investors are being forced to sell-up, as was revealed in a report for The Telegraph last year.
The Benefits of Overseas Investments
With the stock market so rarely pulling its weight, and the domestic buy-to-let property market no longer a viable alternative, an increasing number of investors have recognised that they need to move with the times and are turning their attentions towards overseas investments, where indeed some fantastic opportunities await.
Investing in buy-to-let property overseas comes with a huge range of benefits – especially if you choose a location where tourist numbers are high, and set to continue to rise long into the future.
One such location is rising holiday hotspot of Cape Verde – a tropical archipelago floating in the Atlantic Ocean 300 miles off the west coast of Africa. Tourist numbers have been increasing on these Islands 115% year-over-year since 2000. Attracted by scorching, year-round sunshine (temperatures average between 25°C and 30°C right around the calendar in Cape Verde), crystal clear waters, thriving culture, “no stress” lifestyle and impeccable hospitality, these visitors are creating a huge demand for luxury accommodation – a demand that is currently outstripping supply.
This means that anyone investing in a Cape Verde holiday property has an unrivalled opportunity to tap into this thriving tourist market and secure some portfolio-strengthening fixed returns long into the future.
Indeed, the Cape Verde tourism boom is set for the long-term. The World Travel & Tourism Council’s latest figures reveal that more than half a million people will visit the country in 2017 – a figure forecast to rise to nearly three-quarters of a million by 2027. As such, Cape Verde has been named as one of the top ten countries in the world for sustained, long-term tourism growth – which is precisely why it is also becoming one of the world’s new investment hotspots for modern investors seeking to strengthen their portfolios with robust overseas investments.
Your Own Holiday Home in the Sun
Of course, there are many additional benefits that come with owning your own property in a tropical sunshine paradise. On the Island of Boa Vista, a brand new luxury Resort – the White Sands Hotel & Spa – is currently entering a new phase of construction. The latest development from the award-winning The Resort Group PLC, the White Sands Hotel & Spa is making 835 luxurious properties available to investors who are looking to not only reap great financial rewards, but enjoy all the additional benefits of a lifestyle investment as well.
The Resort will feature six swimming pools with swim-up bars, six themed restaurants offering a range fine dining experiences, a range of bars, a night club, children’s facilities, a fitness centre, a water sports centre, tennis courts, beach ball courts and the world-famous YHI spa. It’s not hard to imagine just how popular the White Sands Hotel & Spa will become as a tourist attraction when the doors open, meaning that investors will have the opportunity to maximise their returns through year-round occupancy. But of course, everyone who invests in a property here will be able to enjoy their property as their very own holiday home in Cape Verde as well.
White Sands Hotel & Spa – Property for the Modern Investor
The Resort Group PLC have a proven investment model that enables investors to strike the perfect balance between achieving high fixed returns and enjoying all the luxury of a lifestyle purchase.
The offer means that all who invest in a property at the White Sands Hotel & Spa today will start enjoying fixed returns from the moment the resort opens – providing the long-term security you need from your investment.
That’s the investment side taken care of.
On the lifestyle side of the equation, the Property Options is made even more special through our Hotel Managed Program. The Program makes for a completely stress-free investment. It means that your property will be marketed to millions of holidaymakers around the globe through some of the world’s largest and most renowned tour operators and travel agents. On top of this, The Resort Group PLC will take care of the cleaning, maintenance and rent collections. In short, your investment will be fully-managed on your behalf – and all whilst you still have the opportunity to use your property as your very own 5-star Cape Verde holiday home for up to five weeks every year.
This provides the opportunity for you, your friends and your family to make regular trips to Cape Verde and enjoy everything – the beautiful beaches, turquoise waters, exciting activities, tropical wildlife and thriving culture – that makes the country so appealing to tourists for yourselves on a regular basis. Indeed, when it comes to moving with times, the benefits of Cape Verde overseas investments take a lot of beating, and from fixed returns to living the lifestyle you’ve always dreamed of, the White Sands Hotel & Spa has everything the modern investor is looking for.
If you’d like to know more about the overseas investments available at the White Sands Hotel & Spa, or would are interested in booking a “Try Before You Buy” VIP Investor’s Tour of the development, get in touch with Luxury Beach Life today.