Financials and Legals - Aqua, Boracay Island, Philippines
Project timings...
Aqua Boracay by yoo was only released to market for real estate sales in April 2013 and Phases 1 & 2 are 70% sold out already!!
Construction is well underway (showing clearly that the developer is not at all reliant on property sales to fund construction). The model units are already completed so any investors wishing to view the site and to inspect these completed properties are very welcome - please kindly let us know so that we can assist with planning your trip to Boracay.
The residences in Phases 1 and 2 will be completed in July 2014 with the resort opening shortly afterwards in Q3 2014
Completion of the Phase 3 residences and facilities will join the resort’s operations towards the end of 2015 - in line with the Boracay airport expansion.
Pricing and availability...
The property prices in Aqua Boracay by yoo are currently heavily discounted especially considering the fact that Aqua will operate as a sophisticated five-star luxury resort. Limited edition luxe studios start from just $199k usd - these properties are seriously under market value, given the absolute beachfront location! And $1.1m usd will pick you up a seriously decadent penthouse…
Limited Edition Studios circa 50 sqm
Priced from: 9,569,950 PHP / circa $219k usd / £138k gbp
STUDIO SPECIAL OFFER: there are just 10 studios available at the incredible discounted price of just $199k usd!!! Don’t delay to register your interest!
One Beds from 80 sqm
Priced from: 12,100,000 PHP / circa $280k usd / £175k gbp
Oversized one beds 97 sqm
Priced from: 16,500,000 PHP / circa $380k usd / £240k gbp
2 beds from 176 sqm
Priced from: 30,000,000 PHP / circa $670k usd / £435k gbp
Penthouses from 605 sqm
Priced from: 49,500,000 PHP / circa $1.1m usd / £715k gbp
Payment Plans…
If you are looking to invest into phases one or two, your payment plan will run between the time that you sign the sale and purchase agreements and the time that the resort is ready to become operational in Q4 2014. Please kindly email us to receive the various payment plan options - we will work with you to agree a payment plan that suits you perfectly.
If you are looking to invest into phase three, your payment plan will run between the time that you sign the sale and purchase agreements and the time that the third phase of the resort is completed and joins the existing resort operations in December 2015. Again, please kindly email us to receive the various payment plan options - we will work with you to agree a payment plan that suits you perfectly.
Mortgage Notes
ii) The developer is offering the mortgage in-house - so it is what we call vendor financing - therefore, it is completely non-status - you do not need to complete any forms or credit checks and will be automatically approved for this scheme.
iii) There are no penalties at all for early payment in full at any time and you will not pay any interest on the capital that you repay early. There are also no penalties for making lump sum payments at any time either, provided the amount is over $20k usd for each lump sum payment. You will not pay forward interest on any amounts which you settle early.
iv) You pay the mortgage back on monthly basis.
v) You may sell the unit with the mortgage outstanding and upon completion of your sale the remaining mortgage balance must be paid to the developer in order to transfer your unit to the new buyer.
vi) You will still receive the rental yield at 6% net for the first 2 years -this remains payable on a quarterly basis so if you wish you may use this yield to offset some of your mortgage payments (you will not receive the yield in cash if you wish the amount due to you to be applied to your mortgage account).
All in all this is a very fair and attractive scheme that offers an excellent route to ownership, whilst halving the capital commitment.
Legal information...
The legal ownership at Aqua is "leasehold with a share of the freehold" - as an owner you may buy in your own name without any restrictions at all under this structure and you get a perpetual or 'never ending' lease over the property (an individual certificate of title in your own name) and you also are given a share of the freehold - so effectively you become both the lessor and the lessee. This is bulletproof ownership for foreigners and also makes the property very easy to sell onwards to another foreigner or local.
The freehold is owned by the Residents Association which is in fact owned by all the owners of residences in Aqua (you are gifted the shares on completion and handover along with all the other owners). The Residents Association is a duly incorporated Filipino company and so this entity is able to own the land outright. The lease is never ending and each time the lease term is due to expire it is automatically renewed - since the lessor is the Residents Association this process is completely protected in perpetuity.
Furniture at Aqua Boracay by yoo...
One of the many exciting attributes of Aqua Boracay by yoo is the incredible furniture and interior design packs that have been created by the legendary yoo team (www.yoo.com)
The furniture packs for Aqua simply ooze quality and style and items have also been selected for their durability. Your property will be delivered fully furnished and absolutely ready to rent.
Prices of the packs are as follows:
| Studios | $14,999 usd |
| One Beds | $19,999 usd |
| Two Beds | $29,999 usd |
The payment for the furniture is not due until completion and handover of your property to you.
Those all important rental returns...
There is a very well planned rental scheme available to all investors in Aqua whereby you may rent out your residence as part of the resort operations and yet still use it whenever you wish. Participation is voluntary and for the avoidance of doubt there is no limit on owner usage.
Owners in Aqua will benefit from a 60% share of the rental revenue which should result in net yields of around 7 to 8%. Demand is high so these rental income forecasts are very conservative. There is also a 2 year rental GUARANTEE in place of 6% UNCAPPED.
Please kindly request full details on the rental programme if this is something of interest.
