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Jet-to-let scheme takes off

Oceanico has joined forced with Barclays bank to offer a tailored mortgage on its developments in Lagos, Portugal. The deal offers a two-year interest rate free period combined with a two-year capital repayment holiday, dependent on a 30% deposit.

Oceanico says that with a strong lettings market, buyers also stand to make enough for the first two years of their purchase to cover costs for the third year when the mortgage repayments begin.

Simon Burgess, Oceanico Developments director, says: “This arrangement represents a unique opportunity for investors.”

The last phase of the four-star properties went on sale last week at two Oceanico resorts, Estrela da Luz and Vila Baía in Praia da Luz with prices ranging from e155,000 for a studio apartment to e585,000 for a three- bedroom deluxe apartment.

Oceanico says the popularity of buying property abroad continues apace with more than 112,000 Britons doing so in the past 12 months. More than 10,000 have bought in Portugal and reaped the rewards of capital appreciation rates in excess of 10% over the past three years.

Research from the Association of Hotels and Tourist Developments in the Algarve reveals that four and five star resorts achieve the highest occupancy rates for rental in Portugal at 67%. Based on this finding, a four or five star apartment rented out for that time would translate into 35 weeks&#39 rent per year for buyers.

Burgess adds: “We are catering for a new breed of investors who are turning to foreign shores to make their pounds go further.”

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