It a simple proposition. The developer buys German Listed Sites which are refurbished to a disciplined schedule before they are sold to German property buyers. The German Government extends a unique tax incentive to any German citizen who purchases a Listed Site that matches a specific set of criteria.
Investors in the Singapore comes in as a co-development with the Developer. The Investment Structure then utilises German Listed Sites as the underlying asset class to create a profit and a return for the investor. As a welcome security measure, the investor has first legal charge on the German Listed Sites until capital and interest is returned to the investor at the end of the term.
The Investment tenure for Asia investors is 24 months, and at the end of 24 months or earlier, investors will be paid for their return and capital.
The major attraction of this investment opportunity is that it provides all the security normally associated with property purchase and ownership without the main drawback, namely the difficulty of quickly converting the secured asset into liquid funds should there be a need for cash flow.
How It Works
- The Sites is usually bought significantly below market value with planning for apartment units. Discounts of up to 70% are possible, for these are often derelict Sites. Being listed makes these Site quite rare as only 1% of the Site in Germany are listed. The purchaser has first charge on the Site so their capital is secured.
- An in depth sales brochure is completed and the apartments are offered for sale to the German market as a Tax Break. The apartments are sold off plan to the German market through 4,000 specialised sales agents who deal with these kinds of tax break properties.
- The selling agents prepare a due diligence on the Site selected prior to any commitment on behalf of Developer, the investment promoter. They have to be satisfied that they will complete the sale of the units when they enter into a sales contract.
- Developer will not purchase the Site without the sales contract from the selling agent in place.
- Developer’s selling agents have Professional Indemnity Insurance in place.
- The apartments are sold and contracts are signed with the German investors.
- The renovation begins.
- The target market for the sale of listed Sites properties is those German investors who currently pay 40% or more income tax. Currently this equates to a target population of 10.4 million citizens (12.6% of the population / 24.1% of the workforce). German tax law allows German tax payers to depreciate the costs for the refurbishing / modernising work carried out on a Monument status Sites.
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Disclaimer: This webpage is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any Investment.