![]() |
Currently in the UK property market, we have one of the best buying opportunities that we have seen for the last 20 years. Shrewd investors are out there right now snapping up some fantastic bargains whilst the amateurs are staying out of the market due to uncertainty, lack of knowledge, and fear! |
Investors are being given the opportunity to earn money from rooms in hotels in foreign cities and property hotspots as an alternative to the floundering commercial UK property market.
For a minimum investment of £4,500 they will be able to enjoy both rental income and capital growth from the investment which is also SIPPable. If investors choose not to take advantage of the SIPP route they will be entitled 21 days free accommodation in any Room to Invest group hotel.
Room to Invest (“RTI”) is the brainchild of entrepreneur Renwick Haddow, original founder of AIM–traded Arc Fund Management, and is a subsidiary of AIM–listed Capital Ideas plc.
The company has already purchased its first hotel in Budapest, Hungary. It is currently in final negotiations to buy an hotel in the Czech Republic's capital Prague, a Riad in Marrakech, Morocco and an hotel in Russia's St Petersburg. It is looking also at other opportunities mainly in the growing economies of Eastern and Central Europe.
The Budapest property, Villa Uhu (www.uhuvilla.hu), is a well established, Michelin recognised, award winning 4* boutique hotel that is both profitable and enjoys above average occupancy.
Apart from the potential for capital growth RTI is estimating an annual income for shareholders of 7.5 per cent, which is being guaranteed to initial investors for the first year, and a 10 per cent discount on rooms in future Room to Invest hotels. All shareholders will benefit from profits made on any future sale of the hotels.
After holding their investment for 12 months, investors will be able to sell their holding and RTI will help to find a buyer.
RTI Chairman, Renwick Haddow, said: “With the UK property market in the doldrums we believe this is a good time to invest abroad. We will only be investing in hotels that are profitable, have good occupancy rates and, in some cases, have room for expansion.
“We have chosen Hungary for our initial investment as GDP growth is forecast to continue, property prices are rising and because tourist numbers to Budapest have increased substantially over the past five years which has lead to a number of budget airlines flying to it.
“RTI will be responsible for all management, operational and maintenance costs, so there are no hidden charges and will also help people who wish to sell by sourcing buyers. All our hotels will be all season with strong occupancy rates throughout the year”.
He said similar schemes have been launched in the UK over the last two to three years which have proved popular with investors. However they are aimed at the ultra high net worth individual with minimum investments of around £400,000. The focus of these schemes has been predominately on London.
“Room to Invest opens up the investment opportunity to the ordinary investor and focuses on property hotspots where prices are expected to remain strong. Other countries we have identified as promising are Montenegro, Croatia, Poland, Romania, and the Ukraine”.