Investment Finance In Cape Verde

There are various financial options available when considering an investment property in Cape Verde islands. Below is an overview of investment finance available in Cape Verde.


Financing your investment property in Cape Verde is an important decision and could entail injecting your own cash resources or, as most serious investors prefer, a mortgage or equity release scheme.

The lack of local Cape Verde mortgages could be construed by many investors property as a disadvantage. However, this is a clear indicator that the market is indeed in its infancy, allowing international property purchasers to source excellent quality property at remarkable prices. What is more, the Cape Verde property market promises some of the best possible capital appreciation rates worldwide and a future rental market that will rival many other major holiday destinations.

Click here to get a quote for a mortgage in the Cape Verde Islands

There is already talk of many developers in Cape Verde starting to make progress by offering mortgages to off-plan buyers but the paradox is that as the financial stability of the area increases and mortgages become more readily available, the best investment opportunities will already have gone. As with every emerging market, it is the very early investors who see the potential in the area that make the most substantial returns on investment.

Euro Mortgages for Foreigners

Terms:

  • Currency => EUR
  • Amount => Up to 70% LTV (subject to status)
  • Subject => Purchase of a property
  • Term => Up to 15 years
  • Type of mortgage => Repayment mortgage – capital and interest
  • Interest rate => Variable rate: 6 months EURIBOR 3.75
  • approx. 7%
  • => Fixed interest rate: approx. 8%
  • Bank arrangement fee => 1.25%
  • Broker fee => £595
  • Early redemption penalty => First 5 years: 1-2% of the outstanding balance
  • After 5 years: 0%
  • Stage payment financing => Yes
  • Collateral => mortgage on a property in Cape Verde

1. Off-Plan Financing

Today it is possible to achieve a mortgage upon project completion but this does not help a property purchaser fund an investment.

Therefore, the payment schedule for buying an off-plan property in Cape Verde is very different from a more established market such as Spain which typically offers a 30% deposit and 70% payment on completion. A typical purchase in Cape Verde will include 5 stage payments during the development period of the property. The investor or home buyer will need to fund these payments but has the possibility of achieving a 70% "mortgage" upon the valuation of the finished property when they finally sign the completion documents.

As always, before making a commitment, we recommend you discuss your investment strategy with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

2. Equity Release

Put simply, equity release is a way of releasing some cash from the home without having to sell up and move house. If you have property in your own country and would like to borrow against this in an equity release plan, we can introduce you to independent financial advisors who can help you raise the necessary finance for your investment in Cape Verde.

If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in certain circumstances to raise money for a mortgage to finance your Cape Verdean property investment.

3. Alternative Finance

Not everybody falls into a category and some investors will need to raise alternative finance to the equity release or mortgage options. There are other borrowing facilities available to investors of Cape Verdean property.

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