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Q1: Where is Cape Verde?
Ans: Cape Verde is 450km West, of the North-West Coast of Africa in the
Atlantic. Two hours flight South of the Canary Islands.
Q2: Why should I invest in Cape Verde?
Ans: Cape Verde is like Spain 30 years ago. It is at the beginnings of
development. Development is being mainly driven by investment infrastructure
with help from the World Bank and European Union (EU). Obviously anyone
investing in the early stages of the development is likely to see the highest
returns.
Cape Verde is in a rather special situation for investment purposes. In the
short-term the infrastructure will simply not support development on a huge
scale. Therefore, demand is likely to outstretch supply for the foreseeable
future. In the medium to long-term, Cape Verde has a limited amount of land and
therefore prices will continue to rise on the basis that the government won’t
allow the whole country to be covered in concrete.
Q3: I don’t know where I
shall invest my money, I am thinking of investing in
Spain/Portugal/Italy/Dubai/Bulgaria/Croatia, what do you think?
Cape Verde is an entirely different proposition to an established market like
Spain or Dubai - Cape Verde is really at the beginning of the development. The
risks are higher but there is a far greater potential for significant capital
growth. The prices in Cape Verde are significantly lower than in most other
jurisdictions - Where else can you get a frontline 1 bed apartment with a 40 m2
garden facing the sea with a shared swimming pool for 53,000 Euros?
Cape Verde is also different new markets like Bulgaria, as we are really
starting with a tiny country which is very much still in the 3rd World. Because
of that, Properties and Land are still comparatively cheaper. And, therefore,
it represents an investment that has a higher potential for growth.
Q4: What are the risks if I want to invest in Cape Verde?
Some of the potential risks of Investing in Cape Verde
Exchange Rate Risk: The Cape Verde Escudo is linked to the Euro at a fixed rate
of 110 Escudo per Euro. The Euro is practically inter-changeable with the local
currency in Cape Verde. The Euro has proven itself to be a stronger currency
than the Dollar in the last few years.
Price Risk: Property prices have doubled in the last 3 years in Cape Verde.
Land prices have also risen a staggering amount.
Developer Risk: Only 1 developer is offering any kind of guarantees and this is
only on a fairly limited basis. We will tell you what the risks are and what
the benefits are of any particular development so that you can make an informed
decision. We are independent, so we will tell you what we know about the
developers and what their history is.
Construction Risk: All we can do is show you constructions that the developers
have already done and you can make your own judgement about the quality of the
build.
Legal Risk: We are happy to refer you to lawyers in Cape Verde or UK lawyers
that deal in Cape Verde. The actual property transaction is done at the Notary
Public at the end of the off-plan process.
Roads: Cape Verde has one dual carriage way going between the one fully
operational International Airport and the only tourist resort. Many of the main
roads in Cape Verde are old and cobbled roads left by the Portuguese form the
1970s. Most of the side roads are dirt tracks. Investment is happening in this
area but it will take some years for the country to achieve European standards.
Airports: Recent investment from the European Union (EU) and the World Bank has
allowed for the development of 3 new airports. The first airport to be built
and completed in November 2006 was Praia Airport in Santiago. The capital of
Cape Verde now has an airport even though to date the traffic has been fairly
limited as most of the planes are still going to Sal. The next 2 airports that
are currently being built are in BoaVista and S.Vicente. This will mean Cape
Verde has a total of 4 International airports, which is quite considerable for a
population of only 470,000.
The projects should be finishing within the next couple of years. But it will
also take some time before a substantial number of flights come into the new
airports.
Ports: The main 2 ports of Cape Verde are in Praia, Santiago and Mindelo,
S.Vicente. Both of these can take large ships as they are deep ports. All
other islands need further investments to further expand their ports.
Electricity: Electricity is not as abundant as it needs to be and the
infrastructure does feel the strain at peak tourist times. Most development is
happening near existing infrastructure which can be extended.
Significant further investment in this area is needed as many of the local
population are not connected into the electricity.
Water: All water in Cape Verde comes from desalinisation. There is further
investment in this area but continuing investment will be needed to sustain the
new development. At present most buildings are constructed with big tanks for
water underneath. Sporadic supply from the mains or by truck delivery is stored
and then pumped around the building as necessary.
Tourism Risk: Tourism has been increasing steadily in Cape Verde over the last
few years. The development of the tourist industry will follow property
development. In other words you have to build the accommodation first, before
you can fly people in for holidays.
There has been and continues to be a strong expansion of the residential housing
stock and of the number of beds in tourist villages and hotels.
Direct flights from the UK are starting in November 2006 and there will be a
gradual and steady development of the tourist industry. There may well be a
lag-time between the further expansion of the housing stock and more flights
coming into the country.
The rental market at present in Cape Verde is very strong., as there is
currently very limited housing stock. There is no guarantee therefore that
rental income for holiday lets will be consistent in the coming few years.
RMDS has Management Agents on the ground and we will also be developing a
holiday rental section to our site. Once we have a substantial number of
properties that have actually been completed, we will be approaching British
Tourist companies for group lets.
Q5: Is there any crime / Is it safe in CV?
On the most part, Cape Verde is very
safe. Many of the islands have such small populations that crime is practically
insignificant. Tourists to Cape Verde should have little to worry about.
Q6: Are there Police Stations on these islands?
Yes, all islands have a Police Force.
Q7: What about hospitals?
The health services in Cape Verde are
still limited by the resources of a Developing World economy. There are
hospitals but really you should have Travel Insurance, as Cape Verde is outside
of the European Union. If you need a complex operation, a developed country
would be better as Cape Verde has limited resources and skills. All basic
healthcare is, of course, available.
Q8: What about the transport system? Is there any public transport
available?
There is very limited public transport
in Cape Verde. It is common practice for the locals to give each other lifts.
But really as a tourist, the best way of travel is by taxi.
Q9: How much do taxis cost?
Taxis are not too expensive. A 20
minute ride from the airport in Sal to Santa Maria is 10 Euros.
Q10: What are the hotels like?
The top hotels in Cape Verde would be
classed as a 4* by European standards. A lot of the accommodation, apart from
the few good hotels, is fairly basic but it is usually clean and functional.
Q11: Can you recommend hotels?
In Sal, the best hotels are the
Morabezza and the Odjo d'Agua. In Boavista, we would recommend the Estoril
Beach Hotel.
Q12: What is the food like?
As you would expect from an island
nation, the food is mainly fish and shellfish. You can have a good plate of
food for 5 to 10 Euros.
Q13: Can I get back home quickly, if I need to?
There are a limited number of flights
out of Cape Verde, therefore this will depend on availability.
Q15: How much a meal for 2 will cost?
Meal for 2 -
€20 to €30.
Q16: What is the climate like in Cape Verde?
The temperature is 26-30 C all year
round. There is a limited wet season in Autumn but essentially the sun is out
the majority of the time. There is a fairly steady North-Easterly breeze which
helps with sleeping at night.
Q17: Is the local population friendly?
The Cape Verdeans are very friendly
people, warm and welcoming.
Q18: What is the language in Cape Verde?
The official language is Portuguese.
But the locals mainly speak CREOLE which is a Portuguese dialect, comparable to
Pigeon English.
Q19: What is the nearest development that you have to the airport?
Most of the development is in the main
centres of urbanization. These islands are very small. You are never more than
20 minutes away from the airport.
Q20: Are there any British people In Cape Verde?
Until very recently there were very few
British people on any of these islands. Italians are the main expatriate
currently living there. In the last year and half, there has been a huge
increase in properties being bought by the British and Irish. If this
continues, it is likely that in the future there will be a significant British
influence.
Q21: I don’t want that many people around me, can you suggest where I can get
that in Cape Verde?
The real tourist masses are on the West
Side of Santa Maria. Santa Maria is of course, the most touristy place, but it
is a long way from the “Brits, on tour” of the Costa Del Sol.
Tourism has yet to reach the point even in Santa Maria where you would be
crowded on a beach. There are so few people compared to the amount of beach
available, even in Sal, that you can easily find your own peace.
If you want a really quiet existence, then as long as you avoid Santa Maria,
Mindelo and Praia; things are very calm.
Real solitude can be achieved; for example in Maio, but you must consider the
fact that the further away from the main action, the more difficult transport
and amenities are to come by.
Q22: Which island is the most developed?
Sal is by far the most developed island
- development has been happening in Santa Maria for sometime which means that it
is a fully functional tourist resort with all the services and amenities that
you would expect, such as a good selection of bars, restaurants and even a
couple of night clubs. Santa Maria has banks and shops that will cater for most
needs.
Praia, the nation’s capital, and Mindelo, the cultural capital, are also
developed cities.
Q23: Are there any cash points?
There are cash points in Sal,
S.Vicente
and Santiago. On other islands like Boavista and Maio, there are banks at which
you can withdraw money on a Credit Card.
Q24: What is the currency out there?
Cape Verde Escudo, which is linked to
the Euro at a fixed rate of 110 Escudos to 1 Euro. The Euro is accepted is most
places. Just ensure that when paying in Euros and getting change in Escudos,
you get back the extra 10%.
Q25: How do I pay for the things out there?
Credit cards are not widely accepted, so
most purchases need to be on a cash basis. Some travel agents will provide you
with vouchers for hotels if you ask them.
Q26: What is the BEST Island? / Which is the NICEST Island?
RMDS can’t answer that for you – the
Cape Verde islands are so diverse, and between them there is something for
everyone. For beach lovers and surfers, Sal and Boavista are paradise – for keen
hikers and photographers, Santo Antao provides the scenery, whereas Sao Vicente
hosts the music and culture for curious traveller looking for more than just a
relaxing holiday.
Q27: What about S.Vicente?
Those who invest in Sao Vicente will
have access to Mindelo, the cultural capital of Cape Verde. Mindelo has the
arts, amenities and the night life that are envied throughout the country.
The development of S.Vicente will be boosted by a new NATO base of 7,000
personnel that is to be placed on Santa Luzia which is a small island to the
east. The Americans are helping with the development with the International
Airport on S.Vicente to facilitate the new military base.
A Dubai based company had recently made the biggest investment in the history of
Cape Verde purchasing 1.5 millions square metres of land in S.Vicente.
S.Vicente has a more advanced infrastructure than most of the islands.
Q 28: Why are the prices in Sao Vicente lower than in Sal?
The cost of development in Sao Vicente
is lower than that of Sal. This is primarily due to better infrastructure,
namely a much better port, and lower costs of land. Also, Sao Vicente
experiences much less demand, as the main focus is still very much on Sal.
Q 29: What are the expectations for growth in property prices in the next
year?
We NEVER give projections of expected
growth, as even the best economic analysis is based on variables which are
estimated. Giving wild projections on expected growth is unprofessional, even
though lots of agents may give you random figures, plucked from the air.
Q 30: How much can I get if I rent it out?
Weekly holiday lets are the same as
monthly long lets in terms of price – 250€ p/w per studio, and 50€ per
additional bedroom thereafter.
Q 31: Is the time of build guaranteed/ will the developer keep to the build
time?
In all off-plan developments, you should
assume that the time-scale will probably be longer than stated.
Q32: Is the developer based in Cape Verde?
Almost all of our developers are based
in Cape Verde.
Q 33: Can I get contact details of the developer?
No. We don’t give out the personal
details of the developers.
Q 35: Why should I trust RMDS?
Our independence – as we are
independent, we will tell you the pros and cons of every development and every
developer, so you will be able to make a purchasing decision based on a position
of knowledge.
Compliant Business Processes- Our processes are advice-driven rather than
sales-driven, and we always provide clients with a 14-day money-back period,
after they have seen the contracts and all the official documentation.
We are Specialists – RMDS is involved in off-shore sales in Cape Verde. This is
a specialist division as we do not cover any other jurisdictions. The reason we
are in the Cape Verde market is that our director is half-English and
half-Italian, and as you may be aware, most of the developers in Cape Verde are
also Italian.
Q 36: Who is RM Services?
We are 3 businesses:
(1) RMDS – Development Services. RMDS has two arms; (1) Off-shore sales in
Cape verde and (2) We also provide a property sourcing service, primarily for
investors within the M25.
(2) RMWM – Wealth Management. RMWM is the senior business which provides
investment and tax advice to UK private clients.
(3) RMIP – Italian Property. RMIP rents property in Italy.
Q 38: Can I speak to one of your existing clients?
The RMDS position is not to open
ourselves to data protection liabilities by giving out the personal information
of our clients. However, I’ll happily get you a testimonial if you like.
Q 40: How long has RMDS been going?
RMDS was started in July 2005, but our
director has been involved in the Cape Verde market for three years.
Q 43: Is there any guaranteed rent available?
Mr Client, is that a determining factor
or an added bonus for you?
How important is it to you?
The only guaranteed rent being offered by any developer is Vila Verde, but you
will have to sign a lease agreement.
Are you looking to use the property much when you buy it?
Just be aware, that if someone is offering guaranteed rent, they may well have
added something to the price, to cover the risk.
Q 44: Can we sell on the contracts?
Yes – all the contracts we draw up are
transferable.
Q 45: Do we have full ownership rights of land?
Yes, the law was changed in 1993 to
allow non-Cape Verdean Nationals to have full ownership of land.
Q 48: How else can I get to Cape Verde?
Via Amsterdam, Lisbon etc. Most EU
cities fly direct to Cape Verde.
Q 49: How long will it take me to get to Cape Verde from the UK?
5 hours direct – 6 ˝ hours indirect,
flight.
Q 51: I’m going to Cape Verde for 6 months and want to rent a place, can you
help?
Yes.
Q 52: I don’t want you to contact me until after 6pm / the weekend.
Sorry, we only operate
during office hours.
Q 53: Can you help me with mortgages?
Yes – Please contact us by phone or
email for further details.
Q 54: Can you help me with solicitors?
Yes, we can refer you to a number of
solicitors – UK or CV based?
Q 55: What are the official procedures to own a property?
Legal transfer of ownership in Cape
Verde is very similar to that of Southern Europe. This is done at notary public
– a state official who registers the contractual transaction. You can appoint
someone, e.g. your own solicitor, to represent you at notary.
After declaration of finish of works, which is done by the developer once a
building is complete, then you will go on to the waiting list for the notary
public.
Due to the fact that there is, at present, only one notary public on Sal, the
process will take approx. 1-6 months, during which time you will have to pay
your taxes for the land registry and for stamp duty. All the costs, including
the notary fees, should amount to 5.5% of the declared purchase price.
Q 56: What are the purchasing costs?
Approximately 5.5-6% of the attributed
value.
Q 57: What if I want to sell my property? What sort of paperwork will I need?
We are happy to sell your property on;
you will need to draw up a contract with RMDS.
Q 58: Will I be able to sell on my off-plan contract within a short period of
time?
I think you have to be realistic – you
will have to give the property market some period to appreciate, but you may
well be able to sell it on within 6 months – one year. If you are interested in
selling the contract on, its probably best to look at a slightly longer term
project, so that you can give yourself more time (min 18 months).
Q 59: Will anyone come to meet me at the hotel?
Yes. We usually do meetings from hotels,
as much of Cape Verde has no street names or numbers.
Q 60: I want to pay a lower initial payment/ Can I change the payment
structure/Can I have a discount?
We are offering a discount on certain,
bigger developments. RMDS is prepared to negotiate on prices only if you are
looking to purchase more than one property/unit.
With regards to payment structures, they are determined by the developers and
whether they are flexible will depend on who they are, and how much you spend.
Q 61: I need longer than the 28 days between official allocation to contract?
Please contact us directly to discuss
your circumstances.
Q 62: How long can you hold property x for?
We can’t hold any property without the
reservation agreement, and having cashed your cheque.
Q 63: What happens if I can’t make a payment?
There are 15 days leeway, after
notification of stage of build, followed by a subsequent 30 days - following
which, all deposits are forfeited.
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