Beautiful Borneo – an investment worth considering

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by Kay Murchie

The Nexus Bay resort in Borneo is enticing British homeowners and those looking for a second home. This resort is in the north-east of the city and the properties are on the 4000-acre Karambunai peninsula and are gated, guarded and serviced.

It boasts a curving beach, trimmed with tropical palm trees and it is estimated that 1,200 beach-front holiday homes overlooking the South China Sea will be built during the next 10 years.

You have two options should you buy into the resort, owner-occupied or lease-back. The latter is becoming the most well-liked. Buyers are offered 20 days free stay each year and, in leasing their property back to the resort, are certain to get a return of at least 7% of the purchase price, in rental income for five years, whether it is let or not. There is a blend of 243 2-bedroom semi detached or multi-storey apartments, fully furnished. The first 116 were all sold when the first stage was introduced in October 2006.

If the sea and sand and the beautiful landscape entice you, then a second home has a lot to offer. If it is entirely about short-term investment then you will need to think long and hard. Bearing in mind that Nexus could be renting out your property for at least 6 months of the year, your fixed return may looks a little slim.

It is anticipated that prices will have risen significantly before the first stage is completed by the end of 2007. The land laws remain based on British law so deals are simple to understand.