21 Sep 2022
Words Resort News

Vanuatu proves to be hot property with astute Australians

Two months after Vanuatu re-opened its international borders after closing them in March 2020 due to the pandemic, ResortBrokers has listings for Coco Beach Resort ($2.7m); Tropicana Resort ($3.2m); and Ocean View Hotel Apartments ($3.55m).

The three properties, which can be sold separately or as a combined portfolio at a discounted rate of $8.9 million, are owned and operator by the same vendor and show a 13 per cent passive ROI, or 20 per cent-plus when leveraged.

ResortBrokers Director Alex Cook says as a combined asset portfolio, it represents a great opportunity for an Australian-based investor or investors to acquire a substantial business and receive a high passive yield.

“With ANZ Vanuatu currently offering Loan to Value Ratios (LVRs) of up to 50 per cent and favourable interest rates, there is scope to leverage this substantially,” he says.

Investment highlights include:

• 55 lots across 3 complexes/resorts – mix of apartment and bungalows
• Very high passive income of $1.5 million at a yield of 13 per cent
• Good bank lending appetite
• Run completely under management with option of adding supervisory management
• Benefit of tourism boom since international border opening on July 1
• Income earned on-shore in Vanuatu exempt from taxation

ResortBrokers founder and chairman Ian Crooks says opportunities such as these new listings could be just the ticket for Australians searching for a lifestyle change under three hours’ flight from Brisbane.

“I’ve sold 10 Vanuatu resorts over the past 25 years and it is an attractive South Pacific destination for a number of reasons,” Mr Crooks says.

“Invest Vanuatu  - the country’s foreign investment promotion agency - cites access to global markets; a strong finance sector; low tax; and supportive government policies as solid reasons to buy in this market.

“It is also home to two world-class international ports; improved road networks; international flights; and efficient utility services as well as more than 80 per cent digital telecommunications coverage domestically, making doing business easy, according to Invest Vanuatu.

“Recent stats from CoreLogic have seen the median house value in Byron Bay increase to $2.2 million. For comparatively little more, you can own an entire resort in Vanuatu.”

According to World Bank data, pre-covid, international tourism arrival numbers into Vanuatu sat at 350,000, up from 82,000 in 1995.