EDITION: October - December 2011

PROPERTY INVESTMENT WITH A DIFFERENCE

Texto: Cat Weisweiller









Recessions invariably leave the already cautious investors amongst us, feeling all the more bruised and sceptical. Thankfully, new ideas are always emerging to help remedy this understand- able state of economic paranoia. Thinking a little outside of the box is often all that’s required to restore people’s investing enthusiasm. ibiCASA takes a look at one such investment scheme, recently brought to Ibiza by the newly formed: Dita Living.



 
20 year property developer and 6 year resident of Ibiza, Diederik van Maren, has recently gone into partnership with Michiel Lyppens and Maarten Mijnlieff to create Dita Living. Between them, they collectively share considerable years of successful property investment, development and cutting-edge entrepreneurship. Their existing property portfolio and combined business acumen are impressive, to say the least. Whilst Diederik and Michiel’s professional endeavours have been concentrated predominantly in Spain, France and Holland, Maarten has, for many years, concentrated on the German and Far Eastern market. Together, they enjoy a powerful international reach.
 
The concept they have introduced to Ibiza is simple: To invite multiple private investors to fund the purchase of land and luxury development thereof. The ultimate sale of the multi-million euro villas which they will masterfully construct with remaining investments, leaves them free to return everyone’s initial investments along with significant added returns.
 
Not for the financially meek-hearted, initial minimum investment starts at €100,000 but, hand in hand with this leap of financial faith, comes a 9% annual return – an interest rate far outreaching many other investment plans on offer. The sums involved also fall far short of monies required for venturing into property development alone, where navigating ensuing building permissions and contractors can be taxing, not to mention the added personal financial risks involved. Diederik and his partners, who are no strangers to the various pitfalls and frustrations of construction, are keen to let others benefit from their already existing years of experience in this arena. This being their first unique selling proposition.
 
Another noteworthy aspect of this new form of collective property investment, is that no banks need to be involved. The whole process is funded by private investment alone. This means that the collateral which would normally be promised to a lending bank, can instead be offered to the investors. With the public’s trust in banks faltering, cutting out the middleman is becoming increasingly popular. Quite apart from shared property investment, collaborative private funding for any business, however ambitious or humble, may well be the gateway to facilitating much future business success.
 
Increasingly, adapting to our changing world economy and resulting scepticism, means seeking out dynamic new solutions that will cut through people’s apathy and help us to collectively rise above these challenges. As an example, Dita Living’s creative thinking can be applied to all businesses, however large or small. Who is to say that anything from a 5 star restaurant to a mere hamburger stand, could not be funded by private outside investment alone? The only key being to offer investors something that they will both feel inspired to be part of and be confident can generate them a satisfactory return. The more inventive the ensuing profit share scheme, the better.
 
In Dita Living’s case, something else that separates theirs from most standard investment plans, is the chance to actively interact with what you are investing in. A potential investor will be invited to visit the land that they are being encouraged to invest in and to view conceptual design drawings of the luxury villa set to be created upon it. Using the latest state-of-the-art design technology, Dita Living’s trademark structural designs are both majestic and unbeatably stylish. After investment, online or in person updates will also be available along the way. Dita Living are cleverly capitalising on that fact that feeling part of a creative process as it unfolds, often makes an investment all the more appealing.
 
Dita Living is confident that the Dutch and German markets, particularly, are queuing to get in on more of this collaborative real estate action, which has proven so popular in Holland and Germany already. Ibiza - a tropical European real estate paradise – is, to Dita Living’s mind, the perfect next stop for supplying this growing demand.
 
It has recently been mooted that Ibiza is to be the next Saint Tropez. It seems that this may not be so far from the truth. Move over super clubs… multimillion euro “super villas” are the future. If you dream of nestling in on the action and owning a part of one of these – just for a while – this may be your chance… whilst making yourself a tidy little stress-free profit along the way. However, for those of us not feeling €100,000 cash rich just yet, we can at least take a leaf out of Dita Living’s book and start applying some of this avant garde thinking to our own business ventures. •