Overseas - Friday, July 14, 2006

Spain is the setting for over a quarter of our second homes. We look at the psychology of buying in a sunnier climate

‘The sun significantly influences the decision-making process of British second home buyers,’ says Dr Cliff Arnall, health psychologist and human happiness expert. Research shows that around 42 per cent of active home buyers in Spain are British, causing the Spanish market to rise annually by 12 to 15 per cent, so far claiming 27 per cent of British overseas property seekers.

As a result of Spain being sunny, inexpensive and easily accessible due to the increased number of no-frill flights to and from the UK, the property market rose by 12.8 per cent in 2005 compared with the local market at a mere five per cent. The slow-tempo suntrap is evidently the UK's most popular destination for second homes, according to Spanish property developers, Keysol.

‘The notorious SAD (Seasonal Affective Disorder), caused by decreased winter daylight hours, affects up to eight per cent of Britons and can strongly influence lifestyle decisions, including where to live,’ added Dr Arnall. One in six Britons will have depression at some point in their lives and is most common between the ages of 25 to 44.

Almost 260,000 Britons are said to own second homes abroad, with some reports showing a total investment of around £23 billion in overseas property, mostly in Spain, and showing a steep rise in value from £11 billion two years ago.

Keysol estimates that more than 50 per cent of British overseas property buyers make their choices based on having spent time holidaying in the region. The Government Office of National Statistics report that in 2004, UK residents made a record 42.9 million holiday trips abroad, an increase from 6.7 million in 1971; Spain was the most popular destination, indicative of the growing interest in Spanish investment.

Michael and Carol Sharp from Bedfordshire, bought their townhouse in Costa Blanca based on their love for the area; having watched it develop and flourish in parallel with their children who are now parents themselves. Michael said: ‘We are more relaxed here because we know the area. We didn't just buy a house in the sun; we invested in a better life in a place we've grown to love.’

Property Keysol's services director, Mark Hughes, is witness to the rising trend in British home buying in Spain, in particular in the Costa Blanca and the Costa Calida. ‘Spain's sunshine index is very attractive,’ said Mark. ‘With 320 days of sunshine per
year and an average daily temperature of 21C, there is little wonder why our clients are reserving their off-plan properties earlier now than ever before.’

Spain's 12 hours of summer sun versus the UK's five, offers no mystery why the British public have become obsessed with the Costas. In addition, the World Health Organisation has deemed Costa Blanca one of the healthiest places in the world to live.

Available properties range from humble apartments to stunning detached villas, making Spanish property affordable for a wider market. Select from two bedroom Keysol apartments for as little as £163 per month*.

No-obligation four-day inspection trips to the Costa Blanca and the Costa Calida are available through Property Keysol at only £89. Visit www.keysoluk.com or call 0845 6018306.

*Figures based on 40% deposit, excluding taxes, legal fees and closing costs. Based on interest only mortgage for up to 15 years, 3.47% (Mibor rate +1%), and arrangement fee 1%. Examples provided by St Georges International Finance. Mortgages in Spain are not regulated by the Financial Services Authority.


Michael and Carol Sharp moved from Bedfordshire to Benidorm – and haven’t looked back

Despite ambitions to retire at 60, Michael Sharp, a self-employed builder, took early retirement at 61 to realise his wife’s dream – a home under the Spanish sun. Michael and Carol have visited spectacular Benidorm for the past 35 years and, along with their children, had watched the area develop and grow to the highly sought-after area it is today. It was that intimate relationship with the region that made them want to spend the rest of their days in the surrounding quiet hills.
Only five weeks after placing their Bedfordshire home on the market in November 2005, the Sharps accepted an offer on their house and the decision to leave the UK was confirmed. Leaving behind three children, two grandchildren and a successful self-made business, the Sharps visited the Keysol Roadshow in the Milton Keynes.
Keen to find out more, they accepted an invitation for a four-day inspection trip. With the completion of the sale due any day and Michael preparing to retire, time was tight for further holidays, so the brief inspection trip was an ideal platform for the couple to visit the region and wet their appetite for the slow-paced lifestyle they were after.
 ‘The trip was incredible,’ said Carol. ‘Instead of the stressful time I perceived it might be, with endless walking, information overload and travel fatigue, it turned out to be like a mini getaway with the added bonus of seeing a few houses. The three-night, four day trip included wining and dining, something to remember indeed.’
An English-speaking Keysol representative greeted the Sharps at Alicante airport and drove them to their hotel in Torrevieja to freshen up and rest. After a brief meeting at the Keysol offices and a presentation on available properties matching their requirements, the couple was whisked off to Balcon De Finestrat, less than five miles away from Benidorm, 70 miles north of Torrevieja.
 ‘It was love at first sight!’ said Carol of the delicately urbanised Finestrat town. With Benidorm’s famous Gran Hotel Bali in view and only a five minute drive from the Terra Mitica Theme park, the location was perfect and the semi-detached townhouse spoke a thousand words.
The Sharps loved their new three-storey, three-bedroom home, with roof terrace, solarium, kitchen appliances and sea views to boot. At only £237,000 all inclusive and a £1,800 furniture pack, it was well within budget, and certainly a bargain for the dream lifestyle they were about to enter into.
As reality would have it, the decision was all based on the exchange of their house in the UK. Due to delays, the Sharps could not commit to the property in Spain, but there was absolutely no pressure from Keysol to pay a deposit. Keysol offered to hold the property irrespective of their situation in the UK, and made welcomed checks to offer their help or advice where required. Service was impeccable.
At the end of February the sale of the Bedfordshire house was completed and the Sharps returned to Benidorm. Without a place to stay until their Finestrat home was sale agreed, Keysol put the couple up in an apartment for five weeks, completely free of charge, until their big move to Finestrat on March 24. Carol added: ‘We couldn’t have asked for better assistance, they were absolutely brilliant!’ Keysol arranged all legal and financial matters, including their private pension, making the transition process as painless as possible.
Michael said: ‘Language is becoming less of an issue now, and instead, a healthy challenge. We are now teaching the locals English and they’re teaching us the translation, so what could be better? We are more relaxed, never in a rush, and life is cheaper and sunnier. We didn’t buy a house, we invested in a better life.’
Being the first people to move into the 60-unit Finestrat development, the Sharps aptly named their new dream home La Primera Casa, meaning ‘the first house’.

Prospective overseas purchasers who are looking for the ultimate Caribbean opportunity should have a look at Ocean View Properties International’s wonderful Punta Perla development in the Dominican Republic.

The Dominican Republic reported an 8.3 per cent increase in foreign tourist arrivals during the first eight months of 2005. According to statistics from the Central Bank, 2,233,569 foreign vacationers visited the country from January to August, 144,184 tourists more than during the same period in 2004. The statistics show that 87 per cent of travellers that visited the country during January-August arrived through the airports of Punta Cana, Las Américas and Puerto Plata. Moreover, 49 per cent of passengers came from North America, 43.4 per cent from Europe, 3.6 per cent from South America and 3.7 per cent from Central America, the Caribbean and the rest of the world. The Association of British Travel agents (ABTA) members have cited the Dominican Republic as being ‘Hot for 2006’ and reported a nine per cent growth in bookings for the island this year.

Introduction to Punta Perla

Punta Perla is a master planned resort situated on the Eastern tip of the Dominican Republic in the established area of Punta Cana. Set in approximately ten million square metres of natural, prime Caribbean real estate, Punta Perla offers the last beachfront development opportunity of this size in the popular Punta Cana region.

From its conception, Punta Perla has been carefully planned to become one of the premier resorts in the Caribbean and will evolve into a first class living and vacation experience. Low-density population of properties within the resort is key to the developer’s plans for Punta Perla with only 11 people per acre all set in over 2,500 acres.
Approximately 8,000 residential and commercial properties of varying size and type have been carefully integrated into the natural environment as well as a series of private clubs and facilities, which have been carefully selected for the enjoyment of residents and their guests.
At the heart of the development is La Marina de Punta Perla, a harbour equivalent in size to Puerto Banus, playground to the rich and famous in southern Spain. Punta Perla will attract high-end retail companies, wishing to operate their businesses there. Chic restaurants and exclusive bars will be carefully selected to provide the very best of day and night entertainment. Set behind the marina is a Colonial village planned around a central park. Themed on past European architecture, classic apartments will mix with individual shops and restaurants along the many boulevards.

The resort will also include beach, yacht and golf clubs, elegant boutiques and restaurants, a world class spa, tennis and swimming facilities, deep sea fishing, equestrian facilities, championship polo club and a casino among the diverse range of attractions. A golfing academy and three signature golf courses are planned within the resort with one being designed and built to championship standards with a view to hosting a variety of championship tournaments.
The water lined principal boulevard running through the middle of Punta Perla will facilitate cars, buggies and bicycles and will feature a charming Vaparetto Shuttle taxi service around the development. Further satellite roads all follow the theme of multiple usages. Nature trails are planned for walkers, joggers, cyclists and horse riders.

Few beaches in the world can compare to the three kilometres of beach at Punta Perla, which averages a 60-metre band of brilliant white sand along its entire length. The sea glistens every blue and green imaginable, where bathers can wade out for many hundreds of metres without losing depth. Some of the most exclusive properties on Punta Perla are sited along the beachfront, where prices for plots alone exceed one million US dollars.

Punta Perla has been carefully designed as an ecologically responsible community, one of the first resorts in the world to proactively nurture, protect and improve its natural environment. Low-density development not only minimises the impact on the flora and fauna at Punta Perla, but also ensures that residents will enjoy a tranquil ambience and the entire development will retain a sense of exclusivity. Parts of the resort will be car-free, with internal transport by golf buggy.

For those fortunate enough to purchase a home here, Punta Perla will offer a wide choice of luxurious accommodation, including private villas on the grandest scale, sophisticated townhouses and chic apartments, with harbourside, golf, beachfront and village locations. All of the homes have been designed to harmonise with the character of the island, yet incorporate the highest standard of construction, being built to Florida hurricane standards. Materials, native to the island, have been carefully selected to ensure the overall quality of the resort and for resonance with traditional architecture. For example, white coral stone cut during the marina construction is being used as a facing material for some buildings.
La Marina de Punta Perla will accommodate around 150 vessels of up to 42 metres and will be located in a European style village, with a waterfront promenade offering elegant designer boutiques, fine shops and restaurants. Bungalows and apartments on Star Island, in the middle of the Marina, will allow residents to be in the centre of one of the most fabulous resorts in the world yet remain completely private. Alternatively, a variety of beautiful properties alongside one of the three signature golf courses, will offer dramatic views over the fairways and resort to the sea.

There are several developments within Punta Perla, each offering a different take on the luxury holiday lifestyle. La Marina de Punta Perla is made up of blocks of apartments of no more than four stories high. Property types include two- and three-bedroom apartments, many with substantial terraces, as well as a few very exclusive penthouses on top of some blocks.
Star Island, the exclusive location in the centre of the marina, includes two-bedroom traditional palapa-style bungalows as well as two- and three-bedroom penthouse apartments in three-storey buildings ranging in size from 152 to 300 square metres including terrace spaces. The Little Venice section of La Marina de Punta Perla includes a small network of canals linking its apartments and penthouses to the rest of the marina and the beach
There is also Playa de Perla, which consists of apartments in 23 beachfront blocks of varying size. The homes will include three-bedroom duplexes as well as, one- and two-bedroom apartments and penthouses ranging from 108 to 196 square metres including terrace space.
Finally, golfers will be spoilt for choice as Punta Perla offers luxurious villas, bungalows, town houses and apartments will flank the tees, greens and fairways on the three signature golf courses. The properties include two- and three-bedroom villas, town houses and bungalows as well as a selection of apartments and penthouses. Many will be front line on the golf course with the hospitality and entertainment of one of the three clubhouses not far away.
Whether you’re in the market for a luxurious holiday home or strictly an investment, Punta Perla is one to watch.

To find out more about how to join this exclusive club of overseas property investors contact Michaela Reeves on 07970 994143 or visit oceanviewyorks.com

(courtesty of Pumta Perla)

•    Property in the Dominican Republic is still very competitively priced compared to many Caribbean islands.

•    The Dominican Government officially welcomes foreign investment. Law 158 on foreign investment enacted in December 1995 allows unlimited foreign investment in nearly all sectors of the economy. In October 2001 this was extended to make investment in business and upscale tourism exempt from income tax for ten years. As a new development, all investors at Punta Perla will benefit from ten years of tax free status - no taxes payable on capital gain or rental revenue.

•    Rental income will be guaranteed. This return is possible since tourism in the area is growing dramatically. The World Tourism Organisation’s ‘World Tourism Barometer’ measured an increase in tourism for the country of around 7-10 per cent in the first half of 2004, with some statistics quoting 13 per cent over the year as a whole. Against a backdrop of lower worldwide tourism arrivals during 2003, the Dominican Republic was a star performer. According to the Central Bank of the Dominican Republic and the National Hotel & Restaurant Association (Asonahores), during this period the Dominican Republic attracted approximately 2.76 million foreigners, a 19.48 per cent increase over 2002 and a 12.16 per cent increase over 2000.

•    Additionally, the Punta Cana/Bavaro area has rapidly become the fastest growing destination in the region. The Punta Cana International Airport received just fewer than 50 per cent of all foreign tourists. This airport receives not only hundreds of charter flights per week from all over the world, but also an increasing number of scheduled flights from world cities such as New York, Paris, Madrid, Frankfurt, Miami, Chicago, Philadelphia, Toronto, Montreal, San Juan, Charlottesville, among others. During the high season there are approximately 300 weekly flights to Punta Cana. Hotel occupancy was up by 10 per cent from 2002, reaching 84.2 per cent in the Punta Cana/Bavaro area; furthermore, figures for the January-August 2004 period show 86.6 per cent average occupancy in this region.

•    In its 2004 Travel Trends survey, Punta Cana was also ranked by Carlson Wagon-lit travel agents of the US as the fourth most popular international vacation destination after Caribbean Cruising, Cancun-Mexico and the Mayan Riviera-Mexico. Today the Dominican Republic is the number one vacation destination for eastern Canadians.

•    Tourism in the Dominican Republic is also changing dramatically in terms of the type of traveller, moving from an all-inclusive type of visitor to a more up market visitor. This in turn is leading to rapid investment in the area as people realise the potential in comparison to other more established Caribbean destinations.

•    According to the Caribbean Tourism Organisation's (CTO) Annual Statistical Report, 25 per cent of Europeans travelling to the Caribbean cite the Dominican Republic as their preferred vacation destination, probably influenced by the variety of microclimates, mountains, beaches, cultural and historical wealth and variety of alternatives offered by this Caribbean Island.
•    Tourism is popular with the Dominican people since the benefits are clear. Many improvements to the country’s infrastructure are linked directly to the pursuit of tourist income with many roads widened and paved and historic areas in major cities renovated.

•    The Dominican Republic has seven international airports, more than any Caribbean island, which makes travel much easier than many similar locations.

•    The government is spending many millions of dollars on a marketing campaign to attract tourists from around the world and pumping pesos into tourism-related infrastructure.

•    Prices overall are attractive to the overseas visitor. A survey conducted by the Caribbean Tourism Organisation (CTO) among holidaymakers to evaluate their perception of prices charged for services during their stay, revealed that out of every 100 foreign visitors, 70 considered that they were acceptable, 24 that they were too high or high, 4 that these were low and 2 did not respond. These results are consistent with the importance of the motto “reasonable prices” when selecting the Dominican Republic as a vacation destination.

•    High interest bearing US$ accounts and US$ based investments are both available and tax-free. Security of the banking system is deemed good as the industry is very highly regulated by the Dominican Republic Government. Banking licences very hard to obtain and applicants must submit to a lengthy review process by the central bank.

•    There are no restrictions on foreigners purchasing property in the Dominican Republic. Formerly, Decree 2543 of March 22, 1945 and its amendments required that foreigners obtain prior Presidential approval except in certain cases. Decree 21-98 of January 8, 1998 abolished this regulation and established as the only requirement that the Title Registry Offices keep a record, for statistical purposes, of all purchases made by foreigners. However, holding property within a company allows for quick resale’s since it is much easier and less expensive to resell all the shares of stock of the asset-holding corporation than it is to convey real estate.

•    There are no restrictions on foreigners inheriting title to property in the Dominican Republic. However, holding the property within a company simplifies greatly the handling of the estate and the transfer of control to the heirs. Under Dominican law, inheritance of real property is governed by local statute, which establishes that part of the estate must go to certain heirs by law (for example, a foreigner with a legitimate child must reserve 50 per cent of the estate to that child irrespective of the existence of a will or of the law of his country of residence). This rule does not apply when ownership of real estate is held by a corporation. Also, if the title is in the name of one or several individuals and one of them dies, the procedure to change the title to the heirs is cumbersome and time-consuming.

Tax Incentives

Continued Government incentives to attract both real estate investment and tourism continue with the introduction of Law 158. This entitles investors in the country several to benefits such as:

•    No Stamp Duty on property purchases, saving in excess of 4 per cent of the property price
•    No Tax on Rental Income
•    No Capital Gains Tax

It is important to remember that this is only applicable to the first purchaser of the property and therefore it is recommended that property is bought by a privately owned company.

Given the area’s hugely successful tourist industry, high rental returns are far more achievable than many other more obscure international destinations currently billed as investment hotspots. Increasing numbers of tourists are demanding a higher standard of accommodation. This has been recognised by many international tour operators, most of whom are fighting to secure rental property for their pools. Given that the number of properties being developed in the area to date is relatively small and therefore up market properties to rent are few and far between, the competition is fierce to secure their long term rental. This is good news for property owners wanting consistently high returns from their investment.

What other current market projects achieve:

25 per cent discount on release prices
Guaranteed 8 per cent Rental Return for 5 years
Government approved 10-year tax incentives
Only 30 per cent deposit, balance on completion
Prices from $392,000

Bansko is a magnet for buyers

Bansko is a Bulgarian location that works well for foreign buyers, whether they are purchasing a holiday home or purely as an investment. The focus here is on sport and wellbeing, with plenty of skiing and golf, along with a wide range of ways to spoil and pamper yourself.
Canny buyers should have a look at St John Park Spa and Wellness Centre, an exclusive development of 150 luxury apartments situated on a hilltop right next to Pirin Mountain in this picturesque mountain resort. Due for completion in January 2008, the development is currently on the market through Emerging Real Estate.

Thanks to its enviable location, Bankso is an ideal base for both winter and summer visitors. St John Park is perfectly placed to access the 65 kilometres of marked ski runs which have a guaranteed season from mid-December to the end of April, thanks to the resort’s numerous snow cannons. Meanwhile, in the summer there is an abundance of outdoor activities with hiking, mountain biking, riding and whitewater rafting all close by in the beautiful Pirin National Park. There’s even an Ian Woosnam golf course under construction just three kilometres away.
With this year-round appeal, all apartments in the development have a potential capital growth of 15 to 20 per cent and an anticipated rental return of approximately nine per cent per year. With properties starting at just €45,000, interest from potential buyers has already been strong. As most buyers will purchase off plan, a simple payment schedule is available which spreads the cost from initial reservation to the completion date; purchasing this way can also maximise yields.

The Mayor of Bansko has recently announced plans for a new airport which will make the resort event more accessible to holidaymakers. However, the town is situated just 160km from the main airport in the capital city Sofia, which has direct flights to the UK.
Set within 19,000 sq m of lush landscaped gardens, all apartments; which vary from studios to three bedroom properties, benefit from a best-practice building guarantee and have the same sumptuous finish you’d expect from a five-star hotel. Most also boast a terrace and fireplace and all have a luxury fully fitted bathroom. For the more indulgent buyer, there’s even the option to install a sauna – ideal for easing those aching legs and backs after a hard day pounding the mountains.

On-site recreational facilities include; a free shuttle bus to the lifts, an outdoor swimming pool, a tennis court, a multi-sport all weather arena and a floodlit ice rink. The Spa and Wellness Centre, to which all owners and visitors have access, features a swimming pool, a state-of-the-art fitness centre and a variety of complimentary treatments. There’s also a large terrace restaurant with stunning views of Pirin Mountain.
Deborah Fox, managing director of Emerging Real Estate says,‘In the last few years Bulgaria has really grabbed the attention of the international property investor market. Its popularity has grown year on year and by the end of 2005, 77 per cent more Brits had purchased property here than the year before. It’s great to see Bansko is now really leading the pack thanks, in large, to the €200 million which has been invested in the town over the last five years. It’s a charming resort which has the potential to become one of Europe’s leading ski centres, thanks to its mountain peaks reaching some 2,560 metres!
‘Other factors, including Bulgaria’s entry into the EU (set for 2007), the addition of flights from UK regional airports and its bid to host the Winter Olympics in 2014, mean the market looks certain to meet the analysts’ predictions of a 15-20 per cent annual rise in property prices in the next five years.’

For further information on St John Park Spa and Wellness Centre, interested investors should contact Emerging Real Estate on 0845 601 7293.

Jorg Seifert, a member of the Property Lawyers Abroad Network (PLAN), answers questions about the legal side of buying in Dubai

What is the market currently like in Dubai?

The property market in Dubai is buoyant. More and more projects are coming up. Although some people are calling the Dubai property market a bubble waiting to burst, this is not true since prices are still on the rise and demand for rental space is bigger than availability. At present each month 15,000 people are coming to Dubai to become residents. By 2010 the population of Dubai is expected to double.
Of course no one can expect today premiums on the secondary market of 150 per cent, which was experienced at the beginning when the property market opened for foreign investors. However, a healthy growth is and will be seen also in the long-term future.
Taking into consideration that Dubai is located in the middle between the Asian and the European markets and its tax free environment, more and more investors will come to Dubai.

What should the buyer look out for when purchasing in Dubai? Are there any issues specific to this location?

Buyers should deal with top developers and top real estate agents. In March 2006, Dubai issued its long awaited Property Law, and the legal aspects of any property purchase are now safeguarded. Property owners will be entered in the register of the Lands Department and receive a Title Deed (the process of registering will start soon). A notarization of the property purchase contract is not required. The purchase contract itself should hence always be checked by a lawyer.

How does the legal process work in Dubai?

It depends whether a property is purchased on the primary or secondary market. On the primary market the property will be directly sold by the developer. Buyers usually sign a reservation form and make a down payment; thereafter they receive the purchase contract.
It is advisable to make any such payments through an escrow account (PLAN provides an escrow facility) of a law firm rather than to the developer or real estate agent. Once the property is fully paid the developer is obliged to register the property with the Lands Department.
On the secondary market a transfer takes place whereby the developer, the seller and the purchaser first sign a deed of assignment, then the purchaser pays the seller the amount the seller has already paid to the developer plus the premium asked by the seller. The seller pays a transfer fee of up to two per cent to the developer, and the developer issues a new purchase contract to the purchaser. The seller and the buyer can be represented by a lawyer who shall hold a notarized and legalized power of attorney.
Of course no payments shall be made by a purchaser to the seller prior to the sale. Sellers are advised to make any such payments through an escrow account of a law firm. On the date of transfer the lawyer will then present banker’s cheques to the seller.

What legal costs can buyers expect?

The legal costs depend on the services required by the lawyer. Usually if the lawyer fully represents e.g. the buyer on the secondary market, a certain percentage of the sales price is charged.

How long should the legal process take?

Due to the fact that no notarization is required a transfer can be completed in one day.

Should buyers trust legal services offered by their developer or agent?

Recommendations made by developers or agents may be trusted since the top developers and agents only deal with top law firms and vice versa.
 
Is it safe to buy in Dubai?

Definitely.

What is the most important piece of advice you would give to someone looking to buy in Dubai?
Location is critical.

Trust the piano player in the bar of my hotel to sum up the Dubai experience. As she fashioned a lilting version of ‘The Impossible Dream’, I was struck by how apt it was to be listening to that Don Quixote-inspired song in a place that sets new standards of sheer, unadulterated self-belief.

In the 24-hour building that hums quietly under sun and stars, belief. In the relaxed, friendly manner of the locals, utter confidence. And the beautiful man-made islands that have risen from the Arabian Gulf, ready for buyers and builders? Simply a physical manifestation of an unshakeable faith in the most audacious, most incomprehensibly huge project I can recall.
The root of the project, the focus of all this belief, is a number: 15 million. This represents the number of tourists Dubai is to have by the end of 2010. This has been decreed by His Highness Sheik Mohammed bin Rashid al-Maktoum, the Crown Prince of Dubai, and it is this figure that kept being quoted to me as I explored this fascinating place. And such is the power of belief here that I quickly became convinced that this staggeringly ambitious goal will be met.
When the 15 million people arrive, there will be no shortage of things to do. There is the world class golf course at Arabian Ranches Golf Club, camel racing, horse racing, polo, water sports of all descriptions, 70 kilometres of beautiful sandy beaches, incredible shopping – even snow skiing and tobogganing at a fabulous indoor winter sports centre at the Mall of the Emirates. There is, in short, everything. And it’s an extremely high-quality everything – and however crazy Dubai can sometimes seem, the components also make a strange kind of sense.
One of the truly excellent aspects of Dubai is its restaurants. Choose from eight fantastic eateries at the seven-star Burj al-Arab, sample the wonderful service and food of the Dubai Polo Club, or opt for traditional Arab fare – any kind of food is available, and the standard is breathtaking.

Dubai has more then 300 high-quality hotels and more are on the way, all part of ‘Project 15 Million’ as I came to call it. And these hotels are never short of customers, whatever the time of year. ‘We don’t have seasons in Dubai,’ says Abdullah bin Suwaidan, deputy manager of missions  for Dubai’s Department of Tourism and Commerce Marketing. ‘We have high season and very high season.’
All of this activity means property in Dubai is very hot indeed. The nature of Dubai, with its very business-friendly environment, low crime rate, amazing weather and good schools, means that record numbers of Brits are going there to live, for a few years or more long-term. The quality and choice of properties is very high indeed, and you can get a surprising amount of space and level of spec at prices that compare very favourably with the London market.
There are so many high-profile developments currently in the works that the sheer numbers seem to defy logic.

The market in Dubai is unlike any other, with many investors buying off-plan and selling again off-plan in order to step up the property ladder. This process is a specialty of key2dubai, a company based in both London and Dubai whose specialty is guiding investors through it. According to Fiona Kumar, key2dubai will buy the property and then place it with an investor for whom it is suitable, after which they will keep track of the clients’ needs and advise them on when to make the next move.
‘Somebody comes to us with a budget and we give them the best investment at that price,’ she explains. ‘Then maybe at the top of the market, but not necessarily at the very top, we will say, “Now’s the time to make the next move.” Some people buy and within a month they sell because it’s gone up enough to be profitable.’
 With their knowledge of the market, key2dubai helps investment buyers get the most out of their investment. ‘We advised one client to trade up when, although it wasn’t the top of the market, profits were running at 30-40 per cent. We advised him to sell that property and go on to the next one. He did that and he’s now on The Palm,’ says Kumar.
Ah yes, The Palm. The famous Palm Jumeirah, which is to be completed at the end of this year, is a huge man-made palm-shaped set of ‘fronds’ reaching out four kilometres into the Gulf. The homes here were immediately popular and many have seen their initial investment give an extremely good return.

Although the properties on The Palm were snapped up from developer Nakheel ages ago, there are currently many properties available there on the resale market, many through key2dubai. The range of prices at The Palm Jumeirah means investors of all budgets can get involved: current availability includes everything from a two-bedroom eighth-floor shoreline apartment with 1,646 square feet priced at £214,995, to a three-bedroom town house measuring over 4,000 square feet priced at £1.26 million.
Other Palms are to follow, also created by the major developer Nakheel.  The Palm Jebel Ali will feature homes built on stilts, the ultimate in waterside living. And the outer crescent of this 12-kilometre group of manufactured islands will actually spell out a poem written by HH Sheik Mohammed. Meanwhile, The Palm Deira takes waterfront cities such as Amsterdam, Boston and Venice as its very worthy inspirations.

Another very popular Nakheel development is The World, which is a suitably humble name for this group of 300 islands four kilometres from the coast. The World not only represents every part of the earth’s land mass; it is also visible from space. Like The Palm, this is manufactured land: beautiful white sand disappearing into lovely, warm, perfect sea. I was fortunate enough to be able to take a boat trip to Britain, and the intense heat of a June afternoon was not my only clue that this was a fairytale Britain, not the one I commute in every day. Water and sand, a dock and nothing else. Despite rumours of people such as Rod Stewart and Richard Branson having bought Britain, according to Nakheel the island remains unclaimed.
Eventually The World will comprise houses, apartments, restaurants and retail facilities – a fabulous location in every way. Currently key2dubai offers property in The World ranging price from £234,667 for a one-bedroom apartment to just over £2 million for a four-bedroom home.
The development is taking place in the desert as well as in the Arabian Gulf, and there are some fantastic homes available there. Arabian Ranches is a vast collection of villas that make the most of the beautiful desert light and offer an abundance of space. Currently priced from £214,815  to £514,074, these homes are available with different levels of specification, from simple and elegant to more ornate materials and designs.

The Arabian Ranches Golf Club is a demanding course on which some of the world’s greatest golf professionals have played. Proximity to such a well regarded course is a definite plus for property owners, whether buying to live in or to use as an investment.
Another golf-friendly development is The Views, a project by Emaar Properties overlooking the Emirates Golf Club. The developer has just launched a new series of unique duplexes and villas at The Views, which not only overlooks Emirates Golf Club but is also within close proximity to The Montgomerie Dubai golf course.
The low-rise luxury villas and duplexes set among Golf Towers offer the option of water-view of golf-side living. Some of the limited number of golf-side villas have a separate entrance to give residents exclusive access.

Completion of the duplexes is expected in June next year. Besides being well located for golfing, these homes also have the advantage of being near the hubs of Dubai’s information economy, Dubai Internet City, Dubai Media City and Knowledge Village.
Another Emaar creation is not just the talk of the town – it will be the tallest building in the world. Proof, if proof were needed that Dubai thinks big. Burj Dubai promises to be so tall that we’re not allowed to know how tall it will be. Presently being built at a rate of one storey every four days, this amazing building will rise roughly twice as high as Tower 101 in Taipei. Burj Dubai will be home to very luxurious, modern apartments as well as a library, tourists’ viewing platform, health spa and much more. The building is the centrepiece of a wider development, Burj Dubai Downtown, which will offer thousands of homes of all shapes and sizes. Besides the main tower, there will be traditional-style homes at Old Town, loft living at The Lofts and the nine luxurious towers of The Residences. Find out more about the fantastic properties available in this very up-and-coming area of Dubai by visiting emaar.com.
Dubai is ever-changing, always interesting and, for the investment buyer, pure gold.

For more information on key2dubai properties visit key2dubai.com or call the UK office on  020 7749 3630 or the Dubai office on 00 971 4 321 1353. For holidays to Dubai visit key2holidays.co.uk; prices start at £799 for five nights in Le Meridien Mina Seyahi Beach Resort.

Johnny Turner flew Etihad Airways, the national airline of the United Arab Emirates; seats in the luxurious pearl zone are priced from £1,290 return including tax. Call 0870 241 7121 or visit etihadairways.com

Barbara Heslop, a member of the Property Lawyers Abroad Network (PLAN)

1/ What is the market currently like in France – e.g. is it buoyant and where are the hot spots?

Still reasonably buoyant we believe. Hot spots remain the Dordogne, the Alps and the Cote d’Azur.
 
2/ What should the buyer be looking out for when purchasing in France – any legal problems/issues specific to these countries?

Planning issues and drainage issues tend to cause most problems.
 
3/ Could you briefly talk UK property buyers through how the legal process works in France? What should a lawyer be doing on their behalf?

Buyers make an offer, once accepted either the estate agent or the local notary will prepare a draft contract, we check the contract and once it is agreed the buyers sign and pay a 10% deposit. There is then a period of approximately 8 weeks whilst various searches are carried out and if applicable a mortgage offer is obtained. Once all search results are received and provided all are satisfactory, a completion meeting will be arranged.

The role of a UK based legal adviser is briefly as follows:

•     We make contact with the notary and estate agent 
•     We assist in negotiations regarding the price and extent of the property;
•     We investigate planning matters affecting the site as well as potential developments in the area.
•     We discuss the buyers lending requirements and liaise with the mortgage provider;
•     We negotiate the terms of the contract making sure any necessary conditions are added;
•     We check the draft final purchase deed prior to completion;
•     We obtain a completion statement prior to the transfer of funds for completion;
•     Finally, we make arrangements for the buyer to pick up the keys and ensure the water and electricity are on when they get there.
•     We also advise you on succession and inheritance law applicable to ownership of real estate in France.

4/ What legal costs can buyers expect?

Our average fee where the purchase price does not exceed 500,000 euros is between £1500 - £2,000(there is no VAT payable on our legal fees) Buyers should also budget to pay between 6-8 % on top of the agreed purchase price for notarial fees and taxes payable in France.
 
5/ How long should the legal process take?

2-3 months

6/ Should buyers trust legal services offered by their developer or agent?

It is generally preferable to find and instruct your own independent solicitor who is regulated by the Law Society.
 
7/ Is it safe to buy in France?

Yes – French conveyancing is tightly regulated and is overseen by notaries who are highly trained and respected members of their communities.

8/ What is the most important piece of advice you would give to someone looking to buy in France?

Do not sign anything nor pay over any money until you have taken independent legal advice.

An investor-friendly deal in this sunny spot

The spectacular Pine Cliffs resort is one of the most luxurious in the Algarve. This award-winning tourist spot, with its stunning golf course, is a top destination for both families and couples.

Now buyers are being given the chance to own their very own holiday home at Pine Cliffs. The brand new Pine Cliffs Residence comprises 154 luxury two- and three-bedroom apartments, each beautifully designed and surrounded by a magnificent pine forest overlooking the golf course.

Pine Cliffs shares the facilities and enjoys the five-star service of the adjacent Sheraton Algarve Hotel. With 300 days of sunshine a year, Portugal has been voted one of the best locations in Europe to invest in property and is the ideal location for a second home.
Located in one of the most exclusive and desired investment areas in Europe, the future owners of the Pine Cliffs Residence apartments will have the use of the Casa Pine Cliffs, which will include a reception, a restaurant, terrace-bar, gymnasium, health club, mini-market and swimming pool. The owners will also benefit from other facilities provided within the Sheraton Algarve and Pine Cliffs Resort.

Pine Cliffs prides itself on its excellent facilities: a tennis academy with five courts, a challenging nine-hole golf course, a golf academy, a health club, a games room, an excellent kids’ club, four swimming pools and an expansive sandy beach with water sports. A selection of Europe’s finest golf courses are also on the doorstep.
Getting there is simple: it’s only two hours and twenty minutes by air, followed by a 35-minute transfer.

The Pine Cliffs Residence represents an excellent investment opportunity in a unique and exclusive resort, named Best Resort in Portugal 2005 in the World Travel Awards.
For information on these properties – and a very attractive guaranteed return incentive – call +35 128 950 0369 or visit pinecliffsresidence.com.

Two new developments offer year-round enjoyment and an affordable investment

Bansko is a much-loved ski spot, and devotees of Bulgaria’s winter sport scene will welcome a new addition. Razlog Golf & Ski is a brand new development of 330 studio, one-, two- and three-bedroom apartments in Razlog, just six kilometres from Bansko. The properties are located opposite the entrance to the new Ian Woosnam-designed Pirin Golf and Country Club, a year-round resort that caters to both skiers and golfers.

Designed by renowned international architects, Aukett Fitzroy Robinson, Razlog Golf & Ski is situated in the Razlojka valley, a site of outstanding natural beauty offering unobscured views of the three surrounding mountains ranges - Rila to the north, Pirin to the south and west and Rhodopes to the east.

Razlog Golf & Ski will incorporate a wide range of modern facilities including a restaurant, shops, a gym, swimming pool, jacuzzi, sauna and steam room. Residents will have access to a 24-hour concierge service, as well as underground parking and secure ski and golf club storage. To ensure residents have easy access to Bansko’s skiing and après ski, there will be a complementary shuttle service to Bansko town centre and the gondola station.

The development is ideal for both investors and holidaymakers. It’s perfectly located to take advantage of the abundance of activities and will offer five-star amenities. In addition, the UK developer, Casa Group, has created a property management system called Casa Comfort, which provides remote control property management. This gives apartment owners secure online access to details of occupancy and power consumption for each apartment as well as hotel-style itemised billing, creating a user-friendly, reliable management system.
Razlog Golf & Ski is scheduled to open at the end of 2007. Prices start from approximately £30,000 for a studio apartment. For further information and price details contact Avatar International on 0870 728 2827 or visit razlog-golfandski.com.

Meanwhile, for those looking for a smart investment on the Black Sea coast, The Atlantis Complex incorporates 232 studio, one-, two- and three-bedroom apartments, all with sea views. The complex is situated in a peaceful location in the Sarafovo district, just 100 metres from the beautiful sandy beach. The area benefits from close proximity to cosmopolitan Bourgas, with its international airport.

Inside, the apartments are finished to a high standard with an open-plan fitted kitchen and dining area. All apartments benefit from large terrace areas, which allow residents to make the most of the fantastic views.

 The Atlantis Complex has an abundance of facilities including a delicious seafood restaurant with outdoor terrace, two swimming pools, spa and fitness centre, billiards hall, children’s playground and a mini-market. A pathway leads directly to the beach.
For business guests, there is a wi-fi network in the complex as well as an international standard conference room with audio-visual amenities.

Prices range from €42,538 for a studio apartment. Call 0870 728 2827 or visit avatar-international.com.
 

Spain – answers supplied by Manuel Sánchez Vélez, a member of the Property Lawyers Abroad Network (PLAN)

Introduction

From our point of view the current market in Spain is based more on the quality than on the quantity. Spain has become one of the top countries, offering services for tourists with easy facilities to travel into our country and with plenty infrastructures in such a way that it is considered like the “Californian area of Europe”.

What should the buyer be looking out for when purchasing in Spain – any legal problems/issues specific to these countries?
 
During our years of extensive experience in conveyancing we have noted that the main concerns raised by non-national clients when acquiring a property in Spain are:
 
1.- Conveyancing formalities and procedures.
 
2.- Guarantees
 
3.- Tax Liability and Compliance
 
If clients are properly informed and well advised from the outset on conveyancing procedures and the various types of documents involved, then they will be able to embark on transactions with greater assurance and peace of mind.

Could you briefly talk UK property buyers through the legal process and how it works in Spain? What should a lawyer be doing on their behalf?
 
It is essential to advise the client that the first step in the proceedings is the pre-contract reservation agreement, signed when the booking deposit is paid to secure a property. The reservation agreement should state the name(s), address and I.D. Card/Passport number(s) of both vendor and purchaser or purchasers.  Obviously, the pre-contract agreement should include a brief description of the dwelling, and any other appurtenant property included in the transaction (garage parking facilities, lock-up storage unit, etc.). The agreement should also clearly specify the price of the property, the amount of the booking deposit, and the deadline for signing the Contract of Sale, which is usually between four to six weeks.
 
It should be remembered that where the vendor is a non-resident you, the Purchaser, must retain 5% of the purchase price stated in the Deed of Conveyance. This 5% must be lodged with the Spanish Inland Revenue as a payment on account, on behalf of the vendor, to cover the Vendor’s eventual capital gains liability generated as a result of the sale. Your lawyer is the person best qualified to deal with all these matters.
 
Before embarking on your property investment, it is worth while considering whether you wish to have the deeds signed in your own name only, or jointly with your spouse, if you are married. 
 
You may also wish to consider the advisability of registering the property in the name of a company, bearing in mind that these options may help you to avoid unnecessary expenses in the future.
 
Before having your deeds registered at the Land Registry you must first apply for registration with the police department as a non-national (Identification Number for Non-nationals). This is a mere formality, for which you only require a certified copy of your passport, and a signed application form. 
 
You will require this identification number for non-nationals should you wish to open a bank account in Spain. 
 
Newly-built homes: In most cases the developer will offer a standard contract of sale, requiring an initial down-payment and a number of interim or staged payments, which are generally linked to progress of construction and completed work stages. In most cases, the final payment is made on completion of the works, when the Deed of Conveyance is signed. 
 
Likewise, if the developer has financed the development through a mortgage loan, the purchaser has the option of assuming the mortgage, on a pro rata basis, in lieu of the final payment. Should you not wish to avail of this facility, the developer must discharge the mortgage insofar as the mortgage affects your property, and the developer will be liable for any expenses or outlay entailed in the discharge of mortgage. 
 
Any interim payments you make to the developer while construction is in progress must be guaranteed by a performance bond/bank guarantee or insurance policy
 
As we have already remarked, before having your deeds registered at the Land Registry you must first apply for registration as a non-national (Identification Number for Non-nationals). 
 
Nowadays the majority of developers will raise no objections should you decide to sell on the property prior to completion, i.e. assigning the rights and obligations under the contract of sale to a third party, thereby recovering any moneys you may have paid to date, including V.A.T., plus any potential profit you are likely to make upon assigning the contract (re-selling).

Registration of your deeds at the Land Registry usually takes six or seven weeks from the date on which the deed was signed before the Notary Public.
 
Proof of registration is unequivocal proof of title, and that title is guaranteed by the Land Registry.
 
What legal costs can buyers expect?

The approximate costs and disbursements entailed in the entire procedure, including taxes, notary’s fees, Land Registry fees, professional fees charged by the solicitor, etc. amount to approximately 10% of the purchase price, unless application has been made for a mortgage to cover part of the price, in which case a further 5% must be added to the costs. This additional 5% would cover taxes entailed in the mortgage, the mortgage arrangement fee, mortgage protection insurance (life and home insurance) valuation fee, notary public’s fees and Land Registry fees entailed in processing the mortgage.
 
 Should buyers trust legal services offered by their developer or agent?
 
Manuel Sánchez Vélez comments: “It is common practice in Spain for the estate agency to suggest a lawyer. However, the agent is merely making a recommendation and you are entirely free to retain a solicitor of your own choice. Regardless of whether you take up the agent’s suggestion or decide to seek a solicitor yourself, it is always advisable to consult the solicitor at the outset on a wide range of issues to ensure that you get the best level of service to meet your requirements.”
 
 Is it safe to buy in Spain?
 
Thousands of property transactions take place each year on the Costa del Sol. In the vast majority of cases these transactions prove to be an excellent investment, bringing many advantages to the investor, provided that the procedures and formalities are properly handled and supervised by a lawyer. Your lawyer will answer all your queries and ensure that risks are kept to a minimum.
 
What is the most important piece of advice you would give to someone looking to buy in Spain?
 
Manuel Sánchez Vélez comments: “We would advise prospective buyers to employ a solicitor who specialises in drawing conveyances, with extensive experience and knowledge of all the legal and fiscal aspects of property transactions in Spain.”

Your decision to employ a lawyer will provide you with peace of mind and save you considerable expense in the long run.
 

Facts about Bulgaria

With its upcoming EU membership, as well as its mountains, sea, spas and old world charm, Bulgaria is among the world’s hottest destinations for UK buyers. It is also one of 40 countries in which the Property Lawyers Abroad Network (PLAN) operates, which gives prospective purchasers peace of mind.

The legal process for property purchase is different from that experienced in the UK, explains Sevdalin Stamov, a Varna-based property lawyer who is a member of PLAN.
One example is fees. ‘Legal fees are negotiable,’ says Stamov. ‘Our fees are around 2.5 per cent but purchasers have reported lawyers charging three per cent and above on properties ranging in price from £15,000 to £90,000.’

The notion of vacant possession, in the sense buyers of UK property would recognise, doesn’t exist in Bulgaria. Instead, the vendors of the property usually remain in the property for one month before making way for the new owners.
The price of the property has also been known to be the subject of disagreement, he says. Unlike in the England and Wales, there can be a discrepancy based on ‘the difference between offered price, the purchase price on the Preliminary and the price on the Notary deeds. The developers are reluctant to transfer title on the full price, but usually on tax assessment which is lower.’ Buyers should be aware of this fact before embarking on a purchase, and if they insist on having the agreed purchase price written on the title deed this should be stated up-front.
Such All the more reason to seek representation you can trust. ‘It is always recommended that buyers hire an independent lawyer,’ says Stamov.

Foreign ownership of Bulgarian property is relatively new to Bulgaria. So how can buyers know that the purchase - and the funds they put into it – are safe? It all comes down to having trust in your legal representative, Stamov says. ‘Our clients trust us because the legal services we provide match up to the quality of service of the European law firms.’ The fact that all PLAN members are English-speaking is another crucial point.
The most important piece of advice for a UK buyer in Bulgaria? ‘Always use a lawyer with a considerable legal practice. Buyers have to be sure that he will act as their independent adviser and will defend only their interests. If possible, request all money for the transaction to be paid officially by the lawyer.’
For more information about PLAN visit plani.net

BULGARIA

1/ Can you talk UK property buyers in Bulgaria through how the legal process works? What exactly should a lawyer be doing on their behalf?

The lawyer is in full contact with the client in the course of the whole conveyancing process. He acts on behalf of the buyer, taking his position as party of the transaction. The lawyer requests from the developer, from the agent or from the seller all legal documents that concern the purchase: title deeds, building licenses, copies of the building plans, building permissions, good standing certificates, preliminary contract etc. These documents are examined. The lawyer gives a statement to the buyer about the legal rights of the seller and his capability to transfer clear title to the buyer.
Later the lawyer checks the drafted notary deed or acts on clients’ behalf before the notary. Before signing the deed, the procedure above to check all documents is repeated.
When necessary the lawyer may negotiate with the seller some important conditions and terms which may have an effect on the transaction.
If authorized the lawyer may act before the Notary public and sign the notary deed on buyer’s behalf.
In other words – the lawyer provides full assistance in the conveyancing process. As lawyers, in most cases we act as ‘guarantors’ of the clients’ interests.

2/ How long should the legal process take?

It depends. Usually it lasts during the whole transaction till its completion. The most important part of it is 2-3 weeks in the beginning and a 1-2 week period at the end just before the notary transaction.

3/ What legal costs can buyers expect?

Sevdalin Stamov comments: ‘Legal fees are negotiable. Our fees are around 2.5 per cent but purchasers have reported lawyers charging 3 per cent and above on properties ranging in price from £15k - £90K.’

4/ What kind of legal problems can be unearthed in Bulgaria that prospective UK buyers should be aware of and that they might not come across in the UK?

The difference between offered price, the purchase price on the Preliminary and the price on the Notary deeds. The developers are reluctant to transfer title on the full price, but usually on tax assessment which is lower.

5/ How do things differ for those buying in a new development or an existing property?

Practically the legal work does not differ substantially.

6/ Should buyers trust legal service offered by their developer or agent?

It is always recommended that buyers hire an independent lawyer.

7/ Is it safe to buy property in an emerging market such as Bulgaria where foreign buyers are a relatively new phenomenon?

It can be safe if buyers trust the lawyers they have appointed. Our clients trust us because the legal services we provide match up to the quality of service of the European law firms.

 8/ Should buyers have concerns about buying in a developing country where highly unequal income distribution remains a pressing problem and where stories of crime are rife?

Sevdalin Stamov comments: ‘If this was the case then Bulgaria would not be one of the top property markets in Europe. Yes, there are crimes and some of the buyers express concerns about it when they visit Bulgaria. However, most of them leave feeling more comfortable and safe knowing that their interests are being taken care of by a credible, reliable and independent legal professional.
9/ Finally, what’s your most important piece of advice for UK property buyers in Bulgaria?

When buying property in Bulgaria always use a lawyer with a considerable legal practice. Buyers have to be sure that he will act as their independent advisor and will defend only their interests. If possible request all money for the transaction to be paid officially by the lawyer.

AMI’s launches ‘Buying Abroad’ factsheet
 
The Association of Mortgage Intermediaries (AMI) today (24 May) launched its latest factsheet entitled ‘Advising clients thinking of buying abroad’.  It is a guide to assist members with the increasing number of clients who may be thinking of buying a property abroad.
 
Advisers dealing with these types of clients should be aware of the differing rules and regulations regarding mortgages and property in different countries.  The factsheet outlines some of the issues mortgage intermediaries should be aware of, such as the mortgage options available, while also detailing the main issues from a buyer’s viewpoint.  These include:
 
·    Currency risk.  For those clients buying a property outside the Sterling area.
·    Buying the property. Outlining the risk factors to take into account when buying abroad and key areas of consideration.
·    Legal issues.  Buying a property in a foreign country will always be subject to that country’s laws and they do not just apply to the property itself.
 
The guide also outlines further points to consider such as the client’s insurance protection needs, transferring money into a foreign country, the health system of the country, setting up a bank account and what level of local taxation needs to be paid.
 
Rob Griffiths, Associate Director of AMI, commented:
 
“An increasing number of UK residents are buying property abroad, be they holiday homes, future homes to retire to or as buy to let investments.  There are many considerations for mortgage intermediaries when advising their clients on such a purchase and they must take great care to ensure the process goes as smoothly as possible.  
 
“The key point that should be remembered is that buying abroad is different to buying in the UK.  In different countries there are different laws regarding property and mortgages, and there will be differences in practices, customs and local regulations.  AMI’s factsheet outlines possible issues that intermediaries and their clients should consider.  It is to be used as a guide and designed to assist members in growing their businesses and better advising existing clients.”
 
AMI’s ‘Buying Abroad’ factsheet is available to all members from the AMI website by using the following link: http://www.a-m-i.org.uk/closed/cug/default.asp

Experts reveal dos and don’ts of purchasing abroad.

Buying a property overseas is more popular than ever, with increasing numbers of people following their dream of owning a holiday home or rental property abroad as part of their short-term or long-term investment plans.
However, although international property investment sounds like an exciting prospect for many people, it can also be risky if not approached carefully. Experts at the Property Investor Show, which takes place this autumn in London’s Docklands, reveal some top tips to help steer investors in the right direction.

Know your objectives

Ensure you know why you are buying and what you are hoping to achieve with the purchase. Is it an investment vehicle or are you looking for somewhere to visit or live? If it’s for investment, is it for short term capital gain to provide a one-off profit over a particular time? Or is it to provide long-term regular income?

Sort out your finances

Work out how much you can afford to buy and arrange your finances, such as your mortgage, before you travel abroad to search for your property. This will ensure that you are ready to act immediately if you find the right property. Also ensure that all finances are arranged before signing any contracts and paying over a deposit.

Don’t be hasty

Stay focused on what you originally had in mind. Stick by your objectives. It can be all too easy to be tempted in the sunshine to buy something that is not what you really want. See your chosen area at different times of the year to ensure that you like it whatever the weather. You should also try and give yourself a cooling off period to ensure you are making the right choice.

Check transport and local facilities

Make sure there is a choice of airline routes and access points to your chosen area. People who rent property will want somewhere that is easy to get to and will often gravitate to those places with a nearby airport served by low cost airlines. People will also want to be near basic facilities such as restaurants and shops. Proximity to areas of natural outstanding beauty, tourist attractions or renowned eateries will add to the property’s rental attraction.

Talk to fellow investors

Speak to those who have purchased in the area that you are interested in. If you are opting for a buy to let investment, you can learn a lot about rental success in your area and get a realistic idea of the likely income that will be generated.

Allow for the extras

The cost of buying a property abroad (taxes, conveyancing, lawyers fees, agents fees, VAT etc) is much higher than in the UK, so you will have to ensure you have budgeted accordingly. Also ensure that you are aware of the costs charged by the legal and government authorities for purchasing a property in your chosen country.

Check taxation and inheritance laws

Ensure you understand the tax implications for when you decide to sell. You should also check the inheritance laws of the country where you are buying. In France, for example, your children automatically inherit your house; it does not pass to your spouse. You many need to compile a separate will.

Weigh up risk versus return

If buying for investment, it is important to understand how comfortable you are with risk and investment accordingly. Some properties in, for example, eastern Europe offer high potential returns but potential losses too. You need to be well informed and comfortable with the risk factor.

Do your homework

Ensure you research the area well before visiting the country. Time spent researching the area while at home is much cheaper and more efficient than time spent overseas. Make a check list of questions that can be answered when you arrive at your destination.

Speak to the experts

Always ensure that you seek specialist independent advice from English-speaking solicitors, architects and surveyors before considering a purchase overseas. They should be proficient in your chosen country’s laws and processes and also know the specifics involved in buying a property there.

Nick Clark, managing director of the Property Investor Show, comments: ‘Purchasing a home abroad can be both an excellent investment or provide a great holiday home, although it can be overwhelming to a novice investor. The Property Investor and Homebuyer Show will have all the information that potential buyers need to choose and purchase a home overseas.’
Trisha Mason, founder and managing director of VEF French Property, says, ‘Property investment overseas can be hard work but the rewards are there for those who do the research and are willing to put in the effort to succeed. However, our overarching advice for overseas property investors can be applied to many things in life: use your head, do your research, seek professional advice and don’t act on impulse.’

The Property Investor and Homebuyer Show will be held 22-24 September at London’s ExCeL Centre. Visit propertyinvestor.co.uk to register for fast-track entry

An investor-friendly deal in this sunny spot

The spectacular Pine Cliffs resort is one of the most luxurious in the Algarve. This award-winning tourist spot, with its stunning golf course, is a top destination for both families and couples.
Now buyers are being given the chance to own their very own holiday home at Pine Cliffs. The brand new Pine Cliffs Residence comprises 154 luxury two- and three-bedroom apartments, each beautifully designed and surrounded by a magnificent pine forest overlooking the golf course.
Pine Cliffs shares the facilities and enjoys the five-star service of the adjacent Sheraton Algarve Hotel. With 300 days of sunshine a year, Portugal has been voted one of the best locations in Europe to invest in property, so ideal for a second home.


Located in one of the most exclusive and desired investment areas in Europe, the future owners of the Pine Cliffs Residence apartments will have the use of the Casa Pine Cliffs which will include a reception, a restaurant, terrace-bar, gymnasium, health club, mini-market and swimming pool. The owners will also benefit from other facilities provided within the Sheraton Algarve & Pine Cliffs Resort.
Pine Cliffs prides itself on its excellent facilities: a tennis academy with five tennis courts, a challenging 9-hole golf course, a golf academy, a health club, a games room, an excellent kids club – Porto Pirata, four swimming pools and an expansive sandy beach with water sports awaits you. These combined with the fact that a selection of Europe’s finest golf courses are on your doorstep make it the ideal location to buy your dream holiday home.
The Pine Cliffs Residence represents an excellent investment opportunity in a unique and exclusive resort, considered Best Resort in Portugal 2005 by World Travel Awards.
For information on the Pine Cliffs Residences please call +35 1289 500 369, email info@pinecliffsresidence.com or visit www.pinecliffsresidence.com

 

Janice Lewis and her husband Peter retired to the Andalucia region of Spain in June 2003. Janice answers some questions about the move and her new lifestyle
What made you decide to move to Spain?
It all started when we visited our friends in July 2002 who had moved to Spain earlier in that year. They had purchased a villa which was built by a couple of local Spanish guys who had just started their own company. Their home was the first home these guys had built together. Our friend was very knowledgeable regarding building and had done quite a lot of research into living in Spain.
We stayed with our friends for a week and during that time they took us to an area about three kilometres from their home, where his builders were going to build some new homes. It was a very picturesque area, between mountains and set in almond and olive groves. We had become so impressed with our friends’ lifestyle and the cost of living in Spain, and of course the weather, that we decided to purchase the first plot of land in the area we had come to see.

How long did it take from getting the idea to move to Spain to moving in?

Surprisingly it only took us ten months. When we arrived in June our home was still being built, so we rented here for three months. Actually this was quite good as we were able to watch the villa being built.

Looking back, what would you have done differently?

We don't think we would have done anything differently – although my husband thinks we should not have brought out all our furniture with us. We had lived in our house for 34 years and were very attached to many of our possessions. Plus the sale of the house went through very quickly, so consequently we did not have very much time to get rid of things. Our furniture was in store for five months.
 
What has been the most pleasant surprise about where you live now?

The peace and tranquillity of the rural area. We hear a lot of birdsong. We have seen eagles and often watch the goats on the mountain with the goat man. When we lived in England, although it was a village our garden backed onto a main road which fed the M1 so we had a lot of traffic noise. Actually, at the time of writing this it is completely silent apart from the birdsong.
 
Why Spain and not somewhere else? Did you seriously consider another country?

We often thought about moving to France and loved the country. We holidayed there nearly every year. However, property prices and the cost of living, I think, are comparatively cheaper in Spain - especially in southern Spain where we live. And as I said earlier, our friends of 36 years were here and had already done the groundwork for us and knew all the downfalls. We hadn't considered any other countries.
 
Do you feel your home is a good investment? Are property prices performing well where you are?

Our home has been a fantastic investment. In the three years we have been here we have seen the value double or maybe a bit more. We certainly have been following the property market in our area and have seen the prices rise considerably. Of course, the cost of living has also increased since we have been here. But it is still a lot cheaper than the UK.
 
We live in Andalucia, in a small village in the province of Almeria. Our nearest town is about 12 kilometres, although the next village to us has shops is about five kilometres away. The coast is about a 45-minute drive. We think our home is in an ideal location.
 
Can you recommend a good Spanish wine?

Obviously we have tried many of the Spanish wines and enjoy them. We are both very much red wine drinkers but have also found a few white wines which are also enjoyable. For everyday drinking we have found a quite cheap but very good bottle of red called Fin del Rio 2004, from the Castilla y Leon area - it costs only E1.85 a litre! For a better bottle when entertaining, I have found a very nice rioja 2000 reserver called Coto de Imaz priced at E7.99. For whites, a very reasonably priced white rioja comportillo 2005, priced at E1.65 and a very nice cava called Cabre y Sabate, either semi sec or sec, at E1.65. These are all purchased at the local supermarket.
 
What advice would you give someone considering a similar move?

I would say do it ASAP - but if they are a couple it must be on the agreement of both parties. We do know of people who are very homesick and want to return to the UK but their partners do not. We settled in very well, possibly because life was made easier for us having such very good friends here already; however my husband did have a few initial problems settling in.
We both love the weather and we have got some very necessary shady areas to sit as it does get very hot. So that is a must. The other thing which is a bonus and very enjoyable is the swimming pool. I don't think I could live in this country without access to a pool. I think another piece of advice would be to learn the language. It is not necessary to speak it fluently - I will never get to that stage - but at least to have a little understanding of it really does help. The other thing is to get sound legal advice on what and where you are buying. A lot of mistakes and problems have arisen from people not looking into things before they purchase and not getting proper legal advice.

BUYING ABROAD IS EASY – BUT DON’T LEAVE YOUR INTEGRITY AT THE AIRPORT!

The overseas property market is burgeoning at an unprecedented rate and it seems to be that the world is your oyster when looking to purchase overseas.

What you must always remember of course is that it is a substantial investment, and that you must ensure that the companies you are dealing with, whether agents, consultants, or developers are looking after your interests as well as their own.

The Federation of Overseas Property Developers, Agents and Consultants (FOPDAC) is a body set up over 30 years ago, by professionals keen to work within a Code of Conduct which would seek to protect clients. This has never been as important as it is now.  When pensions failed, UK residents took it upon themselves to look after their own finances and bricks and mortar where the obvious choice. Whilst many bought in Spain as holiday homes and lets, in recent years buyers horizons have broadened immensely and people are buying anywhere from Panama to Peru, Thailand to Dubai and most places in between including traditional favourites such as Italy and Cyprus. The emerging countries such as Bulgaria, Croatia, Slovakia etc are also creating interest, the low prices of properties being a big incentive.

With traditional countries for purchase, such as Spain, one is aware broadly that the conveyancing system works, that most of the people involved speak English and that in general terms the process is tried and tested. With countries new to the market place, one must be aware that the systems are not quite as easy to understand which is why it is imperative to seek professional advice. The same applies to Northern Cyprus, where again, this market is offering what appear to be bargain homes, but one must act with caution allowing for the fact that some “owners” may not in fact own the land or the property which they are selling  to you, following the occupation there some years ago. Knowing the difference between Northern and Southern Cyprus is important.

This applies to other countries. Did you know that you can view a property in Italy but that the kitchen is not included in the price and will, unless otherwise agreed, be taken when the owner moves out ? Steve Emmett of Brian A French & Associates says, “ There are also new laws all the time, from knowing if you can have air conditioning units to changes in basic conveyancing rules. All of which will be easily dealt with by a company with the expertise and knowledge to assist”.

“There are still untouched areas of Spain, such as the Costa Tropical which offer tremendous investment opportunities”, says Craig Stocks of Eden Villas. “People think of Spain and think of Benidorm and the like. Having an agent who knows the country intimately and can advise on the right area for you is priceless.”

It is not just coastal and country homes which are appealing to UK investors, cities too have an appeal and Budapest in Hungary, which joined the EU in 2004 is fast becoming one of Europe’s most sought after and fashionable cities. “Since accession to Europe Hungarian property has gathered pace,” says Tony Sparkes of AGS Properties. Prices can start from around £67,000 with a revenue for a studio apartment being around £3,500 pa.”

The absence of regulation has meant a market ripe for exploitation, which is why FOPDAC was established to act as a self regulating body. Now more than 40,000 estate agents throughout Europe have chosen to conform to a code of practice originally developed by FOPDAC and the National Association of Estate Agents (NAEA).

Remember buying abroad can provide you with a new way of life, a pension or a rental return. The world has never been so small and it is exciting to be part of this amazing market place. Just remember to start off right. Check out the credentials of the companies you choose to work with and enjoy!

An Introduction to Ocean View Properties International Limited

The last five years has seen phenomenal growth of Ocean View Properties International building its own unique brand focused entirely on the overseas property buy to let model.

A distinctive blend of aggressive price discount acquisition on new build projects combined with its own ABTA bonded tour operator exclusive to Ocean View Properties investors has established a unique company profile achieving the two key objectives for property investment, excellent medium to long term capital growth and a robust rental yield.

We know of no other companies achieving this potent mix or coming anywhere near the comprehensive turn-key service which lies behind the Ocean View business model for investors. To have achieved this in the upmarket Southern region of the Costa del Sol is testament to the resilience and experience of the Ocean View Group, and there is every reason to believe that the model will go from strength to strength when you take into account the development plans and niche market opportunities we are creating for the next five years.

But it doesn’t stop there: the long term vision of the Group is to deliver a selection of worldwide initiatives, emulating the success of the Spanish model, and two additional destinations were launched at the beginning of 2006. One of these projects, the Caribbean Development of Punta Perla in the Dominican Republic is featured on our website at www.oceanviewyorks.com.

The Dominican Republic reported an 8.3% increase in foreign tourist arrivals during the first eight months of 2005. According to statistics from the Central Bank, 2,233,569 foreign vacationers visited the country from January to August, 144,184 tourists more than during the same period in 2004. The statistics show that 87% of travellers that visited the country during January-August arrived through the airports of Punta Cana, Las Américas and Puerto Plata. Moreover, 49% of passengers came from North America, 43.4% from Europe, 3.6% from South America and 3.7% from Central America, the Caribbean and the rest of the world. The Association of British Travel agents (ABTA) members have cited the Dominican Republic as being ‘Hot for 2006’ and reported a 9% growth in bookings for the island this year.

Introduction to Punta Perla

Punta Perla is a master planned resort situated on the Eastern tip of the Dominican Republic in the established area of Punta Cana. Set in approximately ten million square metres of natural, prime Caribbean real estate, Punta Perla offers the last beachfront development opportunity of this size in the popular Punta Cana region.

From its conception, Punta Perla has been carefully planned to become one of the premier resorts in the Caribbean and will evolve into a first class living and vacation experience. Low-density population of properties within the resort is key to the developer’s plans for Punta Perla with only 11 people per acre all set in over 2,500 acres.

Approximately 8,000 residential and commercial properties of varying size and type have been carefully integrated into the natural environment as well as a series of private clubs and facilities, which have been carefully selected for the enjoyment of residents and their guests.

At the heart of the development is La Marina de Punta Perla, a harbour equivalent in size to Puerto Banus; playground to the rich and famous in southern Spain. Punta Perla will attract high-end retail companies, wishing to operate their businesses there. Chic restaurants and exclusive bars will be carefully selected to provide the very best of day and night entertainment. Set behind the marina is a Colonial village planned around a central park. Themed on past European architecture, classic apartments will mix with individual shops and restaurants along the many boulevards.

The resort will also include Beach, Yacht and Golf Clubs, Elegant Boutiques and Restaurants, a World Class Spa, Tennis and Swimming facilities, Deep Sea Fishing, Equestrian facilities, Championship Polo Club and a Casino among the diverse range of attractions. A golfing academy and three Signature Golf Courses are planned within the resort with one being designed and built to championship standards with a view to hosting a variety of championship tournaments.

The water lined principal boulevard running through the middle of Punta Perla will facilitate cars, buggies and bicycles and will feature a charming Vaparetto Shuttle taxi service around the development. Further satellite roads all follow the theme of multiple usages. Nature trails are planned for walkers, joggers, cyclists and horse riders.

Few beaches in the world can compare to the three kilometres of beach at Punta Perla, which averages a 60-metre band of brilliant white sand along its entire length. The sea glistens every blue and green imaginable, where bathers can wade out for many hundreds of metres without losing depth. Some of the most exclusive properties on Punta Perla are sited along the beachfront, where prices for plots alone exceed one million US dollars.

The benefits and beauty of Punta Perla are endless. With the stunning canvas of the land and surroundings, the developer’s unique vision and a dream team of the world’s leading construction experts, Punta Perla is sure to become a new generation of property investment.

Yet Punta Perla has also been carefully designed as an ecologically responsible community, one of the first resorts in the world to proactively nurture, protect and improve its natural environment. Low-density development not only minimises the impact on the flora and fauna at Punta Perla, it also ensures that residents will enjoy a tranquil ambience and the entire development will retain a sense of exclusivity. Parts of the resort will be car free, with internal transport by golf buggy.

For those fortunate enough to purchase a home here, Punta Perla will offer a wide choice of luxurious accommodation, including private villas on the grandest scale, sophisticated townhouses and chic apartments, with harbourside, golf, beachfront and village locations. All of the homes have been designed to harmonise with the character of the island, yet incorporate the highest standard of construction, being built to Florida Hurricane Standards. Materials, native to the island, have been carefully selected to ensure the overall quality of the resort and for resonance with traditional architecture. For example, white coral stone cut during the marina construction is being used as a facing material for some buildings.

La Marina de Punta Perla will accommodate around 150 vessels of up to 42 metres and will be located in a European style village, with a waterfront promenade offering elegant designer boutiques, fine shops and restaurants. Bungalows and apartments on Star Island, in the middle of the Marina, will allow residents to be in the centre of one of the most fabulous resorts in the world yet remain completely private. Alternatively, a variety of beautiful properties alongside one of the three signature golf courses, will offer dramatic views over the fairways and resort to the sea.

The Developments within Punta Perla

•    La Marina de Punta Perla is made up of blocks of apartments of no more than four stories high. The variety of property types includes two and three bed apartments, many with substantial terraces as well as a few very exclusive penthouses on top of some blocks.

•    Star Island, the exclusive location in the centre of the marina, includes two bedroom traditional palapa style bungalows as well as two and three bedroom penthouse apartments in three storey buildings ranging in size from 152m2 to 300m2 including terrace spaces.

•    The Little Venice Section of La Marina de Punta Perla includes a small network of canals linking its apartments and penthouses to the rest of the marina and the beach

•    Playa de Perla consists of apartments in 23 beach front blocks of varying size. They will include three bedroom duplex, two and one bedroom apartments and penthouses ranging in size from 108m2 to 196m2including terrace space.

•    Golf - Luxurious villas, bungalows, townhouses and apartments will flank the tees, greens and fairways on the three signature golf courses. The choice of properties is varied, with two and three bed villas, townhouses and bungalows as well as a selection of apartments and penthouses. Many will be front line on the golf course with the hospitality and entertainment of one of the three clubhouses not far away.

Key Property Investment Facts

•    Property in the Dominican Republic is still very competitively priced compared to many Caribbean islands.

•    The Dominican Government officially welcomes foreign investment. Law 158 on foreign investment enacted in December 1995 allows unlimited foreign investment in nearly all sectors of the economy. In October 2001 this was extended to make investment in business and upscale tourism exempt from income tax for ten years. As a new development, all investors at Punta Perla will benefit from ten years of tax free status - no taxes payable on capital gain or rental revenue.

•    Rental income will be guaranteed. This return is possible since tourism in the area is growing dramatically. The World Tourism Organisation’s ‘World Tourism Barometer’ measured an increase in tourism for the country of around 7-10% in the first half of 2004, with some statistics quoting 13% over the year as a whole. Against a backdrop of lower worldwide tourism arrivals during 2003, the Dominican Republic was a star performer. According to the Central Bank of the Dominican Republic and the National Hotel & Restaurant Association (Asonahores), during this period the Dominican Republic attracted approximately 2.76 million foreigners, a 19.48% increase over 2002 and a 12.16% increase over 2000.

•    Additionally, the Punta Cana/Bavaro area has rapidly become the fastest growing destination in the region. The Punta Cana International Airport received just fewer than 50% of all foreign tourists. This airport receives not only hundreds of charter flights per week from all over the world, but also an increasing number of scheduled flights from world cities such as New York, Paris, Madrid, Frankfurt, Miami, Chicago, Philadelphia, Toronto, Montreal, San Juan, Charlottesville, among others. During the high season there are approximately 300 weekly flights to Punta Cana. Hotel occupancy was up by 10% from 2002, reaching 84.2% in the Punta Cana/Bavaro area; furthermore, figures for the January-Augu