Emerging markets, as a means of achieving the best possible returns from overseas property investment, are presenting some interesting and exciting opportunities in the world of foreign property investment; rapid growth rates, impressive capital appreciation and rental yields provide highly lucrative investments when compared with earnings in more traditional markets.
Security of a property venture is obviously a crucial factor when making investment decisions, and although emerging markets can present some extremely profitable returns, there are also some unique challenges and risks to consider. However, there are a number of actions that can be taken to minimise the risks involved, leaving the investor the freedom to sit back and enjoy high investment revenues.
Kevin Prior, Investment Director of Obelisk International, comments, “Research into the prospective market will help prudent investors to make the most informed investment decision, easing concerns surrounding a potential venture, ensuring full preparation, and avoiding any surprises that may arise along the way. Analysis of the stability and growth of a country’s economy, as well as government reforms and the attitude to foreign investors is highly important. Countries that welcome foreign property investment promote positive actions such as favourable tax conditions and full ownership laws.’
Full evaluation of each country’s purchase process will cover all fiscal and legal aspects, providing advance knowledge of all costs that may be involved with property purchase as a foreigner, as well as when they are due for payment and to whom. Pre-evaluation of this avoids any unexpected costs and delays that may arise once in the purchase process.
Due diligence of overseas property investment, in general, refers to the attention an investor should take before embarking on any overseas real estate investment. Purchase of a property in a foreign country can be daunting, with inherent uncertainty derived from the lack of knowledge in local practices. For this reason, it is crucial to turn to an advisor who can guide, and analyse all encumbrances on the property prior to the transaction.
For an off-plan project, comprehensive due diligence should include the review of the developers legal and financial records. The legality of the project will also be ascertained ensuring full licenses and permissions are in place. The outcome of the report will highlight anything that could affect the seller prior to completion, as well as at latter stages.
When operating in an unknown foreign market, where fiscal structures, legal systems and local companies are unfamiliar, it is important to ensure you are correctly guided and advised throughout your property purchase. Although legal representation in some countries is not a requirement when purchasing a property, it is never recommended to proceed without a lawyer who is proficient in the chosen country’s laws and processes.
Kevin Prior comments, “Using internationally recognised constructors, developers and agents who possess a visible portfolio, are experienced, and hold a highly regarded reputation within their field, can be a good indication that those companies will fulfil their obligations. This also allows a concrete insight as to final quality levels through evaluation of previous workmanship of these companies.”
Another consideration is when dealing with foreign currencies, which may carry more or less risk. Historic data of the performance of a currency will help establish its volatility and may provide some insight into the risks that may be involved. It is essential to obtain the best currency exchange advice and assistance possible, as the cost of not understanding exchange rate movements can add thousands of pounds to your initial budget.
A foreign exchange specialist is recommended when converting currency as these professional services are able to provide specialist advice more suited to individual circumstances, and can provide global property investors with a range of currency option products. One useful recommendation, especially when buying off-plan where payment is required in stages, is to forward plan by fixing an exchange rate for a specific future time, avoiding currency fluctuations.
Investment in emerging markets can be highly lucrative, with many useful strategies to ensure only the maximum profits are earned. To this end, each investment project Obelisk recommends has been through a comprehensive due diligence issued by highly recognised lawyers, as well as extensive market analysis carried out by in-house professionals. Projects are also chosen with reputable partners; it is of the uttermost importance that the collaborating companies are reputable and accountable, and have a history and reputation of carrying projects to completion with the highest possible quality standards. Where foreign currency is involved, Obelisk endeavour to recommend a foreign exchange specialist to ensure clients are correctly advised as to the most prosperous options available.
For more information on overseas property investment opportunities, contact Obelisk on 00 44 (0)808 1600670 or visit our website: http://www.obeliskinternational.com/
Budapest, Hungary
City Garden is a development of 340 studio, one-, two-, three- and four-bedroom apartments situated next to the Promenade. The name alludes to the vast central courtyard which at the size of 13 tennis courts is an oasis of calm in the city. Offered in three different standards of finish - standard, classic and premium - dependent on finishings, location and fittings, every taste is catered for. Each unit has a fitted kitchen and bathrooms, video entry system and cabling for television and telephone. Penthouses have large rooftop terraces and fifth floor family homes also have unique sky gardens. On-site facilities include a large wellness centre with indoor swimming pool, underground parking and CCTV for 24-hour security. Meanwhile every possible form of entertainment or retail pleasure is on the doorstep.
100 billion forints (405 million euros) have been set aside to breathe new life into this 4million m² area making it Budapest’s, and indeed Central Europe’s, biggest regeneration project. Of the 2,500 apartments within the project zone, 1,100 may have miraculously survived two wars but are beyond repair and have or will be bulldozed whilst the remaining 1,400 are to be renovated – all of this by 2010. Budapest’s new Metro 4 underground route began construction in 2006 and the first section is expected to be ready in 2009. This underground route will connect Buda to Pest and two stops will fall within Corvin-Sétány.
Prices from 35,900 GBP for a studio apartment with a £1,500 deposit securing your reservation followed by 30% four weeks after signing and 70% on completion scheduled for the end of 2009. Mortgages of up to 70% available subject to status.
Dream Homes Worldwide can be contacted on UK freephone 08000 193 847 or Irish freephone 1800 805 006 or in Spain telephone 00 34 952 908 803 email enquiry@dreamhomesww.com or view dreamhomesww.com.
Romania
A land of legends, wilderness, old-world charm and an international image somewhat askew with reality, remarkable Romania is often misunderstood and overlooked. But, now Propertymartoverseas.com, a world leading property portal, is championing its cause as an emerging property hotspot and tourist favourite of the not too-distant future.
Benefiting from EU membership, Romania’s economy and infrastructure is improving daily; improvements which add to, rather than detract from, Romania’s unique charm. Propertymartoverseas.com’s Ian Clover spoke to one British ex-pat who has fallen in love with the country’s unique beauty and discovered a land ripe for foreign investment.
Stepping lightly through a forested path, keen not to disturb the lizards sunning themselves in the July sunshine, I saw - through a clearing to my right as the hill fell sharply away to an emerald green valley down below - a large brown bear meander lazily towards a stream. The air was still and silent and there was nobody around for miles. The small town lay just on the other side of the hill, yet the valley on this side was completely untouched by man’s interference. After lapping up the cool, clean water, the bear moseyed off, back into the dense cover of the alpine-clad hills, its thirst no doubt sated. I stood for a moment, transfixed, before a huge smile danced across my face as I realised what I had just witnessed – for I was not in North America or the Far East, but in central Romania; a country so often derided as poor, grim and a shining example of how Communism in Europe failed.
This was back in 2003, when, upon hearing of my decision to travel to Romania, my family’s incredulity was matched only by my travel agent’s bewilderment. “I suppose you could travel by train from Budapest in Hungary if you want the most direct route to Brasov, but other than that…” he not-so helpfully revealed. Brasov (pronounced ‘Brashov’), a town in the heart of the Transylvania region of Romania, does in fact attract a fair share of tourists thanks to its undeniable charm and beauty and its links to the legend of Dracula. Encounters with bears and wolves (Romania is home to one third of Europe’s wild wolf population, and almost two thirds of its wild bear population) only add to its dramatic charm.
A British ex-pat, Rodger, and his Romanian wife Lili, run a guest house in the Campulung area of the country, just south of the Transylvanian Alps. “I first came to Romania in 1998 with the relief aid trucks, back when the country was very different to what it is today,” says Rodger, originally from Southend, UK. “I fell instantly in love with the place, but I also spotted the huge investment potential to be found within the country.”
Returning some years later, Rodger and Lili bought 5,000sqm of land and set about building a five-star Bed & Breakfast, catering for other ex pats from Bucharest and Brasov, and as a luxurious stop-off point for bikers travelling across Europe. “Building work began in May 2004 and the exterior was completed by Christmas,” reveals Rodger. “It was just a shell when we moved in. Prior to that we lived in a tent for months, moving bricks and cement…we found that quite hard. However, we then worked on the interior and were open for business by Christmas 2005.”
As avid bikers themselves, Rodger and Lili are happy to open their doors to the large number of bikers who travel through here while tackling Europe’s most challenging roads. “Our two-wheel visitors are mainly the executive-type biker from western Europe, although they are not our main source of income.”
The guesthouse is located close to the outlying foothills of the Carpathian Mountains, boasting some of the purest air and most unspoilt scenery in Europe. The town of Campulung dates back to the 13th Century and was one of the earliest settlements in Wallachia, or prime vampire territory to you and me. Transylvania’s imposing hills, blanketed by dark forest cover, are uniquely eerie at night and packed with suitably menacing wildlife, while during the day they are torn straight from the pages of a fairytale: mountain views rise over quaint wooden and stone buildings; children play in the crystal clear streams which wind through the villages; plum trees sprout from gardens and the air is soundtracked by woodpeckers and goldfinches singing in the sunshine. In terms of richness, Romania’s countryside is a multi-millionaire.
And, while Romania’s economy may have been in the doldrums during Ceausescu’s disastrous reign and the difficult transitional period the country experienced following his execution in 1989, the signs are extremely encouraging. Bucharest, Romania’s Capital, is home to over 30,000 ex-pats, attracted by the city’s vibrancy and investment potential. Indeed, it is estimated that there is a shortfall of 200,000 properties in the city alone and, with over €11 billion invested in the country in 2006, the signs of an economy starting to blossom are there for all to see.
However, Romania’s appeal lies far beyond its capital. It boasts excellent skiing in Poiana Brasov, wonderful Black Sea resorts in Mamaia and Mangalia and countless medieval towns and villages which offer a wonderful insight into a way of life which is all but lost throughout the rest of Europe: horse drawn carts patrol the roads, farmers tow their cattle through cobbled streets and many restaurants still draw up their menus in terms of weight, not price. Living costs are extremely low, although standards are higher than most might imagine. “Living here is wonderful,” enthuses Rodger. “There is no way I could attain the lifestyle I have here back in the UK. I have no reason to go back to England at all anymore: life is far better here.”
And getting there is increasingly easier, too. New low cost airlines flying into Bucharest include EasyJet and Wizzair, with return flights on offer from as little as £55. While the added traffic might mark the end of Romania’s vast swathes of wilderness, the additional interest pouring into the country will no doubt be of benefit.
With such a rapid pace of development sitting easily along a meandering pace of life, Romania is perfectly placed to offer the investor or the lifestyle buyer the perfect combination of affordability, profit, solid infrastructure, encouraging growth and low living costs. Throw in the wild and wonderful scenery (not to mention wildlife!) and you have the perfect location for a prime property investment. If you can ‘bear’ the occasional visit from a nosey neighbour, of course…
For more information, visit: www.propertymartoverseas.com
For a wide range of properties in Romania, (or in any one of 70 countries on offer) from city centre apartments to rural cottages, and from Bucharest to Brasov, check out Propertymartoverseas.com now.
While the current UK property market is sending a shiver down many people’s spines, specialist real estate company, Arc Property ( http:www.arc-property.co.uk ), is giving prudent investors the chance to sink their fangs into a juicy eastern European opportunity this Halloween. The company is selling apartments at the Cold Mountain Golf & Spa Resort (http://www.coldmountainresort.com) in Dracula’s own part of Transylvania, Romania. As a spooky special offer, the apartments are discounted by 20% from the developer’s present launch price until December 1, and Arc Property is offering a free trip to Transylvania for anyone who buys before then.
Cold Mountain Resort is within walking distance of Bran, home of the famous castle on which Bran Stoker’s Dracula mythology was born. The name Cold Mountain is taken from the nearby area where the new golf and spa development is based. The epic movie, 'Cold Mountain', starring Nicole Kidman and Jude Law, was also filmed here, and the location was chosen for its natural beauty.
Alastair Norman, director of Arc Property, says: “Tranyslvania is an area of considerable charm with stunning scenery and is a genuine location for rapid real estate growth. Cold Mountain is being developed as a luxury countryside retreat that takes full advantage of this setting. It is ideally located close to the scenic city of Brasov, excellent skiing in Poiana Brasov and, of course, the historic town of Bran.”
Transylvania and Cold Mountain look set to achieve a further boost in terms of real estate and tourism over the coming years. The new Brasov airport, situated 30mins from Cold Mountain - a $100m project scheduled for completion in 2009 – will bring low-cost airlines to the area, making it more accessible to UK visitors which, in turn, should see property prices rise. Adding to the ‘des res’ feel of the area, Bran Castle is currently for sale and is expected to be purchased for refurbishment as a commercial venture that will capitalise on the already strong tourist industry surrounding the Dracula mythology.
Cold Mountain is ready to take advantage of the surplus of suitable leisure tourism accommodation in the area and, as such, makes an inspiring investment. The development project is creating a 12 month resort offering an 18 hole golf course and spa complex, as well as providing an ideal base for winter skiing (with ski hire and full transport).
Mr Norman says: "Romania has proved a key location for savvy property investors since it joined the EU in January 2007, with Colliers predicting annual growth of at least 15-20% over the next 2-3 years. Cold Mountain has already proved popular with UK investors, with over 200 reservations for apartments taken so far."
Arc Property is exclusively offering apartments at the Cold Mountain Golf & Spa Resort for 20% below the developer’s launch price until December 1, 2007. The apartments also come with a guaranteed two year 8% annual rental yield.
Arc Property provides a full service to its clients with assistance throughout all aspects of the sale, mortgage and legal procedures. The company also has an agreement in place with a local mortgage firm to provide all Cold Mountain buyers with a 75% loan-to-value mortgage. Mr Norman says: “As such, this makes for a strong purchase for experienced and first-time property investors alike. The area may have bloodthirsty connotations but our process is something any buyer can bite into without experiencing teething problems!”
Apartments range in size from studios to three bedrooms. Prices start at £50,750.
Buying In To A Brand New Bucharest 04 Oct 07
The city of Bucharest is not only the capital but the political, economic, employment and cultural hub of Romania - it is also a city capturing the minds and winning the hearts of a diverse range of investors and property purchasers. In particular, an emerging suburb of Bucharest called Tunari is transforming the physical landscape and the range of opportunities available in terms of profiting from property in Romania.
When Romania joined the European Union along with Bulgaria on the 1st of January 2007, many felt that economically speaking the nation was simply not ready to compete on a level playing field with the rest of Europe – but in direct terms the affluence and economic emergence of Bucharest alone paved the way for the nation’s entry.
According to the findings of Jones Lang LaSalle, Bucharest’s economy achieved in excess of a 9% growth in GDP last year resulting in Bucharest being Europe’s fastest growing city economically speaking. Going forward, the global real estate experts predict an 8.4% per year on year growth over the next five years based on rising levels on inward investment, strong export growth and an already witnessed expansion in consumer consumption.
In economic terms Bucharest is an incredible example to every other city in Europe. It manages to be home to the headquarters of almost 200,000 national and international companies, it produces almost a quarter of the entire nation’s GDP whilst only housing 9% of the nation’s populace, just under one third of the nation’s taxes are generated from the citizens of Bucharest, and incredibly low office and commercial property vacancy rates are only surpassed by the exceptionally low unemployment rates in Bucharest.
Basically Bucharest is an economic success story and it is a city in which increasing numbers of international companies are establishing a base and into which strong and sustainable levels of investment are free flowing. Shopping malls are being constructed, the local population is becoming increasing affluent, inward migration of international professionals is increasing annually, and according to Anthony Raftopol, a real estate lawyer in Bucharest: “the economy has been growing fast, yet the supply of apartments just hasn’t kept up with demand. We estimate they need about 300,000 new units [in Bucharest] at the moment, and so far this year there are plans to build just 30,000. At that rate, the boom in prices should continue for a decade.”
Whilst on the one hand the faded chic of the city centre with its pretty museums, palaces, squares and churches is attracting a very loyal bunch of expatriates who see the lost beauty in this ancient city and who wish to restore some of the more traditional properties to their previous glory, on the other hand the brand new Bucharest that is emerging alongside the old and heralding a new dawn in terms of the economic outlook of Romania is drawing in substantial property investor interest and it is in the new Western style properties that local citizens want to live and invest.
The new Bucharest is being built in Tunari and according to Tahir Ali, the managing director of property specialists Romania Revealed: “this suburb of the city is rapidly developing as the new business centre for Bucharest and for Romania as a whole and the key to its success is its location.”
As it is a stone’s throw away from international transport arteries and hubs such as Otopeni International Airport which is now serviced by the likes of cheap flight operators Wizz Air and Easy Jet and it is within reach of the city centre and the stunning countryside landscapes of lakes and forests all around Bucharest, Tunari is a suburb fulfilling every ideal requirement.
In terms of the businesses relocating to Tunari - its accessibility and affordable prices are attractive. For residents moving in - the employment prospects, superior grade, attractive real estate and proximity of both the entertainment and retail hub that is downtown Bucharest as well as the stunning natural landscapes away from the city are the ultimate draw.
Much of Tunari is being developed by a leading Australian owned construction and development company. In 2004 they were awarded one of the most important construction contracts by the Romanian government and because of their superior grade construction methods and the strong relations the company has forged with the Romanian government, they are mapping the future path for Tunari which bodes exceptionally well for anyone who buys in as they are buying high grade, high specification real estate that is increasing in demand annually.
One of their most popular projects to date in Tunari, available through Romania Revealed, is the Darwin Residence apartment development which is appealing strongly to the corporate market – i.e., both investors seeking corporate let opportunities as well as professionals employed in Tunari – both groups are vying for these stylish and modern one and two bedroom homes which come with private and secure parking and which are being constructed to the highest European standards and finished to a five star level.
Prices for the Darwin Residence development start from an exceptionally affordable level at just GBP 61,695 / EUR 89,000 – this gives investors an opportunity to buy in low into one of the fastest growing residential property markets in Europe, a property market built on strong and sustainable foundations for future success.
For more information please contact Romania Revealed on +44 (0)845 054 8697 or visit romaniarevealed.com
Czech Out The Number One Property Investment 26 Oct 07
Overseas property investment specialists David Stanley Redfern Ltd, proudly present a simply breathtaking and exclusive investment opportunity that simply can’t be ignored. Centrally situated in city of Prague, at the very heart of the Czech Republic, these modern 0-3 bedroom apartments are available to any keen investment or holiday home buyers for an astonishing £40,893!
With an ever diminishing number of only 277 flats available in the Palmovka Residence, with only 25% of those on a recommended buy-to-let basis (so as to avoid rental saturation), each ideally situated apartment offers easy access to the busy city centre whilst upholding its auspicious profile amidst its calm ambience and relaxed atmosphere.
Numerous prestigious European developments are amongst the many influences drawn upon to create this stunning property, with each one being reflected in both its open plan, convenience crammed apartments. Notably, each top specification apartment features oversized windows that overlook the communal retail and recreational areas of which it can also righteously boast.
Stylish shopping, designer restaurants, varying leisure facilities and an awe inspiring glass atrium are all enjoyment inducing features amidst its ethereal landscaped gardens. Located in a vivacious well planned retail environment, the considerately constructed living spaces provide a serene haven amidst the dynamic world waiting outside the walls of ‘#one’.
Each side of the development offers its own entrance, with one to be found on a tree lined and foliage-friendly avenue that allows easy access to the 24 hour reception area and aforementioned gardens, whilst the alternate, glass pavilion styled entrance hosts a retail orientated welcoming from the café clustered sidewalks that lead you home.
Referred to over the years as ‘the mother of cities’, ‘the golden city’ and even ‘the city of a hundred spires’, wouldn’t it be great to refer to the breathtaking city of Prague as your city! This political, cultural and economic powerhouse at the heart of the Czech Republic has everything anyone could hope for and a whole lot more besides.
2008 will mark the creation of ‘#one’, Prague’s predominantly revered development and majestic destination, ideal for any modern day professionals or families with a more youthful yearning for top quality accommodation in the Ukrainian regal city of Prague.
With the vast array of specifications, financial solutions, discounts and rental options attached to this property, an exclusively available investment opportunity awaits your investigation at David Stanley Redfern Ltd now. The ‘#one’ is definitely something any potential investor should Czech out!
Find out more about DSR Czech Republic Investment Property at: http://www.davidstanleyredfern.com/Czech_Republic.aspx
As a popular jet-to-let choice for investors, Bratislava has been voted the 6th best place for overseas property investment, due to a reported 20% appreciation.
In a property report compiled for the Daily Telegraph, Bratislava came within the top ten places to make money from property, and as a popular jet-to-let choice for overseas property investment; the strategic location provides vast potential return.
Obelisk’s research has shown the average property and rental prices in Bratislava are over half the price of property in Austria and at only one-hour’s drive from Vienna, Bratislava provides an appealing commuter base for the Viennese.
Tim van Dijk Project Manager at Obelisk comments, ‘Slovakia is one of the most attractive FDI destinations, with low flat-rate tax of 19% and various incentives for all types of investors. Slovakia has considerably reformed its legal system in order to attract more FDI and is now one of the most appealing overseas property investment options in Europe.’
The World Bank has praised the fast changing business environment in Bratislava, and a huge overhaul on the tax and social welfare systems is attracting more foreign investors. The stable economy is forecast to grow at an average 4% per annum, giving a clear indication that Slovakia’s economy is developing swiftly. Property price growth is set to continue at 15–20% for several years, fuelled by the huge demand from locals for quality properties.
Outperforming its neighbours in terms of attracting top brand manufacturers, Slovakia is now the largest per capita carmaker, with names such as Peugeot- Citroën, Volkswagen, Ford, Kia, and Hyundai. With the increased employment comes an increase in disposable income. This coupled with a liberalisation of the financial services market has prompted a strong local demand for property, further influencing property prices.
Demand is strongest for new-build apartments in Bratislava. A new motorway connecting the city with Vienna will be completed soon, which will reduce the travel time by 30 minutes, as well as the low cost airline services to and from the UK. The centre of Bratislava has a combination of many historical elements from medieval to baroque, 19th century to early 20th century with tree lined squares and avenues lining the Danube.
The relocation of foreign manufacturers and an enormous amount of construction of new infrastructure are clearly visible. Unemployment is falling at a significant rate and a considerable increase in tourism has taken place, helped by the increase in budget airline carriers.
Van Dijk concludes, ‘The new off-plan developments in and around Bratislava may ease foreign demand for property investment, but the vast local demand will not only provide longevity to the market, but will also aid the short hold investor when entering the resale market.’
For more information on overseas property investment, and to find out about Obelisk’s latest project in Bratislava, call free on 0808 160 0670 (UK) or 1800 932 514 (IRE) or visit http://www.obeliskinternational.com/
Crimean Ukraine presents top investment opportunity
Still, the overseas property investment market and its many investors and analysts, brokers and agents are seeing the Black Sea region continue to grow in value and appeal. The escalating interest in this emerging market, particularly true of Crimean Ukraine has led to something of a feeding frenzy for properties. Overseas property investment specialist David Stanley Redfern commented on the recent activity in the area:
"One of the keys to making a sound investment is to strike while the iron's hot and to buy into a developing region before its prices and calibre rise beyond reach. We've seen it before in emerging markets and we'll see it again I'm sure but, Coastal Ukraine on the Northern Coast of the Black Sea has attracted an astounding amount of attention, managing to maintain its low profile and to be an unrealised hot spot of potential."
Properties in Coastal Ukraine are currently available from as little as 45,000 euros through specialists such as David Stanley Redfern Ltd right now, but for how long?
Assertive action does indeed seem to be the key. Available on a first come first served basis, these exclusive Crimean properties are all but gone. And, with the extensive leisure facilities on hand, it's hardly surprising. It seems the numbers of potential rental opportunities are being taken up by holidaymakers from Ukraine itself as well as Poland, Russia and the CIS states. In light of their recent economic growth, an unprecedented flourish of personal wealth for the people of the region has occurred.
This is perhaps the motivation for the lower price structure offered to foreign investors, certainly a smart move when attracting investment from overseas. So, with the inclusion of equity effectively coming as part of the price, the onus lays firmly on the shoulders of any potential investors to take full advantage of this exclusive and diminishing opportunity. In 2006, the Ukrainian stock market value saw a 24% increase, seeing its economy soar, in particularly true of its real estate sector which in recent years boasted a 50% real estate increase and a 100% land investment increase.
Anyone interested in making what is surely a sound investment whilst they can, should contact David Stanley Redfern Ltd to discuss their complete customer service and after sales care, as well as the full specifications of the Coastal Ukraine development. The right investment opportunity, the right agent, the right price…is now the right time? Now, with the right obligation-free guidance, you can decide.
Find out more at http://www.davidstanleyredfern.com/Property_Ukraine.aspx