Overseas - June, 2005

With skiing holidays more popular than ever, investing in a property in the French Alps is a smart move. We look at an upcoming treat at Chamonix.
Dedicated skiiers and  smart investors alike will be very interested in a newly launched collection of apartments in the gorgeous setting of the French Alps. Maison Neuve is an exclusive development of 12 apartments in Les Houches overlooking the Chamonix Valley, one of the most popular Alpine destinations.

The luxury two- and four-bedroom chalet-style apartments are spread over three buildings and boast a traditional alpine finish. The chalets will have underground garages, saunas, spacious living areas and will enjoy spectacular views over the Mont Blanc mountain range.
Les Houches boasts 55km of pistes and is ideal for beginners. From there you can ski the entire Chamonix valley, which encompasses 700km of pistes and offers slopes to suit all ages and abilities. In addition, the ChamSki pass is expected to include the Les Houches area shortly and the construction of a new telecabine is planned for 2007. It is likely that Les Houches and St Gervais-les-Bains will be joined by the new lift, which will be great news for owners at Maison Neuve.

Joanna Yellowlees-Bound, chief executive officer of selling agent Erna Low Savills says, ‘Chamonix is an extremely sought-after resort in which to own property and it is rare for property to be brought to the market in this area. One great advantage of Chamonix is its accessibility, being only an hour’s drive from Geneva airport. Maison Neuve will undoubtedly offer exemplary living combined with traditional architecture in one of the most exciting resorts in the Alps.’

Maison Neuve is the latest project by Midelin Investments Ltd, an Irish company which specialises in sourcing and developing high quality French ski properties that deliver both investment and lifestyle benefits. The company offers a customised service to buyers, easing the entire buying process and on-going management of the property by providing additional services such as processing legal documentation, finance advice, and introductions to local rental agents, accountants and service companies.

Stephen Byrne, Managing Director of Midelin Investments adds, "Property prices in this region of the Alps continue to grow and Les Houches not only offers excellent value for money but also good potential for rental income in both winter and summer. Maison Neuve at Les Houches combines the benefits of a ski-in ski-out resort with unparalleled build quality with an exceptionally high-quality finish. This is certainly the most prestigious development that we have ever been involved with.’
Prices will range from around €650,000 to €895,000. Construction is expected to start in September this year and the development is due for completion in December 2006. For further information contact Erna Low Savills on 020 7590 1624 or visit ernalowproperty.co.uk.

New pension rules regarding property ownership have some very attractive implications for those who want to buy overseas, according to Assetz

The change in pension rules to allow investment in residential property through self-invested personal pensions (SIPPs) will trigger a wave of new overseas buying, according to Assetz, a property investment specialist dealing with properties in France, Spain and Cyprus.
Assetz believes that second homes in favoured holiday destinations such as Spain are likely to be top of the shopping list after ‘A’ Day, when the rules change on 6 April 2006. Research from the company shows that Spain’s mature market makes an excellent choice for SIPP investors, with capital growth still high and forecast to grow at ten per cent a year for at least the next five years. Year-round sunshine and the high numbers of world-class golf course developments makes 30 weeks or more annual rental a realistic goal, with potential gross yields of ten per cent plus. This rental income would be immediately reinvested back into the SIPP and used to pay off any mortgage.
Stuart Law, Managing Director of Assetz comments, ‘Off plan purchases at discounted rates still offer the best opportunity to maximise profits. It is possible to buy off-plan today and then assign the contract to the pension after the rule changes, as long as the completion date is after ”A Day”.’
SIPP investors will benefit from full UK income tax relief on the purchase price of the property, before going on to collect rental income tax-free in the pension fund. Any profits made from the sale of the property will also be free from UK capital gains tax but may incur Spanish tax. However, there are ways to reduce this to 15 per cent of the gain. What’s more, says Assetz, the pension fund will be able to borrow to invest, so buyers will be able to gain access to holiday homes that would otherwise have been out of their reach.

One Spanish hotspot is Murcia, with its abundance of world-class golf resorts, which is an excellent choice for SIPP investors who are looking to pay off a mortgage with rental income.
The acclaimed Hacienda Riquelme Golf Resort in Murcia will be the main focus for major golfing ceremonies and events in the area when completed in 2006. The development is built around an 18-hole golf course designed by Jack Nicklaus with shops, restaurants, spa and swimming pool complex, tennis courts and gym.

One- and two-bedroom apartments are priced from €155,000, with rental income expected to reach £500 plus in June and £700 plus in August.
Stuart Law continues, ‘Investors should be aware that they will need to pay rent at the going market rate when they make use of the property themselves, but this money will be pouring straight back into their own pension pot. It needn’t even be an additional cost, since investors can simply pay their pension contributions for that year in the form of rent.’
For more information about Hacienda Riquelme or other Spanish buying opportunities call 0161 456 4000 or visit assetz.co.uk.

The super success of the Fairmont Palm Residence is the more proof that Dubai is the place to buy.

Exciting buying opportunities in the hotspot of Dubai have been unveiled to UK buyers with the launch of IFA Hotels & Resorts’ Fairmont Palm Residence. This latest project in IFA’s $1 billion in The Palm, Jumeirah will consist of luxury apartments, town houses and penthouses.

The 558 spacious luxury apartments within the Fairmont Palm Residences include one-, two-, three- and four-bedroom apartments, as well as town houses and penthouses which will have direct beach access and unrivalled sea views. Apartment sizes in the development will be among Dubai’s biggest – for example, a large luxury three-bedroom apartment overlooking the sea will offer 4,000 sq ft of space, making it on average about 30 per cent bigger than similar properties.

Town houses, priced at £1 million and up, boast private swimming pools and gardens as well as direct access to basement parking. The penthouses, meanwhile, are priced from £900,000 and have private swimming pools and offer spectacular ocean views from the top two levels. The Fairmont Palm Residence will feature a complete array of top facilities, including a members-only health club, gymnasium and swimming pools, as well as extensive children’s play areas and a diverse selection of restaurants and cafés. Investors in this world-class residence will also enjoy concierge and housekeeping services plus child care facilities.

IFA has set up a unique rental scheme for the residences, managed wholly by Fairmont Hotels & Resorts, which allows investors to rent out properties either furnished or unfurnished. The furnished options offer medium- to long-term leases or short-term rentals, with the owner receiving a return based on occupancies. ‘The short-term furnished option will be beneficial for overseas investors as it allows them to use the property when it isn’t rented out,’ explains Werner Burger, vice president of sales and marketing for IFA Hotels & Resorts. ‘This can produce significant returns for investors with demand for short-term accommodation in Dubai increasingly on the rise.’

For more information about this amazing new opportunity visit fairmontpalmresidence.com.

 

For those in the market for an overseas property, preparation is crucial. We ask a solicitor what Brits should do – and not do

British people buying property abroad are falling foul of foreign laws that could leave them limping back home with their tails between their legs and severely out of pocket. Solicitor Adrian Taylor, an overseas property expert and partner at national law firm Rowe Cohen, says that a combination of factors have led to an unprecedented number of Brits leaving the UK to set up home overseas.
‘We have an aging population, poor weather, open borders across Europe, cheap flights and a very buoyant recent property market here that has enabled people to release equity in their homes. Add to this the fact that European banks have comparatively low interest rates and it's easy to see why so many people are wooed. It all seems so attractive and easy.’
However, there is a downside to this apparent EU-topia, warns Taylor. ‘Too many people take the plunge with too little preparation. We have all seen horror stories on reality TV programmes featuring people who have simply upped sticks and turned up in a country without even speaking the language. It's nothing short of insanity.
‘The culture across all aspects of life, particularly the law, is very different. Things are not done in the same way as here.’
Taylor says that people thinking of moving abroad or investing in property overseas should appoint a decent British-based lawyer before they do anything else, even before speaking to their bank manager. He offers the following advice for choosing a suitable lawyer:
Make sure you seek advice from a UK solicitor who is bilingual and experienced in the law of your chosen country – ask for evidence of her/his experience
Check that s/he has hands-on, practical experience of the country and has credible contacts there – again, ask for examples

Make sure your legal adviser is able to offer you the advice you need – whether it's buying a house or buying land on which to build. Does the soliciator understand, for instance, the ins and outs of local searches and contractual law there?
Ask if s/he is able to put you in touch with other professionals in the country, such as architects, builders and accountants. If not don't worry; this is just a good added extra

‘If people do their homework and get good advice right at the outset, they can save themselves a great deal of heartache, time and money further down the track. With good advice, the world can be their oyster.’
Taylor believes that Croatia, Turkey, Bulgaria and Czechoslovakia will be the next countries to be targeted by Brits struck with wanderlust.