Overseas - November, 2006

Taxation on buying and selling a Spanish property is significantly higher than in the UK. Eddie Parker of Wellers Accountants stresses the importance of understanding these taxes and also gives some useful hints on minimising tax paid, whether the Spanish home is for personal use or investment purposes.

Firstly, when purchasing the property it is important to consider whose name is on the deeds. If the property is for private use, then it is suggested that the purchase is in individual names. Whereas, if the purpose of the purchase is investment it may be better to set up a company.

There also needs to be consideration at the outset of the possible future destination of the property as there are not the same inter-spouse exemptions, such as capital gains and inheritance tax, available on transfers of property situated in Spain as there are in the UK. For example, in the UK, spouses can transfer a property between themselves without paying tax. However, in Spain a Gift Tax would be applied.

If you plan to live in your property, income tax is payable on all income arising in Spain. Separate returns are required for husbands and wives and filing deadlines apply. Taxes are calculated on a calendar year basis, pro rata for the year of acquisition and sale.

If you are renting your property, tax is payable at 25 per cent on the gross amount of rent received before deductions. In the event that the property is not let, there is still a tax on the deemed rental income at the rate of 25 per cent on the real estate tax value of the property.

Other Spanish property taxes include Patrimonio and IBI. Patrimonio is a wealth tax of 25 per cent, which is based on capital assets with the property valued for this purpose at between 0.2 per cent and 2.5 per cent of the real estate property value. Patrimonio is paid on an annual basis. IBI is an annual real estates tax, which is based on the official assessed value of the property. The tax varies from region to region and from property to property.

Capital Gains Tax also applies in Spain. When selling a property to a non-resident purchaser the vendor is required to deduct 5 per cent of the sale price and hand this over to the tax authorities. A calculation is subsequently prepared identifying the capital gain arising (the profit made on the property since its’ purchase), which is dependent on things like improvements and period of ownership. The capital gain is then subject to tax at 35 per cent and in the event that this is less than the 5 per cent retention, then a refund can be obtained or if it is more then a debt may attach to the property. The 35 per cent rate is being challenged in the European Courts as excessive and may be reduced in due course.

If retiring to Spain, it is important to understand how Inheritance Tax works in Spain. It is the recipients of any inheritance that pay the tax and whilst there are small exemptions (personal allowances) for family relationships, i.e. husband to wife and to children etc, these are small (16,000 Euro) in comparison to the UK exemptions. The inheritance tax liability is calculated by determining the asset value, the relationship with the recipient and any personal allowance available. The ‘net’ figure is subject to tax on a sliding scale at rates between 7 per cent and 34 per cent (on values between 8000 and 800,000 Euros). This amount is then multiplied by a minimum of one and a maximum of two, depending on the relationship with the recipient. A husband and wife relationship is subject to the least tax of 1 x the asset value.

Eddie concludes: “It should be noted that although taxes are national, some such as inheritance tax are devolved to the regional governments, where they may in turn modify exemptions. As such regional variations will apply dependent on where the property is sited.

“It should also not be overlooked that overseas income and gains may need to be reflected in UK tax returns although there is credit available under the double taxation agreement”.

Always seek professional advice on this and any other financial matters as this information could be subject to change. To contact Wellers Accountants please call 020 7630 6665 or visit www.wellersaccountants.co.uk.
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DEMAND FOR FRENCH MORTGAGES GROWS AMONG HOLIDAY HOME BUYERS

People buying holiday homes in France, the most popular overseas destination for British second home owners, are increasingly taking out French mortgages rather than buying with cash, reports Assetz Finance.

Traditionally, the majority of British purchasers of French holiday homes to use personally have purchased their property outright, without any loans, using savings, inheritance or equity release on their UK property to finance the purchase. On the contrary, investors buying buy to let apartments or French leaseback properties would rarely consider financing their purchase in this way, intending instead to maximise their returns through the use of bank gearing and a minimal 15-20% deposit.

However, over the last twelve months, Assetz Finance has noted a rise in the number of British holiday home buyers opting for a French mortgage, from approximately 33% in 2005 to 50% in 2006, as people begin to recognise that they are both readily available and easy to use as a viable method of finance.

Katy Hepworth, Overseas Mortgage Manager at Assetz Finance comments:

"In the past French mortgages were less widely available and were renowned for being difficult to secure, meaning most holiday home buyers did not even consider using them and instead struggled to finance a cash purchase from the UK.

"This is no longer the case, however, and a considerable number of British purchasers in France are starting to take advantage of French mortgages which are consistently 1 - 1.5% cheaper than in the UK."

The Euribor base rates used by French lenders range from 3.3 - 3.8%, whereas the Bank of England base rate is currently at 5.0% and expected to continue on its upward trend with a further rise this week. Therefore it is cheaper to borrow money in France to buy a property, than to release equity from a UK home.

A large number of holiday home buyers in France intend to rent the property out for a number of weeks every year. By securing a Euro mortgage that is paid via Euro rental income, if the value of sterling gains against the Euro, only the small amount of equity injected into the purchase (normally 20 - 30%) would lose value in currency terms. However, if the property had been purchased in sterling without a French mortgage, the full purchase price would lose value.

From a tax perspective, mortgage interest can be deducted from any French income tax liability if the property is making rental income, presenting another advantage of using a loan to finance a French property purchase. Furthermore, any outstanding mortgage can be deducted from any French wealth tax liability calculation.

Katy Hepworth continues:

"In the past British people buying holiday homes in France have missed out on low interest rates, tax and currency advantages, often because they are daunted by the language barrier. However, buying with French finance is now a path so well-trodden by investors, that a considerable number of holiday home owners are now following suit and taking advantage of overseas mortgages."

Bansko is the place to go for snow

W hite Fir Valley in Bansko is a five-star apartment development by MSI Developments which, although launched only at the beginning of October, is selling quickly. Of the 199 luxury apartments, fewer than 100 are currently still available.
‘Bansko is the only modern ski resort in Eastern Europe,’ says Tom Holland, director of MSI Developments, ‘and it’s also a year-round resort, so it’s already a popular destination for all Eastern and Western Europeans. With a new gondola opening up more ski runs, the development of Kulino nearby and a new motorway and airport planned, the resort is poised to become a real property hotspot.’

The immediately-popular development features mainly two- and three-bedroom apartments, fully equipped with the latest communications and entertainment systems, and positioned on a prime site to take advantage of the sunshine and spectacular mountain views.
The complex has been designed with the rental market in mind, with generous accommodation, floor-to-ceiling windows and good sized balconies, a concierge service, indoor and outdoor pools, Jacuzzi, Turkish bath and spa, coffee shop, cocktail bar, restaurant, gym, convenience store, children’s playground, babysitting service, crèche and children’s activities.
‘We know the market in Bansko,’ says Holland, ‘which is why we haven’t included any studios in our development. This is a family-oriented resort and we are building apartments to appeal to them.’

As a further benefit to investors, the apartments have a ‘dual lock’ feature which enables conversion of a two-bedroom apartment into a one-bedroom apartment and a studio at the turn of a key. This gives added flexibility for the rental market, further boosting rental potential.
The stylish architecture reflects that of the established European resorts and is designed to maximise the spectacular views surrounding the development. The apartments feature floor-to-ceiling windows and good-sized balconies.
The apartments are of generous size and are offered with a choice of two furniture packages. Kitchens have granite worktops. And when it comes to the latest gadgets for entertainment and work, White Fir Valley is ‘future proofed’ with state-of-the-art iPod-friendly entertainment systems and Wi-Fi throughout, so you can not only have your favourite music all around the apartment but also work from there – if you really must.

Bansko is easily reached in under two hours by fast motorway connection from Sofia International airport. Also, a new airport is due to be completed near Bansko within the next few years and a new motorway, already being built, will further reduce transfer times.
The skiing in Bansko is of high quality and will cater for all levels. The current 65km of runs will be extended up to 200km in coming years with a new gondola and development of the adjacent Kulino area. The ‘black’runs have been designed by Alberto Tomba, while ski champion Marc Giradelli is establishing a €12 million international ski school at the resort.

Prices at White Fir Valley start at €95,695 for a one-bedroom unit, €130,000 for two-bedroom units and three-bedrooms start at €190,000. All apartments have fully fitted kitchens, bathrooms and heating systems.
For more information see whitefirvalley.com.

A great choice of investment properties

With over £20 million of investment, Bansko in Bulgaria is set to take European skiing to a whole new level.

According to leading overseas property agents, Avatar International, there has never been a better time to invest in Bansko, having just been named Europe’s most improved ski resort in the Great Skiing and Snowboarding Guide 2006 awards.

Amar Sodhi, Managing Director of Avatar International comments: “Bansko has undergone extensive regeneration and investment in recent years and is therefore showing all the signs of becoming one of Europe’s ultimate skiing destinations.  In my opinion, it has got everything; the best snow record and longest ski season of all the Bulgarian resorts, as well as its appeal as a summer holiday destination, making it a very promising resort in which to invest.”

Avatar International has recently launched two developments in Bansko, which both offer excellent investment potential.  The first, Sunrise-Mountain Paradise, comprises 154 studio, one and two bedroom apartments and offers stunning views towards the Pirin, Rila and Rhodope Mountains.

Situated just 300m away from the new gondola lift station, Sunrise-Mountain Paradise has a wide range of onsite facilities.  For rest and relaxation, there is a fully equipped spa with massage centre, sauna, jacuzzi, fitness centre and indoor swimming pool. For après-ski, there is a tavern, restaurant, barbecue and a cocktail bar. Other facilities include 24-hour year round security, an underground car park and a selection shops.

Each apartment is fully furnished with everything taken care of, right down to the soap dish and bath towels, saving purchasers a huge amount of time and money whether they are buying as an investment or a holiday home.

Sunrise-Mountain Paradise is due for completion in July 2007. Prices are from €51,279 for a studio apartment and the developer is offering an eight per cent rental guarantee for three years.

Avatar International has also recently launched Edelweiss Inn, a superb new development of 42 studio, one and two bedroom apartments situated at the foot of the scenic Pirin mountains in Gramadeto, the newest and smartest area of Bansko.

Located between two four-star hotels, Edelweiss Inn is just 200 metres away from the new gondola lift station.  Externally, the development is designed in a traditional Bansko style with a mix of attractive stone and wood.  Inside, kitchens and bathrooms are fully fitted and each apartment benefits from its own terrace.

The excellent onsite facilities include a bar, a fitness centre with a solarium, sauna and jacuzzi and underground parking.  Prices at Edelweiss Inn are from €51,000 for a studio apartment and from €57,164 for a one bedroom apartment.  The development is due for completion in March 2006.

The skiing area of Bansko has 11 marked ski runs and four ski tracks with a total length of over 25 km to suit a variety of skill levels and age ranges. The resort offers a combination of state of the art facilities combined with the historical charm of a medieval Baltic town.   

The most direct route to Bansko is via Sofia airport with daily flights throughout the year and a transfer time of two hours.

For further information on Sunrise-Mountain Paradise and Edelweiss Inn, contact Avatar International on telephone: 08707 282 827

Orpheus Valley, a new development in the ski resort, Pamporovo.
 
Orpheus Valley, development / property details:  80 luxury apartments (24 studios, 28 one-bedroom and 28 two bedroom) just 900 metres from the Pamporovo ski runs.  Externally, the development replicates typical Rhodopi ancient architectural style.  All apartments have mountain views.
·    24 hour reception and concierge
·    Swimming pool, three saunas and two steam baths
·    Fitness centre / gym
·    Secure private parking
·    Landscaped communal gardens with outdoor barbecue
Location / resort details: Pamporovo is the most Southern ski resort in Europe. It is situated 1650m above sea level, at the foot of peak Snejanka (1926m) in the picturesque Rhodopes Mountain.
·         Over 20 runs (including a ski run for giant slalom) and three cross-country runs
·         A first class system of chair-lifts and drag lifts
·         Variety of shops, bars, restaurants and nightlife
·         Pamporovo is within 85km of Bulgaria's second-largest city; Plovdiv. It is only 1½ hours by car from Plovdiv airport
Price: From €31,622 (£21,658) for a studio apartment €64,254 (£44,009) for a one bed apartment and €75,532 (£51,734) for a two bed apartment (conversion rates are based on €1.46 to the pound).
Sales contact: Avatar International on telephone: 08707 282 827

Santa Marina, Sozopol:
 
Property: Studios, one and two bedroom apartments.
 
Details: The development is situated in the charming town of Sozopol on Bulgaria's Black Sea coast and will comprise 28 villas containing one and two bedroom apartments, as well as studio apartments.   Due to be completed in May 2006, the development, which will also have its own restaurant, bars and a shop, has been designed to reflect the local architecture of Sozopol.  Santa Marina adopts traditional building techniques to ensure a development which is sympathetic to the surrounding environment. The apartments are built to mimic local architectural styles with stone built ground floors, traditionally important to keep homes around the southern coast of the Black Sea and Mediterranean cool, wooden upper floors and even the sloping red roof tiles local to the area.
 
With over 2,600 years of history, Sozopol has a wealth of buildings and relics from different periods, ranging from Graeco-Roman structures to classical sculptures, which is one of the reasons it is equipped to host the Apollonia International Art Festival at the beginning of September each year, which attracts thousands of visitors both from Bulgaria and from overseas. The beaches are the other main attraction in Sozopol with two long sweeps of sand dominating the coast. 
 
Price: Studios: € 56,500 / £37,000, one bedroom apartments: € 89,200 / £61,950, two bedroom apartments: From € 107,300 / £74,350
 
Sales information: Avatar International 08707 282 827

Buy into an unexplored gem

As we start to feel winter’s bite in a big way, those in the market for overseas property may want to dream about the perfect holiday destination. Overseas Dreams, part of the Barrasford and Bird Group, now brings to the market an outstanding investment opportunity in the form of Buccament Bay in St Vincents and the Grenadines. This off-plan Caribbean investment looks set to become one of the most sought-after opportunities of 2006 – after all, the location is currently in the build-up to hosting the Cricket World Cup in 2007.

St Vincents is the largest of the Grenadine Islands, set at the head of the Windward Island chain. Often overlooked by tourists used to more established islands, St Vincents is referred to by the tourist board as ‘the gem of the Caribbean’. This gem now looks set to reap the rewards; besides the Cricket World Cup, there is a new international airport due in 2010, as well as a government-backed building programme incorporating Buccament Bay. The strong belief is that St Vincents and The Grenadines will soon be challenging other tropical locations such as Barbados and St Lucia as the premier destination in this area.

It is also worth mentioning that at present, property prices in St Vincent are roughly one-fifth of those in neighbouring St Lucia and Barbados, which means that this could be the most attractive investment opportunity of 2006.
Buccament Bay is an exclusive development encompassing 30 acres which will offer a hotel along with separate bungalow accommodation, clubhouse and many other amenities. It will benefit from a complex manager who managed the exclusive Sandy Lane in Barbados (known as the most expensive address in the world), which speaks volumes about the aims of this premier resort.
Robin Barrasford, managing director of Overseas Dreams, says, ‘Buccament Bay is a first-class investment opportunity in picture postcard surroundings. The fact that the St Vincent government has created this initiative to increase holiday accommodation in line with the new international airport means that we are just at the beginning of something very special. Just 30 miles south east of St Vincents, Raffles has gone into partnership with Donald Trump to created an extremely upmarket resort called Trump Villas, which is host to prestigious multi-million-pound homes, all of which helps to enhance this part of the Caribbean.’

Prices at Buccament bay start at £65,000 for a one-bedroom ground-floor apartment. In addition to this attractive price, due to the overwhelming interest of this new resort there is a guaranteed rental income of eight per cent – which means those looking to invest can benefit from the rental market while watching their capital appreciate in this up-and-coming region.

Overseas Dreams is currently marketing properties in the Caribbean, Cape Verde and Dubai, and this list will increase in the new year to cover other worldwide locations offering fantastic investment opportunities.
For more information visit overseasdreams.net or call 0845 260 0900.

The latest from this popular spot.

There’s a lot happening in Cyprus, one of the Mediterranean’s most consistently popular holiday destinations. Those looking for property overseas will want to keep up with the latest in the Cypriot property market – and soon a unique opportunity will present itself.
Alexandra Palace in north London has been chosen as the venue for the first-ever Cyprus Property Exhibition, to be held on Saturday 10 and Sunday 11 December.
The Cyprus Property Exhibition will be opened by the Cyprus High Commission in Britain, Mr Petros Eftychiou and will take place between 10am and 8pm on the Saturday and 10am and 6pm on the Sunday.

Visitors will be able to talk face-to-face with 35 leading developers and real estate agents from Cyprus. With thousands of freehold property to choose from in Nicosia, Limassol, Larnaca, Paphos and the Famagusta region, potential buyers simply can’t afford to miss this chance.
The exhibition will cater for all property needs, including holiday home, permanent residence and investment. Different budgets, from studio apartments to luxury villas, will be catered for. Representatives from the Cyprus government will also be in attendance, providing an information forum to help the public understand the buying process in that country.
Entrance to the exhibition is free and all visitors can enter a prize draw with a top prize of a holiday to Cyprus, which will take place on each day of the event at 5pm.

With a new international airport under construction, Cyprus is set to welcome even more tourists than before. And as property prices are still lower than in France and Spain, canny investors should have a look at what Cyprus offers. Assetz has several properties for sale throughout southern Cyprus, including Mandria Villas, an excellent investment in a traditional setting only ten kilometres from Paphos. Prices start at £171,324 for a three-bedroom villa with pool. Investors looking to rent their property out could expect annual yields of at least seven to nine per cent, says Assetz.
The winter season in this region is very strong due to the mild weather, another plus for investors. In fact, with an average of 340 days of sunshine per year and a strong letting season from April to October inclusive, the rental market in Cyprus is year-round, producing gross rental yields of eight to 12 per cent.

Find out more about Mandria Villas and the many other properties available in Cyprus by visiting assetz.co.uk.
Halcyon Properties offers four new two-bedroom detached villas in the peaceful traditional village of Nikokleia, about ten minutes’ drive east from Paphos town and a short drive from the airport. Each of the properties has a private swimming pool and there are two golf courses a short drive away.
Each home measures approximately 127 square metres and is set on a plot of approximately 349 square metres. Features include garage, guest WC, solar panel and double glazing.
The homes are priced at £130,000. For more information call 01323 891639 or go online to halcyon-properties.co.uk.

Allied Pickfords reveals UK homeowners are seeking solace in sunnier climes

Allied Pickfords has launched the results of its Annual Move Monitor, revealing that more people than ever before are moving abroad from the UK.  
Tracking over 19,000 home moves within the UK and to worldwide destinations, the research is the largest of it’s kind and has pinpointed the latest overseas moving trends.

Beaches and BBQs are the order of the day as Australia is the number one relocation destination for Brits – just under a third of overseas home movers are heading down under. With Australia’s recent drive to attract health professionals and tradesman into the country, Allied Pickfords predicts that this figure will grow further.

New Zealand is ranked as the second most popular relocation destination, with the United States in a close third place, and Canada ranked in fourth place achieving six per cent of all overseas movers. 

Spokesperson Lyndsey Daykin says, “The monitor revealed that the English -speaking countries that are blessed with a favourable climate remain the firm relocation favourite for Brits.”

“However, Allied Pickfords is now relocating people further afield than ever before. Organising relocations to 106 countries around the world, from Aruba to Zambia, the Move Monitor reveals that people are prepared to consider all parts of the globe as their home.“

Top relocation destinations:
(% of total 5264 moves)

Australia - 31%
New Zealand – 11.5%
USA – 11%
Canada – 6%
South Africa – 5%
France – 4%
Spain – 4%
United Arab Emirates – 3%
Cyprus – 2.5%
Irish Republic – 2 %

Where are these people relocating from? %
South East – 25%
South West – 14%
North East – 14%
Midlands – 13%
London – 11%
Scotland – 9%
East Anglia – 6%
Wales – 4 % 
North West - 3%
Channel Islands – 1%
Northern Ireland – 1 %

Allied Pickfords provides a range of services and support for individuals and families relocating overseas. This includes advice from a personal move consultant who can advise on all aspects of the move from advising what to take and what to leave behind, to shipping and customs regulations.    Contact Allied Pickfords on 0800 289 229 for more information about moving overseas.   

Quirky facts:

Total number of moves to UK from overseas: 69
Moved as many people to Lebanon as we did to Luton
4 times as many people moved to Canada than moved to Cardiff
Moved more people to Bulgaria and Bahrain than to Blackpool
31 % of movers to Australia came from the South East 
Most exotic relocations included moves to Mauritius (6) Bermuda (5) Malaysia (20) Macau (7) Egypt (5) Fiji & Bahamas (2) Sri Lanka, Borneo & Turks & Caicos (1) 


For further media information contact:
Julie Doyle or Helen Mitchem
Pickfords Press Office: icasPR
Tel: 020 7632 2400
Email: pickfords@icas.co.uk

Desirable villas near Granada

A variety of detached villas, each on a plot large enough for a private pool, is currently on the market in Montesol. The location is a unique urbanisation situated just 20 minutes drive from Granada. With prices starting from an astonishing £78,000 for a two-bedroom detached home, interest is expected to be high.

‘The price includes the land and build but does not include kitchen, boundary walls or any extras,’ says Craig Stocks of Eden Villas. ‘The homes are built to the very highest specification and offer the best value for such an urbanisation in southern Spain. We have been selling these homes for a little while and this is the latest phase.’ Kitchens and bathrooms can be built to an owner’s particular specifications and budget so realistically the finished home will cost around £100,000.

Investment-wise, these homes are shaping up to be winners. Stocks describes a client who bought four years ago whose property has doubled in value since purchase.

Montesol is in a quiet location 1.5 km from Puerto Lope village, where facilities include post office, banks, doctors, dentist, four supermarkets, a butchers, a bakers and a hardware store. There is also a disco and several cafés and bars where one can relax and watch the world go by . The valley and countryside offer stunning views, yet Montesol is only 20 minutes from the magnificent cultural city of Granada. This city basks in a giant basin surrounded by blue mountains, often snow capped, and complemented by the world famous Alhambra Palace.

Montesol offers good capital growth potential, not to mention proximity to skiing facilities, which gives the property all-year-round use. With such a beautiful location and such amazing prices, this is a development that makes sense to the overseas purchaser.

Get more information from Eden Villas by calling 01382 505101.

Dubai is the jewel of the United Arab Emirates, with one of the world’s fastest-growing property markets. Kamran Mahmood, director of MiNC Property Enterprises, takes a look at what the buyer can expect

Year-round sunshine, luxurious yet affordable hotels and restaurants; a cosmopolitan environment; world-class education and healthcare, good entertainment and leisure facilities including amazing beach clubs, sporting and outdoor activities; all these are excellent reasons for spending time in Dubai, and the city is now firmly established as one of the fastest growing tourist destinations in the world.

Alongside championship golf courses, innovative business parks, indoor ski slopes, enormous shopping malls, and some of the world’s most fabulous beach resorts, Dubai also offers continually strong GDP growth – 7.4 per cent in 2004 – and political stability.

Put all this together with the fact that buying and running a car is much cheaper than in the UK, that there are high, tax-free salaries for expat professionals and excellent communications and business facilities, and it’s not surprising that Dubai is considered by many to be an extremely desirable place to live.

However, buying a property in a country where the culture and lifestyle may be different from what we are used to needs careful consideration.

Property in Dubai is selling fast – both to the indigenous population and to foreigners. Of the buyers from overseas, there are those who want either to move there permanently or have a holiday home as well as buy-to-let investors from all over the world.

Until 2004, most developments were very exclusive and expensive, aimed at the high end of the market. However, over the last couple of years the Dubai market has changed beyond all recognition. The catalyst for this was a change in the legislation to allow non-residents to buy property. Dubai is now witnessing unprecedented growth, precipitated by the Government's drive to underpin its highly successful inbound tourist industry and further diversify its non-oil trade.

The discovery of oil spurred the rapid development of the UAE about 30 years ago - since then the UAE and Dubai in particular has placed emphasis on building the service sector. Oil now accounts for only 23 per cent of the GDP, whereas property is now the single most advertised category in the UAE.

Recognising the need to attract qualified residents and investors to help sustain its growth, Dubai has enabled 100 per cent foreign ownership of property and has quickly established a worldwide reputation as the 'in' place for property investment. Residency visas can be obtained simply by owning a freehold property.

Dubai's landscape is currently being transformed by large-scale tourism, with some 200,000 visitors per day, and by leisure and property developments, including the now famous International City. In 2004 Dubai attracted 4.7 million tourists; by 2010 Dubai will attract 15 million hotel visitors according to the Dubai Department of Tourism and Commerce Marketing.

Since the change in legislation, a much wider range of properties of all types have come onto the market, catering for the tourist and business traveller as well as for those wanting to move permanently to Dubai.  

Some companies, such as MiNC, offer investors the opportunity to buy into the serviced apartment market, so that they can offer an alternative to scarce hotel accommodation and where higher yields can be guaranteed for a fixed period of time. The demand for rented accommodation from both the local and international markets is intense. Why pay £200 per night, per room, when you can pay £160 per night for a two-bedroom apartment that can sleep between four and six people?

Others focus on residential or investment property of all types and sizes, with prices ranging from those well below an equivalent property in the London market to the very top end.

So, alongside all these reasons to buy, are there any risks?  Those looking to live there permanently, rather than enter the buy-to-let market, should consider the following factors:-

The cost of moving to and living in Dubai, including things such as mortgage costs, water rates (scarcity of water in Dubai means these are high).

Dubai’s relaxed social environment and openness to western investment – following the recent legislation allowing non-GCC foreigners to buy freehold property in 2003 - has led to phenomenal growth in the number of real estate developments rising from the sand and the demand from overseas investors now exceeds the available supply in many developments. The next two years could be lean because the amount of residential property currently outweighs the amount of commercial property. To minimise these risks, investment companies such as MiNC offer rental guarantees and local knowledge and experience.

A land registry is not in place yet, but there is talk of it being there early next year. When it does come in, however, mortgage finance will be more readily available. Currently there are no repossession laws because of a lack of land registry.

These risks have to be weighed against the fact that in a little over three decades Dubai has transformed itself from an oasis in the middle of a desert to the bustling hub of activity that it is today. With a reputation as the ‘in’ place for so many things, demand for property in Dubai has soared in recent years and there is every reason to believe the market will continue to grow rapidly.

A new airport is currently under construction to cope with the increase in numbers of visitors, and the $5 billion dollar Dubai Land plans to be the biggest theme park in the world, anticipating that it will attract over 200,000 visitors per day.  In addition a new monorail is being built, and shopping centres are being created in the new residential areas such as Dubai Marina.

Dubai’s currency, the Dhrs, is linked to the dollar. Britons continue to capitalise on the favourable exchange rate, with the pound now buying nearly two American dollars.

The high quality of accommodation on offer and rental yields of up to ten per cent has made Dubai a highly attractive investment proposition, with many people, in the light of rising UK house prices, financing deals by equity raised from UK properties. Compared with many other countries, the variety of property on offer is tremendous, with prices ranging from studios starting at £30k, to exclusive villas on the new Palm Jumierah at £2 million.

There is no sign of this growth tailing off, with economic growth of seven per cent and single figure inflation. Dubai has already earmarked $50 billion dollars for investment into the real estate market between 2004-2010.

Anyone seriously considering purchasing property in any country needs to be clear about why they are doing it, and weigh up the risks and benefits carefully. If, after extensive research, a decision is made to go ahead and buy, we recommend that, wherever possible, a purchaser should try to deal with an agent with an established office in the target country, who will be able to recommend how and what to buy, and who may also offer ongoing advice. It’s important to avoid the pitfalls, but anyone who decides to buy in Dubai will hopefully enjoy the experience of owning a property in one of the most exciting cities in the world.

MiNC Property Enterprises Limited is a property wealth management company with offices in London, Dubai and Johannesburg. Prospective purchasers or investors should contact MiNC on 020 7536 2233 or visit mincproperty.com.

Cape Verde, a collection of islands off the coast of West Africa, is increasingly recognised as the next tourism and property hotspot and is attracting huge amounts of foreign investment. It has recently been announced that a major new tourist project worth over $100 million is set to take place in the capital city of Praia, located on the largest of the ten islands, Santiago. This, along with the opening of the new international airport in Praia, is likely to lead to an increase in tourism, adding to Cape Verde’s property investment appeal.
Paul Aspden of Independent Property Consultants (IPC), says, 'A lot of people are talking about the investment opportunities available in Cape Verde at the moments, and for very good reasons.'

The country has been described as 'Europe's answer to the Caribbean' says Aspden. 'It has been identified internationally as a country for growth, with the International Monetary Fund rating its economy as solid.
The money and property background reflects Cape Verde's history as a Portuguese settlement, says Aspden. 'The national language is Portuguese and the currency Escudos, which is tracked against the Euro. Portuguese property purchasing laws are used in general, and we recommend using a lawyer with experience of buying in Cape Verde,' he says.
But the economic climate is not the only reason buyers are queueing up to get in early in Cape Verde. The island group, located off the coast of West Africa, offers wonderful weather, natural beauty, a thriving and constantly growing tourist trade – all the elements an overseas purchaser would look for in a tropical investment destination.
IPC's portfoilio of properties on the island of Sal comprise a wide range of studios, apartments, penthouses and villas. The luxury apartments and villas are going to range from one to three bedrooms, with high-quality modern designs and stunning sea or mountain views. Prices start from €95,000 to €300,000 depending on specification.
'We are currently investing heavily here on behalf of our clients,' says Aspden, 'with a wide range of properties. It is worth baring in mind that all home purchases in Cape Verde are subject to additional fees: three per cent title fees, three per cent transfer tax and legal fees on top of that.

For further information about Cape Verde, and for expert help and advice on buying in this up-and-coming location, contact IPC on 0800 169 2234.
Overseas agent Avatar International is currently representing two new apartment developments in Praia: Aguia and Santa Maria. Managing director Amar Sodhi comments: ‘Santiago already has so much to offer, with lush forests, beautiful beaches and numerous sporting activities. The new Praia tourist project includes improvement of the harbour and beaches, as well as a luxury hotel and casino which will enhance the area.’

The Aguia and Santa Maria apartments are situated next to each other in the heart of Praia, the financial district of Cape Verde, overlooking Gamboa beach, which will be transformed with imported white sand from the coast of Africa as part of the investment programme. Gamboa beach, the largest on Santiago Island, is just 200 metres away.
Numerous cafes, restaurants and bars are also nearby. Several golf courses are currently under construction in the local area and the new international airport is just 5km away.
At present, the quickest route to Cape Verde is via Lisbon from Heathrow or Gatwick, with a flight time of approximately seven hours. However, direct flights from the UK to Santiago’s new international airport are due to start shortly, which will shave two hours off the journey.
Completion of both Aguia and Santa Maria is planned for August 2007. Prices at Aguia are from €224,999 for a four-bedroom duplex apartment.
Prices at Santa Maria are from €104,000 for a three-bedroom apartment. For further information,contact Avatar International on 0870 728 2827 or visit avatar-international.com