Overseas Real Estate Blog

Want to buy a property on a 6 star resort from as little as € 6,000?

Now you can... just reserve your property on the 6 star Palm View Resort, Boa Vista island and pay nothing else until completion.

How? on completion the developer guarantees a 100% mortgage on the purchase price.

There is a 7% guaranteed rental for 5 years with the option to renew. So on completion you own a property without paying out any of your own cash and you are guaranteed a mortgage that will pay for itself with the 7% guaranteed rental offered by the developer.

To cap this off the whole development is bonded (insured) which means that this is probably the lowest RISK development around.

Most emerging markets demand a sizeable percentage of money invested up front with Palm View Resort this is not required.

This payment plan and structure suits both jet to let investors and lifestyle buyers as it tackles head on the area of risk when investing money into off plan projects. Palm View Resort will be one of the most sought after properties on the island and off plan investors can now do this what many would argue as very low risk.

Palm View will offer just this one purchase plan - not lots of different ones, just one !

Palm View purchase will be via an exchange bond system and proceeding on completion to 100% finance package covering all costs for 5 years.

A total of a 7 year investment with nothing to pay other than the cost of the exchange bond, which is then refunded from the purchase price at completion.

The exchange bond will cover the purchase of the unit - this is via exchange bond.co.uk - http://www.exchangebond.co.uk/

The purchase amount required for the units available will be as follows, this includes res. fee and exchange bond :

Studio unit €6,000
Ground Floor Middle Unit €9,000
Ground Floor corner unit €14,000
First Floor Middle Unit €15,000
First Floor Corner Unit €16,000

This would be the total amount required to secure the unit.

This amount would be reduced off the purchase price at completion. At completion there will be offered 100% finance, based on 85% LTV mortgage by BCN bank and a simple credit check at reservation.

The developer will underwrite the valuation to ensure that the 100% finance is available. There will be written and contracted guarantees of this.

The loan will be interest only for 5 year fixed period at 7%. The developer will give 7% guaranteed net rental for 5 years. After this period mortgage and rental will be re-evaluated.

This is an investment opportunity you cannot afford to miss.

Call Jet2Let Property now on 0113 3131000 or email, info@jet2letproperty.com.

I was recently appraising the rental prospects for Cape Verde developments and there were two factors that struck me. Firstly that it seems that Sal get all the publicity and secondly that its the villas that sell first.

We were then requested by two investors to find something more personal than some of the huge developments, that is already under construction, has all due diligence ready and complete and the villas had to be better and cheaper than most others. If that was not enough, they asked for front line uninterrupted sea views. Read on to see why they were impressed with what we found and why I believe you will be too...

Always relishing a property challenge, I was in luck as we had just been contacted by the developers of a small development of 40 top quality villas on the south western coast of Santiago - Vila Jardins Do Oceano.

With now just over half sold and the prospect of being able to buy something and by July 2009 everything will be complete

Vila Jardins is a front line resort and offers a number of 1st's on Cape Verde:

1st development on Santiago to be totally Complete - Under 12 months (July 2009)
1st to offer off plan finance - Completed Cases - Recently obtained 6.9% interest rate.
1st to be built in Santiago's Future Unescos World Heritage Site - Cidade Velha
1st to use the ICF build Method - Highest quality build developed in Hawaii.

Our prices start at 299,999 euros for a 2 bed Villa and 369,999 euros for a 3 bedroom Villa.

All the Villas are detached, in their own plot (approx 400 - 500 m2 ), have their own private fresh water pool and are built right on the coast - all villas have stunning sea views.

The Villas are of the very best quality and in fact the 3 bed Villas are actually larger than some of the competiting front line 4 /5 beds Villas on Sal yet amazingly half the price!

The resort also boasts Cape Verde's first Infinity pool (communal), 2 tennis courts, bar / restaurant and a small supermarket.

So with construction well under way obviously all the licenses in place. Special permission to build right on the coast. In fact we still have one 1st line villa available which is literally 10 metres from the sea!

The real clincher is that there is a small town with real character just 5 mintes away. In addition the new golf course is on target to complete in 2010.

Contact Jet2Let Property for ebrochure, plans and prices, info@jet2letproperty.com or call 0113 3131000 for more information.

So Why Santiago? Well first off it does not have the white sandy beaches of Sal and Boa Vista. What it does have is spectacular scenery, existing infrastructure, excellent rental, excellent communications with the most flights and it has the culture. It has the real tropical island feel and for many this makes it the most interesting island in the Cape Verde archipelago. the infrastructure is far more advanced than Sal or Boavista, from water supply, to ports for shipping to labour supply (over 250,000 inhabitants) will mean that tourism will have the support it needs.

In addition the islands offer real rental potential as front line villas with sea views are most in demand.

As a place to provide more than hust a beach with all year round climate Santiago island is well worth investigating. Even better go out and see for yourself.

Samra Bay, Hurghada offers possibly the best location along the Hurghada "Golden Mile" of Hurgada is launched today with 10% discount first 50 units ONLY Situated right next to 5 star hotels this development location is top pick. Completion Dec 2011 (approx).

SAMRA BAY Marina & Spa Resort with all facilities is for those who are looking for quality and front line. Yet its only 5 minutes to the airport meaning you can be from leaving UK an into your apartment realistically in around 5 hours. Beat that for 265 days of sunshine per year.

With 10% off the starting price of €1,250 per m2 to give €1,125 per m2 (or £892 per m2). This discount is only for the first 5o units. (studios 47m2, one bedrooms 75m2, and two bedroom 111m2)


The "Abrim Residence" is the first building to be offered:

10% discount of the purchase price for the first 50 purchase agreements
5% discount of the purchase price for the second 50 purchase agreements

Furthermore a generous payment structure will be available:

a) Studios and 1-bedroom apartments: 40% upon signature / 20% to 01.07.2009 / 40% upon delivery (scheduled approx. end of 2011)

b) 2-bedroom apartments: 30% upon signature / 20% to 01.07.2009 / 50% upon delivery (scheduled approx. end of 2011)

In addition up front payment of purchase price instalments before the above mentioned due dates will qualify for a discount of 7%.

(Example: Client pays the purchase price in one single payment = 7% on 60%) The purchase payments will be made through a trust account managed by a lawyer in Germany.

Once again, Samra Bay should be considered for those looking at Hurghada. Contact Jet2Let Property Ltd - +44(0)113 3131000 for more info or email, info@jet2letproperty.com

To come and view developer's previous quality our 7 day inspection trips start at £325 per person (subject to availability). Hurghada has received rave reviews from our clients. It feels safe, low cost of living, no capital gains tax in Egypt, no VAT. (Taxes and laws always subject to change).

All clients should employ a lawyer and conduct their own due diligence. Please read ten top tips for due diligence series.

There has bee much speculation as to who is buying what overseas property in this weekend newspapers. Much of the comment I would agree with, namely that those looking ahead to buy a home for mainly own use and possible future, or actual retirement, have come to the fore. I have therefore seen more requests for larger properties which provide the space for long term stay. My view is that this market is forecast to grow with the ageing baby boom population who look for homes to spend at least part of the year in. Interestingly, these second homes are sometimes ski resorts as well as hot destinations. For those looking to work whilst in their holiay home involving frequent travel, then proximity to airport is essential.

rural house in Bulgaria

We have seen also a dive to quality, such as our Veranda development in Sahl Hasheesh and Santa Marina development in Sozopol, Bulgaria. These offer exceptional value for money as do some forthcoming projects in Turkey but they are not the £10,000 crash pads but proper homes costing from £60,000 upwards for a one bedroom apartment. Due to the reputation of the developer over 30% of the buyers in Veranda have been wealthy Egyptians who mainly live in Cairo.

Generalisations for countries price rises are so misleading. No doubt buyers are more cautious and now often understand that there is a reason why a place is cheaper than others. There are often huge differences in the quality of build, architecture, build density and location. This can lead to one area falling in value (like much of Sunny Beach) and others increasing substantially.

Should I buy now or leave it? Well we all have our own considerations, but if you require a mortgage to do so, and you have a concern about your current increasing mortgage and energy prices, then I doubt you would be rushing out to buy overseas property out of anything but savings.

Do you already have an overseas property portfolio? Well you maybe waiting to see what happens. After all, the media concensus seems to be the UK economy will suffer further.....and endless speculation as to when or if fuel prices decrease, bank liquidity returns, interest rates reduce etc? But whoever calls the bottom of the market when fear seems to quickly move to greed ? By the time we read a media consensus that its now the right time to get back into the market and the world is not coming to an end, then with our experience of times past, we know deep down that everyone else will think, and then do, the same. This will be not so great for most of us as developers "kindly" respond to the up turn in demand and increase their prices.

So actually now is a perfect time for overseas property buyers to start their search. And for the cautious this is an excellent time to go inspect and if you like what you see buy. For example, if you were previously looking to spend £150,000 in Spain why not check out Egypt where the sun is guaranteed all year round, every single day and stunning value is available. You can buy here front line, on the beach a one bedroom apartment with sea view for around £52,000. or a cheaper studio close to the town, but still with all the facilities for around £19,000

Alternatively if you were looking to leverage £100,000, why don't you spend £20,000 or less instead, with no mortgage ,on a rural plot in Bulgaria. Call Jet2Let Property on +44(0)113 3131000 for viewing of some plots and also houses on plots requiring renovation. We have found some areas that are likely to lift in value due to major infrastructure projects opening up new areas.

Long term investment horizons are often required for land, and rental income best ignored, but if you fancy diversifying your portfolio then this is one good way. We also have some larger plots in Turkey.

Finally we have some investors searching out what there is an under supply of in a certain area. This could be either very cheap and affordable homes or large three or four bedroom homes whichever there is a shortage of. We have found that some new investment locations are attracting buyers from Russia and Eastern Europe, these buyers will look for the best in an area and its certainly likely that they will have an increasing impact on the direction of re sale prices.

On Tuesday 15th July you are invited to the HILTON PARK LANE
22 Park Lane
London W1K 1BE

at 7:30pm
Main Entertainment: Signature (runners up of Britain’s Got Talent)

please email: info@jet2letproperty.com you name, tel number and email and you will be put on the invitation list.

Jet2Let have been working with Damac for some time now on the forthcoming Gamsha Bay in Egypt and of course Cairo - but have been so impressed with the quality of their developments and high levels of customer satisfaction (and not ignoring the excellent rental and capital appreciation) that we are now also marketing their UAE property.

Some investors might doubt Dubai's potential but the growth of business activity there is impressive and this is city investment based on the huge growth of jobs and the consequent demand for accommodation to rent. Damac price their properties to really ensure the first investors not only get their choice of unit but also get the very nest units. Coming along to this launch event enables you to get all the facts and figures, ask questions. There is absolutely no pressure but you will meet others who know this market very well so that is you come with an open mind you will leave well informed (as well as enjoying a great evening).

DAMAC Properties has awarded Incorporated Consulting Engineers – Conin, the consultancy agreement for their Green Park development in Jumeirah Village. Green Park is a residential development comprising a four-storey building.

PRICES FROM : £100,000 (approx)

Peter Riddoch, CEO, DAMAC Properties, said, “We are pleased to announce the collaboration between DAMAC and M/S Conin for the development of Green Park at Jumeirah Village. M/S Conin have an impeccable track record for delivering quality work and an indisputable reputation for reliability. Green Park is ideally located in a community that boasts diverse retail and leisure facilities, town and country clubs, international schools, and medical facilities among others. Other factors that make Green Park unique are the recreational facilities available. These include walking, jogging and cycling trails, oasis promenades, neighbourhood parks, and community sports.”

Details of the Launch are as follows :

HILTON PARK LANE

22 Park Lane
London
W1K 1BE
United Kingdom

15TH JULY 2008 at 7:30pm

Main Entertainment: Signature (runners up of Britain’s Got Talent)

Details of the development are as below :

Location	Building	Plot #	Configuration	Development Type	Type of Units	No of Parking
Jumeirah Village	Green Court	JVC13MMRP500	G + 4	Residential	STD,1 BR and 2 BR	1 / unit

Unit Sizes (Area Sqft) :

• STD Area ranges from 412 - 682 sq ft
• 1 BR Area ranges from 762 – 1,450 sq ft
• 2 BR Area ranges from 1,169 – 2,260 sq ft

FEATURES:

• Large Car parking facilities.
• Convenient elevator access from the parking to the apartments
• Swimming Pool.
• Gymnasium.
• Health Club (male / female ) including Sauna and Steam Room.
• Several parks / green areas
• Close to Metro Station
• Provision of residency visa
• From 75% ROI (3 year investment)
• Family side of IMPZ

Discounts

Individual 5%

Half Floor 7.5%

Full Floor 10%

Refundable deposit to be collected are:

• Full Floor = AED 200,000/-
• Half Floor = AED 100,000/-
• Single Unit = AED 10,000/-

Low-cost carrier easyjet have announced the prices of new flight routes it is to offer that begin on the 11th of December and the 12th of December to Geneva and Sofia respectively.

The Sofia route will be £33.99 for a one way ticket with the Geneva route slightly cheaper at £29.99. Both destinations are popular with winter sports such as ski resorts in the Alps being served by the new routes. The Pirin Mountain will also be a destination easily served by the new routes.

The commercial manager of easyjet Carly Brear commented on the new routes by saying;

"These two new routes from Manchester are further proof that there is demand for direct low-fare services from the North West to Europe. Geneva has proved an extremely popular destination from all across the UK and it's great that we can now replicate that success from Manchester. The Bulgarian capital, Sofia, is also expected to be popular as more people discover what the city and its surrounding areas have to offer".

These comments were complimented by Tim McDermotta director of the aviation department who said;

"We're delighted to see easyJet continuing to expand their route network from Manchester Airport. Sofia and Geneva are important business and leisure destinations and we are sure they will prove to be incredibly popular with our passengers".

COMMENT: Excellent news from Easyjet and given the speed of ticket sales I think it won't be long before they decide to put on more flights to Sofia. Many people are looking to save money on their winter ski trip and more are flying to Sofia for business and leisure. If you are thinking of a trip to a Bulgarian ski resort do call us as we have been offered more property to go on our mini letting site for Bansko: www.banskoaccommodation.blogspot.com

With our main www.jet2letproperty.com website being redesigned and launched in around four weeks we will be promoting more select property in Bulgaria. The focus on low cost will gather more and we have seen a recent increase in enquiries for really affordable property and land. These are found in rural areas all over Bulgaria and can make good long term capital appreciation investments.

Part 3 of Legal Due Diligence...

Top Tip No. 8: Maintenance Contract

If you are buying a property where there are common areas in the building or grounds then you will usually need to see a maintenance contract. This is an important part of the due diligence because quality maintenance enhances your resale value. Neglect can have a negative impact on rental and capital appreciation.

Check for the maintenance fee and what it includes and what it is for and when it must be paid. Specify when payment should start, for example building completion or opening of the facilities? Look out for VAT and future price rises. Are these specified? Are they index linked? Typically maintenance is expressed as an amount or as an amount per m2. Check whether a fund is being established for major repairs or if this will be extra. Check how often external woodwork will be primed/re stained.

Top Tip No. 9: Rental Guarantees

If there is a contractual guarantee you need to check these terms carefully. Check the exact amount is correct as you may have a percentage. How much own use are you allowed and which weeks are you not allowed to use. Check also when monies are actually paid and whether they are net or gross of maintenance charges.

Check who is actually giving the guarantee. Typically the developer but it could be their or another property management company. What is the risk this will be not honoured?

There are times when you are best not taking an offered rental guarantee because local rentals are very strong and you can negotiate a guarantee and/or rental management agreement with a specialist organisation. Some owners in Dubai recently have found they are betting doing this because the rental market is so strong there.

Top Tip No. 10: Listen to your lawyer (but its you who should direct)

Try to become involved in a discussion with your lawyer. Often terms need clarifying and make sure he does this. Sometimes lawyers can aggravate disagreements. Consider carefully which points are really worth arguing over and which are being highlighted for more "point scoring" purposes. Focus on the key points that can make a real difference.

BONUS TIPS: There are many more due diligence tips. If you have found these useful then please subscribe for more free advice on www.jet2letproperty.com . Please specify on registration page that wish to receive weekly overseas property buying tips. NOTE: Your details are confidential and can never be passed to third parties.

Bulgaria with Booming Economy and Record GDP Growth

According to the Micro Watch group, the Bulgarian economy was performing increasingly well but the country still remained the poorest in the EU.

A report of the Macro Watch group states that the positive development of the Bulgarian economy was continuing with a record GDP growth, but that the country still faced high-risk macroeconomic factors.

The Macro Watch is a group formed by the Open Society Institute - Sofia. It also included experts from three other Sofia-based think tanks - the Center for Economic Development, Industry Watch, and the Center for Liberal Strategies, who presented their report on Sunday in the Bulgarian capital.

According to the report, in the first six months of 2008 Bulgaria's GDP growth has reached the record 7%, while the burden of rising prices had shifted from foods to other less crucial goods such alcohol, which is expected to tame the overall inflation levels.

Yet, the Macro Watch group reminds that despite the improved performance of the Bulgarian economy, the country still remains the poorest in the European Union.

Georgi Angelov from the Open Society Institute predicted that the 2008 inflation would be about 9%, down from the present annual level of 14-15%.

The report also points out that the reserves of the Bulgarian National Bank had reached the record EUR 13 B. At the same time, the drastic decrease of the corporate and income taxes to 10%, which was adopted in 2007, is reported as successful because it had encouraged the payment of taxes. Thus, the state budget's tax revenues have increased.

As a result, the budget surplus has also reached levels never recorded before, while the state debt is at its lowest levels, the experts point out.

The Micro Watch report also mentions that for a second quarter in a row the growth of Bulgaria's exports is greater than the growth of imports.

Bulgaria currently has the lowest unemployment level recorded ever but the shortage of skilled and high-qualified laborers is increasingly problematic. The high number of persons employed by the state, and the low standard of living are also listed among the main problems the Bulgarian economy was facing.

According to the report, the business climate in the country was improving, but serious institutional drawbacks still remained.

The main macroeconomic risks for the Bulgarian economy have to do with the global financial crisis, the rising petrol prices, and the expected slowing down in the EU.

Increasing the state spending before the coming parliamentary elections and other populist moves could also be problematic, according to Macro Watch.

The main recommendations of the Bulgarian experts are the acceleration of the structure reforms, and the preservation of the economic stability and monetary council in order to prepare for joining the Eurozone.

The Micro Watch group also suggests that a shock reduction of the social security payments, the value-added tax, and other state fees be adopted. According to their analysis, the VAT, which is currently 20%, could be reduced to 15% thanks to the enormous budget surplus.

Today I start the first part of three parts in the Ten Top Tips series. Today its three Top Tips for viewing overseas property:

Top Tip No. 1: Should I go on an agent's viewing trip?

Viewing Trips, Inspection Trips now often called Discovery Tours. Should I go on one? Well it depends, I advise some pertinent questions to ask before embarking on one of these trips. Many are excellent but some sadly still resemble a time share horror story of the 70's. That is, high pressure, hassle, confusing and a waste of time.

So you have narrowed your choice down to an area to buy and you know how much you have to spend and you have probably seen some properties that interest you. But the approach for such things should vary according to what you are looking to buy and who from.

For example if you have £10,000 budget for a rural house in Bulgaria with the best will in the world you will need to spend a large amount of time and you may well be best to pay agents to show you around their property. Agents have to make a living and two days of viewing for £400 of commission may not be their idea of making a living.

On the other hand you have £100,000 for a Cape Verde property your agent will invest 4 hours a day for 3 days to make sure you find the perfect home for you.


Top Tip No. 2: Picking the right viewing trip for you.

I find a lot of buyers in emerging markets are not 100% sure if they want to buy or indeed exactly how much they have to spend. The reason is they do not feel 100% confident that the location is a good investment, or that the location is where they might want to retire or indeed spend their holidays. The best way here is to pick an agent who will show you most of what is available that fits your criteria.

So for example, we have clients who go to Hurghada in Egypt not sure if they should buy there front line, near the town, further away, in Sahl Hasheesh, in El Gouna or Gamsha Bay. Here we find that a 7 day trip, nice hotel, at least three morning viewing gives time for them to get to know what will be best for them. Places often feel very different to pictures on the internet and of course all property buying is a set of compromises for price and location and these are very personal and best decided without pressure and with time to think.

So if you are in this category of buyer then choose a real estate company that will show you a good selection of property and who can explain what due diligence is available. Good agents want happy buyers who will recommend them to their friends, so they will point you in the direction of quality property rather as well as always the cheapest. Ask to see cheaper and more expensive property so that you can see the difference and ascertain the difference in value.


Top Tip No. 3: Limit number of viewings on one day and take a digital camera

Often its a case of spending time walking around the area, asking questions and observing what is likely to be built around, behind, in front and to the side if there is nothing currently there. Will this building affect you for years and years or not at all? Take digital pictures to refer back to.

View in the morning if its a hot country in high season and relax when its too hot and use this time to study the plans, prices. Is kitchen, bathroom, parking or furniture included?