Overseas Real Estate Blog

I pose this question today as I think the UK will lag the US as it did when we entered into the current house price decline. I think we could be getting close to the bottom across the pond for three reasons:

1) Lower home prices - yes, prices are going down in the US like here and stock levels remain high. However, lower prices are creating buying opportunities which we haven't seen in several years and a base price is in site.

2) Interest rates are coming down. With lower monthly payments which accompany lower interest rates, homes are quickly becoming more affordable. The major snag of course is that credit is less available. The upside here is the larger deposits and stricter lending terms, reduce the likelihood of future repossessions.

3) There are signs of buyer confidence is returning. Confidence is low right now but the change to optimism can be quite sudden . Almost like a cloudy day autumn there will be almost disbelief when we see autumnal sunshine. When more start buying homes there will be a positive can have a positive effect on consumer and home buyer sentiment.

4) Now with Fannie and Freddie (the twin mortgage buyers) nationalised today we see the US Dow Jones up 1.5% today in the US as I write.

We may not be not out of the woods yet but i predict the US will lead the charge soon and we'll watch sentiment change here remarkably quickly.

This was the news from Knight Frank today:

"Bulgarian home prices gained more than 30 per cent year-on-year in the second quarter of 2008, placing the country atop the global index of UK-based property consultancy Knight Frank, released on September 2.

Meanwhile, the number of countries with a price decrease is increasing. Price growth is slowing down in Western Europe, unlike Asia and Eastern Europe, which have been enjoying an upward trend.

Bulgaria topped the ranking in terms of housing price growth for a fourth quarter in a row.

This result clashed with Bulgarian real estate agencies’ data on a price slow-down since early 2008......"

Lower down on the Knight Frank list of price growth were Slovakia, with 31 per cent, and Russia, with 26 per cent. Second-quarter housing prices in the Czech Republic and Hong Kong rose by more than 25 per cent.

My take on this is that prices have stopped growing, on average, in Baulgaria. However not everywhere over the last year has grown. The market on tourist new builds can show divergent trends - some prices up and some down.

For example, prices in Bansko have gone down over the last 18 months and ironically over the next 24 months we may see the biggest rises here as the resale market quickly develops and the tourist numbers will be growing very fast. Owners here may like to get some renting tips, as well as renters to pick up a rental bargain here.

For those looking for long term invstment in any market now is a great time to start your quest. Sellers expectations have been suitably, modified and there;s a willingness to accept offers. Bulgaria is experiencing labour cost increases and build costs are now substantially higher. This means new builds will have to be priced higher to make a new project worthwile.

Alrenative Bulgarian strategy is to speak to e regarding some land deals, fairly priced and good for long term investment as by my reckoning land prices in Bulgaria are still substantially lower than many other places. Email me at info@jet2letproperty.com for more.

Tortuga Beach Resort & Spa – Special Offer

I am delighted to inform you that new payment options / offers are being made available for all remaining properties on Tortuga Beach Resort & Spa, Sal Island, Cape Verde.

Before you read the details, here are a few reminders of some of the fantastic features and benefits that have made Tortuga one of the fastest selling Resorts in the history of Cape Verde.

· Stunning beach-front Resort on one of the best undeveloped white sandy beaches in the world

· Density of less than 25%

· Luxury detached Villas with private pool and garden

· Luxury 2-bed Apartments with communal pools and relaxation areas

· Luxury 5-Star Hotel with facilities and amenities large enough to cater for the whole Resort. Purchasers will be able to rent their property via the hotel itinerary.

· Hotel operator to be announced soon. Will be a world renowned hotelier with an awesome ability to attract guests via a huge worldwide network of reservation systems, vast numbers of travel agents and close links with the major tour operators. Rental potential for Purchasers will be massive and the hotel will do all the work!

· Concierge service

· Exquisite restaurant

· Elegant wine bar

· Relaxing piano bar

· Luxury spa with state of the art equipment and treatments

· Expansive gymnasium

· Shops

· Fantastic capital growth potential in one of the world’s most up and coming property hotspots!

Now let’s look at the special terms available. In summary, with regard to the payment of the deposit, two new ‘Special Payment Options’ (1 and 2) have been launched and Purchasers can choose whichever one best suits their circumstances. The beauty of choosing one of these two new ‘Special Payment Options’ is that the Purchaser can then also choose any one of the two ‘Special Completion Offers’ (A or B) available, Purchasers will enjoy either a massive 10% cash back on completion or alternatively a guaranteed rental income for 3 years of 6% per annum.

Purchasers, at their choice, can match the best ‘Special Payment Option’ and the best ‘Special Completion Offer’ to suit their need. Read on for more details …

Special Payment Option 1 - Low staggered payments

· Reservation fee of €3,000

· 20% payable on contract

· 15% payable 6 months after contract

· 15% payable 12 months after contract

· 50% (less the reservation fee) on completion

OR …

Special Payment Option 2 - 100% Finance until completion

· Reservation fee of €3,000

· 50% (less the reservation fee) payable on contract

· The Developer guarantees to ‘cash flow’ 6% interest payments on the full 50% deposit until completion (this should mean that the Purchaser will have no reduction in income during the construction of their property)

· 50% payable on completion (plus the interest payments)

Regardless of which of the above ‘Special Payment Options’ is chosen, the Purchaser can then choose any one of the following ‘Special Completion Offers’ …

Special Completion Offer A - 10% Cash back on keys!

· Purchaser will receive 10% cash back (of the purchase price) on signing of the property at completion

· Purchaser signs up to the hotel rental programme for a minimum of 2 years

· During these 2 years, the Purchaser gets a minimum of 8 weeks per year for personal use (2 weeks in high season)

· The Developer receives all income generated, that would have been the Purchaser’s share of the rental income, during the 2 years (but only up to the point that the 10% cash back has been covered)

· After the 10% cash back has been covered (or after 2 years whichever comes sooner) the Purchaser joins the standard hotel rental programme and receives the full entitlement of rental income

OR …

Special Completion Offer B - 6% Guaranteed rental income for 3 years!

· Purchaser will receive 6% per annum (of the purchase price) guaranteed rental income (paid monthly) for 3 years following completion

· Purchaser signs up to the hotel rental programme for a minimum of 3 years

· During these 3 years, the Purchaser gets a minimum of 6 weeks per year for personal use (2 weeks in high season)

· The Developer receives all income generated, that would have been the Purchaser’s share of the rental income, during the 3 years (but only up to the point that the 18% total guaranteed rental income has been covered)

· After the 18% guaranteed rental has been covered (or after 3 years whichever comes sooner) the Purchaser joins the standard hotel rental programme and receives the full entitlement of rental income

Additional Free Incentives Include:

· Free air-conditioning

· Free legal services

· Free Basic Furniture Pack

· Please Note: For quality and consistency purposes, a ‘Hotel Excellence’ Furniture Package is a requirement to be a part of the hotel rental programme. Purchasers must therefore upgrade to a ‘Hotel Excellence’ Package.

· The upgrade cost for a ‘Hotel Excellence’ package is as follows:

o 2 bed apartments €10,300

o 3 bed villa €15,500

· The upgrade cost for the ‘Hotel Excellence’ Furniture Pack can be added to the completion balance (via the completion mortgage if required)

it certainly looks like the ‘sold out’ signs will be around Tortuga Beach Resort very soon!

Tortuga Resort is a fantastic success story and I we look forward to welcoming new buyers into what will be a very special lifestyle. Email info@jet2letproperty.com, or call Lance on 0113 3131000 for more info