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

Well you may have just read previous post and thought it cant get better than that but it looks like we have a matching deal using exchange bond for another Cape Verde development, Vila Jardins Do Oceano - a small development of 40 top quality villas on the south western coast of Santiago - Vila Jardins Do Oceano. Arguably the risk is even lower here as the picture here shows work well under way. and we have the exchange bond scheme which requires just 10% to pay and the final amount on completion. Obviously all due diligence completed and these excellent value villas will be further enhanced by a man made beach built up in front

We have the ability to offer a discount for the next three sales (not on exchange rental payment scheme)

With now just over half sold and the prospect of being able to buy something and by August 2009 everything will be complete, so this development is perfect for those who do not want to wait

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.

Following on from the recent announcement from the developers of the six star Palm View Resort on the new structure whereby we have one of the lowest risk investments we can find in Cape Verde.

I know some have discussed with me as to whether is a good time to be investing but remember we are looking at completion over two years away with NOTHING MORE TO PAY and with the 7% guarantee, the risk is very low. The bond guarantees that the developer gets paid. The bond issuer is FSA regulated. There is even a partial refund of the bond if for any reason you are not granted a mortgage at the end,

After a villa? The villas are all sold in this phase one but there are still a few second phase villas available - but be quick. Naturally your reservation deposit is refundable. Contact me for more info on these and any questions you have on Palm View Resort.

OFFER:

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 - expected October 2010 (approx).

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. So the assumption is there will be at least a 15% capital appreciation before completion.

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 great as a property investment as well as for lifestyle purposes.

Firstly, my apologies to regular readers for not posting in a while. I have been traveling for business and pleasure and working on the new jet2let property website redesign.

Because of the redesign there is a large back log of properties awaiting entry and in particular if you are looking in Hurghada, Cape Verde islands or Bulgaria do please contact me for latest properties

A break also gave me an opportunity to speak to apartment owners on my travels and I have been surprised that around 50% of the people I have spoken to do not have an any insurance at all for their property. All of these people do for their own property.

Why do I think you should insure your overseas property? There are three main reasons:

1/ Well the risk may be low for a typical apartment with 24 hour security but I have heard people losing all their furniture the day after it has been delivered. Delivered waiting installation!

2/ Third Party liability cover. Even if you only rent or give for free your property to relatives or friends of friends then you are still at risk of being sued. The minimum claim is usually around £12,000. A slip on a wet bathroom floor, even too wet grass (yes that has been a successful claim) you name it there is a no win no fee industry on day time TV to tempt the injured or, dare I suggest, the dishonest on making a claim. Remember it will always be you as the owner that the tenant will look for. Even if a tour company has taken your whole block you will be the target for a claim.

3/ Buildings insurance cover for natural disasters is a must Most of us underestimate risk, and remember nothing is a problem until it is a problem. The floods in the UK last summer showed that many did not even have their primary residence insured.

If you do not have it covered then drop me an email (lance.nelson@jet2letproperty.com). We are have negotiated discounts with two overseas insurance companies. However I am unable to confirm discount levels until I can guarantee the amount of business. That's why I can't reveal insurance company name yet.

Finally if you own property in an emerging country, I urge caution when using local insurance companies. Laws and judicial systems are generally considered to fall short of western European standards so even if they are cheaper (and they often are not and rarely include third party cover as standard) then how sure are you they will pay up when you need them to?

Khamsin Beach, Hurghada is a brand new pre launch beach front line development in Hurghada.

With beach front a scarce and expensive resource I believe that Khamsin Beach represents excellent value for money with prices ranging from £469 per m2 to £825 per m2.

In pre launch phase many units in this pre launch come with free air conditioning and free furniture.

Direct sea views from £719 per m2 up to £825 per m2 which is excellent value for the Hurghada front line location.

Pre Launch One bedroom 55m2 NET area and 60.5m2 GROSS gives pre launch price of £26,023 (£430.13 perm2). This include free air conditioning and furniture - a discount worth between 10% to 15%.

Under market value for the area with direct sea views from £719 per m2 up to £825 per m2 for Hurghada front line location.

£500 reservation. Refundable up until 21 days after receipt of contract.

Escrow account established for buyers.

First payment 40% (less reservation fee).

Project completes May 2011.

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.