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.

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?

Its not a well known fact that the Egyptian government has spent much time speaking directly to the Dubai authorities on how best to undertake its transformation. One of the key issues is how to encourage both business and tourist markets. For tourism the Red Sea Riviera is in a league of its own offering near perfect conditions for strong growth. Accessibility is excellent from the wealthy parts of the world mainly under 4.5 hours flight from most of the key Western/Eastern European, Russian and Middle Eastern states. Hot summers and warm winters and huge cultural pull have already built a thriving tourist industry centred on the main centres of Sharm El Sheik, Hurghada and the Nile.

However, to get the sort of consistent and sustainable price rises back by strong rental you need not just a strong tourism industry but a rapidly growing economy. Here Egypt is making excellent progress although there are still many challenges. Huge growth in new jobs are being created outside tourism, construction and real estate. Progress here can bee seen not just in Cairo, but also in Hurghada where new offices are being occupied by marketing, internet and media companies.

So what are the business prospects? Well I look at Egypt as a mini Dubai in the making. With no VAT, capital gains tax and just 10% tax on rental income along with very low costs of purchasing and a GDP growth in 2007 of 7.1%. It is interesting to see much of the property investment is by Egyptians themselves who are witnessing the growth in prosperity their country in enjoying.

The large growing population of 81.7m people is not with out problems with a high 20% living below the poverty line. For all the facts go to the CIA World Fact Book online:

https://www.cia.gov/library/publications/the-world-factbook/geos/eg.html

If you are in the market to see strong growth rates then Egypt should be considered but, best of all visited, to see for yourself how this country so often makes a positive impact.

If you are looking at an overseas portfolio or are looking for a quality retirement destinations, then one of the best opportunities we have in pre launch is Samra Bay, Hurghada. Samra Bay has on of the very best frontline locations, next to many existing 5 star hotels, Intercontinental, Steigenberger, Hilton and Grand Plaza. Grab yourself a 10% pre launch discount now. Contact us for more details.

Samra Bay is just one of many developments in Hurghada, El Gouna, Sahl Hasheesh and the up and coming Gamsha Bay development, that Jet2Let are marketing. We are showing investors traveling to Hurghada the best of what is on offer. Make sure you view Samra Bay soon and reserve to get the best units.

Part 2 of Legal Due Diligence series...

Top Tip No. 5: Penalty Clauses:

There should be a penalty clause if developments are late by a certain period. This may be 6months, 12 months or there may be no period at all. If not you should advise lawyer to negotiate one.

The builder has a dilemma on this matter. Should they add months to the timescale to give them some flex, or should they simply replicate the period he has contractually agreed with his sub contractors?

The buyer also needs to be cautious, as too harsh a penalty for late completion could mean that the finishing is rushed.

Then there is the matter of you as the buyer late payment. Check this penalty is reasonable.

Typically there will be clauses excluding certain events as countable to penalty delays. These may be specified - temperatures below a certain level, for example. Or they may be wrapped up in a "Force Majeure" clause.

Top Tip No.6: Notification of Payment Clause:

By what means will you be notified for payment of your instalments for off plan property - email, post, telephone? Or is there any onus on the developer to contact you at all? How much notice do you require?

Be careful here there will be late payment provisions in the contract and it may take a week to transmit foreign currency.

Be sure to get a receipt for payment.

See if you can make payments through a UK based lawyer's escrow account.


Top Tip No. 7: Contractual definition of Completion:

Be careful to understand what is meant by completion and if referring to a statutory inspection protocol what this inspection means. If in doubt ask your lawyer for a definition.

Check what provisions there a re for snagging. How about a surveyors report who can check your property for snagging, the building in general if an apartment and utility connections, also follow up for you to check work that has been completed.

Final Tips next week in part 3....

I thought that might get your attention...

Today I start the debate with my views on whether agents are trying to do the best for their clients. Many do for sure, but some I think just don't have a clue.

I was prompted to comment on the question of "Do real estate agents have a clue?" after it I spoke to a "first time overseas" husband and wife investor team had taken at face value all the information they had been given by an agent. The problem was that they were originally enquiring about a single property but instead were told that they stand to make more in a property scheme termed as a "property investment fund".

Where's the detail?

Whilst a slick brochure seemed to answer their every conceivable question, and pointed out some of the risks involved, it was clear to me that they had no real understanding of the true risks involved. More than this, a property investment fund was not what they were after. It then transpired that the agent had simply followed a well rehearsed presentation which sounded respectable and seemed affordable. Those "developer profits" seemed like a good idea and she was ready to sign.

Luckily, the couple realised just in time that they should seek alternative advice and asked a friend who suggested to stick to their guns and buy a property outright. In hindsight, she admitted that she was close to investing in something that was a long way from what she really wanted - which was a nice place on the beach with sea view and was hot from October to May. She and her husband plan to retire there in the winter. They have just got back from a weeks trip having had a good trip prepared and well equipped. They went understanding the areas to focus on so they felt happy to reserve. As a bonus, they paid less for their property than they thought was possible -just £51,450 in Hurghada Egypt.

I was recently exploring a new development site and was staggered to discover a project that looked great in theory but had a huge shortfall in due diligence work. I was told that the due diligence pack was complete and the other agent was happy. Clueless agent you think - well it is not uncommon for agents to ask precious few questions before taking properties on. Fine for a simple resale in Reigate perhaps but I have learnt that emerging markets require a savvy approach to help avoid poor decisions.


Integrity Pays

Your agent often fails you when they fail to be forceful about the facts of buying a particular property in a particular market. Take this recent example: a client came to us after trying to buy land and rural house in Bulgaria. There are huge risks to deals here known by those, like me who have done this. The agent failed the buyer by not explaining all the many risks and explain the way the deal should really be done. Why? They don't want to tell a buyer what they would rather not want want to hear.

Here I feel that some agents fail themselves as well as their client, because their client will quickly get disillusioned when issues, such as last minute price rises, complex ownership, unclear permissions, road access, utility supply and other complexities emerge that lose the deal. Deal lost, and agent gets no commission. More stories welcome...

Well its the front line question that we hear a lot about and on the face of it the answer is simple, front line. or is it? Before examining the issues my I recommend to check whether it really is front line. Without putting too fine a point on it, I have inspected sites which are called front line and they are not really. They have a road in front of them and then the beach.

Google Earth can help on this, but nothing beats a site visit to be sure.

This may be ok if you are sure there will not be anything built the other side .. but usually there is, or will be a building, so its not front line. The clue can often be spotted in the price... if it seems good value compared to the other front line developments then maybe there is something not right. It could be beach front line but there could be an electricity station next to it.. or a factory.

But is it all about a beach? Well frankly not in some resorts being close to the amenities of shops and restaurants may be highly desireable and then you have to apply town centre versus outskirts argument. All of a sudden its getting more complicated. Then of course you have to look at price. Jet2Let have Tranquilla Town a nine story refurbishment buy to let building in Hurghada town centre. With an expected rental of £400 per week on six or 12 month contracts you are looking at after management costs a pretty certain yield of 8%. This is th sort of deal that suits the non lifestyle buyers who views overseas property as a long term investment proposition and has little intention to visit -or is their second purchase in the country.

I will leave it to another time to talk about investment strategies, but those who invest in shares will be familiar with taking contrarion view. I like this view as it can often work well. Historically those with patience almost always are glad they were brave by buying whilst all around said that price will go continue to go lower and lower.

For example of a typical contrarion view right now would be buying several banking shares at these low prices because the credit squeeze will reduce competition and Banks will be set to restore their balance sheets after their rights issues. Enough of stock markets but the contrarion view is worth thinking about now that overseas property sales have slowed the current deal could well turn out to be very shrewd buys indeed.

Spo turning again to property, in most markets we have see price inflation on building materials (cement, steel) and in some of the emerging countries labour costs increasing significantly. I am also interested as to what local buyers are doing and why. The great thing at the moment is that the squeeze on mortgages means that the speculative element is much reduced - so look for where people are moving to - where are they needing to rent? Possibilities here are Istanbul with a huge population increase under way and even Hurghada in Egypt where a new population is moving to the coast for more than just tourist related activities.

Egypt's growth in tourism is such that local workers accommodation which include expats in real estate and tourism and Egyptian professionals covering legal, construction and media sectors. This is why we have secured a great deal on an existing building which already has tennants. Prices of £410 and £570 per m2 is really good value with minimal risk as the building is already built as of ten years ago and an after fees and costs yield of 8% means this is the sort of deal to be had there right now.

Please post your views on front line and taking a contrarion view.

Any new property destination has its risks. These new risks are often not immediately apparent because an area or emerging country is being heavily promoted with nice glossy adverts and brochures - and often extravagant claims for rental and growth. The common mantra is to use an independent lawyer. A start but you need much more than this - I don't believe this is enough so here I set out what some agents themselves believe but often don't tell their clients because they are either ignorant, inexperienced or simply scared that the sale will be delayed through legal negotiation.

Top Tip No 1: Use a solicitor covered by the UK Law Society.

Buyers should be prepared to pay the often much higher price for a UK based firm covered by the UK Law Society. But to do your job as properly when buying overseas real estate is that you should learn how to manage your lawyer. Local lawyers have been known to engage in corrupt activities as we have seen from the Marbella/Spain stories.

Top Tip No 2: Check what your legal service includes for the money

Don't assume employing a lawyer that they will be clear on what the service includes. Lawyers normally charge out at £100 + per hour. Be mindful that if you start asking for extra services, such as signing of notary deed, meeting developer, snagging reports you may be charged more. Anything that takes extra time such as periodic liaising with the developer, periodic status reports and local Wills will cost you more. Make sure you ask for what is included and consider taking out a package price which will include more or at least what their rate is for extra work.

Top Tip No3: Manage your Lawyer

So now you may think I have got, and paid for, a top (UK/local to me) lawyer - I can sit back and relax? Well no actually. The problem is that lawyers are often trained to perform set tasks and not to consider the whole deal. Remember that despite you having an initial consultation with a senior lawyer your day to day contact could be a less experienced lawyer.

So be proactive and kick the process off by establishing the set tasks they said they would do. I like to start with the most important bit first. Confirmation of clean title needs to be thorough and you need to request to see what information they are relying on. Let me give you an example:

Recently when conducting my own due diligence for a project in Egypt, I discovered that the power of attorney document that should accompany a land sale was missing. This power of attorney is required so that all relevant permissions granted to the original land owner can be passed onto the next owner and so on. What became apparent was that this absence of documentation meant that there was a risk of a claim being made on the land by one of the previous owners. Not Good. So being sure of who owns the land and that the paperwork for previous owners is correct is the first step. Your lawyer will typically check for any mortgages, title or liens on the land (or property). So be sure to ask them that they have done this or check its in the list of activities they said they would perform for you.

Top Tip No4: Check you get in your contract what you have been promised

OK now its now time to study what is included in your property. Extras, often we have seen extras promised not appearing in the contract (like air conditioning) or kitchen. Not in the contract and you are relying on trust - don't risk it.

Make sure you get all the details you need to see in the contract. For example Net area, balcony, common parts, Gross area. Materials for doors, floors, tiles are important. Some countries have special language for these such as first grade, local grade, European standard. Ask what these mean and get these specified. Facilities in a development are often excluded from contracts, but we have seen sports centres and swimming pools not actually built as promised and guess what there was no mention in the contracts.

Remember your purchase contract (sometimes called the preliminary agreement or promissory contract) is your only way to prove what was meant to be included. If its not in there then it might not happen.


Next week I will post my next four tips when reviewing purchase contracts. But in the meantime post on this site your top tips for others to see.