Happy, Healthy and Prosperous New Year!
Of all my investments the one I am most excited about is the Property Share & Build Investment. Things are really hotting up with this.
I originally got involved as a tentative investor after making contact with the originator of the scheme via a business review web site. I have always relied on 'gut feel' to dictate whether I proceed with a business deal or not, and for me, this one felt good right from the start. I spoke to Alan Stacey several times and then met him while working in Devon (UK) and I believe that is going to evolve into one of the most profitable meetings in my life.
The scheme is going to close down later this year and membership will then be restricted. So if anyone is interested please get in touch via this Blog.
To go straight to the January 2007 Newsletter update click here then go to 'News and Updates'.
Until next time!
Sunday, January 07, 2007
Saturday, December 30, 2006
Not such a good idea investing in Spain?
I just read in the UK magazine 'Homes Abroad' that investment in Spain may not be such a good idea with some saying a property crash is due in the near future. It did go on to say that if the property is in the right location in Spain then it could still be a sound investment. One reason for the potential crash is due the competition from other areas of Europe offering holidays in the sun. It shook my confidence for an hour or so but on the whole I am happy with my decision to buy in Tres Molinos. The property I've secured is in an area that is not over populated and there is significant investment in the resort so I'll stay calm... for now :o)
Wednesday, December 27, 2006
Property Investment in the United States
The United States has been the Promised Land, the land of opportunity and the home of the Big American Dream all rolled into one for so long, that property prices in the major metropolitan cities of this country have been hitting highs during 2006. But the USA is so huge, with so many great urban centers, great small towns and open spaces that there is no dearth of land for any investor, small or big. It is the world’s largest economy at $13 trillion, supporting 300 million people over a land area of almost 10 million square kilometers, the third largest in the world. Everything is big here, and there is plenty of room for everyone. A consumption economy, as it has been called, the USA is one of the largest markets for goods and services in the world.
The property market in America had hit a record for the fifth year in a row in 2005, says the National Association of Realtors (NAR) and 2006 has also been a good sales year for them. The market has been firm and the prices have come off the high of the previous year but remained at a solid level, making for a realistic and balanced scenario. Language and the affordability of transatlantic travel make the USA a popular European overseas investment property market.
The highest priced real estate is said to be in San Francisco, and Texas is touted as the best place to live. The NAR named Florida the market with the fastest appreciation in the US, with the upcoming locations seeing a price rise of up to 40% in the year 2005. The perfect weather has something to do with it, and so do the sunny beaches. Miami offers some gorgeous beaches, sensational nightlife and glamorous neighborhoods that are home to A-list Hollywood stars. In fact, Miami, Orlando and Fort Lauderdale are amongst the popular real estate investment properties in the US due to heavy tourist traffic from all over the world creating a demand for rental accommodation. Orlando is home to Disney World, a huge tourist attraction.
Spacious Florida homes typically come in full villa style, with open air pools and beautiful views of the ocean. This brings in a lot of holiday home seekers, and the competitive prices attract home buyers and investors alike. In comparison to Europe or even other places in the US, Florida offers affordable real estate and a chance for capital appreciation in the right locations. For Europeans, the favorable dollar conversion rate also adds to the charm of purchasing a house in the US.
Las Vegas is also a much talked about area right now, with capital appreciation seeing growth numbers of 30% year on year at some locations. Further, New York and New Jersey are also seeing good demand, though prices are not escalating like the rest of the country. For low prices and low returns, the country living in the American Midwest can offer you a fairly good-sized house for as little as $100,000. Farm houses with plenty of land and structures attached are also available at great low prices here.
Holiday homes are best purchased along the West and East coasts (Florida, California, near New York or Washington DC, the Hamptons etc.) and at the ski resorts in the Rockies (Colorado, etc) and glamorous destinations like Las Vegas.
The property market in America had hit a record for the fifth year in a row in 2005, says the National Association of Realtors (NAR) and 2006 has also been a good sales year for them. The market has been firm and the prices have come off the high of the previous year but remained at a solid level, making for a realistic and balanced scenario. Language and the affordability of transatlantic travel make the USA a popular European overseas investment property market.
The highest priced real estate is said to be in San Francisco, and Texas is touted as the best place to live. The NAR named Florida the market with the fastest appreciation in the US, with the upcoming locations seeing a price rise of up to 40% in the year 2005. The perfect weather has something to do with it, and so do the sunny beaches. Miami offers some gorgeous beaches, sensational nightlife and glamorous neighborhoods that are home to A-list Hollywood stars. In fact, Miami, Orlando and Fort Lauderdale are amongst the popular real estate investment properties in the US due to heavy tourist traffic from all over the world creating a demand for rental accommodation. Orlando is home to Disney World, a huge tourist attraction.
Spacious Florida homes typically come in full villa style, with open air pools and beautiful views of the ocean. This brings in a lot of holiday home seekers, and the competitive prices attract home buyers and investors alike. In comparison to Europe or even other places in the US, Florida offers affordable real estate and a chance for capital appreciation in the right locations. For Europeans, the favorable dollar conversion rate also adds to the charm of purchasing a house in the US.
Las Vegas is also a much talked about area right now, with capital appreciation seeing growth numbers of 30% year on year at some locations. Further, New York and New Jersey are also seeing good demand, though prices are not escalating like the rest of the country. For low prices and low returns, the country living in the American Midwest can offer you a fairly good-sized house for as little as $100,000. Farm houses with plenty of land and structures attached are also available at great low prices here.
Holiday homes are best purchased along the West and East coasts (Florida, California, near New York or Washington DC, the Hamptons etc.) and at the ski resorts in the Rockies (Colorado, etc) and glamorous destinations like Las Vegas.
Tuesday, December 26, 2006
Property Investment in Bulgaria
Bulgaria is a country full of ancient history and culture. One of the oldest European countries, it is now home to nine UNESCO World Heritage sites. It is located on the verge of the Black Sea, in Southeast Europe, surrounded by Greece, Serbia, Macedonia and Romania. A center of many ancient empires, the country turned Communist after the Second World War. While repressing the economy, this served to preserve the culture and heritage of this land of kings and tsars. More recently, since the 1970s, Bulgaria has sought to build relations with its neighbors, move towards a democratic system of government and liberalize the economy.
The topography of the country varies widely, from alpine mountains in the southwest to the warm Mediterranean beaches along the Black Sea. The famed Balkan mountain range slices through Bulgaria from West to East, and the legendary Danube river flows in the North. Sofia is the center of economic and political activity in its capacity as the capital of Bulgaria. The country supports a population of 7.7 million, over a land area of over 40,000 square miles.
The GDP growth rate of the country remains around 5% in the last couple of years and EU membership is expected in 2007. Both factors have been impacting the overall economy and contributing to the stability of property prices. Additionally, Bulgaria became a NATO member country in 2004. Proximity to Europe, Asia and Africa makes the country a crossroads in inter-region travel, with 5 of the 10 trans-European connections cutting through Bulgaria. Air and land transport is well developed, with ample international airports and plenty of public transport facilities in large and small towns. Bulgaria is one of the countries of East Europe to which companies are attracted due to highly qualified workforce and reduced overhead costs, particularly in the area of science and technology.
Bulgaria is experiencing strong growth at an early stage in its development, making it a promising destination for those seeking a substantial capital appreciation in overseas investment property. There has also been a huge surge in the number of tourists, over 50% in 4 years, with the majority of the increase from European countries. Great spas, modern infrastructure and a stable political environment all add up to a great holiday destination. Meanwhile, the prices for property remain low, giving opportunities for long term investment property pension.
All these indicators explain the rising property values in the country, as well as the hype surrounding overseas investment property in Bulgaria. However, there are some areas for concern in this emerging market. Corruption has been a major issue that effects the economic growth, and coupled with the recession of the 1990s, has caused the emigration of millions of Bulgarians from their country. Further, a major concern for those seeking buy to let properties is that the population of the country is actually declining, and Bulgaria holds the dubious distinction of being the country with the world’s slowest population growth rate. The market for rented property is fragmented and there is a lack of quality accommodation.
Overall, when investing in Bulgaria, the selection of the location and the property is critical. Despite the hype surrounding the coasts, the yields are low and the property is difficult to sell. Sofia is considered to be the center for growth, particularly the new off plan investment property. Yields on this real estate are good at around 5%. Select ski resorts are also regarded by analysts as possible candidates for capital appreciation, though the returns are seasonal and the property must be carefully chosen.
The topography of the country varies widely, from alpine mountains in the southwest to the warm Mediterranean beaches along the Black Sea. The famed Balkan mountain range slices through Bulgaria from West to East, and the legendary Danube river flows in the North. Sofia is the center of economic and political activity in its capacity as the capital of Bulgaria. The country supports a population of 7.7 million, over a land area of over 40,000 square miles.
The GDP growth rate of the country remains around 5% in the last couple of years and EU membership is expected in 2007. Both factors have been impacting the overall economy and contributing to the stability of property prices. Additionally, Bulgaria became a NATO member country in 2004. Proximity to Europe, Asia and Africa makes the country a crossroads in inter-region travel, with 5 of the 10 trans-European connections cutting through Bulgaria. Air and land transport is well developed, with ample international airports and plenty of public transport facilities in large and small towns. Bulgaria is one of the countries of East Europe to which companies are attracted due to highly qualified workforce and reduced overhead costs, particularly in the area of science and technology.
Bulgaria is experiencing strong growth at an early stage in its development, making it a promising destination for those seeking a substantial capital appreciation in overseas investment property. There has also been a huge surge in the number of tourists, over 50% in 4 years, with the majority of the increase from European countries. Great spas, modern infrastructure and a stable political environment all add up to a great holiday destination. Meanwhile, the prices for property remain low, giving opportunities for long term investment property pension.
All these indicators explain the rising property values in the country, as well as the hype surrounding overseas investment property in Bulgaria. However, there are some areas for concern in this emerging market. Corruption has been a major issue that effects the economic growth, and coupled with the recession of the 1990s, has caused the emigration of millions of Bulgarians from their country. Further, a major concern for those seeking buy to let properties is that the population of the country is actually declining, and Bulgaria holds the dubious distinction of being the country with the world’s slowest population growth rate. The market for rented property is fragmented and there is a lack of quality accommodation.
Overall, when investing in Bulgaria, the selection of the location and the property is critical. Despite the hype surrounding the coasts, the yields are low and the property is difficult to sell. Sofia is considered to be the center for growth, particularly the new off plan investment property. Yields on this real estate are good at around 5%. Select ski resorts are also regarded by analysts as possible candidates for capital appreciation, though the returns are seasonal and the property must be carefully chosen.
Monday, December 25, 2006
Property Investment in France
France is the country of romance for some – the Eiffel Tower, the Champs Elysees, little sidewalk cafes, the sensuous language and the delicious food. A sense of surrealism still surrounds the country – with its glamorous cities that rank amongst the world’s fashion capitals, and its rustic charming countryside. One of the most popular tourist destinations in the world, France attracts over 70 million tourists annually. With its chateaux, vineyards, farms, apartments, beach houses and other types of property, there is a home for everyone in France. It is regarded as a great country to visit at least once in your lifetime and has a number of large urban centers and smaller towns that remain popular with tourists and would-be residents alike.
France is not the place to invest lightly – the current prices require a serious amount of money for any good property investment. As the prices in cities have risen, the demand for real estate in the interior and in small towns has increased, causing prices to rise across the board. It will be hard to find any undiscovered gems in this saturated market, but it is still possible. The strength of the Pound relative to the Euro is one reason that experts predict continued demand from the British for both buy to let and off plan purchases. The prices have recently seen a high but are expected to stabilize in 2007, say experts and agents.
On a positive note for the potential investor, there has been growing concern that people have pulled their money out of capitalized markets to invest in emerging markets across Eastern Europe and other areas, which has led to some easing in the overpriced French market. Younger investors have been buying off plan investment properties, so these developments have seen some demand. Further, those seeking buy to let properties for supplementing a pension scheme will find the returns come sooner than those in an emerging market.
France has a well developed legal system that works, as opposed to some developing countries. This provides the buyer with a great sense of security in the processing phase and during all the formalities. Further, the strength of the domestic market means that buyers are assured of being able to sell out as and when they please. The anticipated correction in prices in 2007 is expected to bring good demand and renewed interest in the French property market over the course of the year.
Additionally, the situation varies depending on the area within France. The legendary, wealthy south of France has seen strong demand and stable prices that are expected to continue. Agents claim that buy to let properties are gaining popularity amongst buyers of new real estate. In Provence, Lot and Aude, prices have risen recently, and Languedoc is being touted as the next big thing. Quercy has seen increased interest in older property, particularly property development opportunities.
A number of people seek older homes suitable for property development in France and there is a sizeable stock of such places. It is important to remember that property can not give you guaranteed returns, no matter what the agents tell you. Larger cities are more appropriate for buy to let properties due to a better developed rental market in these areas. With the heavy demand for high quality rentals, a carefully selected property can still yield over 6% on top of capital appreciation. This is ideal if you are looking for investment property pension in the shorter term.
France is not the place to invest lightly – the current prices require a serious amount of money for any good property investment. As the prices in cities have risen, the demand for real estate in the interior and in small towns has increased, causing prices to rise across the board. It will be hard to find any undiscovered gems in this saturated market, but it is still possible. The strength of the Pound relative to the Euro is one reason that experts predict continued demand from the British for both buy to let and off plan purchases. The prices have recently seen a high but are expected to stabilize in 2007, say experts and agents.
On a positive note for the potential investor, there has been growing concern that people have pulled their money out of capitalized markets to invest in emerging markets across Eastern Europe and other areas, which has led to some easing in the overpriced French market. Younger investors have been buying off plan investment properties, so these developments have seen some demand. Further, those seeking buy to let properties for supplementing a pension scheme will find the returns come sooner than those in an emerging market.
France has a well developed legal system that works, as opposed to some developing countries. This provides the buyer with a great sense of security in the processing phase and during all the formalities. Further, the strength of the domestic market means that buyers are assured of being able to sell out as and when they please. The anticipated correction in prices in 2007 is expected to bring good demand and renewed interest in the French property market over the course of the year.
Additionally, the situation varies depending on the area within France. The legendary, wealthy south of France has seen strong demand and stable prices that are expected to continue. Agents claim that buy to let properties are gaining popularity amongst buyers of new real estate. In Provence, Lot and Aude, prices have risen recently, and Languedoc is being touted as the next big thing. Quercy has seen increased interest in older property, particularly property development opportunities.
A number of people seek older homes suitable for property development in France and there is a sizeable stock of such places. It is important to remember that property can not give you guaranteed returns, no matter what the agents tell you. Larger cities are more appropriate for buy to let properties due to a better developed rental market in these areas. With the heavy demand for high quality rentals, a carefully selected property can still yield over 6% on top of capital appreciation. This is ideal if you are looking for investment property pension in the shorter term.
Sunday, December 24, 2006
Property Investment in Poland
Poland is the largest of the ten countries to join the European Union (EU) in 2004. It is located in the very heart of Europe. A large country, with a population of just under forty million, Poland sees a concentration of its people living in and around the capital city of Warsaw and the major city of Krakow. Two other cities are at the forefront of development, Lodz, home to a prestigious international film festival, and Wroclaw, a stunning ancient city that continues to thrive. There is plenty of skiing in Poland as well, with regions such as Kaprun that offer a long season and ideal weather conditions.
Analysts claim that Warsaw’s population may double in the next 4 to 5 years. There is a low rate of unemployment and the growth indicators for the country remain strong. The low tax structure and political stability adds to Poland’s overall strengths as a destination for overseas investment. Property in Poland is owned by right of freehold or absolute ownership. The economy is largely dependent on income from exports and has seen liberalization in recent years. Poland is ranked amongst the new member nations of the EU that may soon achieve alignment with the economic standards set by the EU to join the Euro zone. This is already impacting the property prices in the country, and these are rising. Another reason for the rise in prices is access to EU aid that serves to create infrastructure development and boost the economic growth of Poland.
Rents are rising as well, largely due to: an influx of employers from the West, looking for low-cost, educated work force and reduced overhead expenses. Increased numbers of expatriates in the country are also creating a demand for high quality residential real estate. Furthermore, data suggests that the bulk of East Europeans prefer to live as tenants as opposed to owners - a major social and cultural factor to consider if you wish to ‘buy to let’.
Average rental yields are estimated to be a healthy 5%, and many people see major possibilities in off plan investment properties. While there are all levels of housing available, the safest bet may be the mid market price range options. These are likely to see the most appreciation, particularly if held for the long term. While it may seem risky to invest in an emerging market that you may know little about, consider that the returns on your capital also have the potential to be large. The capitalized western markets offer very low growth; even countries like Spain have seen most of their growth already. Eastern Europe is regarded as the next big thing by a number of investors looking to double their money.
Further incentives are provided by Polish rules that provide a capital gains tax holiday and freedom from value added tax (VAT) for properties that are sold after a five year period. The country has focused on reducing the limitations and paperwork surrounding overseas investment property for foreign nationals. Several billion dollars will be invested in the Polish real estate market over the next few years, and this is sure to create pressure on the prices. Exciting new developments are coming up in Warsaw and other historic cities such as Wroclaw offer opportunities from property development and resale.
However, a final word of caution: Poland has its share of con artists like any other country, so select your lawyer and agent carefully. One possibility is to get your local agency to handle the deal for you, so find out whether they deal in overseas investment property. You will need a local lawyer as well so ask others who have bought real estate, particularly buy to let property in Poland. As with any major investment – do your research and get good advice!
Analysts claim that Warsaw’s population may double in the next 4 to 5 years. There is a low rate of unemployment and the growth indicators for the country remain strong. The low tax structure and political stability adds to Poland’s overall strengths as a destination for overseas investment. Property in Poland is owned by right of freehold or absolute ownership. The economy is largely dependent on income from exports and has seen liberalization in recent years. Poland is ranked amongst the new member nations of the EU that may soon achieve alignment with the economic standards set by the EU to join the Euro zone. This is already impacting the property prices in the country, and these are rising. Another reason for the rise in prices is access to EU aid that serves to create infrastructure development and boost the economic growth of Poland.
Rents are rising as well, largely due to: an influx of employers from the West, looking for low-cost, educated work force and reduced overhead expenses. Increased numbers of expatriates in the country are also creating a demand for high quality residential real estate. Furthermore, data suggests that the bulk of East Europeans prefer to live as tenants as opposed to owners - a major social and cultural factor to consider if you wish to ‘buy to let’.
Average rental yields are estimated to be a healthy 5%, and many people see major possibilities in off plan investment properties. While there are all levels of housing available, the safest bet may be the mid market price range options. These are likely to see the most appreciation, particularly if held for the long term. While it may seem risky to invest in an emerging market that you may know little about, consider that the returns on your capital also have the potential to be large. The capitalized western markets offer very low growth; even countries like Spain have seen most of their growth already. Eastern Europe is regarded as the next big thing by a number of investors looking to double their money.
Further incentives are provided by Polish rules that provide a capital gains tax holiday and freedom from value added tax (VAT) for properties that are sold after a five year period. The country has focused on reducing the limitations and paperwork surrounding overseas investment property for foreign nationals. Several billion dollars will be invested in the Polish real estate market over the next few years, and this is sure to create pressure on the prices. Exciting new developments are coming up in Warsaw and other historic cities such as Wroclaw offer opportunities from property development and resale.
However, a final word of caution: Poland has its share of con artists like any other country, so select your lawyer and agent carefully. One possibility is to get your local agency to handle the deal for you, so find out whether they deal in overseas investment property. You will need a local lawyer as well so ask others who have bought real estate, particularly buy to let property in Poland. As with any major investment – do your research and get good advice!
Saturday, December 23, 2006
Buying Property at Below Market Value
Buying a property is not an easy task, and with the rising costs, the would-be home owners and investors in this market are struggling to find good deals. While these are harder to come by, they are still available if you are willing to do some groundwork and put time and effort into the research stage. Searching for property below market value will significantly improve your investment and diminish the risk of negative equity, since there will be some profit on the sale price to absorb the reduced value. There are several techniques used to obtain property at below market value such as:
Buy property at Auction
Many properties are sold by estate agents at auction, at around 10% to 20% below market value. Be sure to find out why these properties are being sold at auction, rather than through the normal process. There is good potential here and a lot of investors use auctions to purchase properties quickly and under market price. At an auction, you will need to pay a cash deposit of up to 20% immediately if you win. Also, each property needs to be thoroughly surveyed before you can bid on it, and this is expensive and time consuming, particularly for a large number of properties. Therefore, mostly experienced investors buy through auctions, and a first time buyer or a home buyer is best advised to stay away from the process till they gain more experience. There are property advisory services that offer assistance to novice buyers at auctions but I would always recommend extreme caution.
Buying Foreclosure or Repossession property
For the average investor, if the opportunity arises, it is best to buy foreclosure or repossession properties through an estate agent who can get you a good deal without the hassle of going to auctions. You will need to be very vigilant because these properties get snapped up very quickly, due to the likelihood of getting a good price and the reliability provided by the agent or society. Also find out if you need to pre-qualify or set up your finances with a building society before you can gain access to these types of deals.
Property Development
If you have the time, money and interest, you can buy a renovation property and undertake some property development to sell it at a higher price. For instance, you can purchase at $80,000, make repairs worth $8,000 and sell at $100,000.
Property Development Share Scheme ** HOT **
There are a few schemes available where groups of small investors group together to develop a property to sell on completion. This can attract very good interest. It is essential for buyers to get good advice if taking up this option. Alternatively, buyers may take the option of joining a managed scheme. I have taken this option myself as one of my streams of property development. My first project is underway. For a modest investment I am on track to receive 20% return on investment in 6 months. I will update this blog as the development progresses. Of all my investments, this is by far the most exciting and the most promising. For more information on this scheme click here.
Motivated seller
In some circumstances the property owner may want to sell their property quickly. If so, there is an opportunity for a cash buyer to secure a very good discount.
Other than the above modes, you can also use the newspaper and magazines to find properties sold directly through the owners. This can make it easier to negotiate a better price by forming a relationship with the seller. Further, some websites offer good deals on real estate as well as brokerage rates as low as half a percent. Do your homework, put in a little sweat, and you may find yourself sitting on a goldmine.
Buy property at Auction
Many properties are sold by estate agents at auction, at around 10% to 20% below market value. Be sure to find out why these properties are being sold at auction, rather than through the normal process. There is good potential here and a lot of investors use auctions to purchase properties quickly and under market price. At an auction, you will need to pay a cash deposit of up to 20% immediately if you win. Also, each property needs to be thoroughly surveyed before you can bid on it, and this is expensive and time consuming, particularly for a large number of properties. Therefore, mostly experienced investors buy through auctions, and a first time buyer or a home buyer is best advised to stay away from the process till they gain more experience. There are property advisory services that offer assistance to novice buyers at auctions but I would always recommend extreme caution.
Buying Foreclosure or Repossession property
For the average investor, if the opportunity arises, it is best to buy foreclosure or repossession properties through an estate agent who can get you a good deal without the hassle of going to auctions. You will need to be very vigilant because these properties get snapped up very quickly, due to the likelihood of getting a good price and the reliability provided by the agent or society. Also find out if you need to pre-qualify or set up your finances with a building society before you can gain access to these types of deals.
Property Development
If you have the time, money and interest, you can buy a renovation property and undertake some property development to sell it at a higher price. For instance, you can purchase at $80,000, make repairs worth $8,000 and sell at $100,000.
Property Development Share Scheme ** HOT **
There are a few schemes available where groups of small investors group together to develop a property to sell on completion. This can attract very good interest. It is essential for buyers to get good advice if taking up this option. Alternatively, buyers may take the option of joining a managed scheme. I have taken this option myself as one of my streams of property development. My first project is underway. For a modest investment I am on track to receive 20% return on investment in 6 months. I will update this blog as the development progresses. Of all my investments, this is by far the most exciting and the most promising. For more information on this scheme click here.
Motivated seller
In some circumstances the property owner may want to sell their property quickly. If so, there is an opportunity for a cash buyer to secure a very good discount.
Other than the above modes, you can also use the newspaper and magazines to find properties sold directly through the owners. This can make it easier to negotiate a better price by forming a relationship with the seller. Further, some websites offer good deals on real estate as well as brokerage rates as low as half a percent. Do your homework, put in a little sweat, and you may find yourself sitting on a goldmine.
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