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.
Showing posts with label pension. Show all posts
Showing posts with label pension. Show all posts
Tuesday, December 26, 2006
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.
Thursday, December 21, 2006
Property Purchase for Holiday Let
Short term letting, over holidays and peak season times, is becoming a popular way to make money. You may have heard some people say that three good months are enough for them to pay the year’s mortgage. This may be true of some properties, but not of all, so make sure that you select your property with care if you intend to let it out during the holidays. While a good property can provide you with a much needed investment property pension in terms of both lucrative rent and a property asset.
Some tips for success in the holiday rentals market:
1) Competitive pricing – assess the value of your property by comparing it to other similar places in the area and keep the rent competitive in the marketplace. Remember that your property may be great but you have to make it attractive to beat you competition and without compromising your profit.
2) Try to find a property with a great USP – a special view is always popular. A place with a view will command a premium. Proximity to the beach or to local attractions is always a money maker. Think of the main reason that tourists frequent your selected region or country – is it for the great nightlife? Then try to find a good place near the bars or nightclubs.
3) Décor – decorate your place tastefully within your budget. Everyone wants to stay in an aesthetic accommodation, particularly while on holiday. You may find yourself asked to provide pictures of the property, indoors and out, so make it as attractive and commodious as possible.
4) Agent – chances are that you do not live in the same area as your holiday rental. It may then be useful to hire a local agent to handle the administrative tasks, as well as provide a point of contact for the guests.
5) Research – do your homework thoroughly to ensure that you are not being defrauded. Visit the site personally and oversee all paperwork. Do not rely on a local property agent completely.
6) Local regulations – make sure that you adhere to local rules for renting your property. For instance, in France, you will be asked to provide a written agreement between the landlord and the tenant. There may be rules regarding renters insurance as well.
7) Insurance – Make sure that your insurance company knows that the property will be used as a holiday let when you sign the agreement. There must not be any clauses prohibiting it.
8) Taxes – find out about your home country taxes on owning holiday rental properties and how the rental income will be treated. It’s wise to ascertain local rules as well to that effect. Know whether the property will be treated as commercial and how much tax liability it will attract.
9) Rental payments – make sure you work out how and when you will receive the rent payments, especially if your property is overseas.
10) Remember that to make money, you need to resist the temptation to stay in your own property during the holidays.
That said, there is still plenty of money to be made off the holiday rental market if you choose the right property and handle the administration effectively. Always get good advice and carry out your own research before proceeding.
Some tips for success in the holiday rentals market:
1) Competitive pricing – assess the value of your property by comparing it to other similar places in the area and keep the rent competitive in the marketplace. Remember that your property may be great but you have to make it attractive to beat you competition and without compromising your profit.
2) Try to find a property with a great USP – a special view is always popular. A place with a view will command a premium. Proximity to the beach or to local attractions is always a money maker. Think of the main reason that tourists frequent your selected region or country – is it for the great nightlife? Then try to find a good place near the bars or nightclubs.
3) Décor – decorate your place tastefully within your budget. Everyone wants to stay in an aesthetic accommodation, particularly while on holiday. You may find yourself asked to provide pictures of the property, indoors and out, so make it as attractive and commodious as possible.
4) Agent – chances are that you do not live in the same area as your holiday rental. It may then be useful to hire a local agent to handle the administrative tasks, as well as provide a point of contact for the guests.
5) Research – do your homework thoroughly to ensure that you are not being defrauded. Visit the site personally and oversee all paperwork. Do not rely on a local property agent completely.
6) Local regulations – make sure that you adhere to local rules for renting your property. For instance, in France, you will be asked to provide a written agreement between the landlord and the tenant. There may be rules regarding renters insurance as well.
7) Insurance – Make sure that your insurance company knows that the property will be used as a holiday let when you sign the agreement. There must not be any clauses prohibiting it.
8) Taxes – find out about your home country taxes on owning holiday rental properties and how the rental income will be treated. It’s wise to ascertain local rules as well to that effect. Know whether the property will be treated as commercial and how much tax liability it will attract.
9) Rental payments – make sure you work out how and when you will receive the rent payments, especially if your property is overseas.
10) Remember that to make money, you need to resist the temptation to stay in your own property during the holidays.
That said, there is still plenty of money to be made off the holiday rental market if you choose the right property and handle the administration effectively. Always get good advice and carry out your own research before proceeding.
Wednesday, December 20, 2006
Property Investment In The UK
The United Kingdom is formed by four countries – England, Scotland, Northern Ireland and Wales. The property market is therefore, huge and varied, and although not as sunny as Spain or as exciting as Cape Verde, there are plenty of options for everyone. Lately, there has been a lot of interest in the UK property investment market, since people have begun to realize that their homes are their best performing asset. This has prompted a number of amateur property tycoons to enter the market without a proper understanding of the factors surrounding the movements of this potentially rewarding segment.
A report from Nationwide’s ‘buy to let’ arm, UCB Home Loans, claims that the UK property investment market is strong. Amongst the reasons, the top one that emerges is the current low rate of return in the stock market. Further, access to easy funding is making buy to let more appealing than investing in equities. Recent appreciation in house values is also giving impetus to the idea of investment property pension. Rents in London and the South Eastern region are rising as well, so landlords stand to make more money. With price tags on houses hitting highs, more potential buyers are compelled to rent, meaning rise in number of tenants. The arrival of more immigrants and overseas students also gives a boost to the overall number of would-be renters.
With the strong demand and clear increase in the prices of homes in the UK, there are certain areas that are becoming the favorites for buy to let investors, such as London, Aberdeen, Belfast, Swindon, Southampton and Preston, amongst others. However, there are areas where the market seems to be increasingly saturated and potential for returns is diminishing. Another concern is that higher interest rates may squeeze profit margins. Add to that the possible low yield that accompanies appreciation in capital, and you will realize that caution is required in this market.
Important factors to remember while purchasing property in the UK are:
1) Do your homework – research is essential. Also remember that there are maximum cut-off prices over which you would be unwise to buy. Get professional help if possible, or else try to attend a workshop on property investment.
2) Consider property development – buying a renovation property at lower prices can allow you to improve the property and land, and increase its value considerably.
3) Consider property development through a ‘share scheme’ – sharers take on the role of property developer, buying land and building one or more houses or a block of apartments.
4) Factor in capital gains tax that will be payable for any amount over your annual allowance. If you are thinking of property development, consider residing in your ‘buy to let’ property while you develop. This may allow tapering of the capital gains tax at the time of selling. Consult a tax specialist for more details on this.
5) Choose the right type of financing – residential mortgages carry a lower rate of interest but a buy to let mortgage will allow you to borrow against the expected resale value of the home. If appreciation is anticipated or you plan property development, this is a useful feature.
6) Be wary of any attached strings in your mortgage agreement that could hamper the profitability of your investment in the future.
7) Consider investment in commercial property – in the UK you can include this in a SIPP (Self Invested Pension Plan) scheme. Always seek advice from a qualified financial or pension advisor.
In conclusion, I believe, while the huge gains maybe rarer than before in the UK property investment market, there is still a premium to be made, if you invest wisely – but always get advice before proceeding!
A report from Nationwide’s ‘buy to let’ arm, UCB Home Loans, claims that the UK property investment market is strong. Amongst the reasons, the top one that emerges is the current low rate of return in the stock market. Further, access to easy funding is making buy to let more appealing than investing in equities. Recent appreciation in house values is also giving impetus to the idea of investment property pension. Rents in London and the South Eastern region are rising as well, so landlords stand to make more money. With price tags on houses hitting highs, more potential buyers are compelled to rent, meaning rise in number of tenants. The arrival of more immigrants and overseas students also gives a boost to the overall number of would-be renters.
With the strong demand and clear increase in the prices of homes in the UK, there are certain areas that are becoming the favorites for buy to let investors, such as London, Aberdeen, Belfast, Swindon, Southampton and Preston, amongst others. However, there are areas where the market seems to be increasingly saturated and potential for returns is diminishing. Another concern is that higher interest rates may squeeze profit margins. Add to that the possible low yield that accompanies appreciation in capital, and you will realize that caution is required in this market.
Important factors to remember while purchasing property in the UK are:
1) Do your homework – research is essential. Also remember that there are maximum cut-off prices over which you would be unwise to buy. Get professional help if possible, or else try to attend a workshop on property investment.
2) Consider property development – buying a renovation property at lower prices can allow you to improve the property and land, and increase its value considerably.
3) Consider property development through a ‘share scheme’ – sharers take on the role of property developer, buying land and building one or more houses or a block of apartments.
4) Factor in capital gains tax that will be payable for any amount over your annual allowance. If you are thinking of property development, consider residing in your ‘buy to let’ property while you develop. This may allow tapering of the capital gains tax at the time of selling. Consult a tax specialist for more details on this.
5) Choose the right type of financing – residential mortgages carry a lower rate of interest but a buy to let mortgage will allow you to borrow against the expected resale value of the home. If appreciation is anticipated or you plan property development, this is a useful feature.
6) Be wary of any attached strings in your mortgage agreement that could hamper the profitability of your investment in the future.
7) Consider investment in commercial property – in the UK you can include this in a SIPP (Self Invested Pension Plan) scheme. Always seek advice from a qualified financial or pension advisor.
In conclusion, I believe, while the huge gains maybe rarer than before in the UK property investment market, there is still a premium to be made, if you invest wisely – but always get advice before proceeding!
Tuesday, December 19, 2006
Property Investment In Spain...
Ah, Spain…With its bull runs, famous beaches, sparkling nightlife and amazing history, there is enough here to captivate any tourist and make them stay forever. It is no surprise that sunny Spain continues to be a favorite amongst overseas investment property owners worldwide. ‘The Economist’ claims that Spanish property prices had seen an appreciation 3 times that of the European average in the period from 1995 to 2002. Over half a million Britons have invested in this potentially lucrative market, amongst the 3 million foreigners that call Spain home.
It is not merely Spain’s easygoing lifestyle and European-standard infrastructure that attracts investors. Poor performance of equity markets and pension schemes promotes demand for overseas investment property. A million more new residents are expected in Spain over the next few years and the market gives indications of being firm. New developments and older properties are widely available. Off-plan property investment still offers good returns in Spain, provided you pick the right location. Further, prices in the market overall are lower than many other countries like the UK or US, making the investment accessible to a younger buyer or to seekers of investment property pensions. The rental market in Spain is sizeable, with tourists searching for self-catered options. This can provide the owner of a buy to let property with funds to pay off installments and even make a buck.
Whether your interest in Spain comes from a desire to earn through an investment property pension or simply live in paradise when you retire, there is a place for you under the Spanish sun. The most popular destinations are Costa del Sol, Costa Blanca, the Canary Islands and the Balearic Islands. While these are crowded and expensive, some analysts say that prices in this region may fall in coming years. However, there is a rise expected in the southern interior, with its gorgeous villages full of snow-white structures against brilliant blue skies, and in the northern interior, a place full of charm and character. Pastoral areas such as Catalonia and Galicia as well as urban developments such as Barcelona, Granada and Seville are fast becoming hotspots for buy to let investors or those seeking property development opportunities on colonial houses.
With increase in air traffic, more low cost airlines available and better road infrastructure, the tourist inflow to different parts of the country is rising. While a couple of hundred thousand dollars cannot buy you much on the popular coasts, you can purchase a great place in beautiful Granada, an hour and a half drive to Costa del Sol.
When buying property in Spain, factors to consider are:
1) Make sure you understand the local rules and regulations. Find a reliable agent who offers overseas investment property but be sure to shop around for quotes.
2) There is a lot of potential in widely available, wonderful historic houses for property development to increase the value of your house, but be warned that renovation in Spain can take longer than planned.
3) The true value in the Spanish property market is not in quick turnaround but in a solid long-term investment, so look for something that will stand the test of time.
4) When you buy off-plan investment property, the prices rise as the project approaches completion. If you choose to sell at this time, you may not pay capital gains tax. Most people buy to let in Spain, especially if they are overseas investors, so look for a great USP in your selected property that can be used to attract tourists. That is why I opted for Tres Molinos!
It is not merely Spain’s easygoing lifestyle and European-standard infrastructure that attracts investors. Poor performance of equity markets and pension schemes promotes demand for overseas investment property. A million more new residents are expected in Spain over the next few years and the market gives indications of being firm. New developments and older properties are widely available. Off-plan property investment still offers good returns in Spain, provided you pick the right location. Further, prices in the market overall are lower than many other countries like the UK or US, making the investment accessible to a younger buyer or to seekers of investment property pensions. The rental market in Spain is sizeable, with tourists searching for self-catered options. This can provide the owner of a buy to let property with funds to pay off installments and even make a buck.
Whether your interest in Spain comes from a desire to earn through an investment property pension or simply live in paradise when you retire, there is a place for you under the Spanish sun. The most popular destinations are Costa del Sol, Costa Blanca, the Canary Islands and the Balearic Islands. While these are crowded and expensive, some analysts say that prices in this region may fall in coming years. However, there is a rise expected in the southern interior, with its gorgeous villages full of snow-white structures against brilliant blue skies, and in the northern interior, a place full of charm and character. Pastoral areas such as Catalonia and Galicia as well as urban developments such as Barcelona, Granada and Seville are fast becoming hotspots for buy to let investors or those seeking property development opportunities on colonial houses.
With increase in air traffic, more low cost airlines available and better road infrastructure, the tourist inflow to different parts of the country is rising. While a couple of hundred thousand dollars cannot buy you much on the popular coasts, you can purchase a great place in beautiful Granada, an hour and a half drive to Costa del Sol.
When buying property in Spain, factors to consider are:
1) Make sure you understand the local rules and regulations. Find a reliable agent who offers overseas investment property but be sure to shop around for quotes.
2) There is a lot of potential in widely available, wonderful historic houses for property development to increase the value of your house, but be warned that renovation in Spain can take longer than planned.
3) The true value in the Spanish property market is not in quick turnaround but in a solid long-term investment, so look for something that will stand the test of time.
4) When you buy off-plan investment property, the prices rise as the project approaches completion. If you choose to sell at this time, you may not pay capital gains tax. Most people buy to let in Spain, especially if they are overseas investors, so look for a great USP in your selected property that can be used to attract tourists. That is why I opted for Tres Molinos!
Thursday, December 07, 2006
Where is Tres Molinos?
When I heard about an ‘off plan’ property investment opportunity in Tres Molinos, near Murcia, Spain, I just had to get involved. The description sounded so good I almost packed up home and booked the first flight. This was a significant decision for me as it was my first venture into property investment.
I have been unhappy with the progress of my pension for some time. Several years ago it was fairly healthy and I was looking forward to a reasonable lifestyle in my retirement. In recent years the situation has declined rapidly and retirement disappeared from my radar.
While surfing the web recently, I stumbled across an opportunity to get involved in a property development sharing scheme. When I first looked into it I thought is was just too good to be true and perhaps another scam. Any negative thoughts disappeared after I had spoken to the scheme founder (Alan) so I decided to get involved.
Alan introduced me to one of his other investors, who had, like me, decided to join the scheme. However, as a fairly experienced property investor, this was just one of several ventures he was running with. He described Tres Molinos and I was hooked! Two months later, I have three ‘off plan’ developments underway, shares in a property development scheme and future property opportunities in Cape Verdi and Poland. My pension is getting a healthy boost and my retirement is back on the radar.
My ventures might be an amazing success or they might all fall down around my ears. Whatever happens, I thought it would be good to share my experiences in an attempt to help other novice property investors and to serve as a personal record. I have never kept a diary before so this is a whole new experience, I hope you find it interesting and useful.
I have been unhappy with the progress of my pension for some time. Several years ago it was fairly healthy and I was looking forward to a reasonable lifestyle in my retirement. In recent years the situation has declined rapidly and retirement disappeared from my radar.
While surfing the web recently, I stumbled across an opportunity to get involved in a property development sharing scheme. When I first looked into it I thought is was just too good to be true and perhaps another scam. Any negative thoughts disappeared after I had spoken to the scheme founder (Alan) so I decided to get involved.
Alan introduced me to one of his other investors, who had, like me, decided to join the scheme. However, as a fairly experienced property investor, this was just one of several ventures he was running with. He described Tres Molinos and I was hooked! Two months later, I have three ‘off plan’ developments underway, shares in a property development scheme and future property opportunities in Cape Verdi and Poland. My pension is getting a healthy boost and my retirement is back on the radar.
My ventures might be an amazing success or they might all fall down around my ears. Whatever happens, I thought it would be good to share my experiences in an attempt to help other novice property investors and to serve as a personal record. I have never kept a diary before so this is a whole new experience, I hope you find it interesting and useful.
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