Investing in Overseas Property

The above explains why values increase during the various stages of development and so it would not be unreasonable in a normal market to expect a property to increase in value by a modest 30% during the construction period. In that case if you purchased for 200,000 Eurosoff plan you would sell for 260,000 Euroson completion giving a profit of 60,000 Euros. But as your stage payments have been only 30% i.e. 60,000 Euros you have in simple terms doubled your money over the 2 years and don't forget that the 60,000 Euros which you invested in stage payments was paid gradually during the two year construction period so the whole was not invested for the whole time. Even after legal fees and taxes you should still have a very healthy profit.

The key factor which makes this possible is the low deposit of 30% required by the promoter which in effect enables you to buy a 200,000 Euros property for only 60,000 Euros and hold it for 2 years before taking the deeds and arranging a mortgage. During this time you are receiving the benefit of price increases on the 200,000 Euros not on your 60,000 Euros.

Some developers may even offer properties requiring only 20% in stage payments in this of course is an even more attractive proposition. In countries such as France or Cyprus for example the deposit required can often be as low as 15%.

Y ou do not need to be rich to invest in off-plan properties or buy your own holiday home overseas. You need from as little as around £20,000 which is paid in small instalments over the 2 year construction period. These payments can be protected by a bank guarantee.

At the end of the two-year period you will own a beautiful brand new apartment in a private development with tropical gardens and pools. This will obviously be worth more than when it was on the drawing board and may have increased in value by as much as 50% of the original promoters price.

You have the choice of selling and taking your profit, or keeping the apartment to enjoy.
There will be a pre-arranged mortgage, but if you keep the apartment, the monthly repayments can be normally covered from letting income.

Typically the 54,000 Euros investment is paid in stage payments over the two year construction period starting with a deposit of 3,000 Euros.

If you sell on completion, it would be reasonable to expect the original investment of 54.000 Euros to increase by 50% - 100%.

After completion, mortgage repayments on 98,000 Euros could normally be covered by letting income.

The information and figures above are for explanatory purposes only. Obviously no guarantee can be given of income or profit achievable and you should always consult your financial advisor before entering into any contract.

The New Spain

Remember Spain of the eighties when the cost of living was so low that you could drink Sangria on the beach and dine like a king for a few pesetas. If you owned a villa you could afford in-house staff to attend to your every need. Or you could afford the luxury of the very best hotels and sip champagne by the pool and dream of never returning to the UK again.

Well those heady days can still be found in the newly developed beach resorts of Bulgaria, which bear striking similarities to Spain of 25 years ago. It is situated in Eastern Europe with the stunning white sand beaches of the Black Sea enjoying over 150 days of sunshine a year and an average summer temperature of 26ºC.

This, plus a backdrop of breathtaking scenery and rolling mountains provide the arena for world class ski resorts. And yet Bulgaria remains relatively unspoiled with a simplistic lifestyle and very low cost of living.

The Boom Has Started

Property prices in Spain have spiralled over the last five years. So if you can no longer afford that dream home in the Spanish sun Bulgaria could certainly be a serious alternative. Prices are about one quarter of those for similar properties on the Spanish Costas but the boom in Bulgaria has already started and prices have increased over the last four years by an average of around 25% per year. What is more as Bulgaria will gain full membership of the EU in 2007 this trend should continue.

Bulgaria in recent years has become a major tourist destination and tourist arrivals last year saw 22% growth. Cut price air fares are now becoming available with BA offering flights from £29.

Investors are already moving in as all indicators point to a property price explosion as experienced in Spain in recent years.

2 Bedroom Apartments
ONLY £35 000

A new development has been released recently at Kavarna Beach resort only 45 minutes from Bulgaria’s International airport of Varna. It is situated 70m from the beach in an unspoiled area with three new golf courses and two stunning new marinas to be built.

You can obtain 2 bedroom apartments in this development for only £35000 and some prime beachfront units are still available.

The apartments all boast fantastic views over the Black Sea and enjoy beautifully manicured communal gardens with eight swimming pools.
They are built to meet the highest standards including double glazing, security locks and fully fitted kitchens. In the first phase a free furniture package is included in the price. Owners have use of all amenities including fully equipped fitness centre and refreshing hot saunas. There is also a children’s playground, good parking facilities, restaurant and bar.

The development is being constructed by a leading Spanish promoter, established in 1968, who has already completed a similar successful project nearby.

INVESTING IN SPANISH

PROPERTY

OFF-PLAN IS STILL AN OPTION