Emerging economies in Eastern Europe. Coastal apartments and city center developments.


OUR OVERSEAS INVESTMENT STRATERGY The UK has seen huge property prices rises over the past decade, but we have seen values fall in many areas during 2008/9. However, most investors are now very confident about the future. Prices Rising Soon? In much of the rest of the world it’s a similar story. There has been huge capital growth year on year in many countries, as mentioned on our previous pages. Many countries in Eastern Europe have seen price rises in excess of 20% per year in 07 & 08. Certain countries have seen falls during 2009, but equally prices are rising again in hot spots. Properties are still very cheap in Eastern Europe compared to the UK. For example, a typical 2 bed flat in Sutton Coldfield with an approximate value of £135,000 compared with a 2 bed flat in Sofia, Capitol City of Bulgaria at only £60,000. Many More Opportunities see our overseas property for sale (by country) on the tab links at the side. Although, for sound financial reasons our strategy for overseas investment is going to be along the same lines as for the UK. There are certainly more exciting opportunities to develop and speculate outside the UK providing short & medium term investments for those who want to turn their cash around quicker. We have traveled extensively in the newly emerging Eastern European countries over the past four years, to check out the opportunities for ourselves and we are convinced enough to have invested already in Montenegro and Turkey. There are many more countries that we have our sights set on and we would hope to share our future finds with you. Mortgages Too So called JET-TO-LET mortgages are now available in many of these countries our funding strategies are the same as for the UK. To use financial leverage to our advantage and make sure the figures stack up to provide a cash flow positive situation, if we are intending to let out the property. Buying Off Plan As in the UK we aim to and buy clever and at ‘Below Market Value’ (BMV). This gives us ‘instant equity’ in our property purchases. The property market in these emerging countries is mainly new build and sold 'off plan’ where a discount is nearly always available, but it’s important to make sure that these discount are genuine. We would never buy anything without applying 'due diligence' and seeing the development for ourselves as well as doing a local price comparison to back up the developers claims. This is a quality development in 'Side' Southern Turkey that we have invested in. The prices are still very low and there is plenty of potential for capital growth Link to 'Spring' If you are interested in renting our luxury 3 bedroom apartment in Side here is a link to our lettings web site: http://www.lounge-lettings.co.uk/turkey_11.html It's available from only £170-£350 per week. Cities V Resorts Over the next few years we aim to invest 50% in city developments & 50% in resort developments. City apartments particularly in the capital Cities when Multi National companies are basing themselves are likely to be easy to let for long periods and the capitol growth is more guaranteed than the resorts. The letting potential in a resort as a lot less predictable and more time consuming, but the returns can be far better if you can achieve more than 15-20 weeks of occupancy. So, for these reasons we feel it better to spread the risk. Obviously, there are an awful lot more issues to consider when buying abroad and each country has its own unique problems, which we haven’t mentioned here. Over the next few months we intend to add more information on each country that we are focusing on. Distressed Sales With the current economic problems in the U.K. we are seeing a number of foreign developers trying to offload properties that investors have agreed to buy 'off plan', having paid their deposits and often more, but are unable to complete. We are seeing discounts being offered of up to 50% in some instances. Usually in locations that have been over developed, but are certainly worth considering. We intend to add a 'distressed sales page' shortly! Exit Strategy Finally, its important again to have a sensible ‘Exit Strategy’ the most important questions we ask ourselves is before buying is: Are there enough of the right people looking to rent in the Cities and is anyone likely to buy the property from us in the future? With resort property, who is likely to rent from us and how will it be marketed? With foreign property there is the addition question of who else is buying here? e.g. locals or other nationalities. If you are interested in any aspects of buying abroad, please fill in our 'enquiry form' from the Tab Link at the side of the page. A BRIEF SUMMARY OF OUR OVERSEAS STRATEGY Having a varied term approach to overseas investing. Ensuring that the financial structure stacks up to provide a cash flow positive position and make the most of financial leverage. Buying at Below Market Value to protect us and ensure capitol growth. Ensuring a gross yield of more than 6% when letting. Targeting areas, which are in an emerging market guaranteeing you more capitol growth. Seeking out property in cities & resorts, which have a high demand but a low supply. Having a sensible exit strategy.

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