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Cyprus
Provided
by Halcyon Properties.
 Cyprus really does have something for everyone, but
before you take that final step here are some useful
buying tips.
Do your homework before you travel, but remember that
what you see on a website may well not still be available
by the time you get to Cyprus, or the price will have
gone up.
Limit
the number of agents with whom you choose to view properties
as most properties in
Cyprus are placed with
multiple agencies. If you go to too many agents you may
well end up viewing the same property several times – which
is not only a waste of time but is frustrating, especially
when it is hot. Also by the end of a week your head will
be spinning with confusion.
Check the agent you are dealing with holds a licence.
The law changed in January 2005 making it illegal for
anyone other than the owner, the builder/developer or
a licensed estate agent to sell property in Cyprus.
Check
before you go how much you can afford to spend – and
stick to it. The property market in Cyprus is very competitive
and you will be 'encouraged' to spend more than you have
budgeted for.
Make sure you have your finance in place before you
go, because if you see something you like it will be
gone by the time you come home and sort out your finances.
When
you decide on a property you will be asked to pay a
reservation fee, usually about £2,500. On new
property there will be a deposit of 30 per cent to pay
when your contracts are drawn up, generally within 30
days of paying the reservation fee. There will then be
staged payments through to completion. On resale property
the deposit will be 10 per cent on exchange of contracts
with the remainder payable on completion. When the title
deeds are transferred into your name you will have to
pay a graduated tax based on the value of the property – which
on a property worth £145,000, for example, would
total about £6,700 or 4.6 per cent. Buying in joint
names would reduce the amount payable to £4,800,
or 3.3 per cent. There is also stamp duty to pay – £1.80
per £1,200 up to the value of £120,000, thereafter
at the rate of £2.40 per thousand. This is generally
payable within 30 days on signing your contract.
When choosing a property, think about its resale potential,
and pay particular attention to location.
Always obtain independent legal and financial advice.
Halcyon
Properties
is an independent property company offering
villas and apartments in a choice of superb
location across the island of Cyprus. Established
in 1994, Halcyon Properties prides itself
on offering a personal and highly professional
property locating service.
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Montenegro
Provided
by Ready2Invest.
 Montenegro is one of the most stunning places in the
world. But property investors should not be overawed
by the scenery. They need to keep a clear head and
to keep a number of things about the country in mind.
Land title
Like in many former communist countries, land ownership
can be a complicated. Records do exist from pre-communist
times and in many cases original owners have made
a case for restitution of their land.
According to the World Bank and the International
Bar Association, there are six procedures to follow
to
register land. It takes on average 111 days and should
cost around 5.3 per cent of the value of the property
(In France, for example, there are 9 procedures; it
takes 183 days and costs 6.5 per cent of the property’s
value).
Planning
Montenegro has a comprehensive master plan for developments
and construction. Make sure you are compliant with
it if you are building or changing the use of a property.
The plan will protect you as well, because you can
be assured that inappropriate developments will not
sprout up around you without you knowing.
Currency
Montenegro uses the Euro even though it is not yet
in the EU. This will help you considerably in terms
of forecasting costs and expenses.
We
are specialists. We spend every day looking
for new property deals. We have a finding network
that spans the UK and the rest of Europe. Ready
2 Rent can give you access to superb deals
that would otherwise not be available to you.
For example we have brought our investors opportunities
to buy top of the range Marbella villas at
33% below market value. In the up and coming
Costa Almeria in the South of Spain we are
offering investors villas at 30% below market
value. Similarly we have offered deals in the
Czech Republic, Hungary and the UK at excellent
prices that offers our investors property with
instant equity built into the price.
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Romania
Provided
by Anglo-Romanian Development, a company committed
to bringing the opportunities of the rapidly growing
Romanian real estate market to the UK investor.
 Joining
the European Union has had a significant impact in
other countries and Romania, which is due to join in
2007, is likely to be no exception. Many independent
experts say that in terms of growth potential its property
market is now where the UK was 10 to 15 years ago.
Even so, there are of course risks associated with
any emerging market and the key to successful investing
is meticulous preparation.
The essential tips for success in Romanian real estate
investment are:
Know your objective
Are you investing for capital growth, an additional
income or maybe both? If you are investing for capital
growth, what level of return do you expect? If investing
for income, what yield are you aiming for? The answer
to these questions will determine the type of investments
you should consider.
Know your attitude to risk
Romania offers investments opportunities in a range
different types of property, including:
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land; |
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off
plan city developments; |
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holiday
villas or apartments in skiing resorts, by the
sea or other tourist attractions; |
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town
centre property; |
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student
accommodation; and |
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commercial
property. |
Whilst land offers the best potential in terms of
capital growth, it may not be the right type of investment
given your risk profile. You may prefer a more traditional
rental property with a lower perceived risk and reduced
returns.
Sort out your finance in advance
Your objective and risk profile will determine the
type of investment you will make and the amount of
money you need. For instance, if you invest in land,
you will need all the funds available from the beginning.
If you are buying off plan you may need a 15 per cent
deposit, a further 15 per cent in three months, and
the balance on completion.
Romania has a very dynamic real estate market and
demand heavily outstrips supply. You need to have your
finances arranged before you start looking for a property
and be prepared to move swiftly. Of course, you must
not rush into a buying decision without performing
adequate due diligence checks. Mortgages are available
for foreigners but the interest rates are not competitive
in comparison with the UK or EU rates. Consequently
you may prefer to raise your investment capital in
the UK.
Ownership rights
Foreigners
can own property in Romania; however, if you want
to invest in land or to own
the land underneath
your property, you will have to set up a Romanian company.
This can be easily arranged by a Romanian law firm
and should not cost more than £500. Do remember
that you will have to submit annual accounts for the
length of your ownership and may need to use a certified
accountant.
Check title deeds thoroughly
During half a century of communist ruling, most of
the private land in the country and many properties
in the cities were nationalised. After the fall of
communism in December 1989, the government began a
process of retrocession, giving ownership to the original
owners or their heirs. Because of difficulties inherent
in tracking down all the heirs, this process is not
fully completed yet, although most of the land and
property is now in the hands of the rightful owners.
Any investor should use a reputable law firm to carry
out comprehensive title searches and ensure the authenticity
of all title documents.
Beware dodgy estate agents
Foreign investors in any country are often regarded
as cash cows and as a result asking price can be artificially
inflated. The real estate market is still in its infancy
in Romania and there are minimal certification requirements
for estate agents. We strongly recommend that you only
deal with established, reputable agencies. They can
assist you through every step of the buying process,
including negotiation of a reasonable price for your
chosen acquisition.
Given
Romania’s unique position, buying real
estate could be a hugely profitable and enjoyable experience
provided it is done judiciously and professionally.
Romania's extraordinary diversity means that whatever
your preferences, you will find something to meet your
specific requirements – and almost certainly
at what will turn out to be a bargain price.
Anglo-Romanian Development identifies and promotes
property developments in some of the most desirable
location across Romania. You can choose from
developments in Bucharest and other important
cities in Romania, Black Sea and Skiing holiday
properties, and even commercial or industrial
developments.
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Spain
‘Land Grab’… the truth
and the lessons.
Provided
by Tarleton Property, a
company specialising in the areas
of Costa Almeria and Murcia.
 My
first ‘TOP TIP’…… Don’t
be panicked by ‘sensationalisation’ and
myth… The media has had a field day with the ‘home
from hell’ stories re ex-pats in Spain, and non-resident
owners reportedly being forced off their land, being
compelled to pay for urbanization of adjacent land,
and generally being abused by the Spanish authorities.
There
is an issue to be addressed but it needs putting in
context so that potential purchasers know the truth
of the matter and not the myth!
The first point to clarify is that the problem is
related to a law that came into force in the Valencia
region in 1994. Its therefore important to be clear
how this affects the vast majority of properties across
Spain.
In
Spain land generally falls into three categories: ‘urbanised
land’ , land suitable to be urbanised, and rural
or rustic land. Just as in the UK land adjacent to
an urban area that is growing can be re-classified
as being suitable for development, ie ‘urbanisation’.
Historically Spanish authorities had encountered resistance,
often from rural peasant owner/farmers wishing to preserve
their lifestyle, when seeking to urbanise land to benefit
the community as a whole. This might be for affordable
housing, to accommodate an expanding town, or to provide
services. In doing so the land would be connected up
to mains water, have electricity supplied, sewage systems
put in place and new roads laid to provide access.
Naturally the input of such services increased the
value of the land being re-classified and the Spanish
government obliged the owners to contribute either
in cash or by a portion of their land, or both, in
return for the enhanced value of the now ‘urbanised’ land
they continued to own.
In
one area of Spain this law was drafted
in a way that allowed just 15 working days to object
to, or
present an alternative plan to a ‘notice of
intent’ issued by local authorities and developers.
Since many landowners and property owners in the
desirable coastal area affected are absentee and
foreign the opportunity to exploit this situation
was created. The law is under review both in Spain
and at the EU but it is important to put continuing
issues in context:
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The
law in question applies only in the Valencian
Community, ie the provinces of Alicante, Valencia,
and Castellon or Costa Blanca and Costa Alhazar
and their inland areas. |
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Property
in an area already urbanized or proposed on land
already designated as such is not affected. Apartments,
Town houses, and indeed Villas in urbanised areas
will be sound purchases. Your lawyer will be
obliged to check that your property purchase
is within such a zone. |
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‘Always
use a lawyer!’ is the advice I will repeat
month on month in this feature. Ask about the
relevance of the Valencian law to the purchase
you are considering. |
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FOPDAC
agents will be informed and aware of this issue
and will invariably endorse my recommendation
of independent legal advice. (Federation of Property
Developers, Agents and Consultants www.fopdac.com) |
….and finally…. Please note there are nearly a million Brits with an
interest
in a home is
Spain. The vast majority have never had any significant
problem with their purchase or subsequent ownership.
Spain continues to be the destination of choice for
huge numbers of holiday makers, intending residents,
and for those looking to build a property portfolio
in a stable and modern western economy.
As you consider your own holiday home and investment
routes Spain and my own specialist area of Almeria
should be certainly considered as one familiar, tried
and tested location where a purchase is safe and rewarding.
Russell Hoyles
MD Tarleton Property
FOPDAC No 1259
Tarleton
Group has had a presence in Almeria for 30
years. As a member of the Federation of Property
Developers, Agents and Consultants (www.fopdac.com)
it subcribes to the highest standards of
practice including keeping customers informed
of current issues and developments.
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