QUOTE(moosetea @ Jan 16 2006, 12:04 PM) [snapback]275806[/snapback]
I keep on thinking about spreading my currency risk and investing in a foreign property market, my savings could buy a small property outright in a EE country. Last weekend was interesting because of something my slovakian Girlfriend said, why would you want to buy there if your not going to live in it? Noone ever sells property in slovakia, and it takes a long time to sell a property in eastern europe. Digging a bit deeper, her parents have two properties, they built one, but when they wanted to move they built the second property and kept the first one, the family use both homes, and one property has a flat for the daughters (like you would find in germany). There appears to be almost no local secondary market.
If you want a property you build a new one for yourself, its that simple. I am also slowly starting to discover about the corruption and criminal underworld that exists in these countries. Eastern europe isnt as rosey as you might think, very high unemployment, low pay, and corruption. And there doesnt appear to be a secondary market for property (except for foreign investors)
Is it worth a punt?
Yes.
The same could have been said for Spain 30 years ago, or Cyprus.
The countries are changing, I beleive they will pretty much resemble say Ireland or Belgium in 10 years.
You have to choose your location. I personally like to reduce fraud risk so I would recommend Germany or Estonia in particular.
Always consider what your gut response would have been to previous opportunity. Lets take Ireland as an example, 10 years ago you were considered mad to invest there, the economy was going nowhere, the troubles were in full swin. Few could have forseen what was to come.
We all need to recognise that real estate investing has global appeal. From Fiji to Patagonia, Portugal to Morocco - everyones at it. EASTERN EUROPE ARE AT THE BEGGINING OF THIER ADVENTURE.
The key tips I give are 1) Buy in capital or v large cities which arent only reliant on tourists 2) choose a high - end expensive city law firm, all cities have them. You will often find such firms have an international prescense so the chances of them ripping you off are remote.
Personally I think Slovakia is another good bet, especially as you have contacts.
REMEMBER, most people didnt do UK B2L when the opportunity was at its best, just as most Slovakians wont, so try to ignore the pessimism.