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2006 Property Hotspots

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"Cyprus, Bulgaria, France and Greece are set to be the best places for buying overseas property in 2006, a new report predicts.

But property investors should avoid buying second homes in Spain, Florida, and South Africa, property investment firm Assetz advises."

How about chilly or freezing spots- list might be longer

According to property secrets Poland is the best place to invest in Europe - specifically areas surrounding Warsaw (more attractive parts).

The other place im considering is Brazil due to the massive growth rates (20% growth!!!) - slightly riskiers id say due to the high crime rates in parts and the volatile currency.

I agree that Cyprus will also be a good place to invest in 2006.

Edited by Rikk03

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"Cyprus, Bulgaria, France and Greece are set to be the best places for buying overseas property in 2006, a new report predicts.

Having lived in Greece, I would say property prices there are already over-inflated. You can easily pay 200,000 euros for a 2/3 bed flat in Attika (area around Athens) and if you want a 4 bed detached house you're looking at 400,000 euros upwards. When you consider average incomes must be around 18,000 euros a year, it makes our house price inflation look minimal.

Cheaper areas, such a the Peloponese, are more affordable, but largely because of progressive rural depopulation and a lack of employment.

The more fashionable islands like Mikonos and Santorini are only for the super rich with modest houses going for 1,000,000 euros plus.

Prices increased dramatically when the euro replaced the drachma.

Polish prices have also risen steadily over the last few years, Krakow especially is getting expensive.

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"Cyprus, Bulgaria, France and Greece are set to be the best places for buying overseas property in 2006, a new report predicts.

Such locations are yesterdays story. Greece has had massive increases. Cyprus - ancient news, boom long gone.

Investing is about getting there before the crowd.

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I am Bulgarian and I’m living in Sofia, but I’m not a property agent.

In 2002 I purchased 150 sq.m. apartment in one of the most expensive districts in Sofia “Lozenets” for 350 Euro per sq.m. The deal: the developer purchased the land for 100 Euro per sq.m., built 6 storey apartment house and sold it for 350 – 400 Euro per sq.m., making modest profits of 200-250 Euro per sq.m. Between 2002 and mid 2005 the apartment’s prices went up 2-3 fold, driven mainly by British investors. It was good time and I have sold a lot of off-road cars (I’m a car dealer and roads here are not quite good) to developers, builders, suppliers of building materials, real-estate agents, etc., but since the prices started to fall they do not look so optimistic as they were before. Meanwhile everyone who could afford it already bought (because Britons are coming) second, third, fourth or fifth apartment in Sofia, residence in Bansko or seaside, so now here is full with uninhabited blocks and borrowed loans.

Having in mind that, on the negative side:

-Bulgaria is very sparsely inhabited, lost 15% of its population in the last 15 years and this trend even accelerates, there are 3.6 million dwellings on 7 million population.

-average incomes are approx. 75 Euro per person per month and do not seem to improve anytime soon

-30000 apartments are in the pipeline (2006) in Sofia alone

-current account deficit (import is bigger than export) for 2005 was 14% and is worsening

-the whole economy became too much dependent on British property investors

-rents rates in Sofia now are between 1 and 3 Euro per sq.m. monthly, but it is very difficult to find tenants

-Cost price for building 5-8 floor house is approx. 170 Euro per sq.m. (without land)

-at seaside loss making hotels started to be transformed into apartment houses for British property investors

and on the positive side:

-Number of British property investors seem endless, furthermore they started to sell between themselves (they can not sell to Bulgarians of course), trying to raise the prices even higher

-Bulgaria will soon join EU, so hopefully property investors from another countries will be also interested in purchase

-Number of British tourists increased 100% from 10000 to 20000 in the last season

Is the current prices decline temporary or not?

Someone with more experience in property markets to share their prognosis?

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According to property secrets Poland is the best place to invest in Europe - specifically areas surrounding Warsaw (more attractive parts).

The other place im considering is Brazil due to the massive growth rates (20% growth!!!) - slightly riskiers id say due to the high crime rates in parts and the volatile currency.

I agree that Cyprus will also be a good place to invest in 2006.

I spent a couple of years researching and in the end kept comming back to the same basic principle which is: Buy low and be safe.

In the end places such as Bulgaria and Poland were just to haphazzard, and I considered the risk too great.

For me Germany offered all the price side benefits without undue risk, language barriers (English widely spoken) and a developed regulatory and legal framework which simply doesnt really exist in other areas.

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From an investment point of view I am highly dubious about investing in property in Eastern Europe. It looks like the bubble has already inflated and there are major demographic problems as highlighted in some of the comments above. It seems that a large proportion of young Poles, for instance, are leaving for UK/Ireland. Who is going to live in all these new-build apartments?

My uncle purchased 2 flats in Budapest last year - perhaps he will do well, but perhaps expectations will exceed performance. This is uncharted territory and Budapest is still a complete dump in my opinion, in comparison to, for instance, Prague.

I think that Germany has to be a better prospect than further East. I think that if people are looking for a lower risk strategy then Italy is a much better bet. Apart from southern Tuscany and a few other areas, the market is fairly sensible and there has not been the kind of speculative bubble that has happened in S. Of France or Spain - and people actually want to live there, unlike in Bulgaria, for instance.

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Interesting thread. I hadn't considered Germany (and I used to live in Berlin in the mid-80s).

What taxes apply to land owners? Do they have a council tax equivalent or other similar atrocity?

If I were buying, I'd be looking for a small plot of farmable land with own water, etc, as I am into semi-independent living.

Edited by longjohn

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Has anyone considered Egypt? It has the usual, under developed house purchase process, but cheap and beautiful

Edited by sonia

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Interesting thread. I hadn't considered Germany (and I used to live in Berlin in the mid-80s).

What taxes apply to land owners? Do they have a council tax equivalent or other similar atrocity?

If I were buying, I'd be looking for a small plot of farmable land with own water, etc, as I am into semi-independent living.

LongJohn, The one thing above all others that the likes of Dogbox/Thorr, myself and many others will agree on and that is Germany. You've lived there as have I for seven very happy years. I would not need to point out the obvious plusses of living in a counry such as Germany. For out and out investment the picture is not quite so clear, forget the huge double figure claims you've seen in the sales b/s from other countries - it is unlikely to just explode and fizzle out a la Florida/Bulgaria/Spain it is more likely to be a long, slow, sustained and safe growth. Anyone wanting to come and rape Germany for a fast buck and to overdevelop a beautiful area will meet short shrift from largely incorruptible local councils and grave disapproval from locals themselves - not going to happen in my life time.

Your questions and more can be answered by going on to the following site www.saxony-properties.co.uk Terry Sands runs the UK end, he's the M.D. and has become a close friend and advisor

I have also used a Spandau based company called G and B Property Source (they do most of my property management and insurance).

Earlier this year Germany came in as the tenth most popular spot for we Brits to retire to, Italy and France came in as 8th and 9th (can't remember in which order). Also of the world's top ten cities in which to live German cities came in as equal fifth and sixth. It's re-assuring I'm not the only one to sing the praises of this wonderful country.

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From an investment point of view I am highly dubious about investing in property in Eastern Europe. It looks like the bubble has already inflated and there are major demographic problems as highlighted in some of the comments above. It seems that a large proportion of young Poles, for instance, are leaving for UK/Ireland. Who is going to live in all these new-build apartments?

If you do a search on google you will find a lot of discussion about the growth of Warsaw. Whilst a load of Poles are coming here they are also migrating to their cities in droves. Since the Berlin Wall came down and capitalism has hit them their country is going from being a agrarian to an urbanised society.

The capital has about 5% of the population living there compare this to London or any other capital city where its closer to 10%-20%.

I agree with Dogbox otherwise- Cyprus, Greece, Bulgaria are passed it. Has anyone ever sold a new build in Bulgaria at a profit? I doubt it.

Germany is probably the best value property in the world providing your willing to hold for 10years min to see through some Merkel free market reform.

Edited by ringledman

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If you do a search on google you will find a lot of discussion about the growth of Warsaw. Whilst a load of Poles are coming here they are also migrating to their cities in droves. Since the Berlin Wall came down and capitalism has hit them their country is going from being a agrarian to an urbanised society.

The capital has about 5% of the population living there compare this to London or any other capital city where its closer to 10%-20%.

I agree with Dogbox otherwise- Cyprus, Greece, Bulgaria are passed it. Has anyone ever sold a new build in Bulgaria at a profit? I doubt it.

Germany is probably the best value property in the world providing your willing to hold for 10years min to see through some Merkel free market reform.

Germany absolutely makes sense no matter how you check the situation out with the exception of one. The 20% off plan, guaranteed rental, Btl Gurus will not be satisfied. It doesn't fit their bill, there is not the same scope for blx and b/s seen in so many other locations around the world. This particular group can fly from Stansted to elsewhere - I don't care where.

Those of you looking for the possibility of a holiday rental with a view to using it yourselves or like so many more of us seem to be doing moving lock, stock, and barrel to our selected little paradises - I humbly suggest you will not be disappointed with your purchase, you will be made wealthy in terms of lifestyle even if not in terms of EUROS in the bank.

The Germans will welcome you and the angriest religious zealot you will likely meet will be the Jehovas Witness who has stepped in your dog's ---- as he/she has attempted to float ethereally across your lawn.

By Uk standards the price of housing in ludicrous - it will not, nay, cannot remain so always. As my teenager would say "Germany - it so rocks"

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Probably the hottest spots has been Asia, Singapore in particular (esp if you are looking at a safe, developed market).

SG is predicted to go up 20-25% this year (Citibank report in May). Last year, officially was 10%, but most new projects have gone up 30-50%. One building has gone up at least 3x in 2 years (the Sail).

Macau may also be another big hotspot this year. Las Vegas Sands is expected to launch projects this year at USD800-1000 psf for apartments. This is approx 30% up on current highest price for apartments (around USD500+ psf).

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Hi. I dont understand why you people only speak about Greece, Cyprus, Bulgaria.

What about others Eastern European Countries...Why Not Estonia and Latvia..Why not Romania?

And I think Croatia is even further behind the curve than reomania. What do you think??

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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