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Christine

Independent Advice

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Firstly hello.

I may be in the wrong place to ask for help as I am not a seasoned investor, just a lady that needs an independent viewpoint.

The sum involved is between £45 and £50k and I was looking for a 2 bed holiday property abroad with communal facilities, to be used

approx 3 times a year for myself and children and hopefully rented out the rest of the time, all be it seasonal. Maybe after 7/10 years living there or selling on. I have looked into where I can afford and my only choices seem to be Egypt, Turkey, Bulgaria and Northern Cyprus. The sales agents views are all I've heard so far.

I am trying to do my homework best I can but failing. Please help if you can as this money can never be replaced and this forum looks like it has very knowledgeable people.

thank you.

If this is not the right forum for this type of post can you please direct me to any sites that may help with this. thanks again.

Christine.

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Firstly hello.

I may be in the wrong place to ask for help as I am not a seasoned investor, just a lady that needs an independent viewpoint.

The sum involved is between £45 and £50k and I was looking for a 2 bed holiday property abroad with communal facilities, to be used

approx 3 times a year for myself and children and hopefully rented out the rest of the time, all be it seasonal. Maybe after 7/10 years living there or selling on. I have looked into where I can afford and my only choices seem to be Egypt, Turkey, Bulgaria and Northern Cyprus. The sales agents views are all I've heard so far.

I am trying to do my homework best I can but failing. Please help if you can as this money can never be replaced and this forum looks like it has very knowledgeable people.

thank you.

If this is not the right forum for this type of post can you please direct me to any sites that may help with this. thanks again.

Christine.

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Firstly hello.

I may be in the wrong place to ask for help as I am not a seasoned investor, just a lady that needs an independent viewpoint.

The sum involved is between £45 and £50k and I was looking for a 2 bed holiday property abroad with communal facilities, to be used

approx 3 times a year for myself and children and hopefully rented out the rest of the time, all be it seasonal. Maybe after 7/10 years living there or selling on. I have looked into where I can afford and my only choices seem to be Egypt, Turkey, Bulgaria and Northern Cyprus. The sales agents views are all I've heard so far.

I am trying to do my homework best I can but failing. Please help if you can as this money can never be replaced and this forum looks like it has very knowledgeable people.

thank you.

If this is not the right forum for this type of post can you please direct me to any sites that may help with this. thanks again.

Christine.

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Firstly hello.

I may be in the wrong place to ask for help as I am not a seasoned investor, just a lady that needs an independent viewpoint.

The sum involved is between £45 and £50k and I was looking for a 2 bed holiday property abroad with communal facilities, to be used

approx 3 times a year for myself and children and hopefully rented out the rest of the time, all be it seasonal. Maybe after 7/10 years living there or selling on. I have looked into where I can afford and my only choices seem to be Egypt, Turkey, Bulgaria and Northern Cyprus. The sales agents views are all I've heard so far.

I am trying to do my homework best I can but failing. Please help if you can as this money can never be replaced and this forum looks like it has very knowledgeable people.

thank you.

If this is not the right forum for this type of post can you please direct me to any sites that may help with this. thanks again.

Christine.

Third time lucky?

Christine, There are numrous threads on this forum which may help you to make a more informed decision about your destinations.

There are problems to be considered before you part with any money in these countries.

DO NOT LISTEN TO THE REPS - thank God you posted here first.

Renting out while you are not using it is everyone's initial dream. You may re-coup some money but there is a huge oversupply of rentals in these areas and there is a possibilitly you may never see a penny - so beware.

Further in three of these areas the chance of re-sales is diminished by the over development blighting the areas. Egypt may well eventually catch the others up.

There are areas in Italy which may still be within your budget Puglia, Abruzzo, Calabria, Piedmonte. Northern Spain and Portugal may still have something to offer you. Germany will supply you with a nice little property for that amount as will most of the Eastern states. France also may have something to offer at that price. Not too sure you will find shared facilities in some of the areas I have outlined however.

Northern Cyprus is beautiful but you must be extremely cautious here - firstly check and double check through your own

legal reps not the company's that the developer/agent offeringh the property actually has the legal rights to it. See if you can find a surveyor of your own to go over the construction - some of the quality is awful.

You must also take into account capital gains taxes - each country has a different set of rules - make sure you are aware of what it means for you. You mention children - be aware there are some pretty strange rules on inheritance throughout Europe.

Try this site - www.someplaceelse.com - they deal in emerging markets and may have something to suit your budget. Also they deal with about as straight a hand as you are likely to find in this racket.

Get back to us here and I'm sure you'll get more helpful advice from others also.

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Third time lucky?

Christine, There are numrous threads on this forum which may help you to make a more informed decision about your destinations.

There are problems to be considered before you part with any money in these countries.

DO NOT LISTEN TO THE REPS - thank God you posted here first.

Renting out while you are not using it is everyone's initial dream. You may re-coup some money but there is a huge oversupply of rentals in these areas and there is a possibilitly you may never see a penny - so beware.

Further in three of these areas the chance of re-sales is diminished by the over development blighting the areas. Egypt may well eventually catch the others up.

There are areas in Italy which may still be within your budget Puglia, Abruzzo, Calabria, Piedmonte. Northern Spain and Portugal may still have something to offer you. Germany will supply you with a nice little property for that amount as will most of the Eastern states. France also may have something to offer at that price. Not too sure you will find shared facilities in some of the areas I have outlined however.

Northern Cyprus is beautiful but you must be extremely cautious here - firstly check and double check through your own

legal reps not the company's that the developer/agent offeringh the property actually has the legal rights to it. See if you can find a surveyor of your own to go over the construction - some of the quality is awful.

You must also take into account capital gains taxes - each country has a different set of rules - make sure you are aware of what it means for you. You mention children - be aware there are some pretty strange rules on inheritance throughout Europe.

Try this site - www.someplaceelse.com - they deal in emerging markets and may have something to suit your budget. Also they deal with about as straight a hand as you are likely to find in this racket.

Get back to us here and I'm sure you'll get more helpful advice from others also.

Great advice.

Northern Cyprus is awash with legal titles to the land and should be avoided.

As for Egypt and Turkey, well its hard to have certainty over the long term political and economic situation there.

Bulgaria may be in the EU so there is some safeguard there but I don't think it is a good place to invest due to the oversupply of property and lack of a resale market.

If you can get somewhere in the less expensive areas of France, Spain, Portugal or Germany then these may be the best option.

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Third time lucky?

Christine, There are numrous threads on this forum which may help you to make a more informed decision about your destinations.

There are problems to be considered before you part with any money in these countries.

DO NOT LISTEN TO THE REPS - thank God you posted here first.

Renting out while you are not using it is everyone's initial dream. You may re-coup some money but there is a huge oversupply of rentals in these areas and there is a possibilitly you may never see a penny - so beware.

Further in three of these areas the chance of re-sales is diminished by the over development blighting the areas. Egypt may well eventually catch the others up.

There are areas in Italy which may still be within your budget Puglia, Abruzzo, Calabria, Piedmonte. Northern Spain and Portugal may still have something to offer you. Germany will supply you with a nice little property for that amount as will most of the Eastern states. France also may have something to offer at that price. Not too sure you will find shared facilities in some of the areas I have outlined however.

Northern Cyprus is beautiful but you must be extremely cautious here - firstly check and double check through your own

legal reps not the company's that the developer/agent offeringh the property actually has the legal rights to it. See if you can find a surveyor of your own to go over the construction - some of the quality is awful.

You must also take into account capital gains taxes - each country has a different set of rules - make sure you are aware of what it means for you. You mention children - be aware there are some pretty strange rules on inheritance throughout Europe.

Try this site - www.someplaceelse.com - they deal in emerging markets and may have something to suit your budget. Also they deal with about as straight a hand as you are likely to find in this racket.

Get back to us here and I'm sure you'll get more helpful advice from others also.

Brilliant post Lewis. Sums it all up nicely.

Christine, there are some good deals to be had in some half tidy areas for your budget, just make sure you do your homework and ALWAYS get your own solicitor on the case.

If you were to ask my own opinion on the areas you have mentioned, I would personally suggest Turkey as its a safer bet than, say, Northern Cyprus, but as Lewis rightly said, you may struggle with rentals, and this is crucial if you are hoping to off-set any mortgage payments against the rentals.

Berlin should be a good money-maker over your 7 year time-scale, but considering you are looking to use it as a holiday home, I very much doubt Berlin would be your holiday destination of choice.

If you can raise an extra 10K, it wouldnt be a bad idea to look at Saidia in Morocco. I dont know the exact costs, but im pretty sure you could pick up a Fadesa apartment in the AP5 area for approx £60-65K. This will be an ideal holiday home, and there's a fair bit of potential for rentals and capital growth, so (hopefully) in 7 years it should have risen in price considerably. you would have to furnish it though.

Best of luck in whatever you choose anyway.

Edited by rumpola

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I would agree that there is certain issues that must be taken into account when thinking of buying in North Cyprus.But,there is also beautiful,safe Projects available,at fantastic prices.

I visited this year and was amazed at what's happening there.

Check out www.northcoast-estates.com.All property on their book are perfecly safe.

British owned Company.

(Watch out for the propoganda boys coming after me now )

Happy hunting

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An extra pitfall with Turkey is the habit the developers have of getting planning permission for a set number of units then building more than they had permission for. This is very common and usually means you will never have clear title to the property. (Knocks a lot off the value of the property.) If Turkey is somewhere you want to consider closely then I’d suggest getting in touch with TH4S on the Total Property forum (Overseas section.) He’s probably the most knowledgeable on the forums when it comes to Turkey and is always willing to share his thoughts / knowledge.

If I were in your shoes, I think I would be looking for resale property in existing tourist areas. There are parts of France where £40k/£50k will get you a 1 or 2 bed house (very small) in an established development that will rent well over the summer months. If you are happy using it out with those times (and other French holidays) then it should pay its way. Lending rates are also lower in France than they are in the UK.

Good luck!

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Christine,

Two points:

You say you want a property to use for holidays with the children three times a year; I'm assuming you are talking about school holidays, in other words the peak time for rental returns !.

Also, the 'money can never be replaced'.

Would you not be better off investing the money for now (e.g. 6.25% in Sainsbury's Bank) and using the interest to pay for holidays ?. Consider, too, that you can often book a package for not much more than the cost of flights, so owning a property, with all its' associated costs, might not be cost effective. If, indeed, you are looking to use the property at peak times yourself, then forget about any rental returns. Just about every holiday destination seems to have a surfeit of rental accommodation available.

If you are determined to buy, with a view to possible long term appreciation, I would suggest considering a re-sale in Southern Cyprus, where it is definitely a buyer's market, as most people are looking at new build, because of the finance options on offer. (Notwithstanding the banks' tightening their lending on future new build - see earlier posting).

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Christine, no idea if France appeals, but if it does then you may like to look at leaseback property advertised on TheMoveChannel website with reference numbers 295373 and 304319. There are advantages and disadvantages with leaseback, but this development may just tick enough of your boxes.

The prices listed start slightly above your budget (circa £55k) but it isn't clear whether the £55k is before or after the 19.6% VAT rebate.

I won't go into the advatages and disadvantages of leaseback - you'll find that on other threads - I'll just say that if you are primarily looking for a holiday home in a resort that will rent out well and not be too far from covering the mortgage payments then this may suit.

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I am glad I decided to post my concerns here as you have certainly given me a lot more to think about than I first though.

It is a cash sum involved and maybe to find the right place a little more may have to raised. I started looking at this with rose coloured

glasses............how great it would be to own a holiday home etc.

Thanks for bringing me back to reality and I will take my time going over your opinions and links to helpful sites.

thanks once again.

christine.

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I am glad I decided to post my concerns here as you have certainly given me a lot more to think about than I first though.

It is a cash sum involved and maybe to find the right place a little more may have to raised. I started looking at this with rose coloured

glasses............how great it would be to own a holiday home etc.

Thanks for bringing me back to reality and I will take my time going over your opinions and links to helpful sites.

thanks once again.

christine.

Please get back to us on this site and let us know what you eventually decide to do. Hope it all ends happily for you and your family. At least you have sidestepped potential disaster by having the sense to ask questions. Good luck.

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