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The complete guide to investing in Eastern Europe.
It’s so close, yet so far. We are told by friends, relatives and collegues that so-and-so is the place to invest this year or so-and-so is going to see a massive increase of property prices because of the euro or the EU expansion.
Some of these comments do have truth to them, but where EXACTLY should you invest in. OK, let’s look at it this way. If you were to invest in the UK, you would look at the growth, make-up of the local community, local amenities, crime etc in addition to the money it can generate for you now as well as the future. Our whole ethos is how can I make a return or income NOW. If I can find somewhere that will generate wealth in the far future then that certainly adds to the appeal.
We look at properties that provide returns of 10% minimum with some providing 20% return or more. With prices starting from £10,000, there is great scope to generate an income from your next visit to Eastern Europe.
What we don’t do
· We do not invest for clients in the European area
· We do not recommend any investment companies
· We do not receive commission/ payments/ incentives from anyone
This means that the information provided is free from any other connection. No media manipulated tripe, no links, no adverts. We tell you exactly where we are looking at and how we are going about it.
My personal thought on European Property
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Do remember that even though the approach to the European market is different, there are some principles of investing that remain the same. We want something that will generate money next week, not just the next decade. |
It would be wrong to assume that you’re going to generate a group of highly profitable properties within 3 months. OK, property maybe ridiculously cheap, but with very cheap properties across the central and eastern parts of Europe, comes lower wages. Hence the yields may not be great. Another second error is how obvious places are touted. If it’s a well worn route for many ex-pats and foreign investors, then a 1 bed flat could fetch as much as a similar one in a big city from the UK!
Another important factor for some is the weather. If I am to invest in somewhere and intend on making multiple visits, then I need to know where I stand. I was in Poland recently and it was –25C! I could feel icicles crunching inside my nostrils! For me, the cold isn’t a massive problem, but for others, it may play a huge deciding factor.
There are so many aspects intrinsic to the cities/towns within the countries, that only a fool would believe all the hype. There’s only some hype worth taking in.
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Opportunities to invest within the new Europe have grown immensely.
With per capita income within the new 10 as low as 36% of the average EU wage and a highly skilled work force, Investment is pouring into these countries. Wages are set to converge and hence so will property prices.
Higher growth and greater prosperity have led to unparralled opportunities within the East. This is a once in a lifetime Gold rush in its truest form.
Take advantage of this rush by investing in Property.
The Property guru’s Ajay Ahuja and Saqib Chaudry will lay it down where to invest and how to invest, in practical terms, finding properties they refer to as Golden Eggs.
Investing in the new Europe is not to be approached as if investing in the UK. This site is unique in that it first discusses intelligently which countries to invest in.
The authors both Property millionaires in their own right and drawing upon their training in Investment Banking and Accountancy bring you a unique, simple and no nonsense method in where to invest, what to look out for and how to invest. |
Whether a novice or an experienced practitioner in Buy to let, this site is an invaluable source of information. The following is a template used to collate the information:
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Country {ABCD}
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C
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U
N
T
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Y
D
A
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Population |
Population of country |
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PopulationGrowth |
Growth in population of the country |
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Land Area |
The land area of the country in square kilometres |
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Currency & currency rate |
The currency of the country and its conversion rate to the UK pound. |
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GDP-PPPMethod |
The Gross Domestic Product based on Purchasing Power Parity which eliminates absolute price distortions. |
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GDP Growth |
The growth in GDP year on year. |
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GDP Per Head |
The GDP per person in the country. |
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Financial |
Interest Rate |
Inflation Rate |
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The bank of the country’s base rate |
The inflation rate calculated to the method of the country |
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National Bank |
The bank of the country |
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Political |
Description of the political climate |
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Social Security |
Whether social security exists |
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Languages |
Languages commonly spoken in the country |
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Customaries |
Specific customaries relevant to the country |
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Ethnic Make-up |
The split of different ethnics within the country |
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Tax |
Income Tax |
Capital Gains Tax |
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The income tax rules for the country |
The capital gains tax rules for the country |
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Description |
A general description of the country |
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L
O
C
A
L
D
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Investor Profile: |
Typical investor suited to the hotspot. |
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Category: |
A rating based on the hotspot’s capital growth and yield prospects |
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City {XYZ} |
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Population:
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Total |
British |
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Population of the hotspot |
British population of the hotspot |
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Climate: |
Hours of Sunshine Per Day in Summer |
Days of Rain Per Year |
January |
July |
Average
Water Temp. |
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Self-explanatory |
Self-explanatory |
Average temperature for that month |
Average temperature for that month |
Self-explanatory |
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Proximity to: |
Airport |
Beach |
Nearest City |
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Name and distance from closest airport |
Distance from beach |
Name of closest city |
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Restaurants and bars: |
What to do in the evening, Leisure, dining and activities etc |
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Sports and leisure facilities: |
What to do in the day, sporting attractions, leisure options, specific attractions etc |
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Transport: |
Public Transport |
Roads |
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Description of public transport |
Description of road network |
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Crime rate: |
An indication of crime levels. |
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Main types of employment |
Self-explanatory |
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Future plans: |
Future plans for the hotspot |
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Yield range |
The range of yields to be expected from prospective property purchases |
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Type of property |
Entry Price
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Rent-
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Average Annual Yield |
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1 bed apartment |
The lower end or minimum required investment prices found for each type of property |
Projected figures for rent based on current details and future growth |
Calculated returns based on rental income, average purchase price, voids and marketability. |
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2 bed apartment |
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2 bed townhouse |
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3 bed townhouse |
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Demand for letting |
Contact from estate agents/lettings agents/current information/peoples experiences etc |
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Finance and leisure scores: |
Total (out of 10) |
Financial (out of 5) |
Leisure (out of 5) |
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Total of financial and leisure |
Score out of 5 based on its ability to make you money |
Score out of 5 based on the amount of extra options which help to attract investors/tenants alike |
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Flights scheduled from: |
Airports in the UK that fly to the hotspot |
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Typical cost of flights: |
Self-explanatory |
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Operators: |
Operators that fly to the hotspot. Cheap/low-frills airlines provided if available. |
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Description: |
General description of the hotspot and why we think it’s a hotspot. |
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Hot Website: |
A website to visit to gain further knowledge about the hotspot.
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Estate Agents: |
Name |
Address |
Tel |
Web |
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Name, address, telephone and web details for several estate agents selling properties in the hotspot. |
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Letting Agents: |
Name |
Address |
Tel |
Web |
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Name, address, telephone and web details of several letting agents willing to let properties in the hotspot. |
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