Archive for the 'Property' Category
March 31st, 2011 -- Posted in Property |
Understand your property, but if it’s important what options. Verify whether tenants, homeowners, business owners, or powers, how your property covered. , Insurance quotes, perhaps the lowest rate of insurance really what you get? Blade’s actual cash value or replacement value of both the right good?
Actual cash value (ACV) is optional. Simply put, cost-(minus) is the depreciation expense. So what properties do you have this option? You think that will take ownership of a private market. To your new home, will receive one paid when determining the abrasion coefficient values instead. From the perspective of the cost of insurance will be the lesser of these two options.
Another option is the replacement cost (RC’s). Replacement costs are simply the cost of replacing property. Derived from equations of depreciation. If this option is not expensive, but the loss occurs from using the options in this.
Take your policy, your options are and know the definition of requirements. Also, so make sure your boundaries, this maximum number, insurance company’s. You can increase or decrease your limit. On the border are looking for, but look at your deductible. Yes, to make them hope that if the loss occurs, but a lot is going to do your homework.
March 30th, 2011 -- Posted in Property |
Also there is the same method it is two countries allowed on Earth, system, and getting insurance, real estate, the same line. Unfortunately have to buy property abroad, otherwise, forever subtleties of certified real estate markets abroad, the right is running crazy vulnerable to.
However, because some consolation to the same overseas foreign property rules and regulations when buying data now can the European Union thanks to locals and other residents of the EU.
But it must be very relaxing, not for the EU matter not systematize this mean local property purchase procedures there are already some changes to the eu Member States, is shopping the same procedure may run. Each country has their own laws.
Is a good example of this excellent still obligations of client money or new owner is assigned Spain in this country, one property. If you have purchased a farm or Italy of agricultural land and Villa farming right of pre-emption of your neighbors. In other words, they’re usually buy to purchase price, less than the country for that.
Frank Knight International real estate “is a complex area of tax and regulatory environment warning is displayed. Buyer is someone basically, satisfying these objects with the tour “home Board” that was far better, no pointless.
It is not further complications just country, its own specific property rules are completely different areas. For example, passing local developers in the renovated and growth law of Spain Congress in 1994, the demand for infrastructure development to the special conditions or orders to return was.
Under the EU’s Japan outside of Europe and the United States, South Africa from the properties of the allow shopping evenly is variable.
In the meantime, pending the expected entry into EU 2006 figure of Croatia as a property to purchase permission by Ministry of Foreign Affairs rather than having to complete the contract of sale that can. This is quite a long time to update 3-12 months.
Turkey of foreign property purchase, a rural village or allow military land is not close.
New Zealand where and how can the land purchase in civil Australia, the limit is, outsiders limited to buying a new build property.
Announces United States purchases he can buy limitations unless you include a set of personal current United Kingdom United States holidays, b-2 visa applicants is has remain domestic every year, such as the 90-day period.
To face restrictions in certain areas, in Florida, is one year, to limit the number you can rent your property.
South Africa Republic not only international real estate owned, ‘ nominal location outside common financial South Africa Republic of the South Africa Reserve Bank is registered should describe the residents of non-residents, residence or their nation in all of your money.
Property all over the world shopping needs is very variable. However, the circumstances that suggest that often take care of the basic legitimacy of native controls, registration fees and stamp zoning legal responsibility of the Treaty and directives, death duties.
Take the double taxation treaties. Prevent tax for citizens of countries in various life, these global agreements to limit and therefore the income the same two taxed indicates that. More than 1,300 worldwide tax treaties are the most important community related to the United Kingdom more than 100 countries.
Further, ignoring native property values. Borg a “Tapu”, “Il Rogito” or unknown settlement, but the United States property purchase, Turkey, Italy and Australia or part of these terms and conditions.
Same the business of housing an explicit duration, national one way other ‘features’ and Australia in “peg ‘ commonly known as ghetto House architect design production, government funding and mission that refers”.
March 29th, 2011 -- Posted in Property |
Then, like you if you already have insurance agents and victims of property for the is likely to know position prospect. What has attracted many applicants for non-Office life and accident insurance agents are profitable. Many get more than this role. For this reason many candidates has led this property. If the insurance insurance agents, therefore, a lot must know how to get competitive, and work. Here are some more.
1 Do not apply to a good enough job, so only one or two the first task is to use would be for you’s no slip. So, can be, and then try to have more insurance to find work. You can do this with various local publications, Word of mouth, online search media, work of the most important sites.
(Collected enough vacancies to apply 2), and is required for the update of your interest, your resume to the insurance. Also, please try to understand the aspects and potential job skills required in your resume. This helps the elusive interview calls.
(3), Even important with characters that correspond to this sector jobs. You need to research performs insurance are separated from the rest of your resume and detailed cover letter topics. Obviously, avoid syntax errors, at a price of any spelling mistakes and other errors.
4. Now, non-life insurance insurance companies insurance, your to lose to should be the possibility of other companies not to send your curriculum vitae, contact. When uploaded through candidates ‘ job site liability insurance insurance company actively search for a profile. Therefore, if you can to upload your resume to the job vacancy websites, such as.
5. After you receive this interview conversations ready. Attention to this, most job profile property and casualty insurance insurance customers very is rooted in your ability. Whether agents should receive expert, adjustor, and your interview, personality, most customers, no matter. Because they need and also to the way you dress, see accessories to wear’s professional.
You and the insurance industry jobs, in other words, must work very hard to track accident and your tasks very early in the know must. , Rather than a reward for using laminate defect probability in the industry.
March 28th, 2011 -- Posted in Property |
The case Salisbury House Estate Ltd. v Fry established that income chargeable as rental income cannot be charged as trading income. This distinction can also be summed up by the simple question, “Is the property held to derive rent or held to sell to realise a profit”.
The income is chargeable on the person receiving or entitled to the income. Any losses are carried forward and set against the profits of the next year and any losses remaining unrelieved are carried forward until used up, whilst the business continues.
All UK rental income is treated as relating to a single business. This applies whether the income is from a property portfolio or a single property. It matters not whether the letting is from furnished or unfurnished property.
The profits are computed using the rules for the computation of trading profits:
* The profit is to be calculated using generally accepted accounting practice.
* The income received has to be converted to the income receivable for the year.
* Only those expenses incurred wholly and exclusively for the rental business are allowable.
* As for trading profits capital items are not allowable but certain items of capital income are chargeable.
* Capital allowances are allowed as deductions from the rental income.
Ownership:
Usually property is held as “joint tenants”. Each spouse or civil partner has equal rights over the property and when one dies their interest is transferred automatically to the other.
Take legal advice but you can change this to “tenants in common” which means that each spouse or civil partner has a separate share in the property which, on death, can be disposed of however the deceased wishes and does not automatically go to the other spouse or civil partner.
Property held jointly by a husband and wife couple or civil partnership is treated as being owned equally for tax purposes unless actually held in some other proportion.
If, however, the property is actually held in unequal shares, the couple or civil partnership can make a declaration to that effect on form 17 and then the income can be taxed on the basis of the actual beneficial shares.
Where one party in a married couple or civil partnership owns a buy to let property and one spouse or civil partner is liable to a higher rate of tax than the other but does not want to equalise the capital interest which results in a transfer of income to the other spouse or civil partner, an advantage can be obtained by a simple gift of a small percentage of the equity e.g. 1%.
This means that the spouse or civil partner holding 99% will continue to receive 99% of the income and on sale 99% of the net sale proceeds.
For taxation, as the property is jointly owned, both spouses will pay tax on one half of the rent. This will switch some of the higher rate taxation to the other spouse or civil partner and use up the balance of their lower rate band.
Also remember that if that split is not advantageous they can elect to have their taxation based on their actual shares.
Can property ownership be a trade?
The answer is very difficult. In the UK the only way, as many flat let owners in our holiday towns found out, was to qualify as furnished holiday lettings.
To run a property as a trade you virtually need to run a hotel or the very least a bed and breakfast establishment.
Buy to let, even if you let several properties is not a “trade”; it certainly is a business.
It is doubtful that the mere arranging for someone to provide a service would amount to a trade. It may be different if several services are provided
Expenses:
The items allowable include:-
* Rent and similar items paid out of the rents received.
* Repairs, redecoration and maintenance.
* The cost of items incurred under the terms of the lease.
* Any insurance premiums incurred on the property. Premiums for loss of rent insurance are not allowable.
* Accountancy fees for the preparation of the letting accounts.
* The cost of rent collection and management generally. For motor expenses, keep a mileage log and charge at the authorised rate of 40p per mile for the first 10,000 miles and 25p thereafter. Under management you can claim the cost of advertising, telephone calls and all the motoring to include showing prospective tenants around.
* Legal fees are allowable for lease renewals where the lease is not in excess of 50 years. Now that letting is treated as a business, it is understood that the cost of a new lease is also allowable where the term is for less than 21 years.
* Legal fees include the cost of rent reviews, valuations, legal costs for chasing arrears of rent and the costs of eviction of tenants.
* If you incurred expenses before the letting commenced you can claim them so long as they would qualify under the normal rules i.e. so long as the property was capable of being let when acquired. I can never understand why on acquisition few people consider the tax implications. With the proper records it should be easy to withstand a challenge from HMR&C. They must be incurred in the seven year period before the letting commenced and they are treated as being incurred on the first day letting commenced.
Landlords can claim the cost of:-
* The installation of loft or cavity wall installation.
* The installation of hot water systems and draught proofing.
* The installation of floor insulation.
The maximum allowable amount is 1,500.
Interest:
As property income is treated as being from a business the interest allowable must comply with the rules for calculating trading profits.
Usually a property is purchased with a mixture of funds introduced by the individual and finance secured on the property. The money introduced can be withdrawn from the business tax free when funds allow.
Alternatively these funds could be replaced with borrowed monies and tax relief will still be granted on the interest whether secured on that property, on the individual’s private residence or any other way and no matter for what purpose it is used.
Beware, the amount of the withdrawal is limited to the capital introduced and cannot be part of the “profit” represented by inflation. Also a restriction could be made by HMR&C if the gearing is so high that the letting is unlikely to ever make a profit.
Rent a room:
Rent received from the furnished letting of part of your residence is exempt from tax so long as it does not exceed 4,250 for the relevant tax year.
It can, however, apply to individuals where they receive income jointly with another individual e.g. husband and wife or civil partner running a bed and breakfast or small guest house. The limit will then be divided by two.
Where this limit is exceeded the excess is treated as taxable rental income. For example if the rent totals 5,000 the excess over the limit of 750 is taxed.
No deductions are permitted. The “rent” includes any payments received for any services e.g. meals, cleaning and laundry. It is open to you to calculate the assessable profit in the normal way.
Always calculate the profit both ways and adopt the most beneficial e.g. where a loss arises.
Clearly the rent a room calculation cannot produce a loss but if the normal method of the gross rents less expenses produces a loss you can disclaim the relief and claim the loss instead.
Furnished letting:
Many properties are let with the benefit of the use of furniture. The tenant does not have the cost of furnishing the accommodation, e.g. student lets. The rental profit is determined in the same way as for a property let without furniture.
The relief for the cost of the furniture is either the cost of replacement furniture where no claim was made for the original cost or a deduction of an amount equal to 10% of the rent received.
Rent is defined as the payments by the tenant less any costs met by the landlord in respect of council tax, water rates and other services which are the responsibility of the tenant.
The provision of the furniture etc. does not turn the business into a trade!! Some people overlook to claim capital allowances on items that are an integral part of the building, for example central heating systems.
There is a distinction between the main fixtures that are standard fittings in a modern building and the equipment required for the trade of the occupier.
The writing down allowance for the new integral fixtures is 10%.
The profit from the letting of a house does not usually amount to the carrying on of a trade and this was tested and confirmed by the decision in two tax cases.
The legislation was then amended to give relief and to get the equivalent tax advantages of those that apply to a trade. The letting must qualify as furnished holiday letting.
Properties considered to be within the legal definition have considerable tax advantages. Firstly the profits or losses are not considered to be taxable as rental income but are treated as trading profits or losses.
The criteria are that the accommodation must be in the EU and must be let on a commercial basis with the tenant entitled to the use of furniture.
The property must be available for letting for at least 140 days and must be actually let for 70 days during a period of at least seven months; each occupation must not exceed 31 days by the same person in any period of 7 months.
What are the advantages?
* interest can be claimed on acquiring the accommodation as a trading expense
* if losses are incurred in the first four years they can be carried back and set against the income of up to three years earlier.
* profits qualify for personal pension premium relief.
* for capital gains purposes the chargeable gains arising from the sale of the property can be rolled over.
The legislation set out to help tourism and I cannot see that the legislation precludes losses being allowed where the owner lives in the property for up to five months in the year.
You will note that the legislation does not refer to property but to “accommodation”. If you can convince HMR&C that a boat or caravan is let as “furnished holiday accommodation” then you can achieve the same advantages as if it were a property.
In addition, provided they both move, or for a caravan it is on a registered holiday caravan site, then you can claim capital allowances to include the Annual Investment Allowance, which is 100% for the first 100,000.
Capital allowances:
Capital allowances can be claimed for plant and machinery used wholly or partly for the purposes of the letting business. There is a 100% relief for expenditure of up to 100,000 per annum, “annual investment allowance”.
The writing down allowance is 20%.
There is a distinction between the main fixtures that are standard fittings in a modern building and the equipment required for the trade of the occupier. The writing down allowance for integral fixtures is 10%.
Examples include:-
* Cold water systems.
* Lifts, escalators and moving walkways.
* Space and water heating systems.
* Electrical and lighting systems.
* External solar shading.
* Ventilation by power, air cooling or air purification systems.
When purchasing a property it is important to identify the correct category and to identify all the integral features.
If you repair an integral feature and the cost of the repair is more than 50% of the replacement cost it becomes capital expenditure. The good news is that this expenditure will qualify for the Annual Investment Allowance thus granting relief at 100% rather than 10%.
Also the timing of expenditure on repairs is important as you may be able to spread the cost over two different twelve month periods to maximise the relief.
There is a “Flat Conversion allowance” which is granted where empty space in a commercial building is converted into flats for residential use.
The relief applies where such a flat is renovated or where a conversion creates qualifying flats. The flat must be for short term lets and must not be of “high value”.
Claims are to be made in the same way as normal capital allowances; on the self-assessment return and within twelve months of the 31st January following the tax year end.
Companies can claim these allowances and where losses result they are set against the company’s total profits for the accounting period in which the allowances are claimed with any excess being carried forward and treated as rental business losses of the next accounting period.
Another 100% relief is available for the renovation or conversion of business properties that have been vacant for a year or more in disadvantaged areas. When planning your property investments these allowances should be taken into account.
March 27th, 2011 -- Posted in Property |
Acute investors are different ways to create a stable and profitable portfolio, as well as experience of inexperienced investors provide real estate investment property market in a safe way of New Zealand. Adhering to the correct path to adulthood aspirations for home ownership, real estate purchase in New Zealand in the world is the best. People who have investments in future and their families first home purchase.
Recession still remains in the substantially describes to potential buyers and investors certainly market. New Zealand real estate market at commercial or residential market, customer value and investment opportunities. , Compare to the rest of the world shows facial reconstruction of the country’s finances are doing global economy. Stable market will increase in value of the constant and for real estate investments in the New Zealand show and market forces to the contrary, rental worldwide movement, despite safety yields. Are reflected in this House, and the sector.
Glory and real estate “guaranteed rental ‘ of growth; demand for apartment rent a Government initiative, has been met with New Zealand unprecedented success. Rental guarantee investors can know that in order to cover the expenditure of buildings associated with the mortgage payment. Also the guidance first home purchase, and left outside the scope of these properties at the same time, increased demand for rental properties price value in the and other dwellings in increments. New Zealand real estate purchase at a relatively young age between property setting is stored now over stage safety, tradition. House of increasing demand for security of payment transactions and property interests in real estate invest in real increase and New Zealand are increasingly demand increasingly; in both New Zealand, beyond the coast.
Buy, build many possibilities for foreigners, or vacation in the willingness of banks and other lending to foreign investors and institutions, portfolio New Zealand, but just at home on the beach in a fraction of the market price of such property. New Zealand one of the leading vacations resources is the key access to the best opportunities in the market. Has approved the economic conditions and market knowledge in the current and future features and requested by real estate investment in New Zealand growth of long-term financial security.
March 26th, 2011 -- Posted in Property |
As a landlord you can your capital is well protected, their individual interests to the best non-life insurance.
In General, plus coverage of the building, fixtures, fittings and contents. You can give it an important protection for your insurance civil liability.
Period of your property is 30 days may be unaware of and leave an open continuous but important questions arise.
Insurance is usually remain, according to purchase properties than remain vacant for 30 days should be does not contains the clause. They offer free insurance and your insurance can establish wish disabled.
It is difficult but can it not happen, and actually the crew without even without knowledge of the accumulation of 30 days.
It was plan remains or is not able to leave the property restored and renovated to meaningful work is possible.
May deny every claim may, regardless of the cause for a 30-day threshold let property insurance that is inactive.
Can buy home insurance in relation to explain, but can apply the policy operator.
Understand exactly where you can, of course, landlord insurance for individual providers have slightly different definitions and the policy carefully it in your situation, read fit.
Good news is that the principle of insurance companies that provide coverage to the vacant property insurance forms, gaps in coverage of this type of bridge.
Applies regardless of whether or not they are vacant property condition property furniture furniture to keep in mind. Fully rented property, if empty, the property of the existing insurance only for 30 days or more still can be even usually is not valid.
March 25th, 2011 -- Posted in Property |
Rent to buy option? You must buy immediately profitable referencing some dangerous exercises can purchase real estate investment properties in the property. 9 Things to consider, are as follows.
(1) Is whether or not the situation is looking for real estate for most important health benefits. For rent apartment, for example research;. High near the populated areas of school with community facilities. Buy real estate in the area do not consider low purchase price just because of the unnecessary.
Buy it before if possible 2 rental history is history of rent of the property to consider. Of the previous owner (s) how much rent out before (attention high tenant sales before they have this problem a property or location point), hire a property claim (in other words how free you can), and frequency of search and reliable tenants rent fee payment methods.
3 To find the amount of entries in the area, the Web, by how many rental properties find or drive and surrounding areas, walk lists. In the rental market momentum two there may be one area, rental, or several hours, whether or not low-demand areas of high saturation. In the market have to examine how much like property, so much ‘ stick you can ‘.
4 Their rental property is for quality school where some young families, the local school, the most important considerations. Verify current performance metrics, and found a place in the nearest school.
5. Proximity amenities is another important aspect for this number of tenants. Property to local amenities such as スーパー_マーケット and grocery store, post office, Bank pretty must. Many also recreational facilities and swimming pool, gym, and nightlife to easily access i.e. pubs people like.
6 If you don’t know questions about space ago purchasing’s crime. Check the online local area crime figures, and also be able to visit the local police station. The note that the determination of rent, decay, crime, region one, even low-rent in famous.
7. Select the tenant rent from generally close the current location, or employment opportunities are available, property hiring. Located close to many people moving jobs. Ideally choose environment easily replaced, like continuous method for a sufficient problem City Centre Centre, to prevent pollution.
8 Is an important aspect in this real estate investing to keep spirit of potential tenants ‘ needs another size property. Even if it’s somewhere and gardens for example, if you target a sufficient number of young families.
9-Year-old General, encourage you to buy a home is under 25 years old, but the. Create a could in this way is much less code and maintenance issues. Keep in mind, so yourself easily resolve your tenants!
It’s a good idea, tenants, shoes, so shop for your real estate investment properties. To the following questions when you view the properties; here I to life? You can find a place? House is good? In addition, before searching for properties for determining mortgage payments afford don’t forget, there is some calculations, and how much rent, realistic to expect.
March 24th, 2011 -- Posted in Property |
GOLF GRABS BULGARIA!
At the present time there are only three golf courses in the whole of Bulgaria: one at Elin Pelin, near the capital, Sofia, and two owned by Air Sofia. These are located at Ihtiman, opened in 2000, 40km from Sofia, and at Sliven, opened in 2004, 90km from the Black Sea.
Because of the increasingly rapid rise in foreign interest in Bulgaria recently, several more golf courses are proposed. One of these will be located at Razgrad, in the north-east, about 90km from the Black Sea. More are scheduled to open in the next few years: two at Kavarna and one at Primorsko, near Sozopol.
Mountain and ski areas will be represented by a golf course in the ski town of Bansko this year, and a very large golf complex between Kostenets and Borovets, the country’s foremost ski resort. This is scheduled for 2007, the year of Bulgaria’s entry into the European Union, and will be located at Dolna Banya, already near Bulgaria’s first golf course at Ihtiman.
Bulgaria Properties Ltd has purchased almost 6 acres of prime development land adjacent to the proposed golf course at Dolna Banya. The plans are to construct about 220 apartments around a comprehensive sports complex, with access to the golf course by a short footpath. The amenities on site are to include tennis, volleyball, squash, badminton, lawn bowls, boules (boccia), shooting, archery, croquet, mountain biking, and fishing nearby. Indoor facilities will include a 140-seat main restaurant and cabaret stage, a huge main bar (perhaps the largest in Bulgaria), a sports bar with projection TV, snooker, pool, table football, table tennis, a Chinese restaurant, Indian restaurant, fast food cafeteria, pizzeria, gymnasium, sauna, massage parlour, clinic, chemist, sports shop and minimarket.
Steve Avery, a Director of Bulgaria Properties Ltd, said, “It may sound like a cliché, but we really were in the right place at the right time! After two years in this business, I just couldn’t believe my luck to find such a gem. Anyone involved in this project should make a serious return on their investment.”
GENERAL OBSERVATIONS ABOUT THE BULGARIAN PROPERTY MARKET
On Borovets and Bansko generally, Steve had this to say: “Apart from having ski lifts and ski runs, these two towns are quite different from each other, and appeal to different groups of people. Bansko is an old, traditional residential town with lots of character and no fewer than 180 quaint taverns full of local people singing and dancing to a typical Bulgarian folk band. Borovets, by contrast, is purely a resort, with hotels, modern west European-style bars and night-clubs, cafés and restaurants. Residential property and holiday homes are therefore readily available in Bansko, but not in Borovets, where the closest you can get is usually in one of the surrounding villages.
‘As for property values, Bansko went mad for a period of three months at the end of 2003, with land prices doubling, and then calmed down. Many poor goatherders suddenly found that they were rich. Nothing wrong with that, I say. Since then values have been pretty steady there until now, when they’re starting to creep up again. The reason for this is that the sudden surge in foreign tourists to Bansko has left the supply of holiday accommodation woefully short of the demand. And this trend shows no sign of abating. To try to cope with it, there have sprung up many hotels and apartment projects, but it seems unlikely that even these will be able to satisfy the demand for accommodation for several years yet. As a result, the prices for such apartments range from 1,000 Euros per sq.m. for a ground-floor unit facing away from the mountains, to 1,350 Euros per sq.m. for a top-floor example with a mountain view. Yet, people buy them. I guess, because a 1 bedroom 60sq.m. apartment for £41,000 is still a far better deal than you’d get in Spain. I’ve heard developers claim that 90% of their apartments are sold within 3 weeks! I only hope that we have such luck when ours are released in June!
‘In this respect Borovets, again, is different. Although it’s Bulgaria’s first and best-known ski resort, it stagnated for years… until now. The ‘Super Borovets’ project, funded by EU, governmental, foreign and local business sources, is scheduled to run from 2005 to 2009, and will revitalise the whole region around the town to a radius of 10-12km. This has already started to affect property values in the surrounding areas. To give an example, in March 2004 we bought, unseen, a half-acre plot in a village 15km from Borovets. When I visited it, I discovered that it wasn’t suitable for building apartments; so, I put it on the market in August. By November it was sold at an 80% profit – after all costs were deducted!
‘I am personally of the opinion that the ‘Bansko effect’ could strike around Borovets at any moment. That’s the reason why Bulgaria Properties Ltd is developing four projects here, and only two in Bansko. We can sell these apartments about 15% cheaper – at the moment, anyway. Borovets must surely offer a better return on investment, regardless of the type of property bought: land, a shack, whatever. You won’t find new apartments easily, though. As far as we know, Bulgaria Properties Ltd is the only developer building them. I don’t, however, expect this monopoly to last for long.
‘Bulgaria’s third ski region is at Pamporovo, which, like Borovets, is purely a resort. Funding is starting to come in, but full development, if it happens at all, is likely to follow several years behind Borovets. Its distance from Sofia (a day’s drive) makes it less attractive to visitors from north and west Europe. It is, however, popular with Greeks, because of its proximity to the frontier. One of Bulgaria’s major motorway routes to Greece will pass very close to Pamporovo, and this should boost its popularity, as well as making the Mediterranean Sea more accessible.
‘Property values are lower here than in Bansko and Borovets, but are creeping up gradually. I reckon that Pamporovo is a good long-term prospect; say five to ten years. The only reason why Bulgaria Properties Ltd has no developments here is because I’ll probably have retired before the boom happens.”
How does a mountain area investment compare with coastal properties?
“Significant differences yet again. Until recently, most of the investment was flooding into the northern Black Sea coast resorts, from Varna down to Sunny Beach. The area became very popular as a result of the Bulgarian government’s ‘Bulgaria the Beautiful’ TV campaign back in the ’80s, and the subsequent interest of package tour operators. Now that the north is saturated with developments, the interest has begun to creep down the coast. This is causing a steep rise in property values. They are still lower than those in the north, but the gap is closing. An investment in the south should therefore offer a better ROI.
‘Don’t expect, though, the ambience of the south to become like that of the north. When I discussed the subject with the Chairman of the Bulgarian Foreign Investment Agency last year – an extremely intelligent and able young man, I must add – he told me in no uncertain terms that he did not want the south to become like the north. His very words were: “We don’t want another Benidorm.” So, prospective property purchasers need to bear this in mind, and balance their desire for more capital growth, or their willingness to accept less, with the different rental market appeal of the two regions, along with their own taste in holidays.
‘There is one highly significant factor, however, which very often goes unnoticed until it is too late; and it applies to the whole coast. Most people don’t know that it freezes on the coast in winter. When they see the coastal resorts basking in the hot summer sunshine, it’s difficult to imagine snow on the ground. The entire coast simply shuts down in the winter, and nothing happens. It’s as dead as a doornail. Therefore, rental income can be fairly assured for 15 weeks, possibly 20, plus some odd bits in the shoulder seasons of April and October. The coast has a five-month season from May to September, compared to nine months in the ski areas. Those people buying only for rental income, therefore, would find the mountains far more lucrative.
‘ ‘The Times’ recently published an article, saying: “Rental yields tend to be better for ski properties than those on the coast because of the longer ski season. You could expect about 12 per cent gross yield for a good ski apartment and about half that on the coast.”
‘Rents vary greatly, and depend on many factors, most of which should be obvious: location, size, view, amenities. The standard of finish and the condition of the property can also determine your market quite radically. To appeal to west Europeans, and to command the highest rents, your property must be well finished and appointed, and be in tip-top condition. If it is not, you still have a market for east Europeans, who tolerate less salubrious surroundings because they pay much less, usually about half of the west European rates.
‘Generally, summer rental rates on the coast equate to winter rates in the ski resorts, both seasons being about five months. Remember that you also have about four months’ additional rent, though at lower rates, during the summer in the mountains. These rates should increase gradually, as the Government programmes to make the ski towns more popular for summer holidays make their mark.
‘There are several Bulgarian agencies willing to manage your rental properties for you. Expect to pay about 20% of the rent as a fee.”
What about properties in the countryside?
“Not a serious contender in the ROI stakes, I think. Not if you consider the effort involved. You can pick up property very cheaply indeed in the inland areas, away from the resorts. Almost always it’ll need some kind of work; anything from a face-lift to demolition. There’s often no inner staircase to the bedrooms, no bathroom, and the toilet is in a shed in the garden. This kind of property is great for buyers who want to get away from their homeland, and disappear in the beauty of nature permanently. As a business, it could appeal to self-builders or DIY enthusiasts, prepared to do it for fun, and accept a low return on their financial and physical investment. As for rental income, forget it!”
And the cities?
“Again, there are differences, even between cities. The prime city is, of course, Sofia, the capital. Buy the right apartment here, in the right area, and you can expect a guaranteed rental return of about 12% per annum. The flavour of the month is gated communities, particularly in the south of the city. The diplomatic residential district of Vitosha is one of the best bets. There is a ready demand for luxury accommodation from diplomatic staff and executives seconded by foreign companies, usually on a long-term basis, and this demand should increase as 2007, the year of Bulgaria’s accession to the European Union, approaches. Although you should expect to pay high for such properties by Bulgarian standards, it’s still only the price of a tarted-up Victorian terraced flat in a UK provincial town.
‘There’s virtually no market for tourist rentals in Sofia, as it’s probably the least interesting European capital city. It’s also very polluted, although they are trying to clean up their act, ready for EU entry in 2007.
‘Plovdiv, the country’s second city, is much more pleasant. It has a quaint old town, as well as modern business districts. It therefore bridges the gap between business and tourism, as far as rentals are concerned. Plovdiv is connected to Sofia by an excellent motorway, on which you can keep the pedal to the metal, if you’re prepared to risk an on-the-spot fine of 50 Leva (about £18).
‘Veliko Tarnovo is probably Bulgaria’s most touristic city, with its citadel and mediaeval ramparts. Most people who buy property here do so to make it their main home. The city itself is beautiful, and it has everything a townie needs. Drive a short distance, and you’re in some wonderful countryside. You couldn’t really make a good living from rentals, but it’s the perfect place to retire to.
‘There’s one more thing which is important enough to mention: Mineral baths. These exist all over Bulgaria, the most significant being at Narechen, south of Plovdiv, and Momin Prohod, near Kostenets. Scientific studies rank Bulgaria among the foremost in Europe for hydrothermal, bioclimatic and mud treatments, sea cures and other health resources. Bulgaria is a world leader with its exceptional diversity of medicinal herbs and the excellent curative properties of its apian products. Any property near a spa should attract a premium to its sales or rental value.”
March 23rd, 2011 -- Posted in Property |
How to collect questions: rent, in the previous article? Answer was adamantly exile: good lawyer! Find a good lawyer eviction well, all well and good, but how? Let’s get started.
Should go if possible the personal references; From a friend, it is recommended that, local boards of REALTORS or apartment Association. Check or your local Internet searches, if there is no way the local yellow pages. To see immediately, and it gives name to one of three: 1. The only that their eviction (unlawful Detainers) or at least it’s part of their business. For your family law lawyers, you see this time.”
Unaware the expulsion of her lawyer, must be characteristic of the legislative changes, and offers specialized. , “Professional tenants as” not for (law and tenant who knows how to move between them, the), valuable time to repeat your will lose their property.
Verify your credentials. I think they’re doing their job, a good job, you want to. Note that no “good” eviction Attorney… you must search the hard and assertive. Our lawyers are our fun especially wasn’t; but he was good at his trade!
Finally, three lead lawyers specified location before you rent your property; or lease before you need it. We see our article collecting rent after eviction discussion”integral lawyer. The need to your tenant rental tenant risks (U23) slowly makes him pay for security.
To sum up: only shelter search the lawyer each trade; To enter. You can find the best professionals the team. Even the expulsion (or unlawful Detainers familiar with it) to make sure.
Pat Larkin was with his wife Chris, owned and operated one of Orange County, California’s largest residential property management companies. Further, he has already successfully created, developed and manages the property for over 30 years.
March 22nd, 2011 -- Posted in Property |
Have had lots of conversations of Malaysia real estate market is still showing positive growth in 2011, project developer is. To remove his start attracting investors to buy House of hope to sell developers while a burst bubble, and the attempts to potential for properties. It is much more optimistic Malaysia markets.
It is more profitable? Arch of the large number of properties sold, but not yet sale bargains despite many many links. What will happen? People just rush ads that hypes selling properties?
Especially the first home ownership is really, residential, a real home buyers can afford? Perhaps they are this group of people to buy fewer new houses with investment purchases is growing. These speculations, decisions, and it can go, but still many investors who are in the world economy, maintain her confusion see case. Waiting for the ultimate real estate price drop!
2011 Real estate recovery, does not believe in a European specialist in. The stress the last debt lists European and Egypt confusion certainly difficult. Dow Jones has been released one, instead of poor Europeans are particularly accepts the weakness of the economy of the country, such as Italy, Portugal, Spain false hopes and the too stay reported optimism recently exposes. Report was based from an interview with PricewaterhouseCoopers and the Urban Institute land 600 real estate professionals.
Reduces the Telegraph while real estate prices and persistent stress properties in 2011, the excess supply, unemployment and general administrative budget is being warned. While Europeans more optimistic and the last road to economic recovery, in reality, sink to believe that. If you have been hit hard now that they are in the deflation country requires some serious attention, and in fact accepted the reality of positive Japan economy until the end of 2010.
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