How Does The Euro Pound Rate Affect Overseas Property?

The euro pound exchange rate is a huge issue for many buyers. Right now investors completing on properties they may have purchased over a year ago are now having to find 20% more euros than they envisaged.

This is impacting values, and deterring UK pound buyers from buying overseas. We may see the UK pound vs euro in parity territory for some time.

So what are the best options for UK buyers in pounds?

Well, one country still seeing property priced in UK pounds, is Egypt. This is in spite of a devaluation of the pound against the Egyptian pound. This removes currency risk and is an obvious attraction.

I have been commenting for some time that for the foreseable future, that some of the best buys right now are in Egypt. In Hurghada there is a unique set of circumstances combining. Low cost land with low build cost.

Such value is attracting buyers whose budgets in  their own country do not buy anything. But just £12,000 (€14,000) is drawing investors from Eastern Europe who cannot afford to buy in their own country but believe, like I do, that these prices will look very low in five years time.

So do click here for details of La Place. Click here for Cairo’s Royal Residence from Jet2Let Property Ltd.

What do you think? Your comments are welcome. Please register for up to date comment on overseas property, more due diligence advice and be sure to be in the know to benefit from this market.

Will 2009 Be The Time To Buy Overseas?

Its December 2008, and its easy to be dazzled and frozen still, like a rabbit in the headlights. Gloomy news, and economic downturn, fail to inform us that there is the potential to buy bargain overseas property.

Until one day, in the blink of an eye, the news changes. My view is that the consensus view will turn positive - one day. I don’t know when. But its a fair bet a consensus view will reached quite quickly. The problem is that on this defining day, it will then be too late to pick up a bargain.

Overseas property often moves in sharp price movements. Particularly more emerging markets. The reason is that as the media and marketing will pick up the change in mood. Then a quick a fast pick up in advertising and, before we know it, we are being persuaded that the higher prices are cheap and we should buy now before further increases.

Why Is Now The Time To Buy?

The savvy investor knows there’s opportunity. But times like these are terribly tricky. Sure, this is a suitable moment, but there’s a huge challenge to make it a safe, as well as a rewarding, occaision for property investment.

Its time to be as cunning as a fox. To understand the fine detail of the process of buying.  Most of all, 2009 is the year to find property that satisfies all our needs.

If you think prices will go lower than what is offered in Egypt, for example, then you should wait. But with value like this - often priced in UK Pounds, its likely that in seven years time you will be thinking “that was smart timing to buy in 2009 before the rest came in 2010/11″.

When property an area gets a unique mix of cheap land, cheap building costs as cheap as chips its time to look very closely. These days I am particularly keen on examining the existing infrastructure. Is it being invested in? Are their shops? Are there already things to do? Unless you are buying land and have a very long time horizon, you may find that the lack of infrastructure hinders resales.

What You Really Should Know

The overseas property industry has far too many stories of woe, and this is a very sad fact. The time it takes to acquire the analytical skills, and knowledge, to make the right buying decisions is the key to your investment. That is why everyone, from new to the most experienced investor should read my “What Everybody Ought to Know About Property Due Diligence.”

Its down-to-earth guidance on how to:

• use contractual terms to reduce risk and make savings
• learn how to calculate which payment
• understand and manage your lawyer for best results
• options save money
• analyse what the actual rental potential may be
• analyse your exit strategy and resale
• leverage your property viewing time

The aim is for you to gather the free essential knowledge that will help you buy at the lowest possible price. And at the lowest risk.

What do you think? Please comment on whether you think 2009 is the time to buy overseas.

What Is Cheap Overseas Property?

Yesterday I attended the OPP live exhibition speaking to property professionals and exhibitors at the trade overseas property exhibition in London. I thought a clear pattern would emerge.

Words like, “challenging market”, “nervousness” were banded sprinkled in the conversations. the inevitable with world “financial events” that sales were down. Well these did indeed crop up regularly, but what was really interesting were the very different thoughts emerging from both brokers, developers, lawyers etc.

Investors or Lifestyle Buyers?

Some developers were saying that that all their buyers were investors who focused on rental guarantees. Then there were others who said buyers have returned to how overseas property started. Namely, people desiring a place abroad for mainly own use and possible eventual full, or part, retirement.

There did not seem to be a particular pattern on whether this view was for expensive or cheaper properties.

Cheap or Expensive?

I was then quizzing others as to where the trend in on the maximum property price buyers are prepared to pay. The answers here were unanimous and that is its about low price and cheap. However, I would like to examine what is cheap.

What is Value For Money Property?

Well are we looking for cheap as chips? When we talk about cheap property, I think we usually mean a property at the lowest price possible that satisfies needs. I know we could buy a shack for a few cents - but it wouldn’t satisfy for most of us as a permanent residence.

What I am hearing, is the desire to get the very best value. This means widening the search to other locations and countries that may not have previously been considered.

Where Can I Find Value For Money?

This is subjective but what is clear is that we should as either investors, lifestyle or a mixture of both buyers is recognise there could be some very interesting options worth checking out. If you know where you want to be and there are powerful emotional ties, such as famil and friends nearby then you need only to research a small area.

But if you are after maybe a place to use for holidays and you have a budget of say $100,000, and you want to be overlooking the ocean and have existing infrastructure nearby then your choices could be anywhere from Brazil, Panama, Morocco, Tunisia, Egypt, Cyprus, Malta, Middle East, Thailand, Vietnam, South Africa and so on.

What Never Changes

Most in the overseas property industry know that the focus on the due diligence process is not only smart, but moreover, improves the whole buying experience for all.

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What do you think? Let me know - your comments are welcome

Is Oasis Marina Beach Resort In Hurghada Like A Porsche?

Oasis Marina Resort reminds me of the day I got behind the wheel of a friends’ Porsche 911. A few minutes previously, on the look out for a replacement car I had been test driving a very worthy VW Golf.The difference of the Porsche 911 from the Golf was huge. A different league. Everything feels just so right in the  911. I felt more alive. I could feel the difference. And why my friend feels its worth the extra money fro the best.

Your Porsche costs three times the price. Not worth it? Yes but it is for some folks. And the same holds true for prime property, prestige locations and desirability.

So lets back down to earth and think property investment and not luxury toys.

But when I saw the Oasis Marina building site it was just like that special Porsche feeling.

But there is a difference

This is o Porsche location at VW prices. Clear uninterrupted views of the crystal clear Red Sea. The large protected beach in front your to wander over.

But, for me, this is not enough. Because its no use investing in property right now, unless its at a great low price and its really safe.

Developers can forget about attempting to come to market without full project funding and full plans. No Bank lending? Crunchie Credit times have stopped quite a lot of that.

And the irony is that Egypt has cash rich developers because so little debt was taken out.

We are seeing property here being sold at £12,800 ($19,000 14,000 Euros) because in the almost unique position for very little being paid for the land and exceptionally low labour costs. A good daily wage here is £5 for a site labourer. Now that raw material prices have come back down, then value property is still available. It just will not get cheaper because there’s no need. Developments in Hurghada, like Oasis Marina are selling. People who visit the Oasis site can see the scarcity of this premium location, the infrastructure and the safety of in built resilience to down turns elsewhere.

As property investors are waiting to see where property prices settle, in markets driven by speculation, and debt. So investor demand looks for sound alternatives. Egypt has a place in the property investor’s portfolio.

For those who just want some warmth and sunshine at VW prices, then I think this is one not to miss.

For more details on this Oasis Marina Beach Offer, contact Jet2Let Property Ltd:

http://www.jet2letproperty.com/eg/483-Oasis-Marina-Off-Plan-property-Hurghada-Red-Sea-Coastline.html

Tel: 044(0)113 3131000 or email: info@jet2letproperty.com

Egypt Wins Best Outsourcing Destination

Egypt’s outsourcing sector is getting a boost of international recognition. The country was recently awarded the prize for best outsourcing destination by the British National Outsourcing Association (NOA).

This comes as much needed encouragement, with the government trying to attract more investment to the sector at a time of international economic gloom.

Hazem Abdel-Azim, CEO of the Information Technology Industry Development Agency (ITIDA), who
received the prize in the name of the Egyptian government, stated that it was “a source of pride for the Egyptian communications and information technology sector”, local media reported.

Similarly, other rankings and reports have singled out Egypt among emerging IT services countries. A recent study by the Yankee Group, a US-based consultancy firm, compared several Middle Eastern countries’ base for outsourcing services, concluding that Egypt “has the strongest position in the outsourcing market.”

The report praised Egypt’s IT services against those of countries such as the United Arab Emirates, Oman, Bahrain, Jordan and the Kingdom of Saudi Arabia, and put Egypt on equal footing with India and China, stating that Egypt had a huge advantage in terms of the versatility of its language skills.

“The country’s multilingual capabilities make Egypt attractive to Europe-based countries“, the report said.

“By contrast, China does not have the same level of comfort with Western culture and traditions as Egypt. India’s bailiwick is its strong English-speaking workforce, which works well for US-based and UK-based companies… but the lack of other languages is a disadvantage in India when it comes to EU-based
countries.”

IT Services Exports

These assessments reflect the government’s efforts in recent years to attract investment and develop human resources to work in the outsourcing and offshoring sector. Egypt’s IT exports sector has attracted local and foreign investments worth more than $8bn over the past three years according to ITIDA.

In a recent interview with OBG, Egyptian Minister of Communications and IT Tarek Kamel stated that the country’s IT services exports were currently worth $700m, and that he expected this figure to reach $1.1bn
by 2010.

“Egypt is appearing more and more in the international arena of IT services,” he told OBG. “We help train the talent pool and provide low cost infrastructure and access to well equipped space. We will continue to do this.”

In a bid to expand the attractiveness of its IT sector and create more room for foreign companies, the country is planning to open bids to build a new outsourcing business park in the Southern Cairo suburb of Maadi.

The project will involve the construction of 30 to 40 technological facilities that will cater to Egyptian, Arab and international firms focusing on IT services, local media reported. Furthermore, the Yankee Group report also noted a deal that UK-based company SpinVox has signed to establish a business center in Alexandria.

Changing Business Risk Perception

Egypt will nonetheless face some challenges if it is to increase revenue from this sector. The Yankee Group report reckons that Egypt needs to upgrade some infrastructure as well as reverse a negative opinion about its level of business risk. “Egypt faces some hurdles, including outdated communications and transportation infrastructure, and the perception-especially in the United States-that it is a risky place to
do work”, the report stated.

The future of the sector also depends on how fast the government and the private sector can train its workers to join the country’s growing IT force. “It’s a question of the speed at which the country can educate the pool of talent,” Adel Danish, chairman of Xceed, Egypt’s biggest call centre, told OBG.
“Human resources are the main challenge in Egypt. But the good thing is the government is aware of it and taking the right actions.”

Egypt Credit Crunch Beneficiary

The country is also hoping that the global slowdown triggered by the credit crunch, which is affecting US and European economies, will not deter the growth of its outsourcing sector. As European and US-based
companies represent the majority of Egypt’s customers, a slowing in consumption might curtail the demand for support services from Egypt.

“It will be interesting to see what happens”, Danish told OBG. “Some people believe the recession will make companies cut costs, and so outsource even more services to lower-cost countries like Egypt.”

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Bulgaria Forecast GDP To Grow 4.5%

Bulgaria is expected to experience leaner economic times over the coming year, but reports of an impending crisis appear to be somewhat unfounded, reports by the Oxford Business Group.

The report read, “The On November 3, the European Commission (EC) issued a warning that Bulgaria is set to face slowing growth, consumption and investment over the coming year, while the current account deficit and inflation will remain high.

The commission expects Gross Domestic Product (GDP) growth to be trimmed from 6.5% this year to 4.5% next, as a slowing European economy acts as a drag on Bulgaria. Meanwhile, it forecasts inflation of 12.4% by year end, the second highest in the EU, while the current account deficit is expected to hit 23.9% of GDP - the bloc’s largest.

Europe has been hit by a serious economic slowdown, exacerbated by the global credit crunch. The wide EU economy is expected to grow at only 1.2% this year, according to the EC, while the international press has reported that the eurozone (which does not include Bulgaria) will grow at a meagre 0.1%. As European countries - particularly in the eurozone - are Bulgaria’s key trading and investment partners, it seems inevitable that the Balkan country’s burgeoning growth will be curtailed.

The EC expects inflation to fall over the coming years, to 7.9% in 2009 and 6.8% the following year, easing one of the key pressures on the economy, though not as much as policy makers would like.

The EC also predicts that the current account deficit will remain stubbornly above 20% of GDP in 2009 and 2010. This might seem surprising, given that a slowdown in growth would seem likely to scale back imported consumption, and that lower levels of investment should lead to lower imports of capital goods.

On the other hand, Bulgaria’s export markets are in trouble, and the prices of the products it sells overseas, such as steel and agricultural produce, are falling. International bodies such as the International Monetary Fund (IMF) have long warned that the external imbalance is unsustainable, and serious concerns are now spreading. The deficit has been financed by inflows of capital from abroad - inflows that seem likely to fall considerably due to the credit crunch and lower growth in the eurozone and Bulgaria.

Bulgaria has limited scope to tackle the current account and inflation issues through monetary policy, as it is in a currency board arrangement that fixes its exchange rate against the euro. This obliges the Bulgarian central bank to track the European Central Bank’s (ECB) interest rate movements, and rules out devaluation of the Bulgarian lev to cheapen the country’s exports. At present, the ECB is loosening monetary policy at a time when higher interest rates in Bulgaria could help lower consumer demand, and therefore inflation and import levels.

The government and central bank have repeatedly ruled out the possibility of abandoning the currency board, which has helped underpin Bulgaria’s economic stability for the past decade. Indeed, adjusting the fixed regime at a time when currencies are fluctuating wildly could prove to be a disastrous move.

Furthermore, with growth expected to fall, and inflationary pressures easing, it may be that the ECB’s rate cuts will help buoy the Bulgarian economy. There is an increasing perception that a sharp drop in growth is rapidly overtaking inflation as the country’s primary economic concern. Some reports in the international press have cited the possibility of growth levels falling to well below the EC’s forecasts - 3% or even lower.

Indeed, on October 28, Kristalina Georgieva, vice president and director of strategy and operations at the World Bank, urged the Bulgarian authorities to prepare an emergency stimulus package to be activated if the economic shocks turn out to be greater than expected.

“For instance, what are we going to do to stimulate domestic demand if unemployment increases?,” she asked a conference in Sofia.

Three days later, the IMF and the Bulgarian government scotched reports that they were in the midst of negotiations for a Fund bail out scheme. Such “rescue packages” have already been extended to Hungary and Ukraine, and fears are growing that more countries in Eastern Europe may follow them.

As the government has pointed out, however, Bulgaria is in a relatively strong position in that it has a large fiscal surplus. Thanks to an IMF-designed plan aimed at securing stability and reassuring investors, the country has been running a remarkably tight budgetary policy for several years. Fiscal reserves are expected to reach $8.3bn by the end of the year, theoretically providing ample scope for government stimulus measures. Hungary, on the other hand, has been scrambling to tackle a widening budget deficit.

As Georgieva has warned, any fiscal boost would have to be well designed, particularly given continuing worries about corruption and misallocation of official funds. And the government would be wise to ensure that new spending rounds do not exacerbate external imbalances or the long-term budgetary position. Furthermore, a reinvigorated drive for structural reform to tackle the economic weaknesses exposed by the current situation should prove beneficial in bolstering stability and future growth.”

Over the coming weeks we will see important detail on how individual countries across the world will fare. A countries e conomic prospects are one of the key indicators for savvy property investors to study.

If you would like to be kept up to date with these important economic announcements as well as news and views of property opportunities then subscribe to www.OverseasPropertyTalk.com now.

Gamsha Bay Launch Delayed

Yesterday I was with Damac the developers for Gamsha Bay. Gamsha Bay is the 320 million sq. ft. master of all master developments. Yes its delayed and I think this is good. Its essential that they get all their due diligence together before launch.

Why Is Gamsha Bay So Long Awaited?

Its the sheer scale of the project. And the highest level involvement from Damac who have been involved in so many projects.

There will be with many marinas, five star hotels, shopping centres, golf courses, extreme sports adventure theme park, offices, villas, townhouses and over 50,000 residential units.

Damac projects have an excellent history for quality and only operate in the luxury sector. Their plan is of Dubai proporations and will really create a lot of publicity for the area.

In my view, we may see Hurghada property increase in value once sales are underway for Gamsha.

Particularly for key well located properties. But that’s not all.

Damac Reputation

Gamsha Bay is situated some 45 minutes North of Hurghada airport is till awaiting launch.

Damac, whose quality reputation from their many investors in Dubai, Qatar and Cairo will help ensure that property here will be amongst the very best in the region. Damac enjoy many awards from Bentley and CNBC for their project’s architecture and developments in Abhu Dhabi and Dubai.

Private residences and luxury spa completed the general picture.

Registration

There’s nothing to lose by registering interest now. This means investors will get an invitation to the launch event. Damac usually offer the best deals to the very first investors. So the initial launch price could prove to look very cheap a year or two out.

Register with Jet2Let Property http://www.jet2letproperty.com/eg/464-Gamsha-Bay-Off-Plan-property-Hurghada-Red-Sea-Coastline.html to be sure of getting the first option on the best units. Investors should register soon.

After all registering your interest costs nothing and there’s no commitment at all.

If you enjoyed this post, please make your comment. Do subscribe RSS ot email for regular news and updates.

Why Palme Royale Resort Hurghada Impressed Me

Palme Royale Resort in Hurghada is just announced in pre launch and will sell fast. Surprised to be reading this in this economic climate? Then read on.

With pleasant daytime temperatures of 28 to 30 degress C, it was a shock for me landing in the UK. It was cold. The cold like you remember in school shorts in winter.

I was not arriving in a ski resort. But UK in late October - just one degree centigrade and snow. The point is that Hurghada does what it says on the tin. Its like summer all year round. Where else can you go within 5 hours of most european capital cities and guarantee this weather?

Property Review Process

It is always thought provoking work for me reviewing a new development.  In the emerging markets of Hurghada and Sahl Hasheesh its not getting easier.  The property choice is getting larger. Finding long term safe value, as apposed to the cheapest, can seem like a huge challenge. However, there is a way that helps investors decide a lot faster than you can imagine.

I call it a Property Due Diligence Process and encompasses location anlaysis, legal, viewing, rental and support.

So again, I used this process when viewing properties. View it for free yourself in “What Everybody Ought To Know About Property Due Diligence”, free for all email subscribers to my newsletter.  The job of selecting the best properties is made a whole lot easier. You will avoid common mistakes. Mistakes such as automatically assuming that the cheapest gets the best rental yield.

Economic Growth. Not Recession.

OK, I know its hard to believe Egypt has such good prospects. But consider this; Finance Minister Youssef Boutros-Ghali has just announced predictions that the country’s growth will slow to 6% in the current fiscal year, after three years of more than 7% growth.

At a conference in Cairo on October 21st, Prime Minister Ahmed Nazif stated that the Egyptian banking system was in better shape than many other countries, due to the reforms of the previous years and a regulatory framework that has limited the amount of borrowing for Egyptian banks.

Many analysts agree with the view that the Egyptian banking sector might largely avoid the international turbulence. “The overall impact on the Egyptian banking sector will be limited, when compared to what is happening in other countries,” Reham El Desoki, senior economist at Beltone Financial, told Oxford Business Group. “There seems to be enough liquidity, and the inter-bank sector appears to be working.”

Occupancy Rates

With near 100% occupancy on beach front properties and with the World Travel and Tourism Council (WWTC) predicting a 5% tourism in Egypt in 2008. The latest forecast are for 14 million visitors in 2008. Trying to get a room in Hurghada tells the story.  Increasing room rates, from a low base, is now the result.

Lets also consider that with political stability and strong economic growth, the rapidly growing Egyptian middle classes are driving high occupancy. Sometimes you have to just look around.

I got chatting to a couple in the Marriott hotel. They were Egyptian. It turned out they were holidaying on their honeymoon. The new Egyptian middle class is growing fast. The very diverse nationalities of other guests is also apparent. Wealthy Middle Eastern visitors and a huge Eastern European and Russian holiday makers are fuelling much of the tourism growth here.

Rental Yield

I’ll leave detailed analysis for another time on rental yields. However, there is just one major point to consider when thinking about yield. That is year round occupancy.

Virtually every location proclaims its year round attractions. Except the reality is usually five peak weeks. Hurghada has all the usual summer peak times but has eight other major holiday weeks.

You don’t get these peaks week rentals to anywhere the same extent in Spain, Cyprus, Greece, Malta, Morocco, France or Italy. Why? The air and sea temperatures are not warm enough. You risk rain. Hurghada and The Red Sea Riviera may get a very light drizzle for 5 minutes once a year.

So renting in Hurghada you get October Half Term Holidays (two weeks), Christmas, New Year, February half Term holidays (two weeks), Easter, early May holidays. Think how this impacts on your rental. Hurghada at its coldest is January, followed by February. Permanent sunshine, 18 to 23 degrees. There is little competition to the Red Sea Riviera that covers all these times within five hours flight of most European Capital cities.

But its the sea temperature that impresses most. Its 25 degrees in the sea this week. At night it drops to 18 degrees. I see only a few Egyptians needing a jumper in the evening.

Anyhow I digress. Rental yield. If you buy the right property in the right development, the Net rental, after maintenance and fees, is highly likely to achieve 10%. 15% for the right property is realistic.

Why Palm Royale Resort?

Two major reasons…the Sea and the Design. Palme Royale is very close to Sea. At last, I found a front line resort that gives nearly every apartment owner a proper sea view. By designing the apartment blocks in a V shape it means every apartment gets a great view. There are no second line, second rate apartments just a few rear studios on each block.

North of Hurghada is flat as a pancake. Sea views are like gold dust.

Beach space is as hard to come by as a front line seat at your favourite show. You have to pay good money for it.

But I could mention why I was impressed with the builder, the international Swiss Hotel Chain for the on site hotel, the Spa, the Gardens. But I wont. Go to www.jet2letproperty.com for this.

Front line you no longer have to dream of. A pre launch 10% discount gives prices of €48,510 ($62,577 or £37,898 approx) for a 49m2 studio. That means the first investors, who want strong rental yields, will be best not leave enquiring long. Register at www.jet2letproperty.com for due diligence report and FAQ’s.

Palme Royale Resort is not just about its 5 star tag. Its about a private 340 metre private beach, sea view, design and rental. All this within ten minutes from the international airport.

What do you think of investing in Egypt? Is Hurghada the best place right now?

Your comments are welcome. If you found this useful please register for regular new posts to be sent straight to your inbox.

Why Is Vila Jardins dos Oceano The Best Buy In Cape Verde?

Quite simply the best in Santiago island has just got better with a special 15% discount on Vila Jardins dos Oceano until 30th October and just 15% down.

SPECIAL OFFER

15% Discount Until 30th October

€3,000 reservation (refunadable off final payment)

15% Down

85% On Completion

So Nothing To Pay Until Final Completion - June 2009

Contact Us Now To Meet The Developer.

Discover why we think Vila Jardins dos Oceano is the best investment in Cape Verde.

CNBC award winner for best development on Cape Verde. Front line development with two bedroom villas at just €299,999 and three bedroom villas at €369,999. 50% sold and will be the first on Santiago to be totally complete in July 2009.

With finance at 6.9% and close to future world heritage site, Cidade Velha, Vila Jardins dos Oceano is a property investment that makes sense for those for whom a smaller and exclusive, low density villa development is there.

Eleven of the Villas are detached, in their own plot (approx 400m2 - 500 m2), have their own private fresh water pool and are built right on the coast - all villas have stunning sea views.

The Villas are of the very best quality and in fact the 3 bed Villas are actually larger than some of the competiting front line 4 /5 beds Villas on Sal yet amazingly half the price!

The resort also boasts Cape Verde’s first Infinity pool (communal), 2 tennis courts, bar / restaurant and a small supermarket.

So with construction well under way obviously all the licenses are in place. CONTACT JET2LET PROPERTY for all the due diligence. Special Permission has been obtained to build right on the coast.

One front line villa available which is literally 10 metres from the sea!

There is a small town with real character just 5 minutes away. In addition the new golf course is on target to complete in 2010.

Why Santiago?

Santiago has spectacular scenery, existing infrastructure, excellent rental, excellent communications with the most flights and it has the culture.

Santiago island has the real tropical island feel and, for many, this makes it the most interesting island in the Cape Verde archipelago.

The infrastructure is far more advanced than Sal or Boavista, from water supply, to ports for shipping to labour supply (over 250,000 inhabitants) will mean that tourism will have the support it needs.

Real rental potential as front line villas with sea views are most in demand.

As a place to provide more than just a beach, with all year round climate, Santiago island is well worth investigating. Even better go out and see for yourself. Call +44(0)113 3131000 for relaxed no stress inspection tours.

You Don’t have to be Rich to own Overseas Property

Its no surprise that many buyers are looking at spending less on their overseas property. The average spend in 2007 was £100,000 approx. However, that is still far too much for many people as I can assure you that you can spend a lot less and get an all year round climate thrown in - read on.

Property or a car?

A recent enquiry of overseas property was wondering whether they could afford an overseas property. However it quickly became apparent that there was a way. We got chatting about cars and how people are buying smaller ones these days. Their current car a seven year old Toyota, that they were looking to replace, still did the job required of it and it was clear that there was a choice to be made.

As they were thinking of buying a nice new VW Golf costing around £20,000 / €25,000 / €35,000 they realised that by foregoing this luxury a miss for a few years, they could free up spare savings to spend on an overseas property - with no mortgage. They were happy to take a ten year view and in the meantime they reasoned that the property will give them far more enjoyment than a new car.

There are still quite a few countries you can buy new property for £20,000. You, like many, probably don’t know where to start and are uncertain of the risks involved.

Which country?

I market several developments in Hurghada area in Egypt. An area that really surprises my clients when they visit. The challenge is on to find anywhere else at these prices with this level of infrastructure and tourism within 4.5 hours flight of anywhere in Europe. Hot year round sunshine must be guaranteed and it must have existing tourist and business infrastructure.  Parts of Morocco may be in contention - but infrastructure on the coast is in its infancy and accessibility is patchy.

25% Shared Freehold Ownership - £12,500

An alternative to buying an outright property is to buy in a new scheme, which has won international property award called Meltimi Residences.

There are a limited number of off plan apartments available on Meltimi Residences, this award winning development in Gulluk, on the Bodrum Peninsula, Turkey with 25% shared freehold ownership and 5 year TAX FREE exit strategy. Just 15 minutes from Bodrum airport.

Here is the scheme - suitable for people looking for both an investment and a place in the sun at a fraction of the cost:

All apartments have sea views and construction well under way, with the project fully financed for completion.

Ownership: There are 4 shares per property and each has a 25% share of the freehold with the shareholders name on the Tapu (property deed). Owners can of course purchase more than one share and benefit from a higher potential return and personal use.

Personal Use: Each owner has a minimum of 12 weeks personal use per annum on a rotating calendar. The calendar ensures that each owner has a minimum of 2 weeks occupancy between July and August with the rest of their weeks spread throughout the year in 2 and 3 week blocks. Owners can of course rent out their properties direct or through the rental pool.

Exit Strategy: Unique to our offer is a 5 year exit strategy which provides owners with the benefit of an excellent ‘lifestyle’ or rental opportunity, 5 years capital appreciation and 0% capital gains tax under the current Turkish tax system. In the event that all shareholders are in agreement then this term can be extended or individual shares can be sold.

Prices: Prices start from £12,500 for a share in a 1 bedroom apartment and go up to £19,500 for a 3 bed apartment. Payments are made in stages through a secure escrow payments system ensuring security and peace of mind.

Most property in Turkey is bought for cash, and therefore the consequences of over exuberant lending and credit crunch fall out, apply to Turkey probably less than most countries.

So, be it Egypt or Turkey, being rich to buy overseas property is not a requirement.  The current climate may prove in hindsight the perfect time for those wanting to get in at low prices. Please register for more details and more articles like these and, wherever you are thinking to buy property, be sure to register for my free download “What Everybody Ought to Know About Property Due Diligence”

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