Positive Overseas Investment Reports

Indeed, many medium cities and towns in the former East Germany are experiencing depopulation. What often tends to happen is that the old, communist-style appartment blocks get abandoned first and ultimatly get pulled down. Quite a few have already been pulled down, or are on the waiting list (just waiting for the last tennants to leave, no new ones allowed). So the stock of housing MIGHT keep track with the population.

If buying in Germany it's often a good idea to look for an appartment that is seniorengerecht. I.e. will it suit old people (has it a lift, is it wheelchair accessible etc). Probably doesn't apply if buying in a major university town, but definetly a good idea for Rostock.
 
I'm just after buying my second property in Nice, France. I bought my first 6 years ago and sold it 6 months ago. I made a total return of 22% per year that includes rental income, capital appreciation and all costs.
Nice is the capital of the French Rivera and has France's second largest airport therefore the short term rental potential is huge. I rent by new 1 bedroom for €800-€900 per week during peak season and €700-€800 per week of peak. It therefore pays for the mortgage itself and I also have profit at the end of the year. Now is the perfect time to buy in Nice as there is a new tramway being developed due for completion in June 07 and within the next five years there will be a new high speed train linking Paris to Nice, which will take only 2 1/2 hrs. These factors insure good capital appreciation also 40% of the people who buy in the city centre are foreigners, therefore the property market is not soley dependent on the French economy.
 
hi,first time user.i am considering buying either a 1 or 2 bed apt. in berlin.would love to hear about if anybody has done so and is it all as good as it seems.
 
Don't forget that Berlin is in the former east Germany, a basket case where property is concerned. In particular, be careful of properties in the former eastern zone, both regarding ownership issues and general investment.

In the early 1990s a lot of investors rushed in here to buy up apartment buildings and spent a lot of money bringing them up to scratch, and they got badly burned when the expected gains did not materialise. A lot of this junk is now coming back on the market again, so be careful.

The city is also about 30 billion euro (from memory, but I'm sure someone will correct me) in debt, and the federal government has recently ruled out any possibility of bailing them out. So expect high property taxes to clear the debt in coming years.

Also a feature in Berlin is that some of the scammers who played games with "guaranteed rents" in other markets are now showing their heads there. When you see this kind of stuff emerging, it's time to start walking backwards!

Best advice to anyone investing in Germany is to keep away from Berlin altogether. Frankfurt, Munich, Hamburg and even Bonn provide much better opportunities with less chance of getting burned.
 
auto320,

I normally agree with your comments & respect your viewpoint, but I disagree with you on this one.

I've recently bought a one bed apartment in Berlin, on the west side I might add, in the rather upmarket area of Wilmersdorf. I do agree that I would be reluctant to buy in the old east as even though some apts are lovely, some of the areas are still very run down & also there are lots of vacant apts & squats too.

I know Berlin is very much in debt but if you visit it's very easy to see why. They are spending a fortune on rebuilding & refurbishing the museums, churches etc that the Communists just let fall into disrepair. It's a lovely city as is but it's going to be absolutely fabulous when they finish all the work.

I don't expect much capital gain in the shorter term but to my mind the Germans will always bounce back. In the meantime the rent (return 6%) will pay for the mortgage so unless property drops even lower I don't think I can lose on the deal.

Also it gives me an excuse to visit, while claiming relief on some of my expenses - I've no problem with that !
 
auto320 said:
Don't forget that Berlin is in the former east Germany, a basket case where property is concerned. In particular, be careful of properties in the former eastern zone, both regarding ownership issues and general investment.

In the early 1990s a lot of investors rushed in here to buy up apartment buildings and spent a lot of money bringing them up to scratch, and they got badly burned when the expected gains did not materialise. A lot of this junk is now coming back on the market again, so be careful.
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It's true that there was alot of investment in apartments in the former East Germany in the early 90s. This was driven by both tax incentives and the "brave new world" feeling about the changes taking place in the East(Helmut Kohl was talking about "bluehende Landschaften" that would occur there). However I don't think this was so prevalent in East Berlin as in other cities in East Germany. I think most of the tax incentives were for smaller regional cities.

The reason the gains didn't materialise is cause the properties were overpriced to begin with and most are now valued at around 50% of their original purchase price. Some are also of poorish quality. However the drop is accepted in the local market. If you're buying a property that's being advertised locally, it's price is less likely to be madly inflated. On the other hand if you're buying through an agency primarly aiming at foreign purchasers, you may end up paying the Paddy price.

I would say Berlin is a bit of a risk as it may be difficult to exit in 5 or 10 years (or whatever your timeframe). However the prices are cheap compared to any other European capital, and attractive based on current rents. So if you are willing to take a gamble that you may not see your deposit again, and can cover the mortgage with the rent (check tax issues), then it may be worth a flutter.
 
Instead of looking at the tradition overseas agents why not try companies like ready 2 rent and intrepid investments both are very good companies that offer real investors the chance to gain exposure to markets that are truly emerging either through a fund approach or syndication. I have had positive experiences with both, in Turkey and SA.
 
Hi Goof,

I am interested on your positive returns in the "emerging markets" with the bottom falling out of the SA rand together with prhibitive tax in SA and as for Turkey - beautiful country - I'd rather put my money on a horse at the moment.

Are you associated with the aforementioned company?
 
bulgaria be positive

Bulgaria,has its pitfalls same as wny where else..

However I still believe it offers good value particurlarly if you are looking for a nice holiday home /ski apartment,and can wait for it to appriecate steady over the years,and that you can look on having it rented as a olesant bonus!!

remember you can get €700 per week for a ski apartment,even if 5 months of the year still would cover its self!!

Also the major ski companies are now carrying bansko for example where they did not carry if last year! they usually know their market!

I do admit if some one is looking got a big profit wethin a year say,and they need to give back money they cant afford to the bank etc,is a different issue..

Some times we can listen to too many opinions,and end up doing noting!

Trust your informed own judgment,

GO FOR IT
 
Re: bulgaria be positive

slopes said:
Bulgaria,has its pitfalls same as wny where else..


remember you can get €700 per week for a ski apartment,even if 5 months of the year still would cover its self!!
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€700 per week are you having a laugh??? I'm going skiing in Bulgaria in February and paying €680 to stay in a top notch hotel on the slopes with the ski lift outside the door. I get flights, breakfast and dinner for this price so why would someone pay €700 to rent an apartment with no meals and you still have to cough up for their flights on top of this. If your getting that kind of rent fair play to you but it doesn't seem to add up to me.
 
i visited berlin about a month ago and got to see a lot of the city.was very interested in areas around prenzlauer berg and pankow,all apartments were/are currently being refurbished,close to parks,shops and public transport and all tenanted and good rental yields which seem to easily cover a mortgage it seems like a no lose situation given that you could purchase 4 or 5 apts. for the price of 1 here with no gaurantee of any tenants and not enough rental yield to cover the mortgage
 
Jelly tots

Well I was saying ball park! Yes you can get it cheaper but I would guess you are sharing???? your price is with max occupancy!! if you add it up the price of the appartment or rom per wek would be in the €700 region!

If anyone dos not believe it,just fo to [broken link removed] ski .com and got to bulgaria section,then choose bansko, you will see how much it costs...you will not get a room on your own including flights and accomadation and meals for €700!!yes sharing.But it does not matter how many people it takes sharing to give you the rent as long as you get it!!!!!

I am renting studios to sleep two,€680 is what I ahve gotton most of last season,so it is def covering itself..
 
Persius said:
Indeed, many medium cities and towns in the former East Germany are experiencing depopulation. What often tends to happen is that the old, communist-style appartment blocks get abandoned first and ultimatly get pulled down. Quite a few have already been pulled down, or are on the waiting list (just waiting for the last tennants to leave, no new ones allowed). So the stock of housing MIGHT keep track with the population.
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You are right about depopulation, but there are some areas where the population is increasing, however it is significantly below 1989 levels almost everywhere in the east as far as I am aware.

As a result, there are hundreds of thousands of empty apartments and due to the meagre employment prospects and ageing population, I don't see that changing anytime soon.

Once the new EU member states' workers are allowed in to work (could be another 5-10 years) the population might increase, but this would put downward pressure on wages.
 
Re: bulgaria be positive

slopes said:
Bulgaria,has its pitfalls same as wny where else..

However I still believe it offers good value particurlarly if you are looking for a nice holiday home /ski apartment,and can wait for it to appriecate steady over the years,and that you can look on having it rented as a olesant bonus!!

remember you can get €700 per week for a ski apartment,even if 5 months of the year still would cover its self!!
GO FOR IT
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700 euro a week, in a ski apartment in Bansko? Not in a million years! Goes to show that there's still a lot of confusion out there between "guaranteed rental" and actual rental.

As for a 5 months ski season in Bansko? Go back and check that detail too!

Its a pity that people are still walking into this trap, but serves them right in a way. A ten year old child could do the research on this one and come up with the facts, but Irish investors in Bulgaria seem to lack that kind of savvy.
 
Re: bulgaria be positive

auto320 said:
700 euro a week, in a ski apartment in Bansko? Not in a million years! Goes to show that there's still a lot of confusion out there between "guaranteed rental" and actual rental.

As for a 5 months ski season in Bansko? Go back and check that detail too!

Its a pity that people are still walking into this trap, but serves them right in a way. A ten year old child could do the research on this one and come up with the facts, but Irish investors in Bulgaria seem to lack that kind of savvy.
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I agree with you Auto320, these figures are exaggerated claims presumably originating from developers/selling agents
 
Re: bulgaria be positive

auto320 said:
700 euro a week, in a ski apartment in Bansko? Not in a million years! Goes to show that there's still a lot of confusion out there between "guaranteed rental" and actual rental.

As for a 5 months ski season in Bansko? Go back and check that detail too!

Its a pity that people are still walking into this trap, but serves them right in a way. A ten year old child could do the research on this one and come up with the facts, but Irish investors in Bulgaria seem to lack that kind of savvy.
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I think it is you who have not got a clue on how to do the math!!

A ski apartment in bansko,and I KNOW I OWM AND RENT ONE!!!!can get up to €700 pw APPROX

I am not blind, I am aware this is for example only 5 months,but it still covers itself....

As I pointed out the last time ,you get this with max people sharing for example in my case its two sharing thats €350 each,thats still god value for a ski hol apartment....

sOME ONE RECKONED THEY COULD GET THIS INCLUDING MEALS AND FLIGHTTS ---YA RITE PLEASE TELL US YOUR TOUT OPERATOR!

For anyone with a brain in there heads,just go to direct ski .com try and book apartment for a week in bansko,it will work out approx€750 each including flights and transfers....

I checked out the half board with them and its nearer €900 to 950 including flights and transfers and thats based on max sharing!!

I am not suggesting bansko will make you a fortune but it will pay for itself and thats good enough for me,,,

Some people in here are like parrots they just repeat all they hear without knowing a thing about it..


Slopes
 
Fair play to you if that's the rate you're getting. I been to lot of resorts and I've never paid anything like that for either hotel, chalet, or pension (B&B), all half board. Andorra, Italy and Czech Republic. In an East European country I would always stay in 4/5 star hotels and expect to pay no more than E70 a night for a double room. (E350 pw / 2 = E175 each) I can only assume your apt is very big and is super swanky.

Oh and I'd never use an Irish or UK based site for booking accomadation on the slopes, you always pay about 50% more for the same room. Just my experience.

Like I said, fair play for getting such a good rate. I must go to this Bansko place some year, if it's half as good as the prices being quoted would indicate it must be better than Whistler.
 
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