Borrowing for oversea investment

J

JackB

Guest
I wish to remortgage and borrow 20k euro to buy "land" in an east european country. I am a self employed sole trader and was wondering what are the pros and cons of such an investment providing the land increases by min 6% pa.
I have yet to start a pension.. Is this a way i could fund my pension or should i borrow through my business?
Replies greatly appreciated.
 
The main problem is not being able to get any income from the land so it will cost you every month you have it. Having said that land can be a great investment and go up in value signficantly. I bought Land in Bulgaria recently. It's high risk because it is unregulated but the potential gain is very good. The checks I performed were as follows:

- Meeting with Electricity board to verify location of where electricity could be connected.
- Meeting with water board to verify water connection
- Meeting with regional architect to verify that it could get regulated and to verify how much building was possible on the land.
- Ensured that the land was exactly the location specified on the plans
- Usual solicitor checks to verify clean title etc.

I didn't get a geological survey (it is close to the coast line) but the plot next door got a clean bill of health.
 
doberden,

can you fill us in on the details how much land how much building can you get is right of ownership secure etc,?

where is it located?

thanks!
 
I bought 6,250 sq metres of front line land for 100,000 euro between the village of Bulgarevo and Cape Kaliakra. My Bulgarian Company owns the land and I own 100% of the company. You can't buy land as an individual in Bulgaria. With planning I could possibly build up to 50% of the land but there's a height restriction of 10 metres. I say possibly because it's not regulated yet, so hopefully.....

Where are you buying?
 
doberden said:
I bought 6,250 sq metres of front line land for 100,000 euro between the village of Bulgarevo and Cape Kaliakra. My Bulgarian Company owns the land and I own 100% of the company. You can't buy land as an individual in Bulgaria. With planning I could possibly build up to 50% of the land but there's a height restriction of 10 metres. I say possibly because it's not regulated yet, so hopefully.....

Where are you buying?
Click to expand...

Intereting..

BM
 
Biggest problem in eastern Europe is title, it frequently carries liens because of problems with tracing the decendants of those who owned it before the second world war. Problems with title often don't show up until you go to sell the land or try to get planning to build on it. Make sure a competent local lawyer checks through the title of the land to ensure that the person selling it is entitled to do so and that there are no others capable of making claims on the land in the future.
 
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