What Will Be A Property Hotspot For 2008???

[mickthepropertyguru]

Hi,,
My 2 penneth for whats its worth.
If this is your 1st investment with a limited budget, Argentina could be a problem, geographically somewhere closer to home would probably suit you better.
All cheap off plans in emerging markets, Bulgaria, Morocco, Romania etc can be a headache, usually take longer, not easy and not guaranteed to flip. Also the real profit in these areas will be when the countries infrastructure has improved greatly.
I would suggest Berlin, has everything going for it, great prices, AAAA+ infrastructure, can come tennanted or rent yourself, a 5 year plan to get the most out of it.
When I sell 1 of my investments that where Im off to.

.

I think i read that the CGT in England has fallen to 18%, if this is true than i wouldn't invest in Germany if i lived in UK.
Actually i wouldn't invest in Berlin anyway. Its a long term investment. CGT is 25% if you sell before 10 years. Guaranteed Rental will probably be 4% - 5% which will just fall short of mortgage repayment per month as far as i know. If it is above 6% than you will pay income tax on it. If it comes tenanted you will prob never be able to live in it yourself but that may be of any interest. Rental terms are usually fixed for 5 - 10 years and i think most are not index linked(i.e. In 10 years you will still be getting the same 4 -5% of the purchase price!!!). I think you can get a mortgage for up to 60% of purchase price.
The rental gains are not very good. Thats if you buying for rental ? Its safe but it may not make you much money. The culture in Germany is a rental culture and i don't know if it changing at a fast pace. So it may be more difficult to sell. If i had to but there it would only be a commercial venture.
If you wanted a safe investment, better rental, better capital appreciation than you would be far better off in France with a Guaranteed rental scheme, even a lease back and with far better chances of selling it. No contest.Not even close. You actually be far better of in Bucharest than in Berlin. i think anyway but thats just me

 

[Home Buy Overseas]

.

I think i read that the CGT in England has fallen to 18%, if this is true than i wouldn't invest in Germany if i lived in UK.
Actually i wouldn't invest in Berlin anyway. Its a long term investment. CGT is 25% if you sell before 10 years. Guaranteed Rental will probably be 4% - 5% which will just fall short of mortgage repayment per month as far as i know. If it is above 6% than you will pay income tax on it. If it comes tenanted you will prob never be able to live in it yourself but that may be of any interest. Rental terms are usually fixed for 5 - 10 years and i think most are not index linked(i.e. In 10 years you will still be getting the same 4 -5% of the purchase price!!!). I think you can get a mortgage for up to 60% of purchase price.
The rental gains are not very good. Thats if you buying for rental ? Its safe but it may not make you much money. The culture in Germany is a rental culture and i don't know if it changing at a fast pace. So it may be more difficult to sell. If i had to but there it would only be a commercial venture.
If you wanted a safe investment, better rental, better capital appreciation than you would be far better off in France with a Guaranteed rental scheme, even a lease back and with far better chances of selling it. No contest.Not even close. You actually be far better of in Bucharest than in Berlin. i think anyway but thats just me

hi , you speak a lot of sense.

i as you know are new to this game..
i am looking to make some money and its the only reason why i am purchasing.i am not sentimental about it.

have you an idea how i can buy another cheap property next year when prices are continuing to rise ..??

is there still any investment potential in bulgaria??

 

[mickthepropertyguru]

hi , you speak a lot of sense.

i as you know are new to this game..
i am looking to make some money and its the only reason why i am purchasing.i am not sentimental about it.

have you an idea how i can buy another cheap property next year when prices are continuing to rise ..??

is there still any investment potential in bulgaria??

Whatever you do do not invest in Bulgaria anywhere!!!!!!!!!!!!!!! Trust me

 

[steveparr]

.

I think i read that the CGT in England has fallen to 18%, if this is true than i wouldn't invest in Germany if i lived in UK.
Actually i wouldn't invest in Berlin anyway. Its a long term investment. CGT is 25% if you sell before 10 years. Guaranteed Rental will probably be 4% - 5% which will just fall short of mortgage repayment per month as far as i know. If it is above 6% than you will pay income tax on it. If it comes tenanted you will prob never be able to live in it yourself but that may be of any interest. Rental terms are usually fixed for 5 - 10 years and i think most are not index linked(i.e. In 10 years you will still be getting the same 4 -5% of the purchase price!!!). I think you can get a mortgage for up to 60% of purchase price.
The rental gains are not very good. Thats if you buying for rental ? Its safe but it may not make you much money. The culture in Germany is a rental culture and i don't know if it changing at a fast pace. So it may be more difficult to sell. If i had to but there it would only be a commercial venture.
If you wanted a safe investment, better rental, better capital appreciation than you would be far better off in France with a Guaranteed rental scheme, even a lease back and with far better chances of selling it. No contest.Not even close. You actually be far better of in Bucharest than in Berlin. i think anyway but thats just me

Thanks for that and understand where you are coming from.
however dont agree with a lot of what you said. the figures you project for berlin are actual figures for today, not projected as other emerging markets. There is a hell of a lot of investment going into berlin, an established cultural city with far greater potential than other emerging markets. Bucharest is more risky and more expensive, imo 2008 is the time to take advantage of Berlin, as you say the German culture is rental, but this is an exciting capital city and time to take part in the investment. Safe established investment with great potential.
Anyway I have rambled on enough

 

[mickthepropertyguru]

well i think Albania, Haven t been there but all the stats add up. The capital city looks good and there is plenty of promise with land down south. Id love to invest in Bucharest. Calabria will be good and i believe with the right rental company it should be fine. If your worried about rentals buy land but you may need a small consortium because it seems land is sold in big lots in new markets. As long as the Albania government fight the corruption and they have a 20% building density, then the south of Albania should not turn into sunny beach

 

[mickthepropertyguru]

Thanks for that and understand where you are coming from.
however dont agree with a lot of what you said. the figures you project for berlin are actual figures for today, not projected as other emerging markets. There is a hell of a lot of investment going into berlin, an established cultural city with far greater potential than other emerging markets. Bucharest is more risky and more expensive, imo 2008 is the time to take advantage of Berlin, as you say the German culture is rental, but this is an exciting capital city and time to take part in the investment. Safe established investment with great potential.
Anyway I have rambled on enough

For me i would like to be in and out of an investment in 3 - 4 years. Patience is a virtue i guess You may be thinking of a longer investment than i. As a long term lets say 7 - 10 years or more than it may be a winner, its definitely safe. I was also very keen on Berlin at one stage but feel that other areas may be more profitable in the short time but maybe more risky. The east Berlin may hold more gains in the long term i think. It would be great it they would reduce the CGT.
I heard at one stage that the Rental is reviewed every 10 years and can only increase by a certain percentage in that time frame apparently . do you know anything about this ? I don't know if its true or not

 

[mickthepropertyguru]

The Philippines are very interesting.
One issue: Is the CGT in the Philippines 25% of the profit or of the total selling price ?
Is there Double taxation between Ireland & UK with this area also.

 

[mickthepropertyguru]

Double Taxation Treaties with relatin to UK and Irleand

As far as I know it is 25% of the gain.

About the double taxation I am not too sure, I have never done any kind of research into this as yet. If you are doing property investment as a business or as your main source of income, or are otherwise self-employed then I would think the money you get from the sale, after you have paid all taxes including CGT and lawyers fees etc, would have to be included in your income. Just as you would put the outgoing cost of the property + taxes and lawyers fees into your expenditures. In that respect I suppose it balances itself out.

I'm not sure how it works if it is a one-off investment or sale, from people in full time employment, but as you have no way of declaring the outgoing cost, then I don't suppose you would declare the income from the sale either -- feel free to correct me if I'm wrong.

Liam Bailey
davidstanleyredfern[dot]com

Apparently there are more than 1,300 double taxation treaties world-wide and the UK has the largest network of treaties, covering over 100 countries.

Antigua and Barbuda, Argentina, Argentina, Austria, Azerbaijan, Bangladesh , Barbados, Belarus, Belgium, Belize, Bolivia, Bosnia-Herzegovina, Botswana, Brunei, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Falkland Islands, Faroes, Fiji, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guernsey, Guyana, Hungary, Iceland, India, Indonesia, Ireland (Republic of ),Isle of Man, Israel, Italy, Ivory Coast (Côte d'Ivoire),Jamaica, Japan, Jersey, Jordan, Kazakhstan, Kenya, Kiribati, Korea (Republic of),Kuwait, Latvia, Lesotho, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Malta, Mauritius, Mexico, Mongolia, Montenegro, Montserrat, Morocco, Myanmar (Burma),Namibia, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Papua New Guinea , Philippines, Poland, Portugal, Romania, Russian Federation, St Kitts and Nevis, Serbia, Sierra Leone, Singapore, Slovak Republic (Slovakia),Slovenia , Solomon Islands, South Africa, Spain, Sri Lanka, Sudan, Swaziland, Sweden, Switzerland, Taiwan, Tajikistan
, Thailand , Trinidad and Tobago, Tunisia, Turkey, Turkmenistan , Tuvalu, Uganda, Ukraine, United States of America, Uzbekistan, Venezuela, Vietnam , Yugoslavia (Federal Republic),Zambia, Zimbabwe.

Ireland has double taxation treaties withe the following:
Australia, Austria, Belgium, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Poland, Portugal, Portugal, Romania, Russia, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, United Kingdom ,United Kingdom Protocol, United States, United States Protocol, United States Competent Authority Agreement, Zambia

All the details for individual countries can be found on official government revenue site.

 

[Sunnyshores]

As far as I know it is 25% of the gain.

About the double taxation I am not too sure, I have never done any kind of research into this as yet. If you are doing property investment as a business or as your main source of income, or are otherwise self-employed then I would think the money you get from the sale, after you have paid all taxes including CGT and lawyers fees etc, would have to be included in your income. Just as you would put the outgoing cost of the property + taxes and lawyers fees into your expenditures. In that respect I suppose it balances itself out.

I'm not sure how it works if it is a one-off investment or sale, from people in full time employment, but as you have no way of declaring the outgoing cost, then I don't suppose you would declare the income from the sale either -- feel free to correct me if I'm wrong.

Liam Bailey
davidstanleyredfern[dot]com

Liam,

I dont understand what you mean about not declaring income from the sale or the rents etc.

ALL individuals making ANY profit from property (or land or interest in bank accounts or breathing!!) in ANY country MUST be reported to the relevant governments Inland Revenue equivalent. In some countries you have to report losses too.

It is your responsibiity to get hold of the correct governement department, fill in the forms etc, you may need an accountant or translator to assist.

The (foreign) government then tells you how much tax you need to pay and you pay it.

You then fill in the details again on your UK self assessment form. If there is a treaty you can deduct tax that you have already paid to the foreign government. If there is not a treaty you will have to pay all the UK tax without deductions.

So many agents highlight lower CGT income tax etc as selling points for various countrues, but unless I'm missing something it doesnt matter - as you always pay full UK tax anyway.

Another thing to look for is repatriation of profits ie are you allowed to take the profits out of the country?

 

[DSR Media]

Thank you for clarifying that point for all.

 

[Watson]

The world has become too exotic and fanciful - how many blokes with good old tattoos do you see in these far off resorts; very few. yet the British bulk tourists is tatooed and comes from Bolton and thinks Montenegro is a car Austin used to make.
Good poperty returns need tourists using the place.
Abruzzo italy can be reached by road, rail and 18 euro flight destinations. The Germans, Austrians and Italians love it and the brits have just found it. cheap property loads to do and prices are 80% lower than Tuscany and 50% lower than Umbria next door. Barclays says its doing loads of mortgages there.
Check it out.
Kim

Well Kim totally disgusted by your comments.
I am from Bolton yes I have tattoos, but I also have 5 properties in 4 countries and 3 buisnesses in 2 countries.
Far from thick and been investing in properties for 11years and I am 34!!

 

[Home Buy Overseas]

Well Kim totally disgusted by your comments.
I am from Bolton yes I have tattoos, but I also have 5 properties in 4 countries and 3 buisnesses in 2 countries.
Far from thick and been investing in properties for 11years and I am 34!!

this is a property forum . lets keep it free from comments that may offend people..

 

[Watson]

this is a property forum . lets keep it free from comments that may offend people..

I agree totally, out of order imagine the issues if it was a racist comment i am proud of where i come from.

 

[jimbo]

Hi all,

THE MILLION DOLLAR QUESTION..!!!!

What will be a property hotspot for 2008!!

Me personally I think that ALBANIA and NICARAGUA Will start to see lots of changes and development!!

Albania with its EU support and funding and full EU membership preducted by 2014!

Nicaragua- Being located in central america next to the likes of costa rica with natural coastlines!

As I think that every year we are running short of options as so many markets are evolving rapidly and expanding on to the property investment radars!!

See ya D

The coastline from Mexico to Costa Rica has tons of small towns that are now booming to be the next Puerto Vallarta and Manzanillo. This happening right now, I am living in the middle of it all and I can tell you the Costalegre areas are going to be hot, developement everywhere and tons of lots going for great prices for the size, location and quality.

 

[Watson]

i believe sheffield is the next property hotspot.

freezing cold temperatures, brick viaducts, congested city centre roundabouts, weirdshaped metal student union.. its got it all lol

And you can get a row of terraces for 10k

 

[realtycn]

The coastline from Mexico to Costa Rica has tons of small towns that are now booming to be the next Puerto Vallarta and Manzanillo. This happening right now, I am living in the middle of it all and I can tell you the Costalegre areas are going to be hot, developement everywhere and tons of lots going for great prices for the size, location and quality.

 

[Jeremy Sturgess]

Property Hotspots

America is worth keeping a close eye on. Prices are tumbling fast and the process of adjustment happens much quicker there than in most markets. Still too early but watch closely as the americans have cleverly devalued their currency faster than anyone else and this will attract massive inflows at some point.

I also like dollar based economies like Egypt where i have a project. Dollar priced assets look very good value for europeans and british investors with their v high currencies relative to the dollar. Swapping sterling or euros at these levels for undervalued dollar property assets is a no brainer on a medium term view.

Ive heard it said that Zimbabwe and Iran will be good bets if you can figure out how to buy anything there. Mugabe and whatshisname in Iran wont be around for ever and they are apparantly very beautiful countrys full of potential.

Im told also that Oman may be worth looking at.

Poor old europe and Uk with their very overvalued currencys are going to struggle for some time imho

 

[Watson]

Apparently there are more than 1,300 double taxation treaties world-wide and the UK has the largest network of treaties, covering over 100 countries.

Antigua and Barbuda, Argentina, Argentina, Austria, Azerbaijan, Bangladesh , Barbados, Belarus, Belgium, Belize, Bolivia, Bosnia-Herzegovina, Botswana, Brunei, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Falkland Islands, Faroes, Fiji, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guernsey, Guyana, Hungary, Iceland, India, Indonesia, Ireland (Republic of ),Isle of Man, Israel, Italy, Ivory Coast (Côte d'Ivoire),Jamaica, Japan, Jersey, Jordan, Kazakhstan, Kenya, Kiribati, Korea (Republic of),Kuwait, Latvia, Lesotho, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Malta, Mauritius, Mexico, Mongolia, Montenegro, Montserrat, Morocco, Myanmar (Burma),Namibia, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Papua New Guinea , Philippines, Poland, Portugal, Romania, Russian Federation, St Kitts and Nevis, Serbia, Sierra Leone, Singapore, Slovak Republic (Slovakia),Slovenia , Solomon Islands, South Africa, Spain, Sri Lanka, Sudan, Swaziland, Sweden, Switzerland, Taiwan, Tajikistan
, Thailand , Trinidad and Tobago, Tunisia, Turkey, Turkmenistan , Tuvalu, Uganda, Ukraine, United States of America, Uzbekistan, Venezuela, Vietnam , Yugoslavia (Federal Republic),Zambia, Zimbabwe.

Ireland has double taxation treaties withe the following:
Australia, Austria, Belgium, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Poland, Portugal, Portugal, Romania, Russia, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, United Kingdom ,United Kingdom Protocol, United States, United States Protocol, United States Competent Authority Agreement, Zambia

All the details for individual countries can be found on official government revenue site.

So does this mean as self-employed i pay no capital gains tax on property in Egypt? I ma in Ireland

 

[Sunnyshores]

as I understand it you pay CGT on property (or any other profits) that you hold anywhere in the world. An individual who is Self employed, unemployed, employed etc makes no difference to CGT.

The amount you pay depends on what your home country ie Ireland charges.

What I dont understand is : where there is a double tax agreement do only declare it in Ireland, or do you need to declare it in the overseas country too and then deduct this overseas amount from the Irish amount due.

I know this subject really needs an experts advice, but I just wondered about the procedure.

 

[Watson]

as I understand it you pay CGT on property (or any other profits) that you hold anywhere in the world. An individual who is Self employed, unemployed, employed etc makes no difference to CGT.

The amount you pay depends on what your home country ie Ireland charges.

What I dont understand is : where there is a double tax agreement do only declare it in Ireland, or do you need to declare it in the overseas country too and then deduct this overseas amount from the Irish amount due.

I know this subject really needs an experts advice, but I just wondered about the procedure.

I agree I was led to beleive I do not pay CGT in Ireland for the properties now I am totally confused. Time to seek an expert.