Posts Tagged ‘Investing In Real Estate’

Real estate is often termed as the safest investment avenue. In fact, real estate investments done with proper evaluation of the property (and its true value), can lead to good profits. This is one reason why some people pursue real estate investment as their full time job. The talks of real estate are generally focussed towards residential real estate; commercial real estate seems to take a back seat. However, commercial real estate too is a good option for investing in real estate.

Commercial real estate includes a lot of different kinds of properties. Most people relate commercial real estate with only office complexes or factories/ industrial units. However, that is not all of commercial real estate. There is more to commercial real estate. Health care centers, retail structures and warehouse are all good examples of commercial real estate. Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is much in demand.

So, is commercial real estate really profitable? Well, if it were not profitable I would not have been writing about commercial real estate at all. So, commercial real estate is profitable for sure. The only thing with commercial real estate is that recognising the opportunity is a bit difficult as compared to residential real estate. But commercial real estate profits can be real big (in fact, much bigger than you would expect from residential real estate of the same proportion). You could take up commercial real estate for either reselling after appreciation or for renting out to, say, retailers. The commercial real estate development is in fact treated as the first sign for growth of residential real estate. Once you know of the possibility of significant commercial growth in the region (either due to tax breaks or whatever), you should start evaluating the potential for appreciation in the prices of commercial real estate and then go for it quickly (as soon as you find a good deal). And you must really work towards getting a good deal. If you find that commercial real estate, e.g. land, is available in big chunks which are too expensive for you to buy, you could look at forming a small investor group (with your friends) and buy it together (and split the profits later). In some cases e.g. when a retail boom is expected in a region, you might find it profitable to buy a property that you can convert into a warehouse for the purpose of renting to small businesses.

So commercial real estate presents a whole plethora of investing opportunities, you just need to grab it.

To Learn More about Real Estate Short Sales and Real Estate Investing, go to CoachingByPeter.com Peter Vekselman, Real Estate Mentor and Coach – Excel at Investing In Real Estate

When it comes to real estate, the topic of the day is the downturn in the market, the number of people losing their homes, and how much this is going to hurt the economy. In the seventeen years I have been in the real estate business, I have witnessed every fluctuation the market has to offer. While it is true that many property owners are enduring trying times, rarely does the same happen to knowledgeable real estate investors.

There are those individuals who remain emotionally unattached and invest wisely in real estate. As a result, they live a very comfortable, if not lavish, lifestyle. Investing in real estate, especially during a downturn, can widen an investor’s opportunities and bring about lucrative returns. This is a truth. If you are thinking about becoming a real estate investor or have already made the decision to start, the following information is priceless.

Wanting to secure a comfortable financial future, most of us go to work every day hoping to build a nest egg. Since, it is common knowledge that real estate investors have the capacity to not only build a nest egg but also create a fortune, why aren’t more people joining the ranks of real estate multimillionaires? Why aren’t there more people fighting for a seat on the real estate bandwagon?

Well, the truth behind real estate investing is that it is a business and therefore, must be treated like one for it to prosper. Just like any other promising venture, investing in real estate requires a well-defined vision, a strategic plan, and an entrepreneurial mindset. Even with the overwhelming evidence revealing success, only a microscopic segment of the population is willing to take the risk, do the work and follow through. The rest simply watch and call those of us doing the work “Lucky”.

When I began my career in real estate, I didn’t have a plan. I didn’t invest. I didn’t even see past my next commission check. What kept me hanging on was a desire to live like the people I worked for, most of whom were real estate investors. Years later, I committed to create serious wealth through real estate. As soon as I mindfully committed to my goal, I began to make deals and more money than ever before.

By choice, I am not one of those investors who vacations six months out of the year. I work all the time meeting with clients, looking at properties and refining my strategy. Add to that a growing number of mentoring/coaching clients and my schedule is officially full. Nevertheless, I am continuously increasing my net worth as I am doing something that never feels like work.

Besides creating amazing wealth, being your own boss and having a place or two to call home, owning a real estate investing business has many other advantages. The following five play a special role for the novice investor.

1. Safe Investment

When we use a timeline to compare the real estate market to other investments, such as the stock market, it is easy to see that real estate continues to increase in value over time without any serious instability. Although, there is currently a housing crisis in various parts across the country, every indicator points out that what we are actually experiencing is a readjustment of highly inflated real estate prices. Just as prices may be dropping, in time they will undoubtedly increase. In contrast, the stock market has put investors through a dizzying rollercoaster ride made up of swift highs and abrupt lows throughout history. Regardless of what type of market we are in, it is clear that an investment in real estate guarantees a profit over time.

2. No Cash Necessary

For beginning real estate investors, sometimes the only investment they can make is their time. For every real estate investor, finding a lucrative deal is as good as striking oil. There are plenty of seasoned investors with money in their pockets itching to buy a piece of discounted property. Wholesalers often utilize this method. Therefore, if you are new to the game, consider finding a deal, tying it up and connecting with an investor who can take it off your hands…for a price, of course.

3. Almost Anyone Can Do It

Real estate is such a lucrative field that it opens doors to countless amateur investors everyday. There are how-to books and seminars at every turn teaching would-be investors a myriad of ways to make huge profits in the real estate market. While it is true that overnight success is practically unheard of, anybody with the heart, mind and determination can make it big in real estate. The keys are to continue learning and to monitor market conditions.

4. Leveraging Power

While novice investors can turn a quick profit by wholesaling their deals, Buy-and-Hold investors can yield a profit by borrowing against (leveraging) their properties. Typically, lenders will allow holders of owner-occupied property to borrow up to ninety-five percent of their property’s value and up to eighty-percent of non-owner occupied units. This means that you can either purchase property with a minimal out-of-pocket investment or acquire financing that will allow you to pull cash out of your property’s equity to use for future ventures.

5. Tax Breaks

The popular 1031 exchange and depreciation are just two of them. The United States government has set up multiple tax breaks favoring real estate investors. Owning real estate with the goal of making a profit allows you to deduct interest payments, repairs, and vacancies among other expenses when preparing your tax return. It is important to note that purchasing real estate makes economic sense; it should not be purchased solely for the tax benefits.

Ultimately, owning a real estate business is the way to achieve financial freedom regardless of economic conditions. Whether you quit your job and dive right in or you work at it in your spare time, you can make it happen. Worthwhile benefits are waiting faithfully for the taking.

Over the last several years, real estate has been as hot as any other investment. It wasn’t until recently that real estate cooled a bit. During this time, we’ve all heard the stories of the easy money made investing in real estate. When money was easy, and there was no end in sight to the real estate boom, people were flipping houses like crazy. For many of these individuals, the 1031 exchange money could not be any easier. However, the times have changed. The downturn has taught even the most bullish real estate speculators that real estate can also go down in value. More than ever, investing in real estate, takes professional know-how, time, and resources to successfully invest in real estate. So, how does the average person invest in real estate, this day and age?

Well, there is a way, and it’s been around for quite some time. It’s called a Real Estate Investment Trust, or REIT. A Real Estate Investment Trust is a way for the small investor to invest in big real estate. A Real Estate Investment Trust is an organization that is set up to manage and invest in real estate professionally. You can purchase a Real Estate Investment Trust (REIT) via the stock exchange in the form of a stock, or privately. Private Real Estate Investment Trusts typically require that certain suitability criteria be met. Also, private REITs are typically longer-term investments, with liquidity considerations. Public Real Estate Investment Trusts can be bought and sold on the stock exchange and are considerably more liquid than their private counterparts.

Investing in a Real Estate Investment Trust can come in many forms. You can purchase a Real Estate Investment Trust that focuses on large-scale commercial real estate, for example. This would allow you to take part in major real estate deals involving 100 plus story buildings, that would otherwise be available to the ultra rich. Some Real Estate Investment Trusts may have their focus in apartment buildings or even new housing construction. The point here is that you can choose your Real Estate Investment Trust sector through one of these REITs. If you want a more professionally managed approach there are a large number of REITs actively managed through the purchase of mutual funds. This can provide for diversification, and individual real estate sectors.

Properly set up Real Estate Investment Trusts are tax-advantaged. This means that they are not taxed at the corporate level. However, they must be set up properly. It is required that REITs invest 75% of their funds in real estate. These requirements are met by income derived from mortgage or rent interest. Essentially, you’re relying on other parties for their expertise in the real estate arena. Going at it alone is tougher than ever these days. You have the typical headaches, like qualifying for a 1031 exchange, property taxes, escrow, title insurance, and so on. But, that’s really the easy part. When the real estate market only went up, the biggest worry for speculators was how to take advantage of a 1031 exchange and save on capital gains. Now, there’s much more to worry about, as real estate not only goes up, but it can certainly come down.

It’s important to keep in mind that Real Estate Investment Trusts also come with inherent risks. If real estate values plummet, and you have a large percentage of your assets exposed to Real Estate Investment Trusts you may experience declines, as well. This is where diversification is very important. The standard Real Estate Investment Trust me diversify you within different types of real estate, but you should always practice further diversification. Investing in different asset classes, sectors, and the life will provide you with further diversification. Make sure to work with a qualified investment advisor or do your due diligence when investing in any type of Real Estate Investment Trust.

To Learn More about Wholesaling Real Estate and Real Estate Investing, go to CoachingByPeter.com Peter Vekselman, Real Estate Mentor and Coach – Excel at Investing In Real Estate

The Czech-Republic Property Market

Since gaining its independent, the Czech Republic has experienced a boom in the number of foreign investors who have become active in the real estate market in that country. More and more foreign nationals — primarily from the EU but also from many other nations around the world — are becoming involved in the real estate market in the Czech Republic.

Literally thousands of foreign nationals have invested in commercial real estate in the Czech Republic. The government of the Czech Republic has worked to liberalize and streamline the laws in the Czech Republic that deal with foreign ownership of real estate. While there remain some hurdles to foreign ownership of real estate in the Czech Republic, particularly for foreign nationals from non-EU countries, these hurdles hardly are insurmountable today. In addition, there are proposals in the works that will remove many of the barriers and hurdles to foreign ownership of real estate in the Czech Republic within the coming decade. But, again and with that said, any of the hurdles that remain in place today are far from insurmountable.

Investment Property in Czech-Republic

As has been referenced, since the entry of the Czech Republic, there has been a surge in the number of foreign nationals who have taken to investing in real estate in the Czech Republic. Many of these foreign nationals have tried to take advantage of the economic growth that has been experienced in the Czech Republic in recent years by investing in and by purchasing commercial real estate in that country.

Investment in real estate is occurring not only in the more urban, commercial centers in the Czech Republic but also in some more rural areas of the country as well. The government of the Czech Republic has been intent on decentralizing commercial and industrial interests in the country to help boost the economic prospects and wellbeing in all parts of the country. Thus, many foreign nationals are investing

Residential Real Estate in Czech-Republic – Single Family Properties

Within the Czech Republic are many graceful estates with long histories. In recent years, many of these large residences have been put on the market for sale. Many foreign nationals have taken an interest in buying these properties for two reasons. First, these foreign investors have taken to purchasing these properties for use as their own second or holiday residences.

In addition to buying these properties for their personal uses, some foreign nationals are also buying these properties to convert them into inns or bed and breakfasts that are being used in the ever growing tourist trade in the Czech Republic.

Residential Real Estate in Czech-Republic – Apartments

For many years, apartments have been the primary residences for many people who reside in some of the more major urban areas in the Czech Republic. This trend has not changed significantly in recent years.

Since the entry of the Czech Republic into the European Union, more and more foreign nationals have been spending extended periods of time in the Czech Republic for business purposes. In this regard, many foreign nationals have taken to purchasing apartments in the major urban and commercial centers in the Czech Republic for their own residential purposes while they are in the Czech Republic on business.

A growing number of foreign nationals — from the EU and from other nations the world over — are buying apartment units and buildings for investment purposes. These people are in turn renting these units to other people, generally foreign nationals who are in the country for business purposes. Industry analysts maintain that this trend is likely to continue well into the next decade as more and more foreign nationals are spending time in the country for business purposes and reasons.

Holiday Property in Czech-Republic

Many people who are interested in investing in real estate in the international market are surprised to learn that the vacation real estate market in the Czech Republic is doing booming business in the 21st century. In the past decade, the Czech Republic has become a major stomping and stopping ground for tourists from across Europe and, indeed, from many other countries from around the world.

With the increase in tourism in the Czech Republic since the country gained its independence, there has been a similar increase in the development and remodeling of different properties that are being used by tourists and visitors to the country. For example, a significant number of apartment developments have been constructed with the goal of providing living space to men and women who intend to visit the Czech Republic for extended stays.

In addition to apartments, other vacation properties including hotels and stand alone single family residences are being developed, constructed and remodeled to provide living space for people who are interested in traveling to the Czech Republic for holiday purposes. Foreign nationals are highly involved in this type of real estate development

Mortgage Options

When considering the options for a mortgage on your overseas property there are a couple of choices to consider;

Do you consider raising finance on your existing property in the UK to cover the whole cost of your purchase abroad? A good idea if the interest rate in the country in question is a lot higher than it is here in the UK as you will pay a lot less in monthly repayments.

Do you secure a mortgage against the property from a local bank in the country of purchase? This can be a wise option especially if the interest rate is lower than our current UK interest rate. Most overseas mortgage / bank lenders will require upto 30% deposit on mortgages. However, you will need to give some thought to how you will service your mortgage payments each month especially if you are not living or earning in that country as you may well lose out on exchanging money each time to cover monthly expenses. Check out our Foreign Currency page to see how you can save money in this example

Some Builders and developers may well offer their own mortgage facilities on their properties for sale. This can be beneficial to both parties depending on the logistics of the mortgage or loan facility. Always check and compare with the two options above before making your final descision. For more details on Mortgages in Czech-Republic visit our Mortgage page in the Czech-Republic section.

Specific steps to buying real estate property in Czech-Republic

Overall, the process of purchasing real estate in the Czech Republic by a foreign national is a rather simplistic process. There are some additional requirements imposed upon a foreign national when it comes to the purchase of real estate in the Czech Republic at this point in time.

At the present time, the Czech government is working to liberalize and streamline the laws governing the purchase of real estate by a foreign national. Much of this effort is being expended due to the Republic’s admission into the European Union.

At the present time, a foreign national from the European Union can purchase and own real estate in the Czech Republic directly. Historically, in the Czech Republic, a foreign national from any nation simply could not purchase and own real estate in the Czech Republic directly. In other words, in order to purchase and own real estate in the Czech Republic in days gone by, a person who was a foreign nation needed to establish a limited liability company in the Czech Republic for the purpose of taking title to real estate in the Czech Republic.

In today’s Czech Republic, a citizen from one or another of the nations that comprise the EU no longer needs to establish a limited liability company in the Czech Republic to take possession or and title to real estate in the Czech Republic. Instead, a citizen of one or another of the EU member nations can own real estate in the Czech Republic directly.

At the present time, residents and citizens of other countries the world over that are not a part of the EU cannot buy real estate directly in the Czech Republic at this time. With that said, there is determined movement being had on the part of the Czech Republic’s government to revamp the provisions of the law that prevent direct ownership of real estate by foreign nationals who are not part of the EU. These changes in the law are expected to take effect within the Czech Republic within the coming decade.

In any event, and has been mentioned previously, a foreign national from a non-EU can buy and possess real estate in the Czech Republic after establishing a bona fide limited liability company in the Czech Republic, the limited liability company being the entity that will take title to real estate in the Czech Republic on behalf of the non-EU foreign national.

Once the limited liability company has been established by the non-EU foreign national, in some instances the purchase of real estate in the Czech Republic can be a rather simple two step process. In some instances, the purchase of real estate can be as simple as executing one written contract for the purchase of real estate. Subsequent to the preparation and execution of the contract for the purchase of real estate, in some instances the only other step that must be taken to complete the sale and transfer of ownership in the subject real estate is the filing of a petition regarding the sale and transfer with the Cadastral Registry.

In some instances in the Czech Republic a foreign national will be interested in buying real estate that is in the process of being developed. In other words, the foreign national has an interest in buying real estate that includes a building or structure that is in the process of being constructed or that is slated for construction. The buyer desires to have the construction of the building, the development of the property, be a part of the overall sales transaction. In such a situation, rather than signing a simple contract for the purchase of real estate, the purchaser will execute what is known as a contract for future purchase contract. In other words, the buyer is executing an agreement to enter into a sales contract upon the completion of the construction or development on the subject property in question.

Property Abroad always recommends using a Solicitor or Lawyer.

In recent years, the government of Dubai has reformed the property laws in that country. Through this reformation process, more and more people have found that buying residential real estate and investment real estate in that country is ever more attractive.

Historically, many foreign nationals were reluctant to invest in real estate in Dubai because there was a great deal of uncertainty as to exactly what type of real estate interest a person could actually obtain by investing in real estate in that country. Specifically, the most desired type of interest in real estate is what is known as a freehold estate. Legally speaking, in Dubai and in other countries the world over, a freehold estate is one in which a person has an absolute interest in a piece of real estate and can convey that real estate to any other person or entity without any encumbrances to such a conveyance. It is the state in which a person has an absolute ownership interest in a piece of real estate.

Investment Property in United Arab Emirates – Dubai

Far and above, the most common type of real estate purchase that foreign nationals are making in Dubai involves investment real estate. In recent years, the government of Dubai has made a concerted effort to draw more foreign investment into that country than at any other time in the history of Dubai.

By way of example, a significant number of foreign nationals have invested in business and commercial property within Dubai. More often than not, a group of foreign investors tend to come together to invest in a particular commercial property in order to spread the risk a bit. Even though Dubai is one of the more stable countries within that particular region of the world, the Middle East remains something or a powder keg and the future stability of the region is always a concern.

Residential Property in United Arab Emirates – Dubai

The demand by foreign nationals for single family dwellings historically has been nominal. However, in the past decade, the number of people from different nations who can be found seeking single family dwellings in Dubai has increased by nearly 100%. There are two primary reasons why more foreign nationals have become interested in single family dwellings within Dubai.

First, with Dubai and its government becoming more interested in playing a larger role on the world’s economic stage, there has been something of a concerted effort at attracting foreign business enterprises to that country. As a result, there are more foreign nationals who have elected to purchase real estate in that country for residential purposes.

Secondly, throughout much of the Arab world and into Europe and Africa, a growing number of people from these other nations have begun to look toward Dubai as a place to maintain vacation or holiday property. More and more people have elected to make the purchase of second residence in Dubai for vacation and holiday purposes.

Residential Real Estate – Apartments in United Arab Emirates – Dubai

As mentioned previously, due to the influx of foreign nationals into Dubai over the course of the past decade, the demand for residential property is on the increase. Many foreign nationals have turned to purchasing and owing apartments for residential purposes.

Generally speaking, even rather luxurious apartments can be purchased in Dubai for comparatively reasonably prices. For example, a person generally can make the purchase of an apartment in Dubai that would cost considerably more for a comparable unit in many other countries around the world .

Holiday Property in UAE Holiday Resorts

As referenced previously, a growing number of people have begun buying and owing vacation property within Dubai. This includes foreign nationals who are turning to Dubai as a place to travel to for vacation or holiday purposes.

Because Dubai is one of the most stable nations in all of the Arab world, many more well to do people from other nations in the region are turning to Dubai as a location in which they can own second or vacation residences. In addition, a growing number of Europeans are also taking to purchasing vacation properties within Dubai. The trend towards the ownership of vacation property by foreign nationals in Dubai is expected to increase over the course of the next two decades, according to real estate analysts who have spend a great deal of time considering real property trends in Dubai.

Specific Steps to Buying a Property in United Arab Emirates – Dubai

Since the 1940s, most foreign nationals who had an inclination to purchase real estate abroad have shied away from buying such property in any of the countries in the Arab world. There are two primary reasons why so many foreign nationals historically have avoided buying real estate in Arab countries, including in Dubai.

First of all, as news reports have recounted over the course of the past sixty years, the Arab world is far from being the most stable region in the country. Wars and violence have been common occurrences within that corner of the world.

The second reason why so many foreign nationals have avoided buying and owning real estate in the Arab world rests in the fact that the laws governing the ownership of real estate in many of these countries has been complicated and structured in such a way that it overtly discouraged foreign investment in real estate. Indeed, many countries that make up the Arab world have prohibited foreign ownership of real estate during much of the past fifty to sixty years — including to the present day.

With all of that said, Dubai has been on the vanguard of creating foreign-friendly real estate laws that encourage the investment in real estate by foreign nationals. First and foremost, the laws in Dubai have been reformed to make it abundantly clear that a foreign national can purchase and own outright real estate within that country. A foreign national can obtain a freehold interest (as has been discussed previously) in real estate in Dubai.

In Dubai, the first step in buying real estate is an oral offer to a seller. In Dubai, a foreign national needs no special permission to make the purchase of real estate in that country. In addition, unlike some countries (including some in the Middle East region of the world), a foreign national can own real estate directly and does not have to bounce through an extra set of hoops towards the goal of buying and holding real property.

Following the acceptance of the oral offer, an initial real estate sales contract is drafted and executed between the parties. A deposit — in an amount negotiated by the parties — is placed at this time by the buyer to the seller. Generally speaking, the deposit is not refundable unless the seller of the property is unable to convey ultimately the real estate to the buyer. In other words, barring some snafu by the seller, a buyer will lose his or her deposit if he or she backs out of the contract.

In Dubai, a mortgage lender from nearly any country in the world can provide financing for the purchase of real estate in that country. What one needs to bear in mind when buying property in Dubai is that many times a lender will require collateral beyond the property located in Dubai, beyond the real estate being purchased. In most real estate transactions the world over, the only collateral the lender requires for a mortgage loan is the real estate itself that is buying purchased. However, when a foreign national is making the purchase of real estate in Dubai, a mortgage lender in most instances will require collateral beyond the actual real estate situated in Dubai that is being purchased.

The primary reasons for the requirement for additional collateral when obtaining a loan to purchase real estate in Dubai include the general instability in the region. There is a concern on the part of some mortgage lenders that something might cause a disruption in Dubai that might effect the real estate collateral in that country. Thus, the typical lender will want additional collateral for any loan. Additionally, while the real estate related laws in Dubai are very liberal, there is always some concern that a new regime might take control of the country causing a disfavor able alteration in the real estate laws in that country. Again, for that reason, lenders desire additional protective collateral in regard to the purchase of real estate in Dubai.

With this in mind, when purchasing real estate in Dubai, it is imperative that a potential purchaser makes certain that he or she has access to other property that can be used as additional collateral for the purchase or real estate in that nation.

Once the various requirements of the initial contract are satisfied — the buyer obtaining financing, the seller making certain that the property is free of any encumbrances that might prevent a conveyance to the buyer — a final contract is executed, the remaining money due to the seller is paid and a deed for the property is given to the buyer who will become the new owner of the real estate at that juncture.

Property Abroad always recommends using a Solicitor or Lawyer.

Running a real estate business is not an easy one, because the tasks in this business are never – ending.  But with a dose of determination, it is possible to manage this business.  Buying and selling a property could be made easy through real estate.  Whenever you think of buying a property, you could just seek the help of the real estates, which gives information on the rates of various lands and homes, depending on their places of location.

Advantages of making investments in real estate
1.    More profit could be obtained by selling each and every property through real estate.
2.    Leverage – It is possible to borrow money depending on the value of the property.
3.    Even though, investing in real estate is so expensive, but still it is easy to buy, because in this investment, you need to have only a part of the purchase price available.

Kamloops is a place in Canada, which is famous for tourist attraction.  People wish to buy property in Kamloops for the following reasons – climate, size, property prices, economy and its location.  Even though, the rates of the property in Kamloops keep increasing, still it continues to be an affordable place to buy property. In general, lands and homes come under the category of property. Before buying a home, the following things should be considered
-    Identify your needs which suit your budget.
-    If you seek the help of the real estate, inform them about the kind of home you require.
-    And always try to make a clear decision.
The best way to gain peace of mind is to hire a right professional.  An objective view of the property is obtained by inspecting a house both structurally and mechanically.  It is your option to choose a condo, townhouse or individual houses.

Town homes
Town homes are alternative to single family homes and offer various significant advantages. Townhouses are defined as attached homes with more than one level of living space. The following are the advantages of living in a town home; it requires less exterior maintenance, better security and community amenities. The benefits of town homes are it is easily accessible and convenient, affordable, spacious, requires less maintenance on the whole, and provides lots of privacy.  

Condos
One of the perfect forms of real estate investment is condos.  One of the advantages of condominiums is the maintenance of external features. If the advantages of the condos are understood well, then the investment in condos through real estate is considered to be a safer choice. Condos undergo a lot of fluctuations according to the market rates when compared with single family homes.

The property classifieds might give information regarding the homes for sale in Kamloops.  When the real estate gets information about the sale of homes, they might intimate their members about that particular offer through email.   While buying a property, make a clear and distinctive decision, because buying a property is not a simple one, it is an investment, which seems to be beneficial for our future in many ways.

The Turkish Property Market

Historically, it was nearly impossible in most instances for a foreign national to purchase real estate in Turkey. Indeed, for the most part, Turkey maintained a nearly absolutely blanket prohibition against foreign nationals having the ability to directly purchase and own real estate in that country.

In 2003, the Turkish government liberalized the laws pertaining to the ownership of real estate in that country. The actual steps taken by the Turkish government to liberalize the real estate ownership laws in that country as far as foreign nationals are concerned is discussed in a bit more detail later.

With the liberalization of real estate laws in Turkey, a growing number of foreign nationals are taking a second look at the possibilities and opportunities that exist when it comes to real estate in that country.

Investment Property in Turkey

Only in the past couple of years has there been any real movement in regard to investment by foreign nationals in Turkish real estate. Of course, the primary reason that this is a development of recent times is the fact that Turkish laws regarding foreign ownership of real estate were very restrictive until the past few years.

In any event, a growing number of foreign investors are turning towards Turkey when it comes to real estate acquisitions. While there certainly is not a flood of foreign money being invested in Turkish real estate at this juncture, more and more foreign investors are taking a close look at what real estate investment opportunities are now available in Turkey.

With that said and understood, many industry analysts maintain that now is the perfect time for a foreign national to take steps towards investing in real estate in Turkey. With Turkey’s admission into the European Union, Turkey will be able to reap many economic benefits that are attendant to being a part of the EU. This likely will translate positively for men and women who have invested in real estate in that country.

Residential Real Estate in Turkey – Single Family Properties

With the relaxation of Turkish laws governing the foreign ownership of real estate, some foreign nationals are now taking a look at the prospect of buying residential property in that country. While the movement of foreign nationals towards buying residential property in that country has not been overwhelming at this juncture, there is an ever increasing number of foreign nationals who are buying residential real estate in Turkey with each passing month.

Most of the residential real estate that is being purchased in Turkey by foreign nationals is located in more of the resort communities in that nation.

Residential Real Estate in Turkey – Apartments

When it comes to the purchase of residential property in Turkey, apartments are serving as solid investments that people from other nations are beginning to purchase to gain a foothold in the Turkish residential property market. There are a wide array of different types of apartments available to sale in Turkey at this point in time. For example, there are very high end properties that are luxurious. At the other end of the spectrum, there are more moderately priced units that are suitable for men and women who find themselves finding a part of the year in Turkey in business and desire a second residence for their time in country.

Holiday Property in Turkey

The newest movement that has occurred as a result of the liberalization of real estate ownership laws in Turkey is the advent of foreign nationals making the purchase of residential properties to be used for vacation purposes. (More information about the liberalization of the laws governing the foreign ownership of real estate is discussed shortly.)

With Turkey’s entry into the EU, a growing number of Europeans are examining the country as a location for holiday travel. Historically, Turkey was not particularly a destination of choice when it came to holiday travel by Europeans. Generally, the same was true for tourists from many other locales around the world.

However, in recent years, more and more foreign nationals have marked Turkey as a definite tourist destination. In addition, Turkish governmental officials as well as business and civic leaders have taken strong steps towards promoting Turkey as a travel and holiday destination.

Because of this movement, a notable number of men and women are now purchasing vacation residences in the form of apartments, villas and other types of houses in Turkey. For the first time, some foreign nationals are purchasing residential property in Turkey that they are using for their own travel needs. In turn, these same people are then turning around and letting these residences to other people during those times of the year that these foreign owners are not using these properties for their holiday purposes. In short, many foreign investors are now taking the initiative to turn their own vacation properties in Turkey into profit generating enterprises.

Specific steps to buying real estate property in Turkey back to top

Historically, it was very difficult for a foreign national to purchase and own real estate in Turkey. Indeed, overall it was nearly impossible for a foreign national to directly own a freehold (or complete and transferable) interest in real estate in Turkey. The laws restricting foreign ownership of real estate in Turkey had been longstanding.

In 2003, the Turkish government significantly liberalized the laws governing the ownership of real estate by foreign nationals in that country. Specifically, the Turkish government enacted what is known as a reciprocity law when it comes to the ownership of real estate by foreign nationals in that country.

The new law in Turkey governing the foreign ownership of real estate essentially provides that if a Turkish citizen can purchase and invest in real estate in the country from which the foreign national comes from, that same foreign national can then, in turn, purchase and own real estate within Turkey. Thus, citizens from many countries — from the United States to the United Kingdom and many other nations in between — can now purchase and own real estate in Turkey.

The Turkish government moved to change its extremely restrictive real estate laws in order to bring it more in line with the statutes and regulations governing real estate ownership that are in place in the other nations that make up the European Union.

Even with the easing of restrictions pertaining to the ownership of real estate by foreign nationals in Turkey, there are areas within Turkey in which foreign nationals are prohibited from purchasing and owning real estate all together. For example, foreign nationals cannot make the purchase of or otherwise own real estate that is in the vicinity of military bases and other similar sensitive locations. It is important for a foreign national to pay close attention to these prohibitions so that he or she does not become involved in a real estate sales transaction that might need to be scuttled in the long run due to the location of the subject property itself.

When it comes to purchasing property in Turkey, it is vital that a very thorough title search be undertaken to make absolutely certain that the property is free and clear from an absolute and complete transfer to a purchaser. Turkish property is notorious for being encumbered by liens and other blemishes to titles. Therefore, it absolutely is imperative that a foreign national who is seeking to purchase and own real estate in Turkey obtain the services of a capable lawyer or solicitor who can work to ensure that the property is not encumbered.

The first step in the real estate purchase process for a foreign national (or anyone else in Turkey) is an oral offer on a piece of real estate. If the offer is accepted by the seller, a preliminary contract is drafted and executed between the buyer and seller. At this juncture, the buyer is obliged to place a deposit on the property. Generally, the deposit amount that is placed is between 4% and 10%. The deposit is non-refundable if the seller backs out of the deal without cause. (Cause for withdrawal includes a failure by the seller to provide clear title to the property or the seller abandoning the deal.)

The final contract for sale of real estate in Turkey actually is executed at the Land Registry Office. A new title or deed is then applied for directly at the Land Registry Office. The new title and deed usually will be issued to the purchaser of the real estate within about three months.

One final factor that a real estate purchaser needs to keep in mind when buying property in Turkey. Unlike virtually anywhere else in the world, earthquake insurance is compulsory in nearly all locations of the country. Therefore, a purchaser of real estate in that country will want to make sure that this expense is factored into the overall costs of buying real estate in Turkey. Generally, the costs of such insurance is not prohibitive when it comes to buying real estate in Turkey.

Property Abroad always recommends using a Solicitor or Lawyer.

In considering an overview of real estate in Austria, the most striking fact associated with real property in that country is the fact that overall the costs associated with real estate in Austria is higher than any other country in Europe. In addition, the cost of living in Austria generally is higher than any other country in Europe at the present time.

With this in mind, it is also important to note that the tax rate in Austria when it comes to the buying and selling of real estate in that country also runs rather high. For example, any capital gains that are experienced on the sale of real estate is taxed in Austria as regular income at the significant rate of 34%. There are exceptions to this taxation. First of all, a piece of real estate that is used as a primary residence is exempt from this tax. Additionally, all real estate that is held for ten yours or more is exempt from this taxation as well. Therefore, many people, including foreign nationals, hold on to investment real estate for at least ten years before turning around and selling the property for a profit.

Historically, Germans have been the primary group of foreign nationals that have taken to purchasing real estate in Austria.

Investment Property in Austria

As will be discussed in greater detail later, foreign nationals have a history of investing in real estate in Austria. In recent years, significant steps have been taken and made to streamline and simplify the manner in which foreign nationals can invest in real estate in Austria. This particular is true when it comes to foreign nationals from the countries that make up the European Union.

A foreign national that is interested in investing in real estate in Austria needs to keep in mind that the cost of real estate in that country is higher than in any other country in Europe. Thus, for the most part, individuals who find themselves investing in real estate in Austria tend to be a bit better heeled and tend to have a higher amount of disposable income.

The tax implications of buying and selling real estate in Austria also need to be kept in mind when it comes to a foreign national making an investment in real estate in that country. These implications are set forth and discussed previously .

Residential Real Estate in Austria – Single Family Properties

Foreign nationals do make the purchase of single family residences and dwellings in Austria with some regularity. Far and above, the greatest number of foreign nationals who are purchasing single family residences in Austria are Germans. Italians are coming in at second place with citizens from other EU nations coming in rather far behind. Of course, there are some people from other nations that are also making the purchase of single family residences in Austria.

Most people who are foreign nationals who are purchasing real estate in Austria are doing to to establish second homes. For the most part, these homes are being used as retreats and for holiday purposes .

Residential Real Estate in Austria – Apartments

Some foreign nationals have taken to purchasing apartments in various locations throughout the country of Austria. For the most part, these foreign nationals are purchasing these apartments in the more urban areas in the country. In addition, some foreign nationals are found to be purchasing apartments in some of the resort communities in that country.

Apartments in Austria do not necessarily come cheaply. Indeed, as has been referenced elsewhere, the costs associated with real estate in Austria tends to run far higher than what is found in other countries around the world .

Holiday Property in Austria

Austria is a prime vacation spot in the European community in this day and age. Indeed, Austria has been a haven for travelers and tourists for many, many years. With this in mind, a goodly share of the real estate that is trading on the marketplace at this point in time involves property that is intended for vacation and holiday purposes.

Many foreign nationals who are purchasing vacation or holiday real estate in Austria actually are finding these purchases to be rather lucrative. For example, these foreign nationals are buying real estate — purchasing vacation properties — that they then utilize in part for their own holiday purposes. However, in addition to using these properties for their own personal holiday purposes, many foreign nationals have commenced the practice of renting or leasing these properties to other people. It is this letting process that has proven profitable over the course of the past couple of decades for an ever growing number of foreign nationals.

Most real estate experts who have spent any time analyzing and considering the market in Austria have concluded that this trend will continue well into the future. Because buying and then renting vacation property has proven to be a solid and profitable investment for so many people, even more foreign nationals are attracted to such real property ownership all of the time. This factor, coupled with the tax benefits to be realized by holding onto real estate for a period of at least ten years, has rendered these investments truly sought after at this point in time.

Specific steps to buying real estate property in Austria

There are some restrictions on the manner in which foreign nationals can purchase and possess real estate in Austria. Indeed, historically there were some more significant steps that a foreign national had to undertake in order to be able to buy and own real estate in the country. However, in recent years, there has been a general relaxation in regard to the laws that govern foreign ownership of real estate in Austria.

The most significant changes and relaxations in the laws governing foreign ownership of real estate pertain to foreign nationals from the European Union nations. Simply, since the formation of the EU and since Austria’s reception into the EU, any foreign national within the EU can purchase real estate in Austria with ease. Indeed, for all practical purposes, at this juncture, a citizen from the EU stands in essentially the same position that a citizen of Austria stands when it comes to the purchase and ownership of real estate in that country.

When it comes to foreign nationals from non-EU nations, there remains one rather significant restriction on the ability of these foreigners to buy and own real estate in Austria. In short, before a foreign national from an non-EU can purchase real estate in Austria, that person must obtain permission from the local authority office in the locality in which the foreign national desires to make the purchase of real estate.

Generally speaking, approval from the local authority is easy to come by and will be granted in the vast majority of instances. Additionally, this approval normally is forthcoming in a very short amount of time.

Once a foreign national has identified a piece of real estate that he or she is interested in purchasing, an oral offer is made to the seller. If the seller accepts the offer — or, if the seller puts forth a counteroffer that is acceptable as such to the buyer — a purchase agreement is prepared. In Austria, more often than not, a solicitor or lawyer handles the affairs associated with the buying and selling or real estate.

As a matter of normal routine, the buyer will post a deposit in the amount of 10% at the time the purchase agreement is executed. The deposit will be held in escrow, pending the completing of the sales transaction itself. If the sale falls apart through no fault of the buyer, the buyer will have his or her deposit returned.

When the completion date rolls around, the seller will be responsible for making certain that all contract provisions that apply to him or her have been satisfied. More often than not this primarily includes making certain that the property is free from any encumbrances that might interfere or impede the conveyance of the real estate to the buyer.

At the time of the completion date, the buyer will need to have his or her financing in place and in order. At the time set for the completion of the transaction, the buyer will pay the remaining balance due and owing on the purchase agreement. Once this payment is made, ownership of the real estate will transfer by operation of Austrian law to the buyer. However, the new ownership of the real estate — the ownership of the buyer in the real property — will need to be registered with the Austrian Land Registry.

The process of fully registering the real estate with Austrian Lad Registry can take up to three or four months in some instances. It is not a quick process, more often than not.

When it comes to obtaining financing for the purchase of real estate in Austria, Austrian banks generally will lend money to citizens of that country and foreign nationals alike .

Property Abroad always recommends using a Solicitor or Lawyer

Perhaps it was the attention drawn to Greece when the Olympic Games were held there in 2004. Perhaps it was the entry of Greece into the European Union. No matter what the primary reason, Greece has begun to attract an ever growing number of foreign nationals who are investing in real estate in that country since the turn of the century. Indeed, to utilize an overused term — when it comes to real estate, Greece is hot.

The greatest deal of real estate activity in Greece involves property that is used for vacation or holiday purposes. In point of fact, some of the fastest moving real estate markets in all of Europe are those that are located in Grecian resort communities. Literally thousands of people from a wide range of different countries can be found snatching up real estate in one or another of the various Grecian resort areas.

Foreign nationals have also invested heavily in commercial properties in Greece, particularly in the larger cities in the country. This includes investment in properties that house retail operations and enterprises as well as office buildings. The demand for office space within Greece — again, particularly in the major cities — has increased dramatically since Greece became a part of the European Union.

Investment Property in Greece

Again, in the aftermath of the Olympic Games, many real estate analysts maintain that the country — particularly in and around Athens — has been overbuilt, at least to some degree. This is a natural result in the aftermath of the Olympic Games and other large scale events such as the World’s Fair.

In any event, this renders Greece an ideal locale for investment in real estate of all sorts — industrial, commercial, residential, holiday property. This factor, coupled with Greece’s admission into the EU, renders it a prime spot for realty investment. A significant number of foreign nationals have been attracted to the profitable Grecian real estate market at the present time.

Residential Real Estate in Greece – Single Family Properties

Low cost single family dwellings are rather difficult to find in the Athens metro-plex. If a person is interested in residential housing in that part of the country, the best bet at this point in time is apartments (which will be discussed in more detail shortly).

Understanding the functionality of the Athens residential market, there are a number of different areas beyond Athens in which single family residences can be purchased for a reasonable amount of money.

In addition, in different resort areas around the country there are some splendid (and pricy) villas and other properties that are attractive to well heeled foreign nationals who want second homes and holiday properties. With little difficulty on the hunt, a person with a bankroll to spend, can locate and purchase these types of homes.

Finally, there are farmsteads in different parts of Greece that are on the market. Some foreign nationals have taken to purchasing these types of properties which they then renovate and turn into magnificent second or holiday homes. Oftentimes, these properties can be purchased on the cheap and improved with only a moderate investment and expenditure. There are some foreign nationals who have taken to buying and then improving these properties after which they put them on the market and turn a tidy profit.

Residential Real Estate in Greece – Apartments

With the return of the Olympic Games to Greece, there was a boom in the number of apartments that were being constructed in that country, particularly in and around Athens — the site of the games. Once the games concluded, there was a general consensus that developers had overbuilt apartments in Greece, again particularly in and around the capital city.

With this said and understood the apartment market in Greece (most especially in and around Athens) truly has become one that favours buyers at this point in time. Consequently, many foreign investors have been active in purchasing apartment properties in Greece. Many such foreign property buyers have realized outstanding deals in the apartment market in Athens and in surrounding communities at the present time.

Holiday Property in Greece

As has been mentioned previously, the vacation or holiday real estate market in Greece is “hot.” Indeed, the demand for vacation real estate has continued to increase each and every year since the turn of the century.

The country of Greece is dotted with some of the most extraordinary resort, vacation and holiday destinations to be found anywhere in the world. Tourists from around the globe can be found flocking to Greece each and every year.

An ever growing number of foreign nationals have turned to purchasing vacation or holiday properties in different locations around Greece for two primary reasons. First of all, and as was noted, Greece is a very popular travel and tourist destination. Thus, many of these people are making the purchase of this type of real estate for their own, personal purposes. Through the ownership of this type of real estate, people — including extended families — can enjoy extended holidays in Greece.

In addition to purchasing vacation properties for their own usage, some farsighted individuals are purchasing this type of real estate so that they can then, in turn, rent or lease these properties to other individuals. Because of the large number of people who travel to Greece each and every year, this type of real estate investment is proving to be very profitable for a significant number of foreign nationals.

Specific steps to buying real estate property in Greece

On many levels, buying real estate in Greece — particularly if you are a foreign national — can be a rather complicated and sometimes confusing process. However, by understanding the process up front, and by understanding the various requirements and regulations that apply to foreign nationals seeking to buy real estate in Greece, a foreign citizen can successfully acquire property in Greece.

As a general rule, a foreign national actually can purchase real estate in most parts of Greece. However, a foreign national who is not from a European Union nation must obtain the prior approval from the local prefecture in certain areas in Greece: some regions of northern Greece, Rhodes and Crete. Many real estate agents aid foreign nationals in obtaining the necessary permission in these areas. Obtaining this permission from a local prefecture generally does not take a great deal of time and usually is granted without significant fuss.

Before anyone — a citizen of Greece, the EU or another foreign national — can purchase real estate in Greece, that person must first obtain a tax role number, known in Greece as AFM. This number is easy to get and can be obtained at any tax office in the country. The tax number can be obtained from these offices on the sport. Citizens of Greece or another EU nation need only show their government issued ID card. Citizens of other countries must show a passport to obtain the AFM.

Grecian authorities are very concerned about where a foreign national is obtaining money to purchase real estate in Greece. As a consequence, a person from another country interested in buying property in Greece will need to obtain what is known as a “pink slip” for wire transfers of money from abroad. The purchaser has to be able to demonstrate where the money is coming from and if he or she cannot, Grecian governmental authorities will consider any money wired into the country as income and will tax it accordingly.

In addition, money to purchase real estate in Greece must come directly from a Grecian bank and bank account. Therefore, before a person can actually make a purchase of real property in Greece, he or she will need to open a bank account. Provided that a person has proper documentation, and provided that a person has the pink slip to demonstrate the origin of the money involved, it is not difficult to open a bank account in Greece.

A public notary — who is an independent official — oversees the real estate purchase process. Once an offer is made on the property, a preliminary contract is drafted. A deposit of up to about 10% is placed on the property at the time this agreement is executed. (The deposit is not refundable unless the seller somehow disrupts or ends the sales process or unless clear title to the real estate cannot be had in the time allotted under the preliminary contract.) After the buyer obtains his or her financing, and the seller satisfies his or her own obligations under the preliminary agreement, a final contract is signed between the parties.

With the execution of the final contract, the ownership of the property will be conveyed legally to the buyer. The final contract is signed before the public notary. In addition, according to Greek law, the real estate agent or agents who have been involved in effecting the sale must be present for the signing of the final contract.

Property Abroad always recommends using a Solicitor or Lawyer

Being one of the first countries in the Soviet bloc to toss off the Communist yolk, Poland was well on the road to a more liberal economy with more participation by foreign nationals than other Eastern European nations were when the Iron Curtain fully collapsed. Foreign nationals have been investing in many segments of the Polish economy, including purchasing real estate of different types in the country.

Many foreign nationals have realized significant profits through the years by investing in real estate in Poland. Indeed, the buying and selling of real estate in Poland over the course of the past two decades has been brisk. Most industry experts who are watching the real estate market in the Polish Republic now believe that the buying and selling of real estate in Poland by foreign nationals will increase even more over the course of the coming decade. This will include activity by foreign nationals in the commercial, industrial and residential real estate markets in Poland

Investment Property in Poland

As just mentioned, foreign nationals have been very active in the Polish real estate market for the past two decades. One area in which foreign nationals have been fairly heavily involved is in investment real estate.

Since the Communist government in Poland was ousted, the government of Poland has been active in its efforts to bring foreign investment into that country. As a consequence, the government has encouraged foreign nationals to put their money into everything from commercial real estate enterprises such as office buildings, apartment complexes and other residential developments and even in the construction of industrial properties in some of the major urban centers in the country. The trend towards the involvement of foreign nationals in the Polish investment real estate market is expected to continue onward unabated according to analysts considering the economy and real estate market in Poland.

Residential Real Estate in Poland – Single Family Properties

Trade by foreign nationals in single family residential dwellings has been somewhat limited in the past couple of decades. While foreign nationals have been found buying single family dwellings in Poland, the demand by foreign nationals for single family dwellings has not been the most active part of the real estate market as far as foreigners are concerned.

With that said, there have been some foreign nationals who have family roots in Poland who have taken to buying a second residence within the country. Many of these people are men and women who had parents or grandparents driven from the country during the Second World War or during the period of time that Poland was part and parcel of the Soviet bloc.

There are many interesting and historic residential properties in some of the smaller and more rural communities in Poland. Some foreign nationals have taken to purchasing these properties. These residences do provide solid retreats from the workaday world and have been sought after by more well heeled foreign nationals who enjoy the challenge of renovating and remodeling real estate.

Some people from foreign countries have taken to buying these larger residences in rural locales and have turned them into inns which are being visited by foreign nationals on holiday. These types of inns are sprouting up across the country and are attracting more tourists into the country each and every year. In addition, this type of real estate investment has proven to be very profitable for foreign nationals .

Residential Real Estate in Poland – Apartments

The residential real estate market in Poland, when it comes to apartments and foreign nationals, has done brisk business in the past twenty years. Foreign nationals have been found snatching up apartments — primarily in Polish urban centers and resort venues — for three primary reasons.

First of all, with the Communists out and a more open, democratic government in place, many foreign nationals have come to Poland to do business. Many of these foreign nationals have found themselves within Poland on business for an extended period of time — and have found themselves making repeated visits into the Republic of Poland. In this regard, these business people have found it economical to invest in an apartment for their personal residence for the time they are present in the country on business.

Second, a notable number of men and women from foreign countries have purchased apartments in Polish resort communities. While the drive to purchase vacation or holiday property has been a bit slow in Poland — which will be discussed a bit more shortly — there are a growing number of people from foreign nations who have taken to purchasing an apartment in Poland for holiday or second home purposes.

Finally, there are foreign nationals who have purchased apartments in Poland to be leased or rented to other people, primarily other foreign nationals. These people, these foreign nationals who have purchased apartments for investment purposes, have done so to serve both people coming to Poland on holiday and people coming to Poland on business. By leasing apartments to business and holiday visitors, these particular foreign nationals have been able to generate a good income through the years through this type of apartment investment.

Holiday Property in Poland

For the first decade in which Poland was independent of the Soviet bloc, tourism into the country was not a booming business. However, as time has gone forward, more and more foreign nationals are making Poland a holiday destination.

As a consequence, more foreign nationals each year have purchased holiday or vacation properties — primarily in the form of apartments, but a growing number of free standing residences as well. Most real estate industry analysts predict that the number of foreign nationals who choose to purchase second home or holiday property in Poland will increase over the course of the coming decade.

Most of these experts anticipate that the biggest thrust will be in the purchase of apartments in resort communities in Poland. The experts maintain that these foreign nationals generally will be from European Union nations. There has been an increase in foreign nationals from non-EU countries who also have found themselves attracted to resort real estate in Poland at this point in time .

Specific steps to buying real estate property in Poland

A foreign national is permitted to purchase and own real estate in Poland. With that said, a foreign national must obtain the permission of the Ministry of Home Affairs of the Republic of Poland in advance of purchasing real estate in that country.

The application process before the Ministry of Home Affairs is not a particularly complicated process. Indeed, there are lawyers in the country that specialize specifically in this application process due to the growing number of foreign nationals who are buying real estate in Poland.

A company in Poland that has over 50% foreign ownership must also obtain permission from the Ministry of Home Affairs before that company can purchase real estate in Poland. Again, the application process for a company is not particularly complicated.

There are some restrictions geographically as to where a foreign national actually can purchase real estate in Poland. The Polish government restricts the ownership of real estate on the so-called Polish frontier. It is important for a foreign national to make certain that the locale in which he or she intends to purchase real estate in Poland is not within one or another of these restricted zones.

Approval from the Ministry of Home Affairs to purchase real estate in Poland generally is good for a period of six months. A person can apply for an extension when the initial period expires.

Once permission to purchase real estate is obtained from the Ministry, a buyer of real estate makes an offer to a seller, which will then be memorialized in a preliminary contract or agreement for sale.

Following the signing of this initial contract, the buyer is given a specified period of time to obtain financing. Additionally, the seller is obliged to make certain that the title to the real estate is clear and capable to being conveyed to the buyer during this time period.

In most instances, the buyer is required to post a deposit at the time this initial agreement is executed between the parties. More often than not, the deposit is in the amount of 10 to 15%.

The real estate purchasing process comes to an end when the parties execute the final agreement for sale and conveyance of the real estate. A new title is prepared, placing the real estate in the name of the buyer. The title is then filed with the government.

Once again, a foreign national does need to keep in mind that prior permission of the Ministry of Home Affairs is required before a foreign national can purchase real estate in that country. It is vital to keep in mind that if permission is not obtained by the Ministry in advance of the purchase of real estate, the transaction will be voided and the purchaser will lose his or her interest in real estate — and his or her money as well Property Abroad always recommends using a Solicitor or Lawyer

• ISBN13: 9780910627696
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The Real Estate InvestorÂ’s Handbook is a must-have for beginning investors, real estate veterans, commercial brokers, sellers, and buyers. Real estate investing has created more millionaires than any other investment vehicle in this country. This comprehensive step-by-step proven program shows beginners and seasoned veterans alike the ins and outs of real estate investing. This book is a road map to successful investing in real estate. You do not need to re-inve… More >>

The Real Estate Investor’s Handbook: The Complete Guide for the Individual Investor

Of the ten newest members of the European Union, Hungary has the fastest growing economy. As a result, those foreign nationals that took advantage of the liberalization that has begun to occur in the real estate laws of that country have enjoyed a profitable status over the course of the past three years.

Interestingly, the largest block of foreign nationals that are purchasing real estate in Hungary are from Ireland. The remaining groupings of foreign nationals tend to come from some of the other European Union nations.

The Hungarian national government has made a consistent and concerted effort to attract foreign investment into that country. In this regard, the government of Hungary has worked deliberately to liberalize the real estate laws in that country to make real estate investment and other types of economic involvement in Hungary more attractive to foreign nationals.

Investment Property in Hungary

Many foreign nationals have joined together with Hungarians in a whole host of different types of real estate investment enterprises. These trans-national joint ventures have been found in a wide array of different types of real estate holdings. For example, multi-national partnerships have been formed in the industrial, commercial and even residential real estate arenas.

Most real estate analysts that are familiar with Hungarian real estate market recommend that a foreign national interested in investing in real estate in Hungary should look to older properties in more established neighborhoods or zones. This recommendation holds true whether a foreign national is seeking to invest in commercial or residential real estate.

These real estate experts and analysts are reporting that the appreciation of these older properties are appreciating significantly, after undergoing a modest amount of rehabilitation after being purchased. Indeed, these analysts report that the value of these older properties — both commercial and residential — are appreciating upwards to 30% annually … an incredible return.

The Hungarian capital of Budapest has derived the greatest amount of foreign investment in real estate in the past decade. Because the Danube River runs right through the city, a river that is an important European waterway, the capital is a natural for real estate and related types of investment.

Residential Property in Hungary

When it comes to single family homes, as has been touched on previously, those homes in more established neighborhoods — older properties — generally are more solid investments for a foreign national. The value of these properties — following even only a modest amount of remodeling work — rises a substantial amount each and every year. Currently, the value of these types of house is increasing in value at the rate of 27 to 30% each year.

There are some newer housing developments on the drawing board and under construction in different parts of the country. While there are some attractive points to these properties, as a rule, these homes — once completed — simply are not appreciating in value as are the older residences.

Residential Real Estate – Apartments in Hungary

The demand for apartments in Hungary is very strong in this day and age. Foreign nationals make up a considerable portion of the number of people who can be found purchasing apartments in Hungary during the course of a given year. Additionally, and interestingly, the Irish make up the most significant block of foreign nationals who are buying apartments in Hungary.

For the most part, foreign nationals have be found investing and purchasing apartments in the more major cities and urban areas in the country. With the entry of Hungary into the EU, coupled with the strong economy of the country in recent times, a growing number of foreign nationals are drawn to the company for economic and business reasons and purposes.

In this regard, when foreign nationals are found to be entering Hungary for business purposes, these men and women are taking to purchasing apartments for their housing needs. In the brisk apartment market in Hungary, the costs associated with these units is moderate when contrasted with similar apartments in other cities in Europe. Indeed, apartments throughout Hungary generally are classified as affordable when contrasted with the overall residential real estate market in the European Union in the 21st century

Holiday Property in Hungarian Holiday Resorts

In many ways, the 21st century has represented the true dawn of the tourism industry in Hungary. During the 20th century, tourism really was not a top industry in Hungary. Indeed, not that many people around the world included Hungary on their list of must-visit countries.

Since Hungary’s passage from communist control, since Hungary broke free of the Soviet yolk, there has been a significant increase in the number of people who now are making Hungary a destination point for holiday travel. Many people are beginning to appreciate the true historic splendor that is Hungary.

A number of foreign investors have come together in the development of resort properties for travelers to the country. In addition, a growing number of foreign nationals (again, with the Irish coming in at first place) have taken to buying apartments which are being rented to travelers who intend to spend an extended period of time in Hungary.

Not only are these apartments being developed in the urban areas of the country, but a number of such developments have been undertaken in some of the more rural areas of Hungary. Many foreign nationals have found themselves attracted to the placid lifestyle and serene beauty of these more rural regions in the country.

Specific Steps to Buying a Property in Hungary

Hungary left the Soviet and communist era behind with a much stronger economy that had other nations that formerly were kept behind the Iron Curtain. As a result, Hungary has continued to enjoy an economic advantage over many countries in Europe in recent years. Most financial analysts and economic experts maintain that Hungary will enjoy a GDP that will exceed by 50% annually over what is being experienced in other EU nations over the coming few years.

One sector of the overall Hungarian economy that has been experience significant growth and activity is the real estate market. Thanks to efforts made by the Hungarian government to liberalize and streamline its real estate laws, including those laws that pertain to foreign ownership of real estate, more and more foreign nationals are investing in Hungary.

Historically, foreign nationals could not invest in real estate in Hungary. However, at this juncture, a foreign national can invest as an individual in real estate in Hungary. With that said, prior to making the purchase of real estate as an individual, a foreign national must obtain permission from the Hungarian Land Registry to purchase real estate in that country. Again, this step must be taken only if a foreign national intends to hold title to real estate in Hungary in his or her individual capacity.

The process of preparing an application for the Land Registry is a simple matter. With that said, there can be up to a month’s wait before the Land Registry will act on an application to purchase real estate.

Some foreign nationals forgo the Land Registry application process by establishing a limited liability company in Hungary that can take ownership of real estate without the requirement of registering with the Land Registry Office. A competent lawyer in Hungary can complete the documents necessary to create a limited liability company within a day — and can have them filed immediately with the appropriate governmental authorities.

Once a foreign national determines which route he or she will take in regard to the purchase of real estate in Hungary — with as an individual or through a limited liability company — the next step in the real estate sales transaction process is the execution of a preliminary sales agreement. Generally the buyer is obliged to post a deposit at this juncture, usually in the amount of about 10% of the overall purchase price of the real estate. After the initial agreement is signed, the buyer embarks on obtaining his or her financing while the seller makes certain that the property is capable to being legally conveyed to the buyer, makes certain that there are no legal encumbrances attached to the real estate. The seller must make certain that the buyer can take possession and ownership of the real estate free and clear of any impediment.

The last step in the real estate sales process is the execution of the final sales agreement and the conveyance of the deed from the seller to the buyer. The deed will then be registered with the Land Registry Office which will make necessary changes in the legal records pertaining to the property to reflect the new ownership of the real estate.

Overall, the real estate sales process in Hungary has become significantly easier to undertake in the course of recent years. Whether one is proceeding as an individual or through a limited liability company, a foreign national can purchase a wide range of different types of real estate in the country in the 21st century.

Property Abroad always recommends using a Solicitor or Lawyer.

Buying home, condo or any other real estate in a market that is protected from a bursting bubble is every investor’s dream. Knowing where to look for these bubble-proof markets and how to identify them is crucial.

There are some important factors that investors should consider when searching for stable investments such as single-family homes, condos or any other type of real estate. Some of these factors include a fast growing population (which positively impacts the demand for housing), a solid and diverse economy (which impacts employment rates and subsequent demand for housing), rising incomes (which impacts buyers’ ability to purchase real estate), a developing infrastructure (which contributes to the appeal of a city or community), and restrictions on future real estate development (which limits future supply of real estate). Investing in real estate within communities that meet these criteria may prove to be more profitable than communities that are missing one or more of these factors.

A recent report by Business 2.0 Magazine identified U.S. cities that have consistently demonstrated price appreciation in the real estate market. The October 2006 issue of the Magazine identified the top 5 real estate markets that demonstrated an upward price trend over a long period time. The top-ranking cities were:

1. San Francisco, California
2. Los Angeles, California
3. Seattle, Washington
4. Boston, Massachusetts
5. New York City, New York

San Francisco topped the list with an average annual home price appreciation of 4.2% from 1949 to 2006. In contrast, the national average was 2.3%. Strong restrictions on real estate development and a limited geography helped push San Francisco to the top slot.

Los Angeles ranked second in the report. The average annual home price appreciation in Los Angeles was 3.7% from 1949 to 2006. Reductions in available land and increasing restrictions on further development helped pushed Los Angeles to the number 2 slot.

Home prices in Seattle, which was third on the list, demonstrated an average appreciation rate of 3.2% from 1949 to 2006. While Seattle made the top 5 list, recent easing of building restrictions may cause Seattle to fall out of the top 5 over the next few years.

Boston was fourth in the rankings. The city has seen annual home prices appreciate by 3% over the period from 1949 to 2006. A strong increase in per capita income contributed to Boston’s high ranking.

New York City follows close behind with an average annual home price appreciation of 3% from 1949 to 2006. A limited geography, large population, and finite number of properties contributed to New York’s high ranking.

While there is no guarantee that any of the real estate markets listed previously are truly “bubble proof,” the factors described above may help investors find the profitable markets and avoid “bubble” markets. Since the real estate market is constantly changing, be sure to seek out the services of a skillful real estate agent to help you navigate your next real estate purchase.