Originally Posted by kk1974

Hi Grm

I wondered that my self for a little while, and this is my conclusion:

1. The returns are really poor, and there is so many better opportunities around. - that is sure and true
2. Government planning laws are not very favourable for developers. this also is partly true but also depends from place to place, case to case
3. Bureaucracy is a killer -also yes, but also changing and getting simpler
4. Your net rental returns will struggle to pay your mortgage (if you can get it as non-resident) - also depending really on location, but I agree, is hard to find profitable system if investment is full mortgage

To give you an example, you can buy land in Provence for 80eur sqm (great location), it will take you around 2-3 weeks to get planing.
In Croatia, you will struggle to find land for that price at equal location, and you will need around 2 years minimum to get your planning, if you are really lucky.
I heard of such delays many time, but also lately can be done in few months, I managed in 2 months, not on seaside but still...
In regards to renovation, its very messy job and still not profitable enough from someone from UK for example to go there, when they can make same amount of money at home.

With hotels, its very tricky. That can work out only as a small family business, and you will struggle to bring a big operator to run a hotel with less than 100 keys. If you bought a building, renovated it, whom will you sell it to for significant profit to make it worthwhile? There is no exit route.
small family business facility I had in mind, as Croatian goverment is financing part of the investment and giving programmed financing support/credit as still more than few hundreds small hotels are needed on the Croatian coast. Your remark of no exit route can still be true but, but if there is market for booking small hotels, should be a market to sell it also.
I had number of serious investors from UK looking at many diferent options, and at the end we left it. It was just not worthwhile.
I have some friends in UK, they are in estate industry, but they came to similar conclusion like you, so must be true
At the moment, Croatia suits someone who would like to buy a holiday home, and still get some money to pay most of the mortgage.

If you look to make money, there are much better places around.