Thanks for all the advice. I really appreciate it. Is Berlin the best city in terms of rental return on the value? Does anybody know of anywhere where the rental return is better? It's an income I'm looking for, any capital growth would be incidental.

In E Germany yields of 8% + were available, however now a more realistic yield is 5 - 6% as a result of a big influx of investors.

Ive looked at just about everwhere on the planet for the fabled yields you mentioned but have found that fundamentaly 5 - 6% applies everywhere.

A freind of mine who like me had invested in Germany and Morocco does achieve 15% but to so do he lets rooms in the UK on a cash basis and has to be hands on 24/7. He also has to shall we say 'skirt' the rules a little.

To be honest Im not sure I would go to all the bother of buying abroad in order to achieve a better yield than the UK offers as other hidden costs such as airline fares and translations will eat into the bottom line.

Even if u do find a high yielding zone you can be sure investors will spot it and the yield will quickly tumble to 5 - 5%.

BTW, shares in UK 'Dawnayday Treveria' which solely invest in German property just paid me a 5% dividend in thier first year trading.


Im now also buying a villa in Morocco on a site tipped to become the next St Tropez. I always holiday in villas and I can tell u well located property commands very very high rentals. Even a basic villa in Menorca or Sardinia (in non chavvy bits) will set u back £1000 per week absolute minimum, although £1500 is more like it.

2 bed Appartment built right into islands within the golf are typically £100000 but keep in mind is likely to be one of the best resorts anywhere in the Med, so I think prices will rocket, in fact I cant see people wanting to sell so supply will be very restricted.
Mortgages are comming on stream. Big British prescence so on - going management a lot simpler than in say Germany.

I expect this new site in Morocco to be year round as it has Olympic sized sports complex, the biggest marina in the Med and three 18 hole golf courses all in the one complex plus shopping centres etc etc.

The developer has declined a rental guarantee of 6% as they think they will be able to secure 8% yield. They are in negotiations with James Villas as well as others.

Ive no idea what the rent will be but the Government predict 500000 visitors per year by 2012, yet there are only 3000 private properties and no more building allowed for 15 years. Income tax doesnt apply for first 5 years. Multiple on site rental agents.

Some property here is almost completed (Fadesa built).

I like the fact you pay 40% now and the balance in 2 - 3 years time as your relatively low capital input is exposed to capital growth based on the full value now.

Im thinking the yield could be pretty hefty, but as ever no guarantees.

Thanks Investy

My concern about holiday lets is that I picture myself on the end of a telephone line with a diary filling in bookings etc. Are there companies in places like Morocco that will take the whole thing off your hands; ie market the place, take the bookings, clean it etc? How well do they keep places full throughout the year and so on?

rjbevan

Your concern is well founded and noe far to many investors overlook. Its all very well seeking out bargain property on small one off developments in Morocco but the rental and management side of things could be challenging.

Thats why I want for the Governments Plan Azure showcase development at Saidia. Such a vast prestigiuos development will attract larger more professional letting aganets and dont forget there will be several on the one site, so competition to produce results will be robust.

Legnth of season IMO will surpass most if not all other European / Med destinations. Golfers who make up a significant market sector will love the fact they can fall out of thier appartment right onto the fairways and have a choice of three 18 hole superior courses in one site on a beach - almost unheard of.

I have been reading these threads for a while as I am researching where to buy property. I am really interested by your comments (Investy) on Morocco. Can you tell me which resort/marina you are talking about please?

Property Chimp Im investing in 2 Plan Azure sites, the first is Saidia, the second is Port Lixus.

Plan Azure simply refers to the Government planned sites, which the King is heavily involved in. There are 6 Plan Azure sites.

As always I like the opportunity emmerging markets offer however I seek to minimise risk. Buying Plan Azure ensures risk is an absolute minimum.

The first site I bought in - Saidia is truly something completely out of the ordinary. In the Mail on Sunday it was reported 240 properties here were sold to Premiership footballers including the Neville Bros and J Terry. Property ranges from £80000 and up but please please understand this is not like buying into a non Plan Azure site - you get waht you pay for.

Im an convinced these sites will become very hot property with waiting lists whereas the non Plan Azure stuff will largely be all much of a muchness as they dont have Royal / Government involvement to the same degree.

Hi Investy

Are you buying these villas off-plan or are there places to buy that are already built and ready to let?

rjbevan

One is an off - plan villa, the other a hotel suite in a 5 star complex - again off - plan.

Why I prefer offplan:

The beauty of offplan is I only part with relatively small amounts of capital and then enjoy 3 years capital growth based on the full property value. So say Ive put £30000, that means Ive lost interest on £30000 at the cost of c£1000 per year (net of Tax), however I expect the value of the villa (which I paid £170000 for) to double by the time its built.

The hotel suite is only £75000, yet front line beach - and I mean right on the ocean with no road or anything in front. Such real estate is highly sougtafter.
For example a smaller studio directly on the ocean in Tenerife on a 5 star golf complex (like the Moroccan one, but the Moroccan one will be more luxurios - Arabs like to outdo everyone else), will cost you 3 plus times that sum, and when u think Morocco is 1 hour closer and far far better beaches.....

The initial deposit on the hotel is 1000 euros. 20% (ie £14000) will be due in a few months time, then another £14000 next year.

I can sit back and enjoy 3 years growth until the place is built yet my input is costing me very little (actually nothing if I fund with 0% credit cards!!!!!)

Could anyone give me some general info on Germany and investment options?

Also, what countries/regions are germans mostly interested in to invest abroad?