From an inheritance I have the above sum to invest.

I am looking for an investment where I have a fair chance of doubling this in a 5-6 year period and am fully aware that this will come with an element of risk.

I am not looking for a lifestyle property or somewhere to retire to and frankly I´d be very wary of any place that was promising 30%+ growth per year.

Ideally I´d like to buy outright and have the property let and managed with minimal input from me.

Suggestions?

As I said in the earlier post as an answer to Pilliam an element of risk is always going to exist when these levels of capital growth are mooted. However, you have taken that on board.

Capital growth over 5-6 years of approximately 100% should not be an issue in a decent emerging market. However, dont forget that if there is no yield offsetting opportunity earnings on the cash it will erode your real term return quite substantially.

Countries like Egypt certainly offer strong rental yields and even discounting claims of 10-15% returns, 7% pa will give 2-3% spreads over deposits. Now your annual capital growth is real world.

60k euros will buy a 1 bed apartment close to or on the beach on the Red Sea or act as a deposit in more expensive locations in Europe.

Cheers

Rick

Hi Brian,

As for Egypt if you buy a key ready property, you would appear in a train that already missed the potential of price increase I would say. On the other hand, if you wish for higher rental yields you would look at something within a complex with facilities and developed infrastructure. The price of such key ready properties would be also much bigger.

If you have 5-6 years for your investment, consider buying something off-plan that is due to be completed in several years - you will already have your property value bigger before the completion. You will also not need to throw all your money at once but in installments. After completion let property management company rent it for you.

Ideally you can buy a key ready property and property in an offplan project separating your budget - this will let you get rental yields from one directly and capital gain (which is not taxed in Egypt) plus rental yields from the other.

__________________
Violeta Telich
Tel: 002 010 004 1887
sales@horizonredsea.com

In 2008 I suspect asking for the impossible!!

All property investments have to be managed.....using your 60,000 € as a deposit on a Polaris World 2 bed maisonette at Condado de Alhama cost 119.800 € ...get a mortgage for the balance
Ready in 2 year....circa 2010
Let it yourself...golfers in winter and family in summer....to make a good return you need to work at it...or use the PW agency
Safe as it is in a modern economy and it is a ' legal' property so money not at risk

Even enjoy the odd week yourself

As good a chance as any other location of getting a very good capital appreciation in say 10 years.....circa 2018....8 years after you buy

Nothing is certain in property or life........but for your money this is perhaps as good if not better than anything else
We are in a credit crunch....so safe bets are the best.....long term Spain has the life style which is easily reached by most of northern EU and Russia etc .....so when property markets world wide start moving again....say circa 2010....Spain will move with them

I back my views with buying in Spain....but do not expect profits until 2010

If anyone tells you that they will guarantee a rental...it is built in to the price!
No one can guarantee capital growth!
Condo's are not proved as an investment outside USA
Part shares are just...big timeshare....resale market not proved in EU

if you buy in the best locations for ' life style buyers' then you are buying in a location where there will be ' a demand' when the time comes for you to sell!!!

__________________

Brian Rowlands BSc FRICS
Chartered Surveyor & Overseas Property Agent
www.bbspanishproperties.co.uk

I have to say i think a golf property wouldn't be the way to go. There are so many in the Costa s especially if it isn't a life style purchase. And the maintenance, management and community fees would eat into the profit.

I think you would be better off in Berlin with a good steady rental guarantee.
I myself would go for Tirane (Albania) , Moldova(Land) or Egypt but if i was going to invest here i would invest in a resort that would be the best around, best views best facilities, a luxury hotel. One that will definitely get the rentals as oversupply is inevitable at some stage and it may be hard to sell like every sunshine destination at some stage.
Taking your time is the key to investing. I know a great deal about investing. I have worked in the industry and i have a few investments but i'm still learning more and more every day.
Do yourself a favor and stay away from big glossy brochures.

Mick, the problem with Germany and what people are not identifying is you must keep the property 10 years other wise you will have a minimum of 27% Capital Gains tax or a possible 42% which will greatly erode any capital gain of which is alredy limited and geared more towards rental return

Totally agree with you in relation to life style properties such as Golf Courses. In the early days some made money on dream over seas properties, but those days are gone and investors should focus on pure economics witha good located property that will rent on yearly contracts so they will at least have sanctuary of receipt.


David Howe

Investment Romania - Property Romania, Invest Romania, Investment Romania

Welcome BrianC.

The brief you gave leads me to think you may be better being part of a syndicate than buying a far away property that you will have difficulty managing if your team on the ground let you down (property manager, leasing agent, etc.)

Here’s a quick note on 3 alternatives to buying bricks and mortar that may suit your needs.

1) Some developers provide savings accounts with British Building Societies. These accounts offer in the region of 17% to 20% pa (net.) Your money is tied in for a period (normally 2, 3 or 4 years.) During that period your money doesn’t leave the account, but you will see the developer adding interest every month. Normally the account will be in the developers’ name, but they won’t be able to take the money out. (Condition of account is that money can only be returned to those putting money in – though this is clearly something you would want checked by your solicitor if going down this route.)

2) Some developers offer a ‘guaranteed’ return if you are prepared to lend them money for a year or more. Perhaps the most well known example of this is Midas PLC. They have a 12 month offering of 25% and land for one of their developments is used as security for your stake. This is a little bit riskier than (1) above, but provides a hands free means for you to reap a 25% return each year.

3) Closed ended property funds / syndicates. Until recently this was the preserve of the rich and it would have been tricky to be part of with 60k Euros. That’s changed. These funds/syndicates are set up for like minded individuals to club together and act together. The basic principal is that you are providing the financial backing to property experts. They use this money to acquire land/projects where they can add value through planning permissions, build process, etc. These types of investment typically look to provide returns from around 20% to 50% pa, though some have delivered much more.

You’ll have noticed that some of the posters have vested interests (working for agencies or perhaps surveyors working in particular markets.) I too fall into that category. I act as an introducer for friends (real and cyber) looking to make the same investment I made with Oxford Management – a company that provides funds focussed on Easter Europe.

Soup, can you give any names of companies offering the high rate savings accounts as in your first option above?

Many thanks

__________________
Been investing abroad a few years. Always amazed people invest in places that produce just a few months rent per year

I can only tell you to buy something already "build", not offplan....
And plan a week at least on site to check the area, the location and so on.
Often 200 mts here or there make the difference !
I had an awful experencie with bulgaria, not yet finished....
If you want suggestions regarding Italy I can give you more, as I'm italian.
take care
Daniela

Hi Investy. Last time I looked Churchill Overseas were offering circa 50% net over 3 years with the Yorkshire BS.

I think I've come accross another in the past through TheMoveChannel, though didn't look into it.

Know Goldberg Global have some guaranteed return offerings, but I don't know if your money would sit in a bank account as described in (1) further up or would be more like description in (2.)