.

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

hi , you speak a lot of sense.

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

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

is there still any investment potential in bulgaria??

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

what about the first part of my question

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

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

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

Mick David Stanley Redfern Ltd have a deal with a major German bank and are offering 70% LTV mortgages in Berlin, but apart from that you're spot on.

As for my answer to the threaded question:

I think the biggest property hotspots for this year have got to be Cambodia and the Philippines, the Philippines especially because you can buy there whereas Cambodia is 99 year leasehold unless you set up a company with Cambodian partners -- although the law should be changed to allow freehold in Cambodia before the year is out.

The strengths of these two countries are they have started at absolutely rock bottom, Cambodia because of the Khmer rouge rule and Philippines was worst affected by Asia's economic crisis.

This means living costs and property prices in those two countries are lower than anywhere else in Asia. This makes them attractive to multinational corporations, which are currently starting to stream into both Manila and Phnom Penh.

Manila is attracting high end retail chains and manufacturing companies to set up big branches. Whereas Phnom PEnh is attracting multinational banks, and manufacturing companies to set up SE Asian hubs. This is because the Cambodian education is better than you might think, and the fact that the Khmer Rouge's attrocities mean most of the Male population is under 25. So Cambodia has a young energetic workforce, and there is a drive from the education system up to see the country grow.

Tourism in Phnom Penh and Manila is not as developed as in Thailand and Malaysia but it is growing fast. Take David Stanley Redfern's French Colonial Apartments Phnom Penh, which come with a 10% guaranteed yield for the first two years, they are on a 99 year leasehold tenure but the contract states that freehold rights can be purchased for a dollar should the law change.Prices start at £50,000 for a 1 bed.

Our Atrium towers in Manila are freehold but have the option of leasing the apartments back to the rental management company, for an estimated yield of 8% to begin with and rising in the coming years. Prices start at £27,000

Unfortunately finance is not available as yet in either of those two countries, but prices are still fairly low. Speaking of which, Cambodia's capital appreciation is solid and proven to be 24%. Based on people buying an apartment and selling it 6 months later for a 12% more than they paid for it, this has happened several times over longer periods the price appreciates more, and shorter periods less appreciation, but all averaging out to make it 24% per year solid.

If you are after a country to invest in and need finance then I would suggest Malaysia. It's growth is fuelled by its incredibly strong tourism market, which is growing by 20% year on year. Malaysia has just abolished capital gains tax, there are no restrictions on foreign ownership, no inheritance or gift tax and property owners automatically gain residency to the country. Plus, as I said you can get 70% LTV mortgages from MAybank or a choice of western banks such as HSBC.

This is because Malaysia's banking system is one of the most advanced it Asia, its advancement has been made easier by the fact that much of Malaysia's legal and judicial systems are left over from the British colonial era. This also makes it easier for brits to buy property there, especially if they have bought in the UK; the laws are almost identical and all contracts are in English. Rental yields in Malaysia's popular tourism and growth areas, namely Kuala Lumpur and Sabah Borneo are also between 8-10%, you can find guaranteed yields of 7% in Sabah.

Mark my words the Philippines starting with Manila, and Cambodia starting with Phnom Penh are going to be big in 2008-09. IN cambodia's case: especially if they de-restrict the foreign buying process. Malaysia is already big, but I forsee it will only get a lot bigger. Again mark my words, a 1 bedroom villa like David stanley Redfern's Nexus Residencies, managed and serviced with a 7% guaranteed yield, which now costs £115,000 will be worth at least £140,000 this time next year, and has a good chance of being worth more than £200,000.

Feel free to make a note of my predictions and make fun of me if I'm wrong, but don't forget to congratulate me when I am proven right.

Liam Bailey
davidstanleyredfern[dot]com

Wow thats great info. Do you know the typical buying costs and CGT of the regions.

Very good info Mick I didn't think Cambodia was on the investment map yet,what does anybody think about Libya?,I do have slight reservations here.