PROFIT BIG ON STILL STRONG DEMAND FOR HOUSING IN SOUTH EAST OF EUROPE -CONSTRUCTION AND PROPERTY MANAGEMENT
Despite economic crisis real estate market in SOUTH EAST EUROPE is still going strong due to severe shortages of affordable housing (private sector can match less than 7% of the total annual demand in this part of Europe )
small housing units are pretty much in demand in all major urban centers /respective nations capitals throughout the region
home mortgages are not popular means of purchase -its mostly cash based economy
parking space is also pretty much in short supply in most regional capitals so such properties are also subject of same if not even higher demand and prices
For this part of economy average return per investment is between 20%-45% which depends of locations and taxes (local or federal) and price of land where the property will be built
prices are based per square meter of the property (same for housing and parking spaces)
there is 3 ways to build a housing estate or to profit on it :
1 .self finance from purchase of the land to construction itself
2 .partial finance -basically buying suitable land and securing all permits and then making a deal with construction company to build the property for percentage of housing space when the building is finished , registered and license for use is obtained from local authority
3 .re -selling contract for suitable land and all the permits for construction to another investor
advance of the 3 rd option is quick turnover and almost double profit if the land and permit are related to a good part of the city or are in developing urban agglomeration with close proximity to schools /shopping malls /offices
office space is not in demand at the moment
Luxury housing is also on demand ( depends of the desirable area in respective cities luxury properties could be sold and traded for much higher prices than similar or same properties would normally be sold in say Beverly Hills or Manhattan !)
reason why real estate is still going pretty strong is actually very simple ..large portion of the population is working and earning income in WESTERN EUROPE/USA/CANADA/AUSTRALIA
so basically ex pats/immigrants are pouring money from abroad back into local construction business and keeping demand high
(on average about 4-5 billion dollars comes from than source alone for each of the countries in region !)
also on average 10% to up to 30% !of working population from SOUTH EAST EUROPE works abroad in above mentioned countries
BUYING AND SELLING PROPERTIES
buying and selling properties in SOUTH EAST EUROPE also offers huge profits and fast returns on investments but its done with the certain “east European twist ”
For example there is a way to buy property trough of so called “for life income support in exchange for property” system .
System as such is perfectly legal and is covered by law and contractual obligation like any other business agreement
It was crated during the 90s when lots of home owners has seen their pensions and savings diminish during the transition from communist type of economy to liberal capitalism and their living standard stagnate
,in order to make ends meet and to have enough money for basic necessities in life homeowners with no families or close relatives (mostly older citizens ) started to look for investors willing to pay them certain amount of money as a monthly stipend in exchange for property ownership
So if the initial agreement is negotiated , investors would make a written contract with the home owner for certain property and documents will be signed and verified with the court
Such agreement is binding contract between two parties and in the case when property owner dies investor becomes owner of property with full ownership rights such as to sell or use the property by himself even if by chance some relatives or close family of deceased might stake the claim on the same property in the court of law ( courts in SOUTH EAST EUROPE use “continental law ” based on the strict law amendments unlike US laws which are based on legal court room practice and individual legal cases precedents )
After documents are signed between parties and verified in court of law investor has an obligation to pay monthly stipend each and every month to a home owner during his lifetime .
When home owner dies investor takes over the property by submitting his contract with deceased to the court which in turn declares him a rightful hair of the property
Amount of money is calculated individually between parties but usual measure is net average income in the region (at present average salary in the region is around -350 dollars)
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Its also possible to buy derelict properties and to renovate to be re-sold (house/property flipping ) but that’s bit time consuming because of usual ownership issues (contact me for more details )
IF INTERESTED CONTACT ME ON : kolyarodici@yahoo.com
MY LINKEDIN PROFILE : http://www.linkedin.com/pub/kolya-rodici/56/8b4/b09
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