Bulgaria named current hotspot

www.fly-2let.co.uk, 2006-06-23

     Bulgaria is the current overseas property hotspot, property investment company Assetz has concluded. Its latest hotspot reports shows the country strengthening its claim on the accolade with estimated return on cash investment rising from 116 per cent in March to 137 per cent currently. ‘Borrowing is now also cheaper than it was in the spring, with mortgage rates having fallen from 7 per cent to 5.95 per cent. Deposits required have also dropped from 30 per cent to 25 per cent, meaning greater gearing and bigger returns for investors’, said the firm.
     Greece is now showing positive price growth, with house prices having risen by 7.9 per cent over the last 12 months, according to Assetz. ‘This brings the total return on cash invested from 2 per cent previously to a much more respectable 25 per cent’.
     It also reported ‘excellent first half’ for Poland's property market with price rises of between 20 per cent and 30 per cent. However, investors in US property, where prices are up 12 per cent on the year, have faired less well. This is because the value of the dollar has fallen from $1.75 to the pound to $1.88 – equating to a near 7 per cent loss of capital for British investors who bought there for cash or remortgaged their UK home in order to buy. However, those who took out an American mortgage will be less concerned, as the sterling value of their debts will have fallen by the same amount, said Assetz.
     With capital gains of 12.8 per cent, Spain is also still in growth mode, albeit at a slower rate than in 2004 and 2005, reported the firm.

• South Africa and Indonesia are well placed to become the next powerhouse economies following in the footsteps of India and China. Both countries have massive low cost workforces, improving economies, and have been successful in attracting inward foreign investment over the last few years, the global credit insurer Atradius has reported.
• Australian property owners should expect a further slowing in residential property price growth over the next three years, industry analyst and forecaster BIS Shrapnel has warned. Exceptions will be Brisbane, regional Queensland and regional New South Wales centres, which will grow ‘modestly’, it said.

     ‘Sydney is currently the most expensive Australian capital and will significantly lag the national recovery, placing buyers in a very strong position to bargain’, reported BIS director of building and construction Robert Mellor. ‘Regional centres have been attracting increasing numbers of home buyers due to a lower median house price compared to capital city markets. This solid demand will now support modest price growth’.

• A third of Britons hope to move abroad when they retire, but far fewer actually manage to do so, Engage Mutual Assurance has found.

 More than half of workers (53 per cent) are planning to spend their kids inheritance on travel in retirement, said those questioned by the child trust fund company. A third (36 per cent) hoped to buy property abroad and one in ten (10 per cent) wanted to spend time skiing and snowboarding.
     ‘Unfortunately retirement does not always match up to expectations’, said the company. ‘The majority of workers planning foreign adventures for when they retire are likely to be disappointed by the reality; just 23 per cent, less than half those aspiring to travel, will go overseas in retirement and fewer still (7 per cent) will sign a foreign property agreement’.
     Engage Mutual Assurance spokesman Karl Elliot said that increased longevity meant retirement is becoming viewed as a time for new experiences. ‘However, with the average state pension currently paying 82.05 pounds a week, financial limitations often prevent Britons from fulfilling their more adventurous aspirations in retirement’.

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