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We have been in the Overseas Real-estate business since 1995.
While initially we seek developments to resell as agents, if
we like what we see we invest for ourselves. The ability to
get in at an early stage has allowed us to build up a portfolio
of properties in London, Cyprus, Portugal, Saint Lucia, Antigua
and Malta. Typically we buy off-plan prior to the launch of
the development. This has resulted in very good capital appreciation
between the time we first invested and completion of the property.
We cannot afford to leave the properties lying empty nor would
we want to from a maintenance point of view. We seek projects
where there is a well-known International and independent Property
Management Company in place and usually where there is a guaranteed
income for the first year or two. This gives us confidence the
income will cover mortgage and running costs until the development
is well-established and has established good occupancy rates.
Our approach has been cautious. We have avoided the newer emerging
markets and tended to focus on the more established affluent
markets that are politically and economically stable. While
we have used mortgage finance once the property is completed,
in some cases, we have tried to minimise the deposit and capital
invested in a property until it is fully developed and ready
to produce income. This has helped achieve a very good return
on the capital employed.
In considering a development we look at all aspects very carefully
including the standing and reputation of the developer as well
the ability to withstand setbacks and delays. We consider the
availability of mortgages for future buyers as well as the amenities
and accessibility of the location for International flights.
Importantly, we look at the taxation and buying costs which
vary from country to country quite considerably. A country without
capital gains tax, such as most of the Caribbean islands means
a 50% greater profit compared to one that imposes 35% Capital
Gains.
Currently we are keen on US$ denominated countries which includes
the Caribbean. The fact that most islands have no capital gains
or property taxes makes this area particularly attractive for
off-plan investments with the intention of reselling before
completion. We are looking at several projects in the US itself.
Several of these projects are close to major universities and
are rented to students on annual leases. With a deposit of 30%
the income covers the mortgage and all other outgoings with
the prospect of good capital appreciation as the US economy
slowly recovers. Where else can you buy a fully finished air-conditioned
2-bedroom 2 bathroom apartment of ..... sq ft. with communal
pool and other facilities for under GBP100,000 with the assurance
of year-round rental income? We are not smart enough to call
the bottom of the market in the US but we do believe that if
not already there it is close to it and if we can buy properties
that are self-financing at 2003 prices it is an opportunity
not to be passed up.
Please
feel free to contact us any time by email or phone. You will
be answered by one of the 4 Nehorais that make up this team
of which Julius and Rose are based in central Europe to serve
the clients and Daniel and Judith in USA to look after the clients
there.
Yours sincerely
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