The Property Banks Why should you invest in Overseas Property
Property investment is just one choice for people looking to save
for retirement, increase their passive income or become wealthy. So
why is property such a good choice for many investors and what makes
it stand out from other asset classes such as equities, gilts and
bonds ?
Property investment has certainly caught people's imagination over
the last few years with many building substantial portfolios and
others at least acquiring a holiday home abroad, or a single buy to
let flat to contribute towards their retirement savings
PROPERTY - WHY NOW?
The simple answer is to make money. Managed diligently, property
investment can offer exceptional returns. With the stock markets
around the world in turmoil, pension funds seeing fund value falls
of 30%+, and with the increased likelihood of pension shortfalls, a
growing number of people are turning to property investment. As
experienced investors, TPB believe property continues to represent a
safe investment - providing that the risks are minimized.
We believe the European Buy-to-Let (BTL) property sector will
continue to grow and become increasingly profitable due to:
As shortage of new homes being built
An increase in demand due to socio-economic influences including:
Increasing divorce rates and an increase in single person households
A more transient work force
First time buyers not being able to get on the "property ladder" due
to increased property prices.
Increased life expectancy
With all factors considered, TODAY is an ideal time to invest in the
property market
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COMPOUNDING - A SERIOUS WAY OF GETTING RICH QUICKLY
Compounding is the year on year growth of investments and widely
considered the strongest investment tool. A property purchase allows
investors to maximise leverage; the investor typically only has to
invest a small proportion of the investment from his own pocket -
the balance being funded via a mortgage.
Most traditional investments, (such as shares), require the investor
to have liquid funds to the full value of the investment. In our
scenarios, we put the minimum deposit down BUT gain maximum
leverage. As you will see from the examples below, the growth
potential is astounding:
In a purchase of a £200,000 off-plan property, the investor would
typically put down 5% of the purchase prices, e.g. £10,000. If the
build time to completion is 24 months and property is rising at 10%
pa, the property will should be worth approximately £240,000 upon
completion. If the investor has actually only paid £170,000 (taking
into account the 15% discount TPB have negotiated on his/her
behalf), the paper profit upon completion is £70,000. This was all
achieved by giving a deposit (which is refundable upon completion)
of £10,000. What other business affords these returns?
MAXIMISING RETURNS
We offer an outstanding diversity of investment opportunities across
Europe - including France , Spain , Bulgaria, Romania and the Czech
Republic - giving investors the option of developing their
portfolios or making further profits through reselling. All
investments must pass our strict investment criteria:
We negotiate low deposits (usually 5% or less) that are required by
the developer upon exchange of contracts. Most other investors will
be required to put down a minimum of 10%. There must be substantial
instant equity on each property that is purchased. This is as a
result of the discounts we have negotiated on behalf of investors.
Each area in which we offer investment opportunities must
demonstrate a strong rental market and sufficient rental yield.
The locality must be seen as offering potential significant capital
growth.
Investors have exclusive access to extremely competitive finance
packages that minimise the amount of capital that is required to be
tied up in the deal.
As most of the property we offer is off-plan, (purchased before, or
during building), there is usually a further increase in value
before completion. For example, if you purchased a property
off-plan, with an anticipated build time of 24 months for an ‘open
market' price of £100,000, TPB will have negotiated a 15% (£15,000)
discount off this price, therefore you would only pay £85,000. If
property prices increase by 10% pa over the 24 month build time the
market price, upon completion, would be in excess of £120,000 and
with built-in equity of over £35,000.
Our team of professional property finders, finance brokers,
solicitors and accountants are all extremely knowledgeable in the
field of property investments, (and many are seasoned investors
themselves), and will help you to maximise your profits.
Some facts on the New Countries about to join the EU:
Here are a few facts and figures about the EU and the eight
countries that are creating all the excitement:
• The EU grew by more than 30 per cent geographically in May, 2004
when the new members joined.
• The addition of new members has made the EU the world's largest
trading bloc - a market of 25 countries and almost 500 million
people.
• Joining the EU means countries have adopted the so-called acquis
communautaire, which includes applying 80,000 pages of EU law,
raising standards of administration and strengthening their judicial
systems.
• The average GDP per person in the Eastern Eight is less than half
that of the other 15 EU countries.
• Joining the EU does NOT include adopting the Euro - at least not
for the time being. Most experts agree it will be 2007 before the
eight countries join the Euro.
• Billions of Euros is being handed out in development funds to the
new members - Poland is so far the biggest recipient, with an
estimated €11.4 billion coming its way in the first two years after
joining.
• EU surveys show that organised crime is among the top three
concerns of people within the new member states. And the biggest
fear of Latvians, Lithuanians and Estonians is an epidemic.
• Around a quarter of Latvians, Hungarians and Slovakians do not
know that Euro MPs are elected by popular votes.
• Surveys show that Slovakians consistently feel the most European,
with 68% saying they feel European to some extent as well as
Slovakian.
• The combined population of the Eastern Eight is 73.6 million.
Poland is the biggest country (pop: 38.6m people) and Estonia the
smallest (pop:1.4m).
• The average cost of a Big Mac in the eight countries is $1.76
(£1.12)
• Total forex reserves for the eight countries amounts to $55.5
billion.
MINIMISING RISKS
Despite its rising popularity and considerable payoffs, and with
property investments having outperformed equities over the last 10
years*, like any investment, it's essential to do the research and
minimize one's risks when investing in property. In the unlikely
event of an unexpected property price fall, our investment strategy
gives you added protection:
Buying property at below market value gives a buffer against any
downward price fluctuations, (according to Nationwide figures, the
worst fall in the property market since records began was 11% in
1990).
There would have to be drastic falls of 15%+ for the property to be
worth less than the initial purchase price.
On the occasion when there has been a drop in house value, rents
have usually increased. Therefore income will increase.
We supply properties only in areas which we have thoroughly
researched, with a strong supply of tenants.
The net income (i.e: the difference between the rent paid by the
tenant, and the mortgage and service charges paid by you) should be
easily covered.
We are continually sourcing new property investment opportunities
throughout Europe and the new emerging EU states; including property
in France , Portugal , Spain and the Czech Republic.
We believe that you should have the option to spread your portfolio
and your risk through either UK properties and/ or overseas.