Property investors are targeting the tiny Eastern European country of Estonia with a vengeance because it offers massive and sustainable long term potential for profit and property price gains with real estate prices having already increased by as much as 30% in just three years.
The popularity of this breathtakingly beautiful country stems from many different points: firstly the country is an economic success story. Having escaped the domination of Soviet rule back in 1991 it has since established strong trade links with Finland, Sweden and Germany and now has a GDP growth rate of around 6% annually. Secondly the government of Estonia is committed to the promotion of foreign direct investment and to this end it offers some impressive tax breaks to companies who establish themselves in Estonia.
Income tax is a flat 26% in Estonia making it one of the most competitive of all European nations and therefore more appealing for multinational companies seeking a base in Europe and more appealing for local and foreign employees. And finally, Estonia has a rugged and natural beauty and its natural landscape and friendly people are drawing more and more visitors to the country annually and so the tourism market in Estonia is growing quickly.
Property investors have been targeting the capital city of Tallinn where the majority of international companies investing in Estonia are establishing bases and where there is an increasing demand for quality residential and commercial property to rent, buy or lease.
Those who bought just three years ago in the most desirable districts have realized real profits in the region of 30%. These rates may not be sustainable over the longer term but prices and rental rates are set to keep on climbing because the demand for property outstrips supply and will likely continue to do so for quite some time.
A lot of the residential real estate in Estonia's cities is old Soviet style apartment block units and these properties are not at all popular. More and more developers are constructing new and modern accommodation that property investors are snapping up and renting out to tenants or selling on to first time buyers or other property investors upon completion. Those who wish to buy these types of property pre-construction benefit from the fact they buy at today's prices but take possession in 12 – 18 months when the real value of the property has risen quite substantially.
Unlike in many other countries around the world, those who buy off-plan in Estonia usually only have to find between 10 and 20% of the property's price during the build period because the majority is payable upon completion – this makes it easier for a property buyer to save to afford a property or to flip upon completion and resell to realize the profits with which to pay the developer.
The investment property potential in Estonia is exceptional and anyone looking to diversify their real estate portfolio should consider this Eastern European country's property market.
Rhiannon Williamson writes about property investment in emerging countries around the world. To read more about investment property in Estonia click here.
The Skinny on Apartment Databases and Apartment Locaters
Today, many people use the Internet as a resource for finding new apartments. If you are looking to move, chances are, you will likely put the term, "apartments" into a search engine like Google or Yahoo. There are two very distinct types of results you will get from your search. The first result will be an apartment locator site, and the other result will be an apartment database site. It is important to know the difference between these types of sites so you can choose the one which best fits your needs.
Many people who are moving into new apartments may be moving to an entirely new area of the country. Therefore, they are not familiar with the surroundings and don't have knowledge about important things such as the location and status schools, banks, hospitals, supermarkets, etc. If this is your situation, then an apartment locator site may be perfect for your needs. When you place a query on a locator site, one of their employees will make telephone contact with you. The apartment locator is usually very knowledgeable about the specific area in which you desire to move. They will need to know your budget, desires, and your needs in order to find possible apartments that will suit you. The service is usually completely free-of-charge, because the apartment locator is usually paid a "finders fee" by the landlord or rental agent. Some people do not like apartment locaters because they require you to submit your telephone number and other personal information as well as have personal contact with you.
The other type of site is an apartment database site. This site is very useful for people who are moving into a familiar area, or who will only be staying in an area for a short period of time. Database sites have large catalogues of many apartments in a wide variety of areas. Users need only fill out a simple registration that asks for a very minor amount of personal information. Users will not be contacted by anyone, and they do not need to give out their telephone number. Once the registration is complete, users can search the online databases. The databases often have many pictures of the certain apartment with detailed descriptions of the living arrangement. This large amount of data can be very useful for people trying to decide what to do with an apartment.
When searching for an apartment online, it really comes down to simple preference. Some people like personal contact and help every step of the way. These same people also have little issue with giving away personal information. On the other hand, some people prefer to be independent and search for things on their own. These same people may have some reservations about giving away personal information online. Whatever type of person you are, apartment locators can be helpful if you are moving into a completely new area, and apartment databases can be useful if you are moving into an area with which you are familiar. A few stellar sites even offer the benefits of both types. Knowing the ins and outs of apartment searches online can make your search go much easier.
Josh Frye recommends Home From Home for more information on Paris Apartments.
Shopping for a Holiday Home in the Sun
At this time of the year when the days are short and the skies are grey, focus tends to shift towards the glorious summer months when we can escape the daily commuter grind and the realities of the 9 – 5 and take a couple of weeks out to lie on a sun drenched beach somewhere.
But why take just two weeks away when you could own a holiday home in the sun, vacation in it whenever you wanted to and even let it out for an earnings supplementing rental income?
If you're one of the increasing numbers of people considering buying real estate for investment purposes, why not combine your investment with pleasure and buy a holiday home abroad?
Buying real estate overseas needn't be a complicated or stressful experience; with this ten step guide to buying property abroad you'll find the whole process a breeze - and you'll be lying next to your very own swimming pool soaking up the summer sunshine before you know it.
1) Country – you may already have had your perfect holiday overseas and know exactly where you'd ideally like to own a holiday home in the sun, if on the other hand you're still undecided about which country to buy a second home in you should factor at least the following considerations into your country based research to determine which nation ideally suites your requirements: - weather, property prices, accessibility, stability and things to do.
2) Location – having decided on a country the next challenge is to find the most suitable area of the country to target for your holiday home search. Think about whether you want to be close to the coast, inland, in a city, away from the crowds, in the thick of it or on a desert island.
3) Property Type – apartment, detached villa, bungalow or rural retreat – which property type suits you and also, if you're thinking about renting out your holiday home in the sun, which type of property will be easiest to let?
4) Budget – how much money have you got available to you, how much money will be required in fees and taxes when buying overseas? Think carefully about how much of your budget you can allocate to buying a property and then stick to that figure, do not be tempted to over extend yourself as this could get you into difficulties and even prevent you from having the funds available to travel and holiday in your brand new property.
5) Assistance – because you're buying in a foreign country you may encounter language barriers, different legal systems and a whole new buying process therefore it is wise to employ the services of a real estate agent and essential to secure the services of a lawyer who can guide and protect you throughout the purchase process.
6) Management – whether you intend to let out your holiday home or not you will probably require the services of a good management company to make sure your pool is clean, your roof never leaks and no one tries to break into your home. Take recommendations locally from other people who have their second homes looked after by a third party and don't be afraid to ask a property management company for references.
7) Income – if you'll be letting out your home in the sun for an income find out about any taxation you will be liable for on that income and also about any deductions you can take from your liability to reduce your overall taxation burden.
8) Investment – if you're interested in holding property overseas for investment purposes look into the buoyancy of a market and ensure that the real estate market is capable of sustaining an investment property – some overseas real estate markets are stagnant and difficult to realize a capital gain from.
9) Insurance – because your property will either be vacant for long periods of time or occupied by people unknown to you it will be important to have insurances in place for the building and the contents.
10) Enjoyment – and last but not least, once you've secured your holiday home in the sun save as much money as possible so that you can enjoy your home as often as possible and for as long as possible! After all, you deserve the time away from work.
Rhiannon Williamson writes about real estate investment abroad and living overseas. To read more information about buying holiday homes abroad click here.