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Montenegro Property Offers Investors The Full Monty
January 15, 2009Article by Ray Withers
Tourism is booming in the tiny Adriatic state of Montenegro. Income from, tourism to October 2008 surged by almost 11% on the previous year to 500 million Euros. In the same period, 1.13 million tourists visited the country – a jump of just under 5%n on the previous year. Montenegro property prices have increased in line with the influx of tourist. Montenegro real estate consists mainly of apartments.
According to government figures, a third of the tourists come from Serbia, a fifth from the EU and the rest from Russia and neighbouring countries. Montenegro is a tiny country with a population of about 600,000 that gained independence from Serbia in 2006 after the break up of Yugoslavia. Many of the tourists come to enjoy the beaches and spectacular scenic seashore. Only just north of Greece and Albania, Montenegro is a short-hop for European tourists who want a long-weekend or short break. The climate is milder than Northern Europe. Economically, Montenegro has the Euro as currency and has applied to join the EU, with pre-entry agreements already signed and sealed.
The government has injected more than €250 million in to upgrading airports, roads and utilities. Hotels have picked up €350 million to upgrade rooms and facilities. UK visitors make up about 15% of the tourists, and flights are readily available from London. Typical Montenegro investment property is the 28 apartments at Boka Heights in landscaped gardens around a communal pool. Each has views over the sea towards a stunning mountainous backdrop. Boka Heights is l300 metres from the sea at Dobrota, with numerous bars and restaurants, and five kilometres from the Venetian walled town of Kotor, that is home to museums, a marina, shopping facilities and nightlife.
The apartments will be finished to the highest standards with a modern, western European design, including fully fitted kitchens and bathrooms. An experienced company is in place to manage the upkeep of the development making Boka Heights a superb second home or holiday home option. Net yields of around 5% achievable at just a 50% occupancy year-round, investors looking for a hands-free approach to ownership can also organise full property and rental management services through the management company. Mortgages of 50% loan-to-value are available enabling investments with a cash deposit of £55,500 plus purchase costs. Boka Heights pricing is from £111,287 to £129,560 for single bed roomed apartments and £140,625 for a two bed roomed apartment. Property sales in Montenegro are easy with no real restrictions for foreigners.