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Slovakia’s Silver Lining For New Property Investors

February 17, 2009Article by Ray Withers

If you are new to property investing overseas and need to know how about finding and researching a property, here’s a step-by-step guide to help. For this guide, the property is close to home, the Silver Resort Slovakia , nestling in the beautiful UNESCO World Heritage site of the Tatras National Park on the border between Slovakia and Poland.

Risk v return

The first consideration is your risk level – what is your comfort zone, can you afford to lose your cash if it all goes wrong and the return on investment or what you get back for the cash you put in.
A studio apartment costs from £56,137 in the secure, gated Silver Resort Slovakia . Cash in is just £11,700. The annualised return on capital employed is forecast at 92%. This includes capital appreciation and rental return.

Location

Location, location, location is the property investor’s mantra and a major factor with any investment. Location is directly linked to the return on investment from capital growth and rental yields.
For Silver Resort Slovakia, managers guarantee a 5% or 6% rental return for property in a recognised World Heritage site – one guarantee about such sites is future building scope is limited.

Market drivers

If a market is expected to offer continued growth, it is important that as an investor you understand what the “market drivers” are for this growth. Some common “market drivers” are listed below:

* Pricing
Property in Slovakia is only a good investment if all your due diligence lines up – the right price, the right rent and the right location.

* Infrastructure
If the government and local authorities are pumping cash in to a locality, the signs are properties are likely to appreciate in value. In the High Tatras, the Slovakian government and tourist authorities have spent millions of Euros on developing new ski runs, chair lifts, roads and airports.

* Natural Factors
The Slovakian government fully intends to market High Tatras as Europe’s leading budget ski resort in the winter and a hiking and golfing hotspot for the summer.

* Tourism
This is a major driver year-round for Silver Resort – located a short drive from the airport and all the area’s best amenities. Silver Resort is also a four-hour train ride from the capital Bratislava and less than 30 minutes from a local airport.

* Local Demand
Strong local demand is a good back-up for a property that needs to earn its keep. Silver Resort is Slovakian property in a holiday resort area and may not have the local population queuing at your door to rent the property.

* Political Stability
As part of the Euro zone and European Union, Slovakia’s political stability is fine with no issues regarding terrorism.

Developers and agents

Lastly, if you are giving your money to third parties for safekeeping, you need to know that everyone through the chain is honest and trustworthy. Learn from the ‘land grab’ disasters in Spain and Cyprus where alleged landowners were selling property they did not own. Specialist international property consultants Property Frontiers are one of the key companies involved in Silver Resort. Look to them for their due diligence and always have an independent solicitor check out the deal before you commit to any contract.
Overseas ownership of Slovakian property is straightforward for overseas investors.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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