Property Investment Guide

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Information about Property Investment Guide

Published on July 24, 2009

Author: youngmarkets

Source: slideshare.net

Description

Property Investment Guide to investing in property in Latvia and Lithuania

Property Investment Guide Your Guide to Property Investment in Latvia & Lithuania

Meet George George would like to invest for the future What’s important to George? High Capital Growth Good Return on his Investment Tax Efficient Investment Peace of mind by avoiding any high risks

George would like to invest for the future

What’s important to George?

High Capital Growth

Good Return on his Investment

Tax Efficient Investment

Peace of mind by avoiding any high risks

Where should he invest? George has read that investing in property in the Baltic States is providing good returns But: How good is it? How can he find out more? Who should he talk to?

George has read that investing in property in the Baltic States is providing good returns

But:

How good is it?

How can he find out more?

Who should he talk to?

George is right! Lithuania and Latvia are the top two countries, in the world, for property price growth Top 3 worldwide Growth Rates in Property Values for 2007* are: Lithuania 20.0% Latvia 17.5% Slovenia 17.5% Return on Investment of 300% + is not uncommon * Source – Frank Knight Estate Agents - Jan 2007

Lithuania and Latvia are the top two countries, in the world, for property price growth

Top 3 worldwide Growth Rates in Property Values for 2007* are:

Lithuania 20.0%

Latvia 17.5%

Slovenia 17.5%

Return on Investment of 300% + is not uncommon

Why Latvia & Lithuania? Having emerged from The Soviet Union Joined the European Union & NATO Governments have invested in growth with GDP growth in the 6-9% p.a. range Currencies linked to the Euro € The capital cities of Riga & Vilnius are particularly high growth areas as they are they focus for investment and people migrate towards the capitals in search of “a better life”

Having emerged from The Soviet Union

Joined the European Union & NATO

Governments have invested in growth with GDP growth in the 6-9% p.a. range

Currencies linked to the Euro €

The capital cities of Riga & Vilnius are particularly high growth areas as they are they focus for investment and people migrate towards the capitals in search of “a better life”

George doesn’t want to miss out But: He’s not too sure exactly where Latvia is He certainly doesn’t know anyone in Latvia or Lithuania So, how can he invest his money and minimise the risks?

But:

He’s not too sure exactly where Latvia is

He certainly doesn’t know anyone in Latvia or Lithuania

So, how can he invest his money and minimise the risks?

Where are the Baltic States?

Where is Riga?

Where’s where in Riga?

Latvia – Key Facts Capital: Riga Area: 64,590 km 2 ( Slightly smaller than Ireland) Population: 2.3m Membership: EU, WTO, NATO Currency: Lats (Pegged to €) GDP Growth: 8.5% Inflation: 7%

Capital: Riga

Area: 64,590 km 2 ( Slightly smaller than Ireland)

Population: 2.3m

Membership: EU, WTO, NATO

Currency: Lats (Pegged to €)

GDP Growth: 8.5%

Inflation: 7%

Where is Vilnius?

Where’s where in Vilnius

Lithuania – Key Facts Capital: Vilnius Area: 65,300 km 2 ( Slightly Smaller than Ireland) Population: 3.4m Membership: EU, WTO, NATO Currency: Litas(Pegged to €) GDP Growth: 8.4% Inflation: 6%

Capital: Vilnius

Area: 65,300 km 2 ( Slightly Smaller than Ireland)

Population: 3.4m

Membership: EU, WTO, NATO

Currency: Litas(Pegged to €)

GDP Growth: 8.4%

Inflation: 6%

George is introduced to Tucana Who are Tucana? Tucana are Property Investment specialists based in Latvia, with offices in Lithuania and London Tucana help prospective investors find the right property and guide them through the full investment lifecycle

Who are Tucana?

Tucana are Property Investment specialists based in Latvia, with offices in Lithuania and London

Tucana help prospective investors find the right property and guide them through the full investment lifecycle

What can Tucana do for George? Tucana spend much of their time sourcing prime investment opportunities They have close relationships with many developers Built up over their 10 years experience in the region Tucana can find the right property for George to invest in And guide him through the investment lifecycle Sounds good to me!

Tucana spend much of their time sourcing prime investment opportunities

They have close relationships with many developers

Built up over their 10 years experience in the region

Tucana can find the right property for George to invest in

And guide him through the investment lifecycle

What ROI can George expect? A Capital Growth of between 15% and 25% per annum is quite realistic Some existing clients have gained over 80% p.a. With just 15% deposit as the investment And if rental incomes cover the mortgage payments (which they mainly do) * Figures are for illustrative purposes only Tucana Investment Property Ltd do not guarantee any potential returns on your investment. 445% 170K 6k 15K 100K Gross ROI After 3 years * Value After 3 years Other Expenses Deposit Purchase

A Capital Growth of between 15% and 25% per annum is quite realistic

Some existing clients have gained over 80% p.a.

With just 15% deposit as the investment

And if rental incomes cover the mortgage payments (which they mainly do)

Will George make that on any property? In a country with high property growth, you should make money on most properties, but like any investment, the more you know the better your choice. With an average growth in property prices of 17.5% to 20% some will grow faster and others will grow much slower “ Guess who?” knows which are the best ones

In a country with high property growth, you should make money on most properties, but like any investment, the more you know the better your choice.

With an average growth in property prices of 17.5% to 20% some will grow faster and others will grow much slower

“ Guess who?” knows which are the best ones

How do Tucana know which is best? Tucana are on the spot, they live there! Tucana understand the markets Tucana focus on smaller apartments, which are in high demand as younger people migrate to the capitals Tucana advise individual clients on individual purchases Tucana don’t block reserve and mass market apartments to investors

Tucana are on the spot, they live there!

Tucana understand the markets

Tucana focus on smaller apartments, which are in high demand as younger people migrate to the capitals

Tucana advise individual clients on individual purchases

Tucana don’t block reserve and mass market apartments to investors

How much does George need to invest? A typical One bedroom flat costs between £60K to £100K 15% to 25% deposit will secure an off-plan property (sometimes 5% is enough) Full payment required on completion Up to 80% mortgages available Rental income should cover at least the majority of the mortgage payments and monthly outgoings

A typical One bedroom flat costs between

£60K to £100K

15% to 25% deposit will secure an off-plan property (sometimes 5% is enough)

Full payment required on completion

Up to 80% mortgages available

Rental income should cover at least the majority of the mortgage payments and monthly outgoings

Why Buy Off-Plan? Lower prices Deposit secures investment Benefit from price inflation of full value by only paying small % deposit Get ahead of the market Reduces Capital Expenditure

Lower prices

Deposit secures investment

Benefit from price inflation of full value by only paying small % deposit

Get ahead of the market

Reduces Capital Expenditure

How did George find the right property? He started by searching the Tucana web site: www.tucana-property.com Then called Tucana on a local number: UK +44 207 096 1247 Ireland + 353 1657 1621

He started by searching the Tucana web site:

www.tucana-property.com

Then called Tucana on a local number:

UK +44 207 096 1247

Ireland + 353 1657 1621

What did Tucana do? Tucana took the time to understand what type of investment George was looking for Then they emailed him detailed property investment packs for a number of properties Each of which contained the Tucana Investment Index

Tucana took the time to understand what type of investment George was looking for

Then they emailed him detailed property investment packs for a number of properties

Each of which contained the Tucana Investment Index

What is the Tucana Investment Index? Measure of investment potential Based on: Capital Growth Income Location & Infrastructure Quality & Delivery Each scored out of 25 60+ is considered a good investment e.g. XX Capital Growth Income Infra- structure Quality 24 22 20 20 86

Measure of investment potential

Based on:

Capital Growth

Income

Location & Infrastructure

Quality & Delivery

Each scored out of 25

60+ is considered a good investment

Tucana Investment Index Capital Growth ROI over 5 years Re-Saleability Capital Growth Rental Income Rental Demand in Area Potential Rental Return Proportion of Local Owners Rental Management Value Location & Infrastructure Catchments Area Up and Coming Area Synchronisation with Area Local Amenities Transport Links Quality & Delivery Developer’s Record Quality of Development Time to Completion Mortgage Availability/Rate Each category is scored out of a maximum of 25

Capital Growth

ROI over 5 years

Re-Saleability

Capital Growth

Rental Income

Rental Demand in Area

Potential Rental Return

Proportion of Local Owners

Rental Management Value

Location & Infrastructure

Catchments Area

Up and Coming Area

Synchronisation with Area

Local Amenities

Transport Links

Quality & Delivery

Developer’s Record

Quality of Development

Time to Completion

Mortgage Availability/Rate

Each category is scored out of a maximum of 25

Using the Tucana Index George liked The Tucana Investment Index because it enabled him to rank individual properties in line with his investment needs The Tucana Investment Packs clearly show how the Index is calculated for each property Any property with a Tucana Index of 60 or more is likely to be a good investment

George liked The Tucana Investment Index because it enabled him to rank individual properties in line with his investment needs

The Tucana Investment Packs clearly show how the Index is calculated for each property

Any property with a Tucana Index of 60 or more is likely to be a good investment

Property Chosen – What Next? George soon found a property he liked But thought it was all too easy What about: Taxes The Legal Side Finding a mortgage Renting it out Selling it on ?

George soon found a property he liked

But thought it was all too easy

What about:

Taxes

The Legal Side

Finding a mortgage

Renting it out

Selling it on

Tax Effective No Capital Gains Tax after 1 year (Latvia) or 3 years (Lithuania) Only 25% or 27% Income Tax Generous Allowances on costs of “buy to let” Latvia - 2% stamp duty (up to 2 properties) 3% (3 or more properties) and 1.5% pa cadestra Lithuania – No stamp duty Figures correct when this presentation was created. Tucana Invest Property can not be held liable for any change in government regulations, property values, taxes or the level of investment gains or losses.

No Capital Gains Tax after 1 year (Latvia) or 3 years (Lithuania)

Only 25% or 27% Income Tax

Generous Allowances on costs of “buy to let”

Latvia - 2% stamp duty (up to 2 properties) 3% (3 or more properties) and 1.5% pa cadestra

Lithuania – No stamp duty

The Legal Side No restrictions on foreign ownership of property Local currency pegged to the Euro, minimises currency fluctuations Friendly local lawyers fluent in English Fixed rates “ Power of Attorney” means no need to visit

No restrictions on foreign ownership of property

Local currency pegged to the Euro, minimises currency fluctuations

Friendly local lawyers fluent in English

Fixed rates

“ Power of Attorney” means no need to visit

Finding a mortgage Tucana partners with a number of local banks who are willing to lend between 60% & 80% of Loan to Value Mortgage terms of up to 30 years, depending on your age Euro based with competitive interest rates Re-mortgaging of UK property can also be arranged

Tucana partners with a number of local banks who are willing to lend between 60% & 80% of Loan to Value

Mortgage terms of up to 30 years, depending on your age

Euro based with competitive interest rates

Re-mortgaging of UK property can also be arranged

Renting it out & Selling it on Both Riga and Vilnius are capital cities in growth countries People are moving to the capitals in search of a better future, creating a high demand for property and rentals Tucana can handle the rental in-house and also partner with several well respected rental management agencies They look after all aspects of renting the property from finding tenants to collecting payment Choosing a well situated and well appointed apartment will make renting and the eventual sale even easier

Both Riga and Vilnius are capital cities in growth countries

People are moving to the capitals in search of a better future, creating a high demand for property and rentals

Tucana can handle the rental in-house and also partner with several well respected rental management agencies

They look after all aspects of renting the property from finding tenants to collecting payment

Choosing a well situated and well appointed apartment will make renting and the eventual sale even easier

“ OK I’m ready to invest” Just talk me through the process with pleasure, first ….

Just talk me through the process

with pleasure, first ….

The Investment Process Check Available Passport Utility Bill Pay Deposit & fees International Bank Transfer Arrange mortgage (if applicable) Watch your Capital Grow Pay reservation fee Sign Preliminary Contracts Complete purchase Internal Layout Build Arrange letting Wait while it is built Choose Property Arrange Power of Attorney Arrange To Visit

Does George need to visit? Its up to George: Others prefer to see things first hand, experience the culture and view a selection of different properties Some people rely on our comprehensive investment information and use our “power of attorney” service to purchase their properties without visiting

Its up to George:

Others prefer to see things first hand, experience the culture and view a selection of different properties

Some people rely on our comprehensive investment information and use our “power of attorney” service to purchase their properties without visiting

How can George get there? Let Tucana know you are coming and we can arrange transport and hotels. *summer only Aer Lingus www.aerlingus.com Ryan Air www.ryanair.com Air Baltic www.airbaltic.com Fly LAL www.flylal.lt Ireland-Lithuania Ireland- Latvia UK – Lithuania UK-Latvia  *           

Let Tucana know you are coming and we can arrange

transport and hotels.

*summer only

What are you waiting for? Don’t let George have all the best investments Go to www.tucana-property.com today Then gives us a call on: UK +44 207 096 1247 Ireland + 353 1657 1621 Or drop us an email at [email_address] outlining your investment needs Every effort has been made to ensure that the information contained within this document is accurate and correct. However, all information provided by Tucana Investment Property Limited is given on an “as is” basis and Tucana Investment Property Limited or its staff cannot be held responsible for omissions or the accuracy of the information contained in this document. This document is protected by international copyright law, copying or replication either in part or in full is strictly prohibited .

Don’t let George have all the best investments

Go to www.tucana-property.com today

Then gives us a call on:

UK +44 207 096 1247

Ireland + 353 1657 1621

Or drop us an email at [email_address] outlining your investment needs

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