1. Analysis of Overseas Property Investment

[Investy]

Originally Posted by Murphy

Investy it seems you like pointing people in the right direction so here's a question. picture this you're not a complete novice or idiot - you've been made redundant so you've got time but not physical energy i.e. you don't want to do the actual physical stuff but you want to work -you've got £200k cash and could raise more in loans -buying a few things off plan and waiting is not your bag

what would you do at this current point in time?

The 'waiting is not your bag' is key for you I guess?

Given your desire to generate profits quickly you will need to find the very very best resorts that practically sell themselves and you will need to be in early.
Buying off - plan from developers requiring a maximum 40% and that have an absolute written guarantee enabling flipping is crucial.

I am aware of investors who get in quickly then flip after just a few months, indeed they tell me they have done this on the Saidia site in Morocco and some claim they have made £50000 after just a few months by flipping the better appartments and penthouses. I HAVE NO PROOF OF THIS.

A person I trust and have known a long time did this on 2 appartments in Spain a couple of years back, but again he chose an exceptional site.

You need to choose your countries carefuly. I woudnt attempt this for example in Romania as you might find your profits immovable for years whilst the state works out your Tax bill (if they find out)

Stick to the large reputable agents. Warning - every agent always tells me they have done 'due dilligence' on a developer. This is nearly always make beleive. Some will though, such as Superior of Bristol (I bought through them) or Savills International.

OK, where?

I would seriously consider the new MAGAZAN resort in Morocco. The people behind it are the same that own the 'Sun City' resorts which started in S Africa and I think also now own the world famous 'Sandals' chain.
You cant get much better than that and I think this resort is only just being launched now.

Id also consider the first Government / Royal backed resort in Morocco called Saidia (thats where Ive bought and beleive me Im fussy). This is the flagship resort. The King is always on site interfering - he wants this to be his world showcase so Im expecting something very special.

Remember Morocco is Dubai without the 7 hour flight. Flights are 3 hours to the North coast. Everyone from Thomson hoidays, to Richard Branson to James villas and the worlds biggest developer 'Emaar' are here. Emaar alone are spending $23billion on new luxury developments. Think about this, why have they chosen to spend so much in Morocco?
On top of this many international hotels are building in Morocco. On the Saidia development where Im buying, no less than 11 international prestigious hotels are building, again they are'nt stupid. Why arent they buidling on individual developments in Bulgaria, on this scale? Mmm

Resales are easy as the huge Spain based British real estate network is involved given Morocco is only 7km from Gibralter. THIS IS A KEY POINT.

If Morocco scares you (ie too unknown and new ust like Dubai once was) then try and source the very best resorts in Turkey, Motenegro, Portugal (the under developed bits such as the Silver coast).
Cape Verde is another possibility but it truly is third world so be careful.
FURTHER AWAY - Brazil looks good but I made a rule some time ago to stick to my own backyard and become knowledgable rather than try and cober the world.

GOLF - gives you access to a twin market. Saidia for example is having 3 18hole courses built along the beach. BEWARE; Many resorts tacitly imply golf is planned but then dont deliver.

SEASON - this is an important consideration. Bulgaria is suffering as the masses are now twigging the season is so short.

SUPPLY - what is your competition when you want to sell? To try and flip in crowded markets such as Spain is very difficult. (Morocco dvelopment is centraly planned, another very unique selling point as it means supply is still very limited)

FLIGHTS - As an example Morocco is expecting several low cost carriers, it appeals as the flight time is short.

I look at the economic and Political fundamentals as part of my research. As an example 97% of Moroccan kids are now in school where as only 55% were in 1990. 36% of the state budget is being spent on education, I think the highest figure in the world.


Anyway, Im no genius, perhaps others have some ideas, but please be aware that every one thinks thier development is 'luxury' but this is not usually the case.

My key: Only buy the very best in order to reduce risk.

[marmurr1916]

zzzzzzzzzzzzzzzzzzzzz

[prolan]

Where these lists all go wrong is that they give entire countries or regions a certain amount of points. All of us dealing in real estate know that it doesn't work this way.

ie: yes certain places in spain are about to stagnate or go down......but then other areas of spain can expect good growth.

yes certain areas in Brazil, Montenegro or Croatia might do well, but other areas should not be touched.

It's all a matter of doing research or paying someone and trusting them to do the research for you.

We are securing some land in Marocco: outside Marrakech (16 acres), south of Agadir near Mirleft (60 acres with beachfront) and north of Morocco near Tangiers (4 acres).

We have some great opportunities for TIER 1 investors or people who want to joint venture with us in property development projects with fantastic returns. Our preliminary figures do show a 200% return over a 3 year period ==> at todays prices!

For the more risk averse people we can offer a limited number of units at below market value (35 % discount) for pre-release sales.

Whatever you do...do not part cash without an onsite visit and good investment.

For more details contact me on: info@prolan-invest.com

Regards,
christian