Archive for August, 2009
Property Valuation A Difficult And Lengthy Process
The majority of estate agents will agree that the most difficult part of their job is making accurate property valuations. This is because the valuation has to take so many factors into account that the margin for error is large. The agent must use the type of property its location and condition as well as the current market conditions when arriving at a figure. Understandably there is an element of guesswork in this process. Added to this however is the customer; the property owner always has their own idea of the worth of their home and when they find out the true value it can be an emotive experience for both parties.
Once the homeowner is given a valuation that is accurate they are often left feeling besmirched. This is because the property owner rarely has the detailed knowledge to make a valuation the result in is an uneducated guess. To find an accurate figure the cross section of the market required is large. Homeowners can rarely take into account enough similar properties to find the appropriate figure an agent with years of experience is far better placed to find the true value of a home. That said agent’s valuations are not considered to be the most accurate surveyors will conduct a valuation that will arrive at the true worth of a property an agent’s figure normally refers to what the property could achieve on the open market.
The UK property market is currently in a state of flux. In the past decade the power has been in the hands of the sellers as there were a larger number of buyers than sellers. Unfortunately with problems arising in the American credit market that have spread to the UK the number of buyers has dwindled. This is because they cannot secure mortgages and hence buy property. The risk is that if first time buyers completely dry up the market will stagnate and nobody will be able to sell their homes. Understandably this sort of situation will considerably affect the valuation figures given by both agents and surveyors; subsequently they will be lower than they have been in the past.
As a result of this drop off in the number of buyers many homeowners are choosing to expand rather than move. This can be helpful in improving a valuation figure as it adds space and hence worth. In many cases however a remortgage will be needed in order to secure the funds for an extension. If this is the case than an agent’s valuation will not be sufficient; mortgage brokers only accept valuations from qualified surveyors.
As previously stated there are a number of different factors that must be taken into account for the valuation to be accurate. Firstly they must consider how the current market conditions will affect the figure and in general how property throughout the country and local region is selling. Secondly the valuing person will have to take a detailed look at the condition of the property issues such as subsidence and poor roof quality will naturally affect the eventual figure at this point. Third and finally the valuation process will compare your property to other properties in the area that are similar studying the prices they achieved at sale and taking an average of the sample.
It is only when all of these are combined that an accurate figure can be arrived at. Owners always overestimate the worth of their home and the eventual figure can be a true eyeopener. It is hoped that this information will give the reader a better understanding of the valuing process and how the price of property is calculated.
About the writer: Real estate expert Thomas Pretty looks into the process involved in a property valuation and how house prices are calculated.
Property In Malta – Guide To Buying A Property In Malta
There are some restrictions on what types of real estate a foreign national can own in Malta. Generally speaking a foreign national is able to buy one piece of residential property that will be used as that person’s primary residence or that will be used by that person as a holiday residence during part of the year.
With this in mind an individual foreign national is not able as a general rule to buy commercial or industrial real estate in Malta. There are some instances in which a foreign national will join with citizens of Malta to form a joint legal venture usually in the form of a limited liability company to by nonresidential real estate. It is important to keep in mind that this type of arrangement does require approval from different governmental agencies in Malta.
Even for EU member state nationals Malta is now a part of the European Union the ability to own real estate in the country is limited at this point in time. There is some natural and necessary movement to relax different real estate laws in regard to foreign nationals in the future to bring Malta more inline with the open market concept that is the centerpiece of EU membership.
Investment Property in Malta
As has been set forth previously there are some pretty stark limitations on what type of real estate a foreign national can purchase in Malta. With this in mind the opportunities for investment in real estate beyond the ownership of a primary residence or a holiday home by a foreign national are limited.
Again and as was discussed there are some instances in which a foreign national will join together with citizens of Malta to develop a legal entity that will take possession of real estate in that country for investment purposes. Even with this noted the number of foreign nationals who are involved in such a venture is not significant due to the hurdles that must be surmounted in order to win governmental approval and authorization to purchase real estate beyond a residence.
There may be some relaxation in the laws governing investing in real estate by foreign nationals who are from European Union nations in the future. Of course the concept behind the EU is to allow for a free economic flow between member nations. Thus with Malta now a part of the EU it is likely that there will be changes in its real estate laws as they same pertain to investment in different types of real estate in the country by citizens from other European Union nations.
Residential Property in Malta
Generally speaking it is only residential real estate that can be purchased at this time by foreign nationals in Malta. Although Malta has joined the European Union where there can be found a broader ability of foreign nationals who are from EU member countries to by real estate within the EU this barrier has not been fully surmounted in Malta.
The primary reason that there is a heavier restriction on foreign investment in real estate arises from the fact that there is indeed only a limited amount of real property available to sale within the borders of that country. Unlike many other nations that still have undeveloped frontiers and a significant amount of space still available for development such is not the case with Malta.
A foreign national with relative ease can make the purchase of one piece of residential real estate either to be used as a private and personal residence or as a holiday home. This will be discussed in greater detail shortly.
Many Europeans have purchased larger homes in Malta that have become favored second residences holiday homes. A foreign national can stay within Malta for a period of up to three months at a stretch with no tax consequences or special filing requirements. A foreign national can spend between three to six months in consecutive succession in Malta with permission of the government. Generally there will be no additional tax consequences on a foreign national in Malta until that person remains in country for a period beyond six months .
Residential Real Estate Apartments in Malta
Upscale apartments remain attractive choices for foreign nationals looking to purchase real estate in Malta. As will be discussed shortly a foreign national can make the purchase of residential real estate in Malta provided the property is valued at 50000 MLT the Maltese national currency as is to be used only as private primary residence or as a holiday home by the purchaser.
These apartments high end apartments are in significant demand by foreign nationals at this point in time. These people who enjoy spending part of the year in Malta with its idyllic climate and easy lifestyle are attracted to these apartments .
Holiday Property in Maltese Holiday Resorts
With its nearly perfect climate the entire year around Malta has long been a favored travel destination for men and women from different countries around the world. The trend has continued unabated into the present day and age.
As a consequence there is a growing number of foreign nationals who are interested in finding real estate to purchase in that country for holiday or vacation purposes. Indeed as will be discussed shortly there are general limitations on the ability of a foreign national to purchase real estate in Malta generally restricting these men and women to being able to purchase one piece of residential property that can be used as a holiday home or as a permanent residence .
Specific Steps to Buying a Property in Malta
Despite the fact that the real estate purchase process in Malta is a relatively easy process there are some definite restrictions that apply to foreign nationals who are interested in purchasing real estate in Malta.
Generally speaking a foreign national can purchase a residence in Malta that is going to be used either as a holiday home or a that purchaser’s primary residence into the future. In addition to this general restriction there are some more specific requirements when it comes to a foreign national investing in real estate in Malta.
First of all the value of the real estate that is being purchased must not be less than 50000 MLT the national currency in Malta. Second all of the funds that are used to purchase this real estate must be derived from outside of the country. Third the real estate that is purchased cannot be rented out to anyone else. This includes property that is purchased for occupancy as a holiday home during only part of the year. Unlike in many other countries around the world a foreign national buying such a residence in Malta cannot lease out the property to someone else when it is not in use by the purchaser and owner. There is one interesting exception to this prohibition. The owner of a residence with a pool can in fact lease or rent out the property to someone else when he or she is not utilizing the property for his or her personal benefit.
Finally on resale a foreign national can repatriate the funds generated from the sale to his or her own country of origin.
Once these restrictions are appreciated and understood the actual process of buying and selling real estate in Latvia is simple. The initial phase involves the execution of a contract for sale. At this time the buyer is obliged to post a deposit that normally is in the amount of 10 of the overall purchase price of the real estate.
The preliminary agreement normally is valid for a period of three months. During this time period the purchaser will obtain financing and the seller will make sure that there are no defects associated with the title that will prevent a clear conveyance of the property to the purchaser when the sale is concluded.
The final contract ultimately is entered into between the parties. It is at this time that the buyer pays the remaining balance due and owing on the property. Additionally it is at this juncture that the buyer will take physical possession of the real estate.
There is some effort in Malta at the present time to relax at least to some degree and most likely for residents of other EU member nations the real estate laws in that country. Most of the proposals that are being considered center on allowing foreign nationals a bit broader usage with their residential property. For example there are proposed laws being considered that would allow a person who owns a holiday home or residence in Malta the ability to rent or lease that property to someone else during those times of the year when the owner is not personally utilizing the real estate in question. Again any such changes more than likely will be targeted towards citizens from EU member nations
Property Abroad always recommends using a Solicitor or Lawyer.
About the writer: Property Abroad’s directory Les Calvert writes interesting and useful articles on all subjects dealing with overseas investment property and buying property in Malta. Visit their website to view their property for sale in Malta and other useful information on buying property abroad.
Property In Czech Republic
Since the famous Velvet Divorce in 1993 that climaxed into the division of Czechoslovakia and the formation of two separate nations of Czech and Slovak Republics the fortunes of the two countries have taken slightly different routes. While Slovakia relies heavily on its tourism potential the Czech Republic depends a lot on its historically significant towns and places and a growing economy for development.
The Czech Republic has evolved into a modern nation with the accession to the European Union and the stated policy of overall development of the country. This landlocked country shares its borders with Poland Germany Slovak Republic and Austria and it’s this proximity that’s contributing the most to the real estate development of the Czech Republic.
Czech Republic Attractions
The Czech Republic is a land of composers like Dvorak and writers like Kafka. Its rich cultural heritage is aptly depicted by the capital city of Prague which has some excellent museums galleries and concert locations that are always buzzing with performances from the local and international artists.
The UNESCO World Heritage Sites like Cesky Krumlov Litomysl Castle and the Pilgrimage Church of St. John of Nepomuk at Zelena Hora top the visitors’ wish list in the Czech Republic. The great western spa towns of Karlovy Vary and Marianske Lazne along with the early settlements like Kutna Hora and castles like Karlstejn are some of the other famous spots in the country.
The Czech Republic is a beautiful country with the river valley areas of Vltava Moldau and Labe Elbe and the hilly landscape and rocky mountains dotting the landscape of the country.
The Bohemian Paradise in the northeast is a favourite among the hiking and climbing enthusiasts with several opportunities to enjoy the thrills associated with the adventure sports. The Agricultural eastern region of the country depicts a typical European countryside with historical castles wooden highlands and vineyards presenting a pictureperfect view.
The capital Prague is one of the most modern cities of Europe with several international fashion houses setting up their shops in this upscale city. The city has lots of nightclubs lap dancing bars casinos theatres opera houses cafes and bars to make the life hip and happening.
The everimproving Czech economy is the icing on the cake for the real estate investors. All the abovementioned factors when combined with a rosy economic condition of the country translate into a robust real estate market promising handsome rewards and a flurry of activities all around the year. And lower inflation and unemployment rates are just about perfect incentives for a large number of property investors in the country.
Property Investment in Czech Republic
Undoubtedly with limited tourism potential the capital city becomes the hub of all major real estate investments in the country. Prague can be safely considered as the centre of the country’s business and tourism activities. As a result big MNCs are flocking the city with extra cash in their coffers to maximize their profitability by heavily investing in a vibrant city.
Prague is also lucrative in terms of low cost of living. Though the capital city is the costliest to live in the Czech Republic but if you compare the costs with other major European capital it’s just a fraction. Resultantly the rental income is always a prime factor and consequently there’s a heavy demand for the buytolet properties from the investors. Swanky 2bedroom buytolet apartments can be bought for as low as 119K. However basic buytolet apartments come at an extremely cheaper rate of 20K onwards.
The government is working towards reducing the tax liability of property owners and simplifying the rigorous procedures and laws governing property transaction in the country. This has led to a largescale investors’ interest in other parts of the country as well like Brno. Some excellent buytolet apartments in Brno are priced competitively at 35K onwards.
Exploring the offplan properties in Czech Republic is also worth the effort particularly due to the fact that the property prices are on an upswing and it makes sense to buy it offplan to save extra pounds and make a decent killing from future dealings.
Since the cities are developing at a fast pace an astute investor will do well to explore the commercial property segment as well in order to reap rich dividends in terms of rental and/or resell profits. The spending capacity of consumers is on an upswing and the obvious impact is being felt in the commercial real estate. If finance is your problem there are several mortgage options available in the country at low interest rates.
Most foreign investment in the country is via SRO a Czech limited liability company. The setting up of SRO is not a tedious process and if a good local lawyer assists you ably the company can be formed within a week’s time. The company formation not only eases the property ownership process but also saves extra pounds from taxation and other benefits.
About the writer: Property Abroad’s directory Les Calvert writes interesting and useful articles on all subjects dealing with overseas investment property and buying property in Czech Republic. Visit their website to view their property for sale in Czech Republic and other useful information on buying property abroad.