Obelisk says Bulgaria is World Leader for Property Investment

Bulgaria property investment has proven to be the country’s economic driver with a record-breaking turnover of €11.36 billion in 2007.

As the world's strongest property market in 2007, Bulgaria property investment has made a huge €2.36 billion increase on 2006 figures, and is successfully keeping up the momentum for 2008.

Many local and international property experts predicted the year’s increase to reach 25% to 30% however by September the market had actually risen by 32% with many major cities, such as Sofia, already recorded impressive growth this year.

The huge property price rise has been largely attributed to a good mortgage market, high annual revenue of properties and the weak impact of the world financial crisis in Bulgaria.
The Bulgarian financial market has not been impacted by US sub-prime crisis due to no cross-border banking, with consumer borrowing continuing at a steady growth rate.

UK property investors, who accounted for 40% of all Bulgaria property investment in 2007, followed closely by Russia occupying 38% of the market have played a primary role in maintaining excellent market conditions, whilst further strengthening the country’s financial stability and adding to the robust appeal for Bulgaria property investment

Nikolin Gavrailov President of the Bulgarian Entrepreneurial Chamber in Building reported the turnover for the construction industry as €5.6 million adding, “The (previous) lack of modern apartments, retail, and administrative buildings caused the construction boom. The investment growth in tourism, production, and the need for modern infrastructure also stimulated construction. Construction sector growth is expected to be between 12% and 16% year on year until 2010.”

Alongside such strong growth in Bulgaria property investment, the economy has experienced sustained growth with The Economist forecasting a consistent 6.4% GDP growth year on year. Bulgarian emigrant workers are investing back into the country in particular retail and housing sectors, also boosting the Bulgarian economy. According to preliminary figures from the World Bank, remittances from Bulgarians working abroad will amount to €1.26 billion in 2007. However, the Bulgarian National Bank have stated the actual figure to be closer to €2 billion or 7% of the gross domestic product.

In a bid to ensure a consistent flow of foreign direct investment (FDI), the Bulgarian government has made bold changes to the Bulgarian tax system. The new system will mean that both income and corporate tax will be charged at a very low 10%. This new flat rate applies to all workers, investors, and companies regardless of income or profit values, making Bulgaria a very tax efficient place to relocate or invest in.

From July 2008, budget airline Wizz Air will be the first operator to offer cheap internal travel from the capital city to the coast of Bulgaria. The low cost airline will operate four domestic flights per week between Sofia and Varna, and will expand flight frequency to the UK, Italy, Germany Spain, and Turkey.

Despite such rapid price growth, Bulgarian property investment remains very competitive and highly profitable in comparison with other European markets, giving the country a long-term profitable investment edge.

About Obelisk
Obelisk is an overseas property investment company providing global investment opportunities that offer secure, tangible, and impressive financial performance. Their service to investors is based upon three main principles of price, profit, and performance.

For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on: 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com

UK Tax Reduction Profitable for Overseas Property Investment

Investors who have purchased overseas property investment can now capitalise on a reduction in UK Capital Gains Tax (CGT) to 18% from April 2008.

The changes will take effect in the new financial year beginning 6th April 2008 and will include a £9,200 CGT allowance. Overseas property investments will only be subject to 18% tax on any gains above £9,200 replacing the previous sliding scale of up to 40%.

Currently, the minimum tax rate on residential property is 24% and until the new tax rates come into effect, property investors who have already purchased properties will benefit greatly from a minimum 6% tax cut further boosting profits on overseas property investment.

Property investors could also reduce tax bills further by splitting the capital gains with their partner where a property is jointly owned, and in effect pool their threshold allowance of £18,400.

Additionally, owners will be entitled to up to £40,000 letting relief against any gains earned. And as with the CGT allowance, providing the overseas property investment is held in joint names, the letting relief is available to each owner effectively doubling the maximum letting relief to £80,000.

Many countries, more notably within Eastern Europe, are keen to attract a continuous flow of foreign direct investment and as such, have also adjusted their tax conditions to as little as 10%. The favourable tax rates coupled with double taxation treaties with the UK make overseas property investment within this area highly profitable.

Other tax reductions can be made upon the sale of property if the investor has previously let the property and then lives in the property for any length of time, under the UK Principle Private Residence Relief (PPR). This allows the owner the last three years worth of gain, plus the period in which they have lived in the property, completely free from CGT.

Although PPR generally means CGT is not applicable when selling your main and only residence, if more than one property is owned, the PPR may be offset against any property in the UK or overseas.

About Obelisk
Obelisk is an overseas property investment company providing global investment opportunities that offer secure, tangible, and impressive financial performance. Their service to investors is based upon three main principles of price, profit, and performance.

For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on: 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com

Alliance & Leicester Create New Mortgage Rates to Boost Sales

Alliance & Leicester has launched new residential and buy-to-let fixed rate products in a bid to entice more borrowers.

The two, three, and five year fixed rate mortgages for residential buyers will offer rates below 6% as opposed to the current 7.69%. This move will provide a welcome relief to homeowners and buy-to-let investors who are now in a position to switch lenders.

The three and five year fixed rates, currently at 5.99%, will be reduced to 5.79%, which will be fixed until 31 March 2011 or 31 March 2013.

For the buy-to-let property investment market, a two year fixed rate is being reduced from 5.98% to 5.44%, fixed until 31 March 2010, which will then revert to the base rate plus 2.19%, or a tracker mortgage. The new buy-to-let three-year fixed rate product will offer 5.74% until 31 March 2011, again changing to a tracker mortgage.

Richard Taylor, Head of Mortgages at Alliance & Leicester, commented, "These new reduced fixed rate deals are available to both new and existing customers seeking to buy a home, remortgage or invest in a property to let.”

“The range of products we have on offer means customers can choose the right package to fit their needs and fix their monthly mortgage payments for two, three or five years.”

"The buy-to-let two year fixed rate product with a percentage arrangement fee provides landlords with a better value offer and with the addition of new three and five year fixed rate options they now have the opportunity to fix their rates and gain payment certainty for a term that suits them."

Spain Approves Las Vegas Style Project

A Las Vegas style project is approved for a huge £12.2 billion casino and theme park in the north of Spain.

The regional government of Aragon have agreed plans to transform the Spanish desert into a themed entertainment zone.

The ‘Casino City’ investment project is to be built over a 10-year period on 5,000 acres of land. The development will include a reported thirty-two hotels, five theme parks, a stadium, conference centre, bull ring, water park and will also include the famous Las Vegas inspired wedding chapels.

The investors plan to invite Daniel Craig,star of Casino Royale, to promote the James Bond inspired theme park - Spyland, to glamorise and raise the profile of the project. International Leisure Development, a London based consortium leading the project stated, “It’s going to bring lots of jobs. Disneyland Paris will be tiny in comparison.”

Gran Escala (meaning large scale) has been chosen as the provisional name for what will be the largest casino city in Europe. Once complete with backers, it has been projected that visitor numbers will be 25 million per year with a maximum capacity of 35 million. Marcelino Iglesias, the socialist president of Aragon, estimated the casinos would create 30,000 new jobs stating, “The project is important for the whole community.”

The nearby city of Zaragoza is already connected to Madrid via a high-speed rail link. However, plans are in place to inject further investment to upgrade both rail and air transport to the city from other European destinations.

The first phase of construction is due to commence during the summer of 2008 with the Water Park and Spyland first on the agenda.

Overseas Property Investments Overshadow Stock Markets, Report Obelisk.

A review of Obelisk’s overseas property investments shows that a property portfolio continues to outperform other financial options.

The last four months has been a turbulent time for the global financial markets across Asia, Europe, and the US, which have fallen sharply over fears of a worldwide recession.

Monday saw the markets tumble to its lowest level since 2001 with all the worlds’ major markets seeing big losses by the end of trading. In a bid to stave further drops in share prices and calm nerves, the US Federal Reserve cut interest rates to 3.5%. However, the move had no effect on trading as shares continued to fall after opening on Tuesday.

In December, seven companies were removed from the FTSE 100 in the biggest shake up of the index since the dotcom crash of 2001. The ill-fated Northern Rock was the worst affected by the market downturn along with Daily Mail, Tate & Lyle and DSG International all now in the FTSE 250 index.

The Ernst & Young ITEM Club also expects the UK economy to grow by only 1.8% this year compared with 3.1% in 2007.

In light of the current trading climate financial institutions across the board continue to advise on a balanced portfolio as opposed to concentrating solely on one financial investment option. As a general guide, and based on an investor’s age, a 35 year old should therefore invest 35% of their portfolio in real estate, bonds, or cash - the proportion of which increases with age.

The overseas property markets within emerging countries saw the greatest profits as increasing numbers of investors move away from the more ‘traditional’ markets, in search of higher returns on their investments.

After a full analysis of projects offered in 2007, the future looks very profitable for Obelisk clients. In terms of entering into new property markets and highlighting emerging hotspots within Eastern Europe, Asia, and South America, a balanced property investment portfolio has been fully achieved.

James Gonzalez, Market Analyst at Obelisk comments, “The extensive research, market analysis and due diligence undertaken by Obelisk prior to bringing new property opportunities to clients creates a win, win situation in terms of delivering profitability and diversity to our client’s investment portfolios. There is no substitute for a well balanced, diversified portfolio if you want to make reasonably consistent returns.”

“We take economical, political, and long-term sustainability into consideration when looking at new investment markets. This ensures we identify high growth markets early, to maximise our clients profit potential.”

Obelisk’s 2007 overseas property investment projects have already realised a minimum on target earnings of 10% for our clients, whereas the December 2007 figures for the UK property market shows a deficit of 4.2%, according to Investment Property Databank (IPD).

“Based on this report, our in house analysis and coupled with the uncertainty of the mainstream stock and property markets, we believe that our approach and knowledge will continue to bring the best investments to our clients in the most viable markets.”

About Obelisk
Obelisk is a real estate investment company providing global investment opportunities that offer secure, tangible, and impressive financial performance. Their service to investors is based upon three main principles of price, profit, and performance.

For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on:
0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com
Visit our website: http://www.obeliskinternational.com/

Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com

Obelisk Client’s Feature in ‘A Place in the Sun’ magazine

Obelisk clients, Alan and Tracy Roberts report to ‘A Place in the Sun magazine’ on why they invest in off-plan property with Obelisk.

When Alan Roberts found himself with capital to invest after selling some local property, buying overseas wasn’t an automatic choice – in fact, he was terrified!

But the 55-year-old garage proprietor from Warrington, Cheshire, did some research and came to the conclusion that overseas property offered the best return on investment.

“I considered going into buy-to-let in this country (UK), but was concerned about continued good returns. I think the recent sub-prime crisis shows that my fears were well-founded.”

So Alan took his courage in his hands and looked for opportunities abroad, and was pleased to find a company to take the sweat out of the process by finding the best, safest deals, sorting out instalments, and helping with lawyers.

Alan and his wife, Tracy, now have an ever-expanding portfolio around the world, and buying property abroad has become a real obsession. “You get very sentimental about the places you invest in – it becomes personal.”

Fascinated by the dizzying variety of deals, financing opportunities, and markets that are coming his way. He already has off-plan property going up in Cyprus and Romania, and his latest property in Natal, Brazil.

That’s why Alan is going through a large company. Obelisk, who organise the deals. But wouldn’t it have been cheaper to find his own house abroad and cut out the middleman?

“Off-plan offers a far better return. You’re getting in early so it’s cheaper, you can pay in instalments and you can see the value shooting up while it’s built. Plus, these properties are like our babies, we love seeing them growing up.”

They also see their properties as a safer investment for their future than merely paying into a pension – “especially with the way financial institutions are looking now,” says Alan.

Extracts taken from A Place in the Sun’s, February 2008 edition, please click here to view original article.

About Obelisk
Obelisk is a real estate investment company providing global investment opportunities that offer secure, tangible, and impressive financial performance. Their service to investors is based upon three main principles of price, profit, and performance.

For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on:
0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com
Visit our website: http://www.obeliskinternational.com/

Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com

Obelisk Market Analyst: How to Identify Property Hot Spots

Political stability is an all-important factor when assessing a country’s investment potential. For example, Kenya was a relatively attractive prospect 18 months ago, but now that has all changed. Solid political reform, good clear administration and a country’s attitude to dealing with foreign direct investment (FDI) all add to the attractiveness, and ultimately lead to a profitable environment to invest in.

Advance knowledge of any costs involved will ultimately have an effect on the overall gains and should be well researched prior to any property venture. However, favourable tax conditions, rental income, and/or the resale price of the property may greatly outweigh any initial purchasing costs.

Many Eastern European countries are benefiting from joining the EU; receiving much needed funding for infrastructure and attracting international companies. This consequently increases the national wage earning potential, lowers unemployment, as well as provides a strong local economy, strengthening the resale market.

Emerging markets over the short-term can offer opportunities that make a fast return, whereas a longer-term rental approach with a view to sell in the future offers good growing rental yields coupled with a vastly different, and generally more bullish, resale market.

The departure boards in UK airports such as Gatwick, Manchester etc. will also provide clues as to where the next hot destination will present itself. The generation of so many new air routes provided by the budget carriers at very low prices are highly desirable options for the holidaymaker. The ease and accessibility of a destination can be a deciding factor in placing countries on the ‘foreign investment map’.

About James Gonzalez
James has a vast market knowledge and background within the world of property. Prior to joining Obelisk as Market Analyst, James worked for CB Richard Ellis (Hong Kong), Healey & Baker (now known as Cushman & Wakefield) and Hamptons. James' key role at Obelisk is to research, analyse, and identify viable and profitable emerging markets.

For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on:
0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com
Visit our website: http://www.obeliskinternational.com/

Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com

Pound Falls to Record Low Against Euro

The pound dropped to 74.30 pence against the Euro last week, the lowest level since the introduction of the single European currency in 1999.

The pound fell to a record low against the euro following the Bank of England prompting lenders to reduce the flow of credit available to consumers and businesses, in the first quarter of 2008.

However, the trend has lead many financial experts to believe the slow down is a result of consumers reduced demand for loans and mortgages, as UK banks report a fall in mortgage requests during November 2007. The low pound was also compounded by a fall in the purchasing managers’ index (PMI) by 1.4 points.

Neil Jones, Head of European Hedge-fund Sales at Mizuho Capital Markets comments, “The pound is suffering on expectations of both lower credit supply and demand, a reduction in credit should cause lower interest rates.''

However, James Gonzalez, Market Analyst at Obelisk reports that the benefits of a weakened pound and a cut in interest rates can have positive effects for many consumers in the UK. “The UK has seen astronomical interest rate rises over the last year, so any reduction should be warmly welcomed by homeowners.”

“The strength of the Euro is a clear indication of the Eurozone’s healthy economy and in fact remained unscathed by the recent financial turmoil. The cost of borrowing in terms of equity release in the UK will consequently be lower if the Bank of England reacts to calls for a further cut in interest rates. For existing homeowners, rates cut will indeed make overseas property investment even more desirable.”

He continued to say, “Overseas property investors who entered the ‘New Europe’ markets early, will also find that the strength of the Euro will have a good impact on any overall profits. Choosing to enter a resale market or renting their property when a local currency is buoyant against their home currency further increases the net worth of repatriated funds.”

Early forecasts indicate that the pound is likely to remain deflated until a renewed confidence in the financial stability of the UK market.

About Obelisk

Obelisk is a real estate investment company providing global investment opportunities that offer secure, tangible, and impressive financial performance. Their service to investors is based upon three main principles of price, profit, and performance.

For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on:

0808 160 0670 (UK) or 1800 932 514 (IRE)

Email info@obeliskinternational.com

Visit our website: http://www.obeliskinternational.com/

Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com

Cyprus & Malta Euro Currency Transition Hailed a Success

EU President José Manuel Barroso praised the economic improvements made by the two countries, after the official adoption of the Euro on 1st January 2008.

Both countries satisfied stringent economic criteria of the EU, making them the newest entrants since 2004. Changes include a significant reduction of budget deficit, public debt, and meeting the inflation and interest rate criteria, thus strengthening the overall economic stability.

President Barroso commented, "The euro is a strong and stable currency. Along with the economic reforms the EU and Member States have undertaken, it is a reason why the European economy is still growing despite some difficult challenges caused by high energy and commodity prices."

The circulation of Euro bank notes began smoothly and by 2nd January, banks reported the withdrawal of €150m worth of notes, with 40% of people in Malta and Cyprus only carrying euro currency with the complete change over to the new currency scheduled by 1st February.

Many islanders showed concerns regarding increases, as a consequence of traders ‘rounding up’ prices for goods and services. However, several preventive measures are in place, including a fair pricing scheme and the monitoring of dual currency prices.

Currency specialists, HiFX believe the introduction of the Euro, along with strong economies in both countries, will continue to make Malta and Cyprus property investment an attractive prospects for British investors.

According to data from HiFX, the number of international enquires about buying property in Malta and Cyprus doubled in 2007 and predicts interest to rise dramatically in 2008.

Mark Bodega, Marketing Director of HiFX comments, ‘We predict the property market on both of the islands is to continue to grow due to a number of reasons, purchasers like the legal system in Cyprus as it is easy to understand, being based on the English one.”
James Gonzalez Market Analyst at Obelisk comments, “Malta boasts far lower taxation than the UK, there are no annual council or property taxes, and inheritance tax was abolished in 1992.”

“Since joining the EU in 2004, both Malta and Cyprus property investment has shifted up a gear. A substantial amount of property investors are purchasing for rental income and the discerning buyers are looking for luxury properties; providing excellent tax rates, especially for those within a higher tax band.”

For more information on Cyprus property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on:
0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com
Visit our website: http://www.obeliskinternational.com/
Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com

Overseas Property Investment Robust for 2008

Property investors’ confidence in the overseas property markets continues and is set to maintain strong purchase levels during 2008.

Early reports from the National Association of Estate Agents International and the Federation of Overseas Property Developers, Agents and Consultants shows consumer confidence remains unaffected, following the news of the US credit crunch.

According to both organisations, properties in established destinations remain popular, with the trend expected to continue well into 2008. Currency exchange specialists, Foreign Currency Direct, reinforce this view adding supporting figures quoting an 8.2% increase in currency transactions during the last quarter of 2007, in comparison to Q4 2006 figures.

James Gonzalez, Market Analyst at Obelisk comments, “The diverse types of buyers of overseas property investment range from pure profit to lifestyle, both young and old, all driving the consistent demand for overseas property investment.”

“More and more property buyers are being motivated by the emerging markets, knowing that the returns are far greater than in the more traditional destinations. Eastern Europe is clearly in the forefront for overseas property investment.”

According to the latest figures, Bulgaria property prices rose by a massive 30.6% by the end of quarter 3 2007, registering the highest increase in the world in 2007.

The Eastern European markets have reported little or no impact from the US sub-prime crisis with the European Central Bank (ECB) recently confirming consumer borrowing is continuing at a steady growth rate. Financial analysts forecast an early 2008 cut in interest rates, further adding to the robust appeal of the area.

About Obelisk
Obelisk is a real estate investment company providing global investment opportunities that offer secure, tangible, and impressive financial performance. Their service to investors is based upon three main principles of price, profit, and performance.

For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on:
0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com
Visit our website: http://www.obeliskinternational.com/

Press Office: Tel: 0808 160 1005 or email press@obeliskinternational.com