Introduction
Situated on Albania’s Adriatic coast, the Cape Rodoni Resort & Spa development has what we think is an unbeatable pre-offplan entry point of just €588 per m2. This is a rare opportunity to buy quality frontline European investment property at such a low price.
The site looks over sandy Lalezit Bay, just 20km from the country’s only international airport and 35km from the capital Tirana. A new motorway link is currently being constructed that will slash the journey time between our site and the capital Tirana from 1 ½ hours to just 30 minutes. The quick journey time to the capital and the country’s only international airport will increase rental demand for our new high-end development from local commuters, tourists and business travellers alike.
The developer has agreed to release 40 strictly limited units at the price of €588 per m2. There is a mix of 40m2, 60m2 and 80m2 units available. And in a deal unheard of in Albania we’ve negotiated all R2i investors a 3-year 8% rental guarantee.
Albania is a country looking to the future and the time is right to look for investment property early on in this emerging nation’s development cycle.
The following gives an example of the possible financial benefits of purchasing a 1-bed unit at Cape Rodoni Resort & Spa.
Discount
The developer, who also runs Albania’s largest estate agency, is confident of selling the full priced units at Cape Rodoni at a price of €900-€1,000 per m2. The market research on page 9 supports this target, (note the premium for sea view/ frontline property). With this in mind we feel that the conservative market value is circa €900 per m2, which would provide a discount of around 35%. This could generate a potential €18,720 of profit before any growth in the market.
Investor expenditure at purchase
As a pre-offplan purchase you are required to pay the full purchase price at contract.
But at just €588 per m2 and with low costs of purchase (no stamp duty or tax and only 1% notary fees) you can purchase one of these units outright for only €38,658 (circa £26,660).
Cash flow (after completion)
The developer is offering a guaranteed rental income of 8% gross per annum for three years after completion. With no mortgage payments to make and low running costs this income could be viewed as post-completion cash back, effectively reducing your purchase price to circa €28,000.
Potential return
Buying under market value locks in your equity at purchase. However the Albanian market as a whole is still very inexpensive and there is little doubt that it will grow in value over the coming years. It is at an early stage of its development cycle and is considered by many investors to be the last frontier in Europe for property investment.
The combination of overseas investors and a growing local middle class is already increasing the demand required to start the ball rolling. In addition, there are few new-build developments and supply is further restricted by strict planning regulations, increasing the likelihood for
strong growth.
Ongoing costs
The running costs associated with your property are negligible, and are outlined in the table on the right. After the rental guarantee expires, the costs associated with owning a property in Albania are low when compared to other European destinations. You must renew your habitation licence each year and insure your property. Maintenance costs are in the region of €3-5 per m2 per annum. When you rent your property on the open market, bear in mind that management companies will charge circa 20% of your income.
Tax incentives
There is no transfer tax, VAT or stamp duty due on purchase of a property and no capital gains due at sale. Income tax on rental monies is 10%.
Exit strategy
We see these apartments at Cape Rodoni Resort & Spa as mid- to long-term investments – the discount to market value offers an immediate equity boost and there is a genuine capital appreciation story. Selling after five years or more should give the market enough time to mature so you can obtain the best possible returns. In this timeframe your rental income will also inflate.
The onward sales market is diverse; local Albanian ex-pats who want to own a second-home on the Adriatic coast close to the capital; nationals from Eastern Europe and other Balkan states; and as the market matures, western Europeans. At the point when you wish to sell your apartment, the developer, Balkimo, will be happy to assist.
Lawyers
When buying property in any foreign country, it is imperative to have a good English-speaking lawyer who will guide you through the process step by step.
Kalo and Associates
59 Kavaja Tower, 5th Floor
PO Box 235
Tirana, Albania
Tel +355 (4) 233532
Fax +355 (4) 224727
info@kalo-attorneys.comwww.kalo-attorneys.com
We have sourced an independent Albanian legal firm to assist investors in the purchase process. As part of their service they will provide the following:
Verify the ownership of land title and the agreement between the landlords and the constructor for constructing the building.
• Verify the legality of building permits.
• Act with power of attorney for the investor.
• Sign the undertaking contract.
• Review the draft of the final purchase contract/s of the apartment/s of the residence.
• Sign the purchase contract.
• Verify with the Real Estate Office of Tirana, registration of title ownership of the apartment/s in the name of the client.
Established in 1994, Kalo and Associates has developed into one of the leading Albanian law firms. Specialising in corporate and commercial law, the firm offers highly trained lawyers who are fluent in many languages and provide quality legal representation in English.
The firm will charge €550 plus VAT (totalling €650) for their services, plus disbursements. We are confident that a high level of representation will be maintained throughout the purchase process.
Currency
Small differences in exchange rates make a big difference to the end amount you pay, and specialist companies compare extremely favourably to the high street banks.
Ready2invest currently works with Moneycorp and Currency Solutions, currency conversion companies in London that offer an extremely personal service and excellent rates.
Moneycorp
Moneycorp, the UK’s leading foreign exchange company, can help you achieve the best exchange rates, making your money go further. They offer a number of benefits including no commission charges or receiving of bank fees and fast, efficient worldwide transfers.
Our contact, Ben Nicholson, is always available to take your calls at Moneycorp’s London office. The number is 020 7823 7500, or visit http://www.moneycorp.com/.
Currency Solutions
The UK’s premier foreign exchange company for clients purchasing property overseas. Their up-to-the-second trading facilities allow you to trade or fix the exchange rate on your purchase at the most opportune time, saving
you money.
Nigel Hodges, our dedicated R2i dealer, will be happy to answer any questions you have. The London office number is 08700 42 43 44, or visit http://www.currencysolutions.co.uk/.
The R2i fee
The Ready2invest fee for a unit in Cape Rodoni Resort & Spa is £1,500 payable for every individual reservation made.
What our fee covers:
• Finding the deals through our network of international finders.
• Personally visiting all developments for face-to-face meetings with key personnel and viewing the sites.
• Negotiating the discount using R2i reputation and buying power.
• Financially structuring the deal for maximum returns.
• Completing extensive research and due diligence on: -title, planning, legals, country and town, the development, and the developer.
• Securing protection for your investment.
• Sourcing reputable local English-speaking lawyers in every country wherever possible.
• Negotiating favourable fee structure with lawyers.
Service:
Our investor relations staff help you through your entire investing process.
heir roles incorporate:
• Answering any questions you may have during your investment process.
• Guiding you through the contract and payment process.
• Helping arrange a power of attorney if necessary.
• Help organise and liaise with mortgage companies where necessary.
• Arranging site visits (1 week’s notice needed).
• Help source and organise furniture packs where appropriate.
• Help source local letting agents where appropriate.
• Update you on the progress of your investment.
• Provide a friendly ear for any worries or queries you may have regarding your investment.
What we don’t do:
• We don’t arrange mortgages.
• We don’t convert currency.
• We don’t manage or sell finished property.
• We don’t advise on tax.
About us
When Jonty and Alise Crossick sold their retail business and moved into property in August 2003, they invested just £300,000. Twelve months later they were sitting on a property portfolio worth over £7 million with equity of over £3.5 million.
In October 2003, Jonty and Alise set up Ready2invest Limited to share their property strategy with others and deliver a professional investment brokering solution in a fragmented market. The company has become well known for its thorough research and due diligence, and for negotiating and engineering exceptional deals in
the marketplace.
“We think like investors, we behave like investors and we personally invest in the developments we launch. Ready2invest grew out of a need to group together with other like-minded investors in order to create the buying power to get great deals.”
Over the past two years, the Brighton-based company has built up a customer base of over 20,000 investors, and has achieved over €400 million of off-plan sales in many countries across Europe, each with its own administrative and legal procedures.
“Our job is to build trust with the developer and trust with you. If you know that the properties we offer are well researched, superbly priced, judiciously selected and located in prime spots, then we believe you will buy through us. If the developer is confident that we can sell a lot of properties quickly and efficiently, thereby taking some of the pain out of his transaction process, we can negotiate unbeatable deals with him. The result? You, the investor, wins. The developer wins. And we win.”
Next steps
To reserve a unit at Cape Rodoni Resort & Spa, please complete and sign the reservation form and return it to us, along with a reservation fee of £1,500.
The simplest way to pay this is by electronic bank transfer – it’s quick, easy and it’s free. The Ready2invest bank details are:
Bank transfer details
Barclays Bank PLC
United Kingdom House
7th Floor
180 Oxford Street
London
W1D 1EA
Ready2invest Ltd Deposit Account (Sterling)
Bank Account Name: Ready 2 Invest Ltd
Bank Account Number: 40559725
Bank Sort Code: 20.03.53
IBAN Number: GB35 BARC 2003 5340 5597 25
SWIFT Code: BARCGB22
Alternatively, if you prefer you can send a cheque which should be made payable to Ready2invest (Cape Rodoni). Please send a separate cheque for £1,500 for every unit you wish to reserve.
Ready2invest (Cape Rodoni) Limited
Olivier House
18 Marine Parade
Brighton
BN2 1TL
For full registration details including the Registration Form and a list of Reservation Terms and Conditions, please download the full brochure as a PDF below.