Introduction
Albania is next-door to Montenegro and benefits from the same dramatic Adriatic coastline. Illyria Resort and Spa is situated in Lalezit Bay, a wide crescent-shaped sweep of white sands and blue seas. The bay is just 30km from the capital Tirana and a new road currently under construction will cut the journey time of 1.5 hours to just 30 minutes. As the closest beach to the capital and with such a short transfer time from the country’s only international airport, Illyria Resort and Spa could realistically see rental demand from both business travellers and tourists alike.
We are offering just 34 units within this development at the pre-offplan price of €645 per m2.
Many of you have invested in pre-offplan deals with us before. For those who haven’t, it is where we sell properties at just above cost price in order to raise finance for the development. Investor monies will be used as seed finance. The developer accepts a reduction in his end profit in return for receiving 100% of the price upfront, and you receive a hefty discount, adding equity from the start.
The developer plans to build a mixed-use residential and commercial project consisting of circa 240 units, with properties staggered up the hillside to make the most of the sea views and to offer added privacy. Facilities planned for the Illyria Resort and Spa development include a large pool, landscaped gardens, spa and treatment centre.
As demand for our previous deal was so high, we will be taking reservations on a first-come basis. Investors who send in their £2,500 reservation fee first will be given priority choice of the available units. We will need to receive 100% of the price within 14 days of the contract so you will need to move quickly to secure these incredibly low-priced properties.
The following gives an example of the possible financial benefits of purchasing a 1-bed unit at Illyria Resort and Spa.
Payment Timetable
Ongoing costs The running costs associated with your property are low, 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. After the guarantee period expires, bear in mind that management companies will charge circa 20% of your income when you rent your property on the open market.
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 the apartments within Illyria Resort and Spa working best 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 you can make the most of your rental guarantee while open market rates should also inflate.
Your onward sales market is diverse. Key demand is likely to come from from Italian tourists. They have historically traveled the short distance across the Adriatic in droves for their summer holidays, and it is common for them to buy second homes in their favorite resorts. Tourism from other countries is also increasingly dramatically - according to official statistics, the country attracted 2.1 million tourists last year - 19% more than in 2006 and 46% more than 20051, again providing a potential market for an onward sale. In addition, the increasingly affluent and growing domestic middle class based in Tirana, as well as ex-pat Albanians who wish to own a home on the Adriatic coast close to the capital, will also provide a real exit market. Local professionals such as laywers, accountants, managers and city workers aspire to the lifestyle of their European counterparts and increasing salaries and newly available financing means there is a growing market to enable you to maximise your sales price.
At the point when you wish to sell your apartment, the developer, Balkimo, (who are also the largest estate agents in Albania), will be able to assist.