1. Property Investment Guide
Your Guide to Property Investment in Latvia & Lithuania
© 2007 Tucana Investment Property – All Rights Reserved

2. Meet George George would like to invest for the future
What’s important to George?
High Capital Growth
Good Return on his Investment
Tax Efficient Investment
Peace of mind by avoiding any high risks
© 2007 Tucana Investment Property – All Rights Reserved

3. Where should he invest?
George has read that investing in property in the Baltic States is providing good returns
But:
How good is it?
How can he find out more?
Who should he talk to?
© 2007 Tucana Investment Property – All Rights Reserved

4. George is right!
Lithuania and Latvia are the top two countries, in the world, for property price growth
Top 3 worldwide Growth Rates in Property Values for 2007* are:
Lithuania %
Latvia %
Slovenia %
Return on Investment of 300% + is not uncommon
* Source – Frank Knight Estate Agents - Jan 2007
© 2007 Tucana Investment Property – All Rights Reserved

5. Why Latvia & Lithuania? Having emerged from The Soviet Union
Joined the European Union & NATO
Governments have invested in growth with GDP growth in the 6-9% p.a. range
Currencies linked to the Euro €
The capital cities of Riga & Vilnius are particularly high growth areas as they are they focus for investment and people migrate towards the capitals in search of “a better life”
© 2007 Tucana Investment Property – All Rights Reserved

6. George doesn’t want to miss out
But:
He’s not too sure exactly where Latvia is
He certainly doesn’t know anyone in Latvia or Lithuania
So, how can he invest his money and minimise the risks?
© 2007 Tucana Investment Property – All Rights Reserved

7. Where are the Baltic States?
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8. Where is Riga?
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9. Where’s where in Riga?
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10. Latvia – Key Facts Capital: Riga
Area: 64,590 km2 (Slightly smaller than Ireland)
Population: 2.3m
Membership: EU, WTO, NATO
Currency: Lats (Pegged to €)
GDP Growth: 8.5%
Inflation: 7%
© 2007 Tucana Investment Property – All Rights Reserved

11. Where is Vilnius?
© 2007 Tucana Investment Property – All Rights Reserved

12. Where’s where in Vilnius
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13. Lithuania – Key Facts Capital: Vilnius
Area: 65,300 km2 (Slightly Smaller than Ireland)
Population: 3.4m
Membership: EU, WTO, NATO
Currency: Litas(Pegged to €)
GDP Growth: 8.4%
Inflation: 6%
© 2007 Tucana Investment Property – All Rights Reserved

14. George is introduced to Tucana
Who are Tucana?
Tucana are Property Investment specialists based in Latvia, with offices in Lithuania and London
Tucana help prospective investors find the right property and guide them through the full investment lifecycle
© 2007 Tucana Investment Property – All Rights Reserved

15. What can Tucana do for George?
Tucana spend much of their time sourcing prime investment opportunities
They have close relationships with many developers
Built up over their 10 years experience in the region
Tucana can find the right property for George to invest in
And guide him through the investment lifecycle
Sounds good to me!
© 2007 Tucana Investment Property – All Rights Reserved

16. What ROI can George expect?
A Capital Growth of between 15% and 25% per annum is quite realistic
Some existing clients have gained over 80% p.a.
With just 15% deposit as the investment
And if rental incomes cover the mortgage payments (which they mainly do)
Purchase
Deposit
Other Expenses
Value After 3 years
Gross ROI After 3 years *
100K
15K 6k
170K
445%
* Figures are for illustrative purposes only Tucana Investment Property Ltd do not guarantee any potential returns on your investment.
© 2007 Tucana Investment Property – All Rights Reserved

17. Will George make that on any property?
In a country with high property growth, you should make money on most properties, but like any investment, the more you know the better your choice.
With an average growth in property prices of 17.5% to 20% some will grow faster and others will grow much slower
“Guess who?” knows which are the best ones
© 2007 Tucana Investment Property – All Rights Reserved

18. How do Tucana know which is best?
Tucana are on the spot, they live there!
Tucana understand the markets
Tucana focus on smaller apartments, which are in high demand as younger people migrate to the capitals
Tucana advise individual clients on individual purchases
Tucana don’t block reserve and mass market apartments to investors
© 2007 Tucana Investment Property – All Rights Reserved

19. How much does George need to invest?
A typical One bedroom flat costs between
£60K to £100K
15% to 25% deposit will secure an off-plan property (sometimes 5% is enough)
Full payment required on completion
Up to 80% mortgages available
Rental income should cover at least the majority of the mortgage payments and monthly outgoings
© 2007 Tucana Investment Property – All Rights Reserved

20. Why Buy Off-Plan? Lower prices Deposit secures investment
Benefit from price inflation of full value by only paying small % deposit
Get ahead of the market
Reduces Capital Expenditure
© 2007 Tucana Investment Property – All Rights Reserved

21. How did George find the right property?
He started by searching the Tucana web site:
Then called Tucana on a local number: UK
Ireland
© 2007 Tucana Investment Property – All Rights Reserved

22. What did Tucana do?
Tucana took the time to understand what type of investment George was looking for
Then they ed him detailed property investment packs for a number of properties
Each of which contained the Tucana Investment Index
© 2007 Tucana Investment Property – All Rights Reserved

23. What is the Tucana Investment Index?
Measure of investment potential
Based on:
Capital Growth
Income
Location & Infrastructure
Quality & Delivery
Each scored out of 25
60+ is considered a good investment XX
Capital
Growth
Income
Infra- structure
Quality
e.g. 24 22 20 86
© 2007 Tucana Investment Property – All Rights Reserved

24. Tucana Investment Index
Capital Growth
ROI over 5 years
Re-Saleability
Rental Income
Rental Demand in Area
Potential Rental Return
Proportion of Local Owners
Rental Management Value
Location & Infrastructure
Catchments Area
Up and Coming Area
Synchronisation with Area
Local Amenities
Transport Links
Quality & Delivery
Developer’s Record
Quality of Development
Time to Completion
Mortgage Availability/Rate
Each category is scored out of a maximum of 25
© 2007 Tucana Investment Property – All Rights Reserved

25. Using the Tucana Index
George liked The Tucana Investment Index because it enabled him to rank individual properties in line with his investment needs
The Tucana Investment Packs clearly show how the Index is calculated for each property
Any property with a Tucana Index of 60 or more is likely to be a good investment
© 2007 Tucana Investment Property – All Rights Reserved

26. Property Chosen – What Next?
George soon found a property he liked
But thought it was all too easy
What about:
Taxes
The Legal Side
Finding a mortgage
Renting it out
Selling it on ?
© 2007 Tucana Investment Property – All Rights Reserved

27. Tax Effective
No Capital Gains Tax after 1 year (Latvia) or 3 years (Lithuania)
Only 25% or 27% Income Tax
Generous Allowances on costs of “buy to let”
Latvia - 2% stamp duty (up to 2 properties) 3% (3 or more properties) and 1.5% pa cadestra
Lithuania – No stamp duty
Figures correct when this presentation was created. Tucana Invest Property can not be held liable for any change in government regulations, property values, taxes or the level of investment gains or losses.
© 2007 Tucana Investment Property – All Rights Reserved

28. The Legal Side No restrictions on foreign ownership of property
Local currency pegged to the Euro, minimises currency fluctuations
Friendly local lawyers fluent in English
Fixed rates
“Power of Attorney” means no need to visit
© 2007 Tucana Investment Property – All Rights Reserved

29. Finding a mortgage
Tucana partners with a number of local banks who are willing to lend between 60% & 80% of Loan to Value
Mortgage terms of up to 30 years, depending on your age
Euro based with competitive interest rates
Re-mortgaging of UK property can also be arranged
© 2007 Tucana Investment Property – All Rights Reserved

30. Renting it out & Selling it on
Both Riga and Vilnius are capital cities in growth countries
People are moving to the capitals in search of a better future, creating a high demand for property and rentals
Tucana can handle the rental in-house and also partner with several well respected rental management agencies
They look after all aspects of renting the property from finding tenants to collecting payment
Choosing a well situated and well appointed apartment will make renting and the eventual sale even easier
© 2007 Tucana Investment Property – All Rights Reserved

31. “OK I’m ready to invest”
Just talk me through the process
with pleasure, first ….
© 2007 Tucana Investment Property – All Rights Reserved

32. The Investment Process
Choose Property
Arrange mortgage
(if applicable)
Check
Available
Wait while it is built
International
Bank Transfer
Arrange
Power of Attorney
To Visit
Pay reservation fee
Complete
purchase
Watch your
Capital Grow
Sign Preliminary
Contracts
Passport
Utility Bill
Internal Layout
Build
Pay Deposit & fees
Arrange letting
© 2007 Tucana Investment Property – All Rights Reserved

33. Does George need to visit?
Its up to George:
Some people rely on our comprehensive investment information and use our “power of attorney” service to purchase their properties without visiting
Others prefer to see things first hand, experience the culture and view a selection of different properties
© 2007 Tucana Investment Property – All Rights Reserved

34. How can George get there?
UK-Latvia
UK – Lithuania
Ireland- Latvia
Ireland-Lithuania
Fly LAL 
Air Baltic
Ryan Air
Aer Lingus *
Let Tucana know you are coming and we can arrange
transport and hotels.
*summer only
© 2007 Tucana Investment Property – All Rights Reserved

35. What are you waiting for?
Don’t let George have all the best investments
Go to today
Then gives us a call on: UK
Ireland
Or drop us an at outlining your investment needs
Every effort has been made to ensure that the information contained within this document is accurate and correct. However, all information provided by Tucana Investment Property Limited is given on an “as is” basis and Tucana Investment Property Limited or its staff cannot be held responsible for omissions or the accuracy of the information contained in this document.
This document is protected by international copyright law, copying or replication either in part or in full is strictly prohibited.
© 2007 Tucana Investment Property – All Rights Reserved