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© 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Property Investment Guide Your Guide to Property Investment in Latvia &

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Presentation on theme: "© 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Property Investment Guide Your Guide to Property Investment in Latvia &"— Presentation transcript:

1 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Property Investment Guide Your Guide to Property Investment in Latvia & Lithuania

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

3 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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?

4 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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 20.0% –Latvia 17.5% –Slovenia 17.5% Return on Investment of 300% + is not uncommon * Source – Frank Knight Estate Agents - Jan 2007

5 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

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

7 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Where are the Baltic States?

8 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Where is Riga?

9 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Wheres where in Riga?

10 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Latvia – Key Facts Capital: Riga Area:64,590 km 2 ( Slightly smaller than Ireland) Population:2.3m Membership:EU, WTO, NATO Currency:Lats (Pegged to ) GDP Growth:8.5% Inflation:7%

11 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Where is Vilnius?

12 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Wheres where in Vilnius

13 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Lithuania – Key Facts Capital: Vilnius Area:65,300 km 2 ( Slightly Smaller than Ireland) Population:3.4m Membership:EU, WTO, NATO Currency:Litas(Pegged to ) GDP Growth:8.4% Inflation:6%

14 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

15 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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!

16 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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) PurchaseDepositOther Expenses Value After 3 years Gross ROI After 3 years * 100K15K6k170K445% * Figures are for illustrative purposes only Tucana Investment Property Ltd do not guarantee any potential returns on your investment.

17 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

18 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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 dont block reserve and mass market apartments to investors

19 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

20 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

21 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com How did George find the right property? He started by searching the Tucana web site: –www.tucana-property.comwww.tucana-property.com Then called Tucana on a local number: –UK +44 207 096 1247 –Ireland +353 1657 1621

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

23 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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 24 2220 86 e.g.

24 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com Tucana Investment Index Capital Growth –ROI over 5 years –Re-Saleability –Capital Growth 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 –Developers Record –Quality of Development –Time to Completion –Mortgage Availability/Rate Each category is scored out of a maximum of 25

25 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

26 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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 ?

27 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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.

28 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

29 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

30 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com 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

31 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com OK Im ready to invest Just talk me through the process with pleasure, first ….

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

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

34 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com How can George get there? Let Tucana know you are coming and we can arrange transport and hotels. *summer only UK-LatviaUK – Lithuania Ireland- Latvia Ireland- Lithuania Fly LAL www.flylal.lt Air Baltic www.airbaltic.com www.airbaltic.com Ryan Air www.ryanair.com www.ryanair.com Aer Lingus www.aerlingus.com www.aerlingus.com *

35 © 2007 Tucana Investment Property – All Rights Reserved www.tucana-property.com What are you waiting for? Dont let George have all the best investments Go to www.tucana-property.com todaywww.tucana-property.com Then gives us a call on: –UK +44 207 096 1247 –Ireland +353 1657 1621 Or drop us an email at sales@invest-tucana.com outlining your investment needssales@invest-tucana.com 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.


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