Real Estate Folk You Can Trust

Date: 05/27/2005

Real Estate Folk You Can Trust

International Living Postcards-- Saturday Edition

Saturday, May 28, 2005
Paris, France

Dear International Living Reader,
I got an email this week from a reader looking for contacts in four different real estate markets: Croatia, France (specifically leaseback properties), Romania, and New Zealand. I won't reprint the entire email here but he asked some good questions and you should keep my answers (below) on file if you are interested in any of these markets.

Croatia: Tourists are returning to Dubrovnik and the Dalmatian Riviera in force. The thing to note here is that these tourists are not coming because of a low-fares air route which may close at any time (as has happened in some remote parts of Europe). Croatia is a popular destination among Italians, who come by car from the north and by ferry across the Adriatic. Germans, Austrians, Czechs, Hungarians, and Slovenians have easy access by car. Brits can take one of the direct flights from Gatwick and charter flights depart destinations throughout Europe…but the new wave of tourism is not dependent on these air routes. For real estate in Croatia I recommend Iva Zaja of Croatian Sun: info@croatiansun.com. Iva's English is perfect.

France: You may find a leaseback property you would want to live in after the term of the lease…but it's not likely. If you want to buy an apartment in Paris or a house in Provence, to use for a vacation a couple of times a year and rent it to tourists when you're not using it…don't invest in a leaseback. French leasebacks are a pure investment play and a good introduction to international real estate. I recommend leasebacks if you want to make an easy international real estate investment with a small amount of money down. Imo Invest sells real estate in several countries, including non-leaseback property in France, but French leasebacks are their specialty. Contact director Gregory Lu: www.imoinvest.com.

Romania is just starting to be rediscovered. It's been 15 years since the overthrow of the communist-driven Ceausescu regime and now Romania's economy is taking off. Romanians have more money, foreigners are coming to invest, and EU membership is scheduled for 2007. A recipe for opportunity. Gabriella Nita offers a finder service in Romania. She scours the listings of the local real estate agencies and inquires after any "For Sale By Owner" offerings, looking for what might fit your parameters. She can help negotiate the property price, walk you through the closing, even help arrange the renovation if necessary. Her fee is 2% of the purchase price. I believe she can save you more than her fee when negotiating for you. You can reach Gabriella at longshoreg@yahoo.com.

New Zealand: I wouldn't buy here right now but it is a market to watch. Historically, the property market in New Zealand goes through seven-year cycles. Right now the market is near the top of the cycle…but what goes up will come down. If this market is just off its peak the time to think again about buying is as it approaches its trough. The Prestige Group sometimes has off-plan developments in New Zealand. My contact there is Claire Killen: claire@theprestigegroup.com.

Lief Simon
Real Estate Editor, International Living

P.S. The contacts I give above are the best people I've found to work with in these four markets. They have always treated me well and I've had nothing but good reports from anyone I've spoken with who has used them in the past.