Thanks for the reply Ringledman, but could you expand on why you think they are the one of the worst forms of investment and why hotel rooms are apparently worse.
Fair play to you Ringledman, you accepted the gauntlet that was thrown down. From what I've read about French Leaseback both here and on a couple of other websites I've been convinced to steer clear.
The one thing I'm lacking now is where else I should focus my attention.
What cities do you feel have the best potential of those in which you're involved or have investigated?
What cities do you feel have the best potential?
Investing in a Central European city without sufficient research is probably the worse mistake that smaller overseas property investors have made over the past few years. Many people believe that if they invest in any sort of property in a city, where prices are increasing, that they have made a good investment. However, it's much more difficult than that and finding a quality apartment, which will give good returns is not easy to find in any developing property market. The truth is that the vast majority of apartments in almost all CEE cities are not good investments.
From my own direct experience in the Budapest market and of research I've carried out in Prague, Bratislava, Krakow and Warsaw, I've seen investors rush towards the latest popular spot, purchase one of the first flats they come across (usually off-plan and out of the grasp of locals) and then two years later, wonder why their property hasn't increased in value.
Most cities in CEE have good economic potential for the future, but choosing the right property is paramount. Don't feel forced into it and take your time until you know you've found an investment, which suits you.
Budapest and Warsaw are generally predicted to be those with the most potential, with low debt levels, low unemployment and the highest FDI in the CEE region. Bp has better rental returns and higher spending power (you wouldn't think it at the minute due to the austerity programme!) but the Warsaw market is currently appreciating at a higher rate.
Surely it's primarily the buyer's own responsibility to check such things out independently rather than relying on a sales company (with a vested interest) to ensure that everything is OK!?It seems from the meeting that Transmontagne has been in financial difficulty for some time. Surely, the sales companies were aware of this and if not, why in gods name not??? How come financial checks weren’t carried out? Someone has to be responsible somewhere along the line.
How can you purport to speak for others such as jpf94?We all had independent advice.
That was not clear from the posts to date. Thanks for clarifying.I have communicated with jfp24 who is one of these investors, so yes I do purport to speak for them.
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I DO speak for jfp24 and the other investors.
Oh give it a rest would you - I did NOT post offensivelyTherefore, there is no point in posting offensively, Clubman. The guidelines of this site request civility and not causing offense.
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