Richard Brady answers your frequently asked questions Article Published: 19:14 24/02/2006 Article Classification: Croatia
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Olive Tree's Richard Brady answers the property questions most often asked at Olive Tree's regular seminars...

Where is the best place to buy at the moment?

"This is always a tough one, because it depends on you. Our first two questions for any potential client are...'Is this property purchase for investment or lifestyle purposes?' and 'What is your personal attitude to investment risk?' Once we have established these two points then we can move on".

"We end up with a shortlist of possible regions within countries and then developments within regions, budget then plays a major part in the shortlisting process and of course your personal preferences..."

Where have you bought recently?

"One of the temptations of a job like mine is that you can often want to buy the first few plots on that brand new development overlooking the marina, golf course or on the beach. There is a limit of course to what you can buy. My last two purchases were in South Africa and Northern Ireland"

What do you think about......Romania, Bulgaria, Croatia, Estonia, Lithuania..?(etc)

"I think it is quite healthy to approach any emerging market with scepticism. When you have spent the last 23 years in the investment business as I have, then you will have seen many new opportunities that people claim to be the next big thing. This does not always prove to be the case and it usually boils down to the fundamentals not being right.

The starting point is to ask yourself about the country's economic position; is it on an improving trend? Is direct foreign investment coming in? What about the infrastructure, is it in place or being built? Is there a demand for property to meet or exceed the supply?

If the answers to these questions are positive, then there is probably a decent argument for looking to invest.

However that isn't the whole story; the next level of questions are as important, if not more so.

Is it a desireable location? Is it value for money compared with other more established markets? Who will buy this from me when I want to sell? What is the actual rental yield of similar developments nearby?

I am concerned at times when I speak with investors that are buying in ex Eastern Bloc countries, purely because it's cheap or the country has a chance of joining the EU.

EU membership alone will not guarantee house price increases and the fundamentals still need to be there"

How does Olive Tree make it's money? What do you charge for your services?

"The price of each property that we have sourced, vetted, approved and OT Rated, includes a commission payable to OTIP by the developer for introducing a client. This commission has been calculated by the developer prior to marketing the property, as part of the overall marketing costs of a development, same as in the UK estate agency market.

The price of a property is exactly the same whether the client goes directly to the builder or developer to buy, or uses the services of Olive Tree. We do not usually charge a fee in addition to this commission, except in special circumstances and with prior agreement of our clients".