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Post by onetoten on Jan 13, 2006 17:16:51 GMT 1
Has anyone here ever actually bought in Croatia and sold for a profit? Or, and I'm talking foreign buyers, do you think you will make a profit? How long will it take?
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Post by irac on Jan 13, 2006 19:19:43 GMT 1
Onet, I bought a small house and land back in Feb. 2003 for just under 13,500euros, I sold in October last year for 28,000euros, nothing was done to the house and the land was only used for grapes (2 good harvests). We put through the sale at 15,000 which meant low tax penalty (it was within 3 years). with everything the profit was just over 7,000, but it helps pay the bills!
On the other hand, my former colleague for 115,000euros, and has recently sold for 130,000, but she readily admits she lost over all.
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Post by onetoten on Jan 14, 2006 0:20:41 GMT 1
Interesting. Here in the UK there has just been a 20 top investment countries by A Place In The Sun. In it, Croatia got NO mention. Rumania being, number one, at a projected 500% over a ten year period. Rumanina not yet fully in the EEC. Croatia, as I have said. No mention. Very disappointing, I have to say.
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Post by irac on Jan 14, 2006 1:16:08 GMT 1
The same with the Irish equivalent, seems Croatia has been pushed off the map. A recent national radio phone in had 2 callers complaining that they felt Croatia was over priced and the companies they dealt with were not fully forthcoming and were not so easy to deal with. Though in Germany Croatia and Florida, as well as Turkey, were in the top 5 for 2006 (I can't remember the other 2, it was in the Bild on Jan. 3rd).
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Post by Nicola on Jan 14, 2006 17:21:19 GMT 1
Onetoten - that same programme was aired last year as a worldwide comparison and Croatia came out 3rd. I think this one was based on current EU countries or those next to enter (Romania and Bulgaria 2007) It was also an odd evaluation - Portugal 3rd (still quite cheap???) Finland?? At least we see the sun in Cro!! Maybe I'm biased though....
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Post by yeslehc on Jan 14, 2006 19:31:53 GMT 1
I agree, it is very disapointing, but can one wonder? all the properties are overpriced, trying to get anything done through the government departments is a nightmare, and generally everybody else in business is so bent they cannot even lie straight in bed. true Croatia is a beautifull country, but what they have to understand is that they are in competition with all the other holiday destinations for the property buyers. Whether to tell them to get their act together will do any good, I dont know, as there are plenty of hard heads about
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Post by mark2 on Jan 14, 2006 19:47:55 GMT 1
I agree, it is very disapointing, but can one wonder? all the properties are overpriced, trying to get anything done through the government departments is a nightmare, and generally everybody else in business is so bent they cannot even lie straight in bed. true Croatia is a beautifull country, but what they have to understand is that they are in competition with all the other holiday destinations for the property buyers. Whether to tell them to get their act together will do any good, I dont know, as there are plenty of hard heads about "all the properties are overpriced"............"and generally everybody else in business is so bent they cannot even lie straight in bed" What Idiotic statements, please tell me, what do you do and where do you live?
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Post by yeslehc on Jan 14, 2006 20:07:20 GMT 1
yes properties are overpriced, ask the agents to tell the truth, and you will find out that they havent sold much this last year, just look at the properties they are selling, that were on the sites 18 months ago, I live in Croatia. If you cannot see what is rearly happening in Croatia, I feel sorry for you
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Post by mambo on Jan 15, 2006 0:53:21 GMT 1
Fully agree with you, most properties are extremely overpriced and since they are still building like crazy more and more apartments are coming on the market and............remain empty (at least in Istria).
I already wrote about the houses on offer at the real estate agencies and I see many houses that have been on offer now for over a year. Some people seem to forget this is not a normal market like your typical European city with lots of economic activity, where people actually live and work. That type of market will do well no matter the time of year. The house market here is different. Here you are talking about people who do not need to have a house, they simply would like to have a house as investment or for the holidays, but the main thing is ..........there is no need to buy immediately. And when the economy is not so sure anymore the first thing they will forget about is 'buying a house in Croatia (or any other country)', this will have the lowest priority, but the automatic impact is a slow down of the market in Croatia.
I don't know how it is in Dalmatia, sometimes I have the idea the focus is shifting to Dalmatia, but am not sure of that.
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Post by irac on Jan 15, 2006 3:14:01 GMT 1
I must agree with yeslehc to a degree, and mambo, though I wouldn't go as far to say that all property is overpriced (Zagreb still represents good value for a capital city of a million people), there are major flaws in the market. I have debates with my colleagues who work in the property section and they admit that prices don't represent the quality of purchase, but there are a number of factors in this. Owners figuring they can get a better price because they can sell to a foreigner, lack of regulation, now unified price structure or guideline, no guidance from Zagreb (or even local government) and the nervous rental market. How can, as I saw personally, a nice farmhouse needing work on the ground floor and a drive from shops and amenities, suddenly jump from 55,000euros to 100,000 (minimum) just because an english couple and Irish family come to take a look. I'd love to say it was the agent playing funny business with the price, but instead it was a greedy owner (who turned down cash at 50 and 55) trying to hit the jackpot.
If one can't admit that a lot of property in the country is overpriced or not value for money......
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ianl
Full Member
Posts: 80
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Post by ianl on Jan 15, 2006 9:58:34 GMT 1
I agree with Nicola that that Top 20 for making money looks like a selective list. I looked at the Channel 4 website where Amanda Lamb looked at good properties and countries for living www.channel4.com/4homes/buyingabroad/countryguides/index.html and Croatia is in the list, and it says all the nice things about coastline, sunshine, pleasant place to live that we would all like to think - and that property is still very 'affordable'. Price comparison seems favourable to other countries on the list and suggests that there is good potential for growth. There are some questionable 'facts' such as it states that Croatia will join the EU in 2007. On the top 20 list of places worldwide with Dubai, Florida etc Croatia is still in there. I suppose not being in the top 20 for making quick bucks means that growth will be less than 188% (Cyprus at 20 - 188%) (over how long? - actual growth already or projected growth?). Irrespective of all that, the reason we're trying to buy is that we have visited lots of countries and Croatia is the first one that we thought, yes, this is the one we want to keep on coming back to and living in, not for 'does it have better potential for making quick bucks than rainy Poland or vamprous Rumania'.
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Post by irac on Jan 15, 2006 11:37:03 GMT 1
You're right Ian when you say these lists are selective, like the one on holidays that states Croatia is one of the cheapest places to hoiday in, ahead of Egypt, Thailand etc, when it turns out the company who did it, M&S, had a very open agenda into why they where supporting hoidays in Spain etc.
If you want a nice place to have to come visit, potter around the garden, spend warm summers and mild autumns/springs, in when you retire or need a break away, then Croatia is the place. I know my colleagues will always say, if you want to think of turning a quick profit, think again, if you want something to have long term and get back in half-decent rentals, then Croatia is useful.
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Post by mambo on Jan 15, 2006 15:14:43 GMT 1
That 'cheap' to holiday in is becoming more and more something of the past. Some friends of mine wanted to come to Istria this summer (father, mother, 2 kids, dog, caravan) and they were planning to go to a camping. Last week they received the price per night: 63 euro !!!!!!!
They are now going to France and will pay around 35 euro per night, that is about half the price !
I don't care what the reason is for these rediculous prices, but it will scare the tourists away and when they leave................the real estate market will follow real soon.
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Post by Ribaric on Jan 15, 2006 20:02:47 GMT 1
I keep an eye on property movement and pricing here in the north. I know it's a different market but there are several cases of places which were for sale 18 months ago which are still for sale - the only change is that the asking prices keep going up. My conversations lead me to conclude that sellers believe that property prices are rising so they raise their asking prices accordingly. Lesson One of the supply-and-demand law doesn't seem to be generally understood here - either that or they don't really want to sell?
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Post by irac on Jan 16, 2006 16:51:36 GMT 1
Ribaric, it's a little of everything. I know one of my colleagues (a native but who worked for 12 years in Canada with their biggest real estate firm) pulls her hair out every time she has to deal with vendors. She told me when we first opened the property part that in her experience most Croats would love the big jackpot and have unrealistic prices in mind. Most of the people we've had sell are people who have a business in need of investment, looking to relocate and build new, or people who've got a second property or who inherited one they don't need. When it came to the business end of things I know of two deals where the vendor raised the price because someone down the road told them they could earn more by hanging on, what they don't realise is that supply outstrips demand in Croatia and if someone doesn't like one property they just go off and get another, or head to Turkey or Bulgaria!
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