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Post by Carol on Jan 9, 2007 18:14:54 GMT 1
Its the same as managing people anywhere and for any type of job. You need to give them clear information about what they are required to do and when and be consistent about how much you wish them to act on their initiative. if you manage people in your job in your home country, just use those same skills here.
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Post by darcy on Jan 17, 2007 2:04:19 GMT 1
Thanks everybody.
Back to the topic, what is the investment return you can reasonably expect in CRO?
I think if a buyer is concerned that he/she is paying too much for the property and at the same time is denied of the bargaining pleasure, what are the other advantages of buying a property in CRO (except for your own pleasure and expected possible gain in the property value?
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Post by Carol on Jan 17, 2007 9:23:16 GMT 1
there are two types of return: capital growth (where the value of your property goes up) and income (where people pay you money to stay in your property). Capital Growth has been very strong for years, and I think it will continue to be good (though not 30% annually) but it will depend on where and what you buy and how much you pay for it. I know someone who got 10% (gross) income on his holiday letting in 2006 which was his first year. I knwo others who earn 0. It depends again upon what and where you buy and how much you pay for it, plus how much work you put in to letting it. However, it is worth noting that the investments which do well on an income basis are not usually the same ones which do well on a capital gains basis. I'm afraid that is as good an answer as its possibel to give you. There just isn't one return for everyone and its a mixture of luck, hard work and making wise choices.
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Post by hansel on Jan 17, 2007 11:42:17 GMT 1
I agree with Carol and would like to add that with todays property prices (talking Istria and Rovinj) you should be looking at closer to 5% than 10% income.
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Post by darcy on Jan 17, 2007 12:52:02 GMT 1
Capital gain return is only when you sell, so return I am talking about is - a return on investment. As we are talking about property, there is usually only rental return.
I expected more clever answer from the real estate agents but "I know someone who got 10% (gross) income ..." and "how much work you put in to letting it". It does not look like good sales pitch.
Can we agree that rental return in CRO is in line with all other returns on property in this moment in other places and should not be heavily considered in determining the price/value of the property?
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Post by mark2 on Jan 17, 2007 14:14:13 GMT 1
Been offline for a while.
Our house is 3 storey. The top floor has been rented out for the past 2 summers, we get a return on our initial investment (purchase of the property and the money spent to reconstruct the apartment) of around 8% per annum. Some of this money is being used to complete the middle apartment to a high standard. Each year we could easily rent the upstairs apartment twice over. Therefore when the middle one is complete, we will hope to to pull in around a further 10% return from that one.
I would, very broadly, say that rental return is similar to many other holiday destinations. It's not an overnight golden egg scenario.
With regards to price paid for a property in relation to possible rental income, I would not overstretch myself when buying a property, in the hope that you will be full for 3 months each year. If the buyer can afford to have no rentals at all but still enjoy the house, then he/she are in the ideal position.
The houses which people are buying through ourselves are primarily bought as second homes, to be used exclusively by the owners, friends and family. With no financial income attached.
Also bear in the mind the diversity of rental seasons, Dubrovnik far outlasts, say Zadar or Porec.
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Post by Carol on Jan 17, 2007 17:09:33 GMT 1
Darcy - if you want a better answer than that, then you can pay for it! As you got the answer for free, you should be a little more gracious!
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Post by Carol on Jan 17, 2007 17:18:15 GMT 1
oh... and your terminology ... I think you are confused between investment return and "realised investment return. Look it up.
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Post by mambo on Jan 17, 2007 17:29:59 GMT 1
Darcy,
If I read your remarks I cannot help but thinking that you have already basically made up your mind and it looks to me that you are looking for a confirmation of your own thoughts/beliefs.
I think that the replies of some of us are honest and as you can see the returns can differ a lot. If you really do a lot of marketing, work hard on your place to make it look nice, give good service etc you could do very well with renting it. Reality however is that 80 to 90 % of the apartments are completely empty for a period of almost 10 months per year.
And like Mark says, the weather difference between Porec and Zadar is immense, Zadar has a much longer season than Porec, but then again..........Porec has more tourists, but........also too many apartments.
Therefore, calculate with 0 % return and everything that you get is a bonus if you don't want to make it your daytime job. If you want to make it your job you will have to do an enormous amount not only to make it successful, but also to keep it successful and that will require additional investments.
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Post by darcy on Jan 17, 2007 22:17:24 GMT 1
Carol,
If you cannot give us a good, free sales pitch (for people hat do not live in CRO and do not intend to live there permanently), then it is of little value to ask for a paid service.
I still think you could be a good agent to work with, but more I am involved in this forum I am getting very disapointed.
I think we should close this thread with:
"Therefore, calculate with 0 % return and everything that you get is a bonus if you don't want to make it your daytime job."
Thanks everybody!
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Post by Carol on Jan 18, 2007 0:11:18 GMT 1
Darcy... if you want a sales pitch, contact me at my office, not on this forum. I'll do a certain amount of work for free, and thereafter i will charge, but whatever i do professionally, i will do it in a professional manner. If you want a more human view, then you can read what i put on this forum, but accept it as a personal view rather than a professional opinion. I don't enjoy being (mis)informed about how to define a return, not because I'm now an estate agent but because I was a quantitative equity analyst and fund manager for fourteen years. Its a bit like telling a professional footballer about the off-side rule (i.e. I learned the concepts in week one of my working life and practiced them hourly thereafter). As to how much money can be made in Dalmatia through renting, the answer is not zero unless you go to some length to avoid having people know that your property is available for rent. i.e. in the height of summer even the people who only have a sign outside their property saying apartmani manage to get some business.
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muttsnhahn
Full Member
I swear to drunk i'm not god!
Posts: 86
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Post by muttsnhahn on Jan 19, 2007 9:33:27 GMT 1
Darcy! Carol has been very helpful to loads of us on this forum as has lots of others on this forum. Carol does not deserve your nastiness nor does she owe you anything. Your lucky to have free expert advice! As well as experienced advice!
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Post by Ribaric on Jan 19, 2007 10:55:52 GMT 1
Carol has been invaluable on this forum, a real plus. Please send all cheques to ....... Ribaric Varazdin 42000
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Post by capio on Jan 19, 2007 12:03:09 GMT 1
There's only one way to solve this They should scrap all wars and each country should send their no1 mud wrestling champ to decide who gets what.
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Post by mirabelle on Jan 19, 2007 19:57:16 GMT 1
Darcy! Carol has been very helpful to loads of us on this forum as has lots of others on this forum. Hear! Hear! Investment return on properties varies from area to area, type of property, type of market you are aiming at, marketing effort, self-management effort, etc, etc. You need to attend a seminar to get detail information - not sometihing you can discuss on the forum! So don't upset our Carol!
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