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Post by holidayvillage on May 18, 2009 17:07:54 GMT 1
Hello guys My wife and I are looking to build and promote a little holiday village in Zagorje (e.g. Tuheljske Toplice) now the prices are starting to better reflect fundamentals. Our plan is to work with 20 UK couples/families to buy 20 £20-50k ready to let properties in an inland tourist location and to then promote and manage these properties as holiday lets. We have the local contacts and marketing systems in place - we just need to create the village. FYI The mortgage for a £20k property is about £100-150 per month - though high season rates are £2-300 per WEEK. So the investment case is an easy one and having their own holiday home is a great fringe benefit! A video we made on countryside Croatia www.youtube.com/watch?v=YYPdVZDnRj8We have pub meetings with potential buyers coming up We would really value your thoughts and support if you'd like to be part of the Village!!! Best regards Justin & Dragana |
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Post by Carol on May 18, 2009 20:45:07 GMT 1
How many weeks per year would the "investors" earn £200+? Six maybe..
How many months per year would the bank require mortgage payments? Twelve?
What happens if mortgage interest rates rise (as they will eventually)?
What other costs are there? e.g. advertising costs, company costs, profit tax, property management
Does the site have building permits? Does it have a road/ water/ electricity?
These are some of the factors you might like to build into your presentation
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Post by Ribaric on May 19, 2009 8:30:26 GMT 1
I'd be surprised if the investment case is an easy one. That's not my conclusion having been here a few years and worked with some long standing property agents. Do let us know how you get on though holidayvillage.
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Post by felicia on May 19, 2009 9:40:24 GMT 1
What about categorization for tourist rentals? And/or commercial building permit for company tourist rentals?
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Post by irac on May 19, 2009 10:49:15 GMT 1
I think you should shelve the plan for at least 18-24 months. Tourist numbers have dropped sharply (feet on the ground make a mockery of the government's lies) and right now there is little interest in going inland, unless there is a dedicated spa/sports/historical/adventure outlet, and even then you'll end up getting shafted by the locals time and again.
An idea, which would be better, is to wait 6-12 months, gather up money and purchase land lot(s) and sit on it. Tourism will bounce back in 2-3 years (according to the latest CTO uttering before it was squashed by an announcement of a new promotion campaign) and that would be the time to put further effort into your idea.
Carol is dead righ asking about the rental income, though I would venture 10weeks, but the occupancy rates would be, knowing how it works nationally, 40-60% for this time, so it will take a fair bit of time to recoup any investment, and on top of that you have the local taxes, maintainence and the likelihood of some local idiot setting up a parallel scheme and having yours closed down (despite you superior operation).
Don't forget it, but buy up the land and way - ie the BNP way :-)
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Post by happy on May 19, 2009 10:51:48 GMT 1
Very interesting:
What is your target market?
How long do you expect the letting season to be?
What are your selling points to the Brits?
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Post by prkbrk on May 19, 2009 18:51:04 GMT 1
Hhmmm - sceptical to say the least- at best I would reckon you will get around a 3% return on investment before paying HR taxes for about 8 weeks a year rental- I would be interested to see what you envisage as the apartments in terms of size, finish and amenities. Would be interested to hear more - unless we are looking at a Hi De Hi concept  |
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Post by happy on May 19, 2009 19:44:14 GMT 1
Hhmmm - sceptical to say the least- at best I would reckon you will get around a 3% return on investment before paying HR taxes for about 8 weeks a year rental- I would be interested to see what you envisage as the apartments in terms of size, finish and amenities. Would be interested to hear more - unless we are looking at a Hi De Hi concept What is a 'Hi De Hi' concept please? |
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Post by prkbrk on May 20, 2009 12:50:35 GMT 1
Hhmmm - sceptical to say the least- at best I would reckon you will get around a 3% return on investment before paying HR taxes for about 8 weeks a year rental- I would be interested to see what you envisage as the apartments in terms of size, finish and amenities. Would be interested to hear more - unless we are looking at a Hi De Hi concept What is a 'Hi De Hi' concept please? A reference to an old BBC comedy show about a holiday camp |
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Post by mambo on May 20, 2009 13:39:25 GMT 1
The investment itself is indeed not really high and could even be lower I think. So, if you can find people with 'money to spare' then it might be an option.
But to think you can make this an affordable investment with a decent return is, in my opinion, not so easy.
The site is 40 km from the airport of Zagreb, which means you have to organize transport, a reception, cleaning, restaurant etc. All these services cost money and the whole resort is located in an area which is hardly known to tourists.
In order to get the word out you will need to get into marketing, which costs money and thus I dare to conclude that on the short term this project will cost the owners a lot of money. If however the project becomes successful you may have a chance to get some return.
I think I would start looking for people who simply want to own something, but for whom a decent return is not a priority.
If you would move the whole thing closer to a highway I think you would have a much better chance on success. Try finding a road side hotel in Croatia ! Good luck !
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Post by holidayvillage on May 20, 2009 20:04:50 GMT 1
Thank you for the fantastic feedback - we're populating our financial model with real data now, preparing videos and collecting documentation for real deals - with this we'll be able to test the investment case more closely. Please watch this space! Hvala Vam puno!
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Post by happy on May 20, 2009 20:14:51 GMT 1
Thank you for the fantastic feedback - we're populating our financial model with real data now, preparing videos and collecting documentation for real deals - with this we'll be able to test the investment case more closely. Please watch this space! Hvala Vam puno! Oh ............ you mean you have not done your sums yet. So, what are you going to be telling your buyers at the pub meeting? |
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Post by crojoe on May 20, 2009 20:36:10 GMT 1
I think you should send a proposal to the Former Speaker of the House of Commons, as looks like he is retiring. We could setup a special tax haven for him in Croatia, full of UK tax payer’s money.
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Post by Aleksandra on May 20, 2009 23:38:45 GMT 1
Hi Justin, as Mambo said, you will have to invest lots in marketing and you will have to "sell" the area of Zagorje to Brits.
You say you have a marketing system in place, but I have noticed that the video your post links to has only had 95 views so far (and it has been on the You Tube for more than a year). So you will have to be really sure your marketing strategy is the right one and that you can attract your potential investors and clients later on.
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Post by Madgolfer on May 21, 2009 11:25:41 GMT 1
Hi Holidayvillage,
Contrary to some peoples belief, the rural tourism sector is certainly increasing throughout Europe, not everyone wants a beach holiday after all and the inland regions are very popular with those that take the time to visit.
The realisation of a plan such as yours is certainly not impossible, if you have the "contacts" in place as you say, but from my experience, you would be doing very well to find 20 or so investors prepared to buy into an "off-plan" development, many people are wary of these types of projects.
"Build it and they will come" seems to be the guiding principle from my experience in Croatia. If you yourself are convinced of the project and can put up your own money........
Its a nice idea and I hope it works, best of luck.
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