:: NAVIGATION ::
:: RELATED ARTICLES
::
:: ORIGINAL ARTICLES
::
:: CONTRIBUTED ARTICLES
::
|
Article Contributed by Rhiannon Williamson
Feature
Article
Exceptional Investment Property Potential in Estonia
Property investors are targeting the tiny Eastern European
country of Estonia with a vengeance because it offers massive
and sustainable long term potential for profit and property
price gains with real estate prices having already increased by
as much as 30% in just three years.
The popularity of this breathtakingly beautiful country stems
from many different points: firstly the country is an economic
success story. Having escaped the domination of Soviet rule back
in 1991 it has since established strong trade links with
Finland, Sweden and Germany and now has a GDP growth rate of
around 6% annually. Secondly the government of Estonia is
committed to the promotion of foreign direct investment and to
this end it offers some impressive tax breaks to companies who
establish themselves in Estonia.
Income tax is a flat 26% in Estonia making it one of the most
competitive of all European nations and therefore more appealing
for multinational companies seeking a base in Europe and more
appealing for local and foreign employees. And finally, Estonia
has a rugged and natural beauty and its natural landscape and
friendly people are drawing more and more visitors to the
country annually and so the tourism market in Estonia is growing
quickly.
Property investors have been targeting the capital city of
Tallinn where the majority of international companies investing
in Estonia are establishing bases and where there is an
increasing demand for quality residential and commercial
property to rent, buy or lease.
Those who bought just three years ago in the most desirable
districts have realized real profits in the region of 30%. These
rates may not be sustainable over the longer term but prices and
rental rates are set to keep on climbing because the demand for
property outstrips supply and will likely continue to do so for
quite some time.
A lot of the residential real estate in Estonia's cities is old
Soviet style apartment block units and these properties are not
at all popular. More and more developers are constructing new
and modern accommodation that property investors are snapping up
and renting out to tenants or selling on to first time buyers or
other property investors upon completion. Those who wish to buy
these types of property pre-construction benefit from the fact
they buy at today's prices but take possession in 12 - 18 months
when the real value of the property has risen quite
substantially.
Unlike in many other countries around the world, those who buy
off-plan in Estonia usually only have to find between 10 and 20%
of the property's price during the build period because the
majority is payable upon completion - this makes it easier for a
property buyer to save to afford a property or to flip upon
completion and resell to realize the profits with which to pay
the developer.
The investment property potential in Estonia is exceptional and
anyone looking to diversify their real estate portfolio should
consider this Eastern European country's property market.
About the author:
Rhiannon Williamson writes about property investment in emerging
countries around the world. To read more about investment property in Estonia click here.
Feature
Article
|
|
