Second Annual Real Estate Profits Summit
May 28, 2008
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Jeff D’Arcy: 
Jeff Finney:
Luis Teixeira da Silva
Mike Cobb:
Phil Hahn: 
Gregory Lu:
Adrian Niculescu:
Robert Kroesen:
Tom Phelan:
Lief Simon:
Hotelul Alpin din Poiana Brasov se extinde cu inca 96 de apartamente. Agentia Euroest anunta ca a incheiat contracte pentru 30 dintre cele 96 de apartamente ce alcatuiesc noua investitie. Cele mai cautate sunt apartamentele cu vedere la partiile de schi, sustin cei de la Euroest, agentul de vanzari exclusiv al proiectului. Hotelul Alpin este unul dintre cele mai bine cotate hoteluri din Poiana Brasov, iar proprietarului i-a venit ideea sa il extinda in urma intrebarilor clientilor, repetate mai gluma, mai in serios, daca nu vinde cumva apartamentele cu vedere la partiile de schi. Ritmul vanzarilor demonstreaza ca dezvoltatorul a fost inspirat, din moment ce Euroest anunta vanzarea a 30% din unitati in doar o luna de la lansarea proiectului.
Targul de Case Real Bucharest 22 – 25 mai 2008
May 22, 2008
| Dupa succesul reconfirmat de a III–a ediţie a târgului ce s-a desfăşurat în toamna anului trecut cu rezultate deosebite, în primăvară, TÂRGUL DE CASE Real Bucharest îşi propune o consolidare a poziţiei câştigate, şi anume de cel mai atractiv eveniment de profil de pe piaţă.O suprafaţă de expunere mărită (peste 1 000 mp per total) va permite fiecărui vizitator să identifice cele mai bune oferte ale pieţei imobiliare din România. |
TÂRGUL DE CASE Real Bucharest va fi deschis publicului larg în perioada 22 – 25 mai 2008, la Sala Palatului, în intervalul orar 10,00 – 19,00* *cu excepţia zilei de duminică când programul se încheie la ora 16,00. Intrarea este liberă. Vă invităm să luaţi parte la târgul imobiliar nr.1 organizat în capitala |
Cele mai noi şi mai avantajoase proiecte rezidenţiale vor ţine capul de afiş al târgului! Numai la TÂRGUL DE CASE Real Bucharest veţi afla primii despre noutăţile în domeniul imobiliar, care în viitor vor face diferenţa. Camere spaţioase, garaj, pază, locuri de joacă pentru copii, spaţiu verde vor aduce în scurt timp mai aproape de noi stilul de viaţă occidental. |
Sectorul imobiliar se reuneste la Realty 2008
May 15, 2008
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Gijs Klomp |
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Costel Florea |
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Ionut Bordei |
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Anthony Willats |
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Corneliu Belciug |
Investments in Romania – Cluj area
May 10, 2008
Here is some useful info if you’d like to invest in Romania – Cluj area.
| Romanian legislation - only in Romanian - http://domino2.kappa.ro/mj/superlex.nsf/All/Biblioteca |
| Cluj map Locate the desired objectives, click on the map, then choose from the Navigator menu. |
| Informations about Cluj only in Romanian http://www.primariaclujnapoca.ro/ |
| Useful information for investors The Agency’s mission is to be the Government leading body for providing consultative services to foreign investors that will attract, retain, and grow foreign direct investment in Romanian economy, as a result of a friendly and attractive business environment for developing investment projects. http://www.arisinvest.ro/ |
Romanian real estate market overview 2007
May 10, 2008
Regarded as one of the most profitable sectors, the real estate sector continues to generate important incomes for those who are willing to invest in this field. One out of seven British people would be willing to invest in the Romanian or Bulgarian real estate market. This percentage may seem a little bit overblown but, on the other hand, it may be generated by an ever more striking interest for the Eastern European real estate market, a market still characterised by the obtaining of investment efficiencies much higher than the ones obtained by other markets. The situation encountered nowadays in our country may be compared, to a certain measure, to the one felt first in Spain and then copied by Greece. If in these areas the fear of a financial collapse of the real estate market is ever more acute, Romania continues to be seen as a significant pole for the attraction of investments, at least for a future period of 4-5 years. Spain knew within the last 8 years a 150% increase of the prices in the real estate area, in conditions where the real estate market was much more stable than the one in Romania. This strong increase led to prognoses which preview nevertheless for 2008 a decrease of prices of 5%.
Beyond these simple comparisons about prices per square meter or about the stability or lack of it of the national currency or even about Romania’s integration into the European Union, Romania’s situation is very different and it results in the first place from a great need of location units.
2007 meant a truly important moment for Romania, the European integration increasing the interest for the national real estate market, first of all due to the increased accessibility on the market. In the beginning of the year 2007, the comparisons never ceased to appear, the rumours being many times the main element in the tracing of prognoses of the market. Thus there were rumours about a strong decrease of prices (taking into account the examples of Hungary and Poland), but also of a strong increase as a result of the appearing on the market of a large number of investors. In the end, the situation was less serious, in most of the areas the increases of the market following an evolution comparable with the previous years.
And speaking about comparisons, Romania still has a long way to evolve, although 2008 announces an estimated value of the construction market of over 12 billion euros. Looking at only some of the data presented below we can see the impact on the national level of the over 19 years where there has been little building, if not none at all in some areas. As a telling example, the vast majority of the constructions in Cluj-Napoca were built in the years 1970 – 1980, the North-Korean architects hallmarking many of the neighborhoods of the city.
As a result of the working zeal of the communist period, nowadays Romania can „boast” with an average surface per lodging of 38 square meters and a surface of 14.43 square meters of inhabitable space per person. From here, we can start some of the comparisons: Poland had, in 2005, 22.9 square meters/person, Hungary 28 and Luxemburg (with 49 sq.m./person) and Denmark (with 52.4 sq.m./person) already seem to be playing in a superior league. As for the average surface per lodging, Poland was over 69 square meters, Hungary over 75 square meters, and Austria and Denmark reached 93.9 and respectively 113.1 square meters per lodging.
As for Cluj county, the differences are not significant from the national average, reaching nowadays an average surface of 39.76 square meters of inhabitable space and an average surface / person of 15.18 square meters.
Beyond the visible need of inhabitable spaces at standards, if not European, at least acceptable, these numbers must also be correlated with the purchasing power recorded in Romania. This purchasing power is measured as the proportion between the index of the net nominal average income and the index of consumption prices. From this point of view, a Romanian has an average annual purchasing power of approximately 3000 Euros as compared to a Swiss who has an annual capacity of over 27.000 Euros. And from the point of view of economic development there are multiple areas where Romania still has to evolve. According to the studies carried out by Eurostat, taking into account the Gross Domestic Product correlated with the purchasing power, Romania occupies one of the last places in the European Union, from the member states only Bulgaria having a smaller coefficient. (Romania 40.6% of the European average).
Nevertheless these transactions in the real estate segment are ever increasing in number, and the supply continues to also find the due demand. An explanation would be the obtaining of mortgage / real estate loans corroborated with different other income sources. Among these, there is the selling of properties and an important element, the amounts coming into the country from the citizens living abroad. In a top realized by the World Bank at the end of last year, Romania is on the 10th place in the world according to the level of the amounts thus transmitted, with an amount of 6.8 billion dollars (~ 4.3% of the Gross Domestic Product in 2007). Even the level of mortgage loans leaves room for a significant development, the share of mortgage loans from the Gross Domestic Product (GDP) being for the moment low. According to the data from the National Bank, they represented, at the end of November 2007, 3.4% of the GDP (in the conditions where in some European states this percent exceeds the value of 50% of the GDP). In addition, at present, the classical mortgage loans have a share of 22% of the portfolio of loans given to natural persons, and the consumer ones with real estate warranties have a share of 28%.
Another element that may justify the high level of demand recorded in Romania is represented by a more subjective factor, as compared to the ones mentioned above. We are speaking here about the need for property. This is transposed in practice differently in Romania than in other Western European countries. Even if Romania has a top position concerning the number of owners, with a percentage of 95% of lodgings in the property of the people occupying them, the “appropriations” made during the communist years deeply inoculated in the national conscience the need to own a lodging. This is correlated in addition with a low standard of lodgings built during the communist period, fact “pushing” the population towards the segment of new constructions. According to a study carried out by UniCredit, although Romania exceeds by far the proportion of lodging owners from countries such as The Czech Republic (46%) or Austria (58%), it has at the same time the largest number of persons interested in the purchasing of a lodging: 11% of the inhabitants would like to make the acquisition within the next 3 years, and other 9% within the next 10 years.
Investing in Romania
May 10, 2008
The legislation in force (Government Emergency Ordinance no. 92/1997 on Direct Investment Stimulation, amended and approved by Law no. 241/1998) defines the following terms:
Direct investment – participation in establishing or expanding of any legal type of company, purchase of shares or social parts in a company, excepting portfolio investments or establishing and expanding in Romania a branch of a foreign company through:
• financial contribution in national currency or convertible currency;
• contribution in kind – fixed or/and mobile assets, tangible or intangible;
• participation in increasing a company’s assets, through any legal financing way
Portfolio investment – obtaining stocks on the organized and regulated capital markets and which do not allow the direct participation to the administration of the companies;
Investor – natural or legal person, resident or non-resident, located or having permanent headquarters in Romania or abroad, that is investing in Romania , in any of the ways provided above.
The Ordinance is also stipulating the common rights and guarantees for investors.
According to Romanian law, foreign investor’s benefit of the national standard of treatment, i.e., non-resident investors have the same rights as any resident investor. There is no statutory limitation on foreign participation into commercial companies established in Romania; a foreign investor may establish or acquire a 100% enterprise in Romania. Foreign investors may participate to the capital of a corporation in any of the forms the admitted by law, including foreign currency, equipment, services, rights of intellectual property, know-how and management expertise as well as proceeds and profits from other businesses in Romania. The Romanian law guarantees investments’ protection against nationalization, expropriation and other similar measures of deprivation of property.
The current legislation is cored on certain general principles, recognizing to any investor, Romanian or foreign, among which the following:
• Freedom to invest in any form and by any method allowed by law;
• The possibility to invest in any sector and under any corporate structure admitted and regulated by law;
• Equality of treatment – fair, equitable and non-discriminatory treatment- for Romanian or foreign investors, residents or non-residents;
• Guarantee against nationalization, expropriation or any other measures with similar effect;
• The right to benefit from customs and fiscal incentives set forth by law under the terms and conditions required by law;
• The right to obtain assistance in dealing with administrative formalities;
• The right to own movable and immovable assets; the 2003 Constitution of Romania, provides that aliens, either foreign citizens or stateless persons, may acquire land only under the terms and conditions resulting from Romania’s accession to EU and other international treaties, on mutual bases and complying with organic laws, as well as a result of legal inheritance under the laws of intestacy;
• The right to elect the competent municipal court or arbitration tribunal to settle potential investment-related disputes within the statutory limits of public policy rules. Romania is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Non-resident investors benefit from:
• The right to transfer abroad without any restriction, after paying the legal taxes and levies, the following incomes in foreign currency:
- dividends or profit obtained by a company, Romanian legal person, in case they are shareholders or partners;
- revenues obtained by a partnership, as well as the incomes resulted from selling the stock;
- the amounts obtained from company liquidation, according to the Companies Law No. 31/1990 republished, or to the Bankruptcy Law No. 64/1995 republished;
- the amounts obtained as compensations against expropriation or any other equivalent measure;
- other incomes, according to the investment type.
Such transfers may be made in the initial investment currency.
• The right to enjoy the most favorable treatment provided either by the Romanian legislation or agreement for mutual protection of investments, or another law.
Special rights can be granted for non – residents based on international treaties for mutual promotion and protection of investments.
In order for the investments to enjoy the incentives provided by the Law, they have to meet the following conditions:
1. Are done after the coming into force of the Law, natural or legal persons, subjects of private law
2. The contribution to the direct investments with significant impact on economy consists only in liquidities in lei or convertible foreign currency
3. Are completely finalized within 30 months at the latest as of their statistic registration with the Ministry of Development and Prognosis
4. Do not infringe the environmental protection legislation
5. Do not violate the interests of security and national defense of Romania
6. Do not harm public order, health or morality.
In order to benefit from the incentives provided by this law, the investors should make a registration of their investment project, only from the statistical point of view at the corresponding Regional Development Agency.
New direct investments, qualifying as being of major importance to the national economy, shall be also presented to the Department for the Relation with the Foreign Investors.
Incentives
The investments made according to the Law no. 332/2001 benefit from the following incentives, reinforced by the Fiscal Code:
1. Exemption from the payment of custom duties for the technological machinery, installations, equipment, measuring and control apparatus, automation equipment and software products purchased from Romania or abroad, necessary for achieving the investment, which are according to the list approved by joint Order of the Minister of Development and Prognosis and Minister of Public Finances, providing the goods are new, respectively they have been produced 1 year at most prior to their bringing to Romania and they have never been utilized. As well, starting from January 1, 2002, Romania abolished the custom duties for the industrial goods imported from the EU on the basis of the European Agreement ratified by Law No. 20/1993 – reinforced by the Fiscal Code;
2. Carrying forward the fiscal loss during the following 5 years from the taxable profit – reinforced by the Fiscal Code;
3. The use of accelerated depreciation, according to the specific legislation in force, with no obligation for a prior approval from the local fiscal authorities – reinforced by the Fiscal Code;
4. Other incentives that can be granted by the local authorities – reinforced by the Fiscal Code
Also, as a guarantee for the new investors qualifying under the provisions of the Law no. 332/2001, the Law provides that the investments made in Romania cannot be expropriated except for cause of public utility and that the legal regime applicable under this law stretches throughout all the period of the investment.
Penalties
Investors are bound to preserve their investment for at least 10 years. Failure to do so entails retroactive payment of all taxes and charges applicable in the absence of special incentives, plus payment of delay penalties accrued thereof. In addition, investors transferring within less than 2 years the assets subject to incentives may be penalized by reimbursing the money equivalent of these incentives and all related delay penalties.
Small Medium Sized Enterprises
SMEs sector is a key factor for the development of the free market in Romania, having the greater absorption capacity of the manpower and the greater flexibility and mobility in adjusting to the market demands. SMEs sector covers over 97% of the total number of companies.
Law no. 346/2004 on the establishment and development of small and middle sized enterprises created an encouraging framework for the establishment and development of micro-enterprises (maximum 9 employees), small enterprises (between 10 to 49 employees) and middle-sized companies (between 50 to 249 employees).
Compliance Conditions
In order for the companies to benefit from the incentives provided by this Law, they must comply with the following conditions:
1. Have a medium annual number of employees less that 250
2. Make an annual turnover up to 8 million EURO or the result of the annual balance sheet does not exceed 5 million EURO.
3. To be independent, meaning that they are not owned more that 25 % by another company or group of companies that can be qualified as SMEs.
Incentives
Law no. 346/2004 and the Fiscal Code provide for the following incentives:
1. Possibility to carry forward the fiscal loss during the following 5 years from the taxable profit;
2. The SMEs have priority access to the assets of the Regies Autonomes, companies or National Companies and state owned companies;
3. The use of accelerated depreciation, according to the specific legislation in force, for machines, installations, equipment and know-how providing that the enterprise does not register losses;
4. The SMEs have priority access to the public acquisition of goods, benefiting of 50% discount.
Taxation
The Fiscal Code offers an attractive legal framework for the establishment and development of micro-enterprises (maximum 9 employees).
Compliance Conditions
In order for the companies to benefit from the incentives provided by the Fiscal Code, on December 31 of the previous year they must comply with the following cumulative conditions:
1. Develop production activities for goods, provide services or/and develop trading activities
2. Have up to 9 employees
3. The income represent the equivalent in ROL of maximum EURO 100,000
4. Are entirely private-owned
Incentives
The private legal entities qualified as micro-enterprises, which comply with the above conditions, enjoy a special regime of taxation consisting in an income tax of 3%, calculated on the income of the company
Government Emergency Ordinance no. 24/1998 on Disadvantaged Zones, as republished and further modified, provides several incentives applicable to investments made in disadvantaged zones of Romania.
Conditions
The disadvantaged zones are strictly limited geographical areas and must meet one of the following conditions:
1. The local unemployment level is at least three times higher than the national level for the last 3 months foregoing the month the documentation for declaring it a disadvantaged zone was prepared;
2. The region is isolated, lacking communication means and appropriate infrastructure.
Disadvantaged zones shall be established for a period of between 3 to 10 years by Government decision, upon the proposal of the National Council for Regional Development.
Incentives
Private companies, as well as private entrepreneurs or family-held associations, which are headquartered and carry out their activity in a disadvantaged zone, have the benefit of being exempted from the tax on profit for the new investments made by legal persons that obtained the permanent certificate of investor in a disadvantaged zone before July 1, 2003. The exemption is valid for the whole period of existence of the disadvantaged zone.
The companies that operate in the disadvantaged zones benefit from the fiscal incentives provided above up to the maximum limit of the state aid intensity provided by the Rules regarding the regional State Aid issued by the Competition Council.
At present, 32 zones have been declared disadvantaged zones. Among them, are areas placed in the following counties: Alba, Hunedoara, Harghita, Gorj, Bihor, Caras-Severin, Salaj, Maramures, Bistrita-Nasaud, Prahova, Bacau, Suceava, Covasna and Tulcea.
By the Order no. 1/2000, the National Agency for Regional Development established specific investment sectors subject to disadvantaged zones regime, as follows: agriculture, forestry, forest exploitation, fishery and fishing activities, extraction and processing industry, electric and thermal power, gas and water, constructions, wholesale and retail trade, repairing and maintenance of auto vehicles, motorcycles, personal and household goods, hotels and restaurants, transportation and storage activities, real estate transactions, lease-related and service performance activities, health and social insurance, other activities of collective, personal or social services.
The free zones are decided by the Government, following the proposals made by interested ministries and by local public administration.
Incentives
The incentives provided by the Law, reinforced by the Fiscal Code are:
1. Exemption from payment of custom duties for carrying the goods from one free zone to another.
• All financial transactions carried out in hard currency for the activities developed in the free zones.
• The state owned goods and the related services that are in the administration of the Free Zones may be subject to concession upon concluding a Concession Agreement for up to 49 years. The above-mentioned assets that are in the administration of the Free Zones may also be leased based on a Lease agreement concluded with the Free Zone Administration.
• For the investments within the Free Zones, the operators may benefit from a state aid up to 65% of the value of the investment.
• Exemption from paying VAT for:
a. imported goods that are introduced into the Free Zone for the sole purpose of being stored in the Free Zones
b. trade operation inside the Free Zones or between merchants inside and outside the Free Zone
c. exit of imported goods from the Free Zone
d. services in connection with the above activities.
2. Investors that develop activities within a free zone, that started their investments with a value exceeding USD 1 mil., before July 1, 2002, in manufacturing industry, benefit from exemption for paying tax on profit until December 31, 2006. The investors that have changed their shareholding structure with more than 25% within a year do not benefit from the above-mentioned incentive.
3. 5% tax on profit until December 31, 2004.
The present free zones are: Sulina, Constanta Sud, Basarabi, Galati, Giurgiu, Braila and Curtici
Industrial Parks
Law No. 490/2002 for the approval of the Government Ordinance no. 65/2001 on the establishment and operation of industrial parks provides attractive incentives for certain investment.
According to the legislation in force, industrial parks are limited zones in the boundaries of which economic, scientific research and/or technological development activities, industrial manufacturing and services for scientific research or technological development are developed by using the human and material potential available in the region.
The industrial park is developed based on the association between the public or local administration authorities, economic agents, research institutes and other interested partners.
The Ministry of Development and Prognosis is the public authority entitled to establish the title of an industrial park for a period not less than 15 years, based on the request of the interested parties.
The industrial park license may be granted only to companies acting solely in the industrial parks, called the managing companies.
Compliance Conditions
The land related to the industrial park has to comply cumulatively with all the following conditions:
1. To ensure access to national or European roads;
2. To have a surface of at least 10 ha;
3. To be owned or used for at least 30 years by the association requesting the industrial park license;
4. To lack any encumbrance;
5. Not to make the object of any pending litigation in respect of its legal status;
6. To fulfill all the technical requirements in respect of the environmental protection;
7. If more than one incentive regime is applicable to an investment, the company performing it has to explicitly choose one of them.
Incentives
Companies operating in industrial parks benefit from the following incentives, reinforced by the Fiscal Code:
8. Exemption from payment of taxes for modifying the land destination or land withdrawal from the agricultural use for the industrial park’s land
9. Deduction of 20 % of the value of the investments made in the industrial parks by December 31, 2006 for constructions, building rehabilitation, internal infrastructure and connection to the public utility network
10. Tax exemption for the land and buildings within the industrial parks
11. Tax deduction granted by the local public administration authorities for the real estate used by the industrial park
12. Other incentives that can be granted by local authorities
Technological Parks
Government Ordinance no. 14/2002 on the establishment and operation of scientific and technological parks, as further modified, provides attractive incentives for certain investments, part of them being granted by local authorities.
According to the ordinance, the scientific and technological parks are limited zones in the boundaries of which are performed education activities, research and technological transfer of its results as well as their valorization by economic activities.
The scientific and technological park is established by a partnership association contract between an authorized university and/or a research and development institution on one side and the national companies, companies, local public administration, commercial companies, professional or employers’ associations, natural persons, Romanian or foreign investors on the other side, the partnership association being called “Consortium”. The park is managed by a company appointed by the Consortium that has as only field of activity the administration of the scientific and technological park.
Compliance Conditions
The land related to the scientific and technological park has to comply cumulatively with the following conditions:
1. To lack any encumbrance;
2. Not to make the object of any pending litigation in respect of its legal status.
The facilities of the scientific and technological park have to comply cumulatively with the following conditions:
1. To have location conditions in compliance with Authorization and Suspension Methodology;
2. To have the adequate facilities in order to perform its object of activity.
Incentives
For their establishment and operation, the scientific and technological parks benefit from the following incentives:
1. Tax reduction granted by the local authorities for the fixed assets and land given to the park for its use, as well as other incentives, which may be granted according to the law, by the public local authority;
2. Exemption from payment of taxes for modifying the land destination or land withdrawal from the agricultural use for the land used in the scientific and technological parks;
3. Deferred payment of VAT for materials, equipment and connecting to the public utilities during the investment period until the opening of the park;
4. Development programs for infrastructure, investment and providing equipment granted by the central and local public administration, private companies and foreign financial assistance;
5. Donations, concessions and structural funds for development.
The companies operating in the scientific and technological parks benefit from the following incentives:
1. Favorable location conditions and infrastructure and communication use, by payment on installment basis, ensured or facilitated by the administrator for a determined functioning period
2. Tariff reduction or free of charge services offered by the administrator.
Information provided by: http://www.arisinvest.ro/
Office spaces – Cluj overview
May 10, 2008
After a rather shy start, starting 2006 the office market of Cluj achieved a more significant development, and several important buildings of this segment were launched on the market. Beyond interest raise in relation with these types of developments that went hand in hand with the development of the business environment of Cluj, the market was a rather poorly regulated one. For these reasons and as a consequence of the need to promote each offer at a superior level, we deal with the classification of the office buildings without the existence of any methodology that would permit such a classification.
The hereby analysis tries to underline the evolution of the office buildings segment in Cluj and, at the same time, it tries to point out, without the intention of being exhaustive, the norms followed in the classification of office buildings. Without being a manual to be imposed, the hereby analysis wishes to be an explanatory one, taking into consideration the fact that at the time being the norms that apply in other states do not have direct correspondence in Romania. Still, we feel that such an approach can be useful both for the real estate agents and the future tenants of the office buildings.
Ascending trend on the real estate market
The evolution registered on the Romanian real estate market on the course of the previous year proves the fact that this is still a very attractive one. The ascending trend of the prices, registered on the national real estate market, continued in Cluj-Napoca last year as well.
The period of time between 2006 and 2007 proved to be one of premieres on the local market, since the first class A buildings in town were launched then, together with other office buildings of a lesser significance.
The residential sector rose at its turn, major projects being launched on the market last year, the construction tempo being one of the greatest in the country. Last year 2 times more buildings than in 2005 appeared on the market. According to the announced projects, during 2007-2008, it appears that the construction tempo will register a similar ascending level that being materialized in the future, in approximately 2000-2500 new buildings built per year in Cluj.
As concerns the trade segment important developments have been observed on the market in Cluj, 2006 being synonym to the launching on the local market of the brands Cora and Kaufland. The first two malls of Cluj, Polus Mall and Iulius Mall have been launched as well.
The industrial segment registered a less spectacular growth, in comparison with the other segments, the majority of transactions targeting the logistics branch of the segment.
On the land segment important growths have been registered, some lands having an over 100% growth in the course of a year. These growths have been registered, especially, in connection to the outskirts lands which have relatively cheap prices per square meter.
Office spaces developed starting with 2006
The market segment connected to the office spaces had a rather insignificant growth in Cluj, and it was only in 2006 that true office buildings were launched. This was due to great extent to the development tempo of the business environment in Cluj
Till recently, the majority of the local companies preferred to build their own office spaces rather than rent them. On the other hand the former financial potential of the possible tenants or the rentability rates of the offices in Cluj did not favor the development of buildings to a large extent.
It was only in 2006 that several foreign companies with a superior financial potential entered the market and they constituted, in the end, the great majority of the clients of the new office buildings. Maestro Business Center and Olimpia Business Center represented, as well as the rethinking of the former headquarters of the Agricultural Bank (at present the City Business Center), the most representative office buildings of the year 2006.
This year brought about the launching of other buildings as well, the great majority being placed, from the point of view of their areas’ extent, between 1000-1500 square metres. Located on Calea Dorobantilor Str., near the Courthouse and the Appellate Court in Cluj, the building is the most central A class office building in town.
Territorial development
From the point of view of the way in which the office buidings development took place in Cluj we cannot talk about the organizing of a prevailing area on this segment. The main argument in favour of this development was constituted by the existence of available lands and the building possibilities. In 2006 a focusing of office buildings in the centeral and the semi-central areas could be noticed. In 2007, according to the projects already announced on the market, a spreading of the office buildings in the areas that do not have a tradition on this segment can be noticed. Several projects were started in neighbourhoods like Bună Ziua, Grigorescu, Mărăşti or Mănăştur.
The office buildings’ stock registered a significant growth during the last couple of years, at one point a surplus being registered as regards the offer on this segment in comparison with the necessity existing on the market. Even if this particular situation was registered only on the subsegment of office buildings of over 100 square meters, it led to a staganation of the renting prices in 2006.
Still, once companies with foreign capital and a financial potential good enough as to sustain rent at a higher level entered the market, the situation balanced. In this respect, 2007 registered a growth of the rents levied to a value between 10 and 20% and this also led to a raise in the office buildings’ stock.
If in 2006 sproximately 25000 square meters of office buildings were launched on the market, this year brought about another 30000 square meters, and in 2008, according to the projects already announced on the market, the office market in Cluj will grow rich in other 50000 square meters.
From the point of view of the offer structure, the majority of the existing spaces focus on the segment of small or medium buildings, with areas between 1000 and 4000 square meters. The exceptions are represented by the two class A buildings, Maestro Business Center, launched in 2006 and Power Business Center, launched this year. Both these buildings have a developed area of over 10000 square meters and they are considered from the point of view of BOMA standards class A buildings.
The recent achievment of an office buildings segment in the true sense of the word, on the market in Cluj, led to the building of the spaces offered for rent in areas much closer to the needs of the future clients. Therefore, more and more buildings that offer open space offices appeared, the clients having the possibility to choose, according to their necessities, the way in which the offices should be divided.
The demand structure
The demand of office buildings had an ascending tendency, going hand in hand with the development of the business environment in Cluj. Until some years ago the greatest part of the demand was constituted by local firms that were looking for spaces between 40 and 100 square meters.
The development of the IT segment, in particular, led to a significant growth of the marketable; spaces, nowdays these spaces reach an average of 200 square meters.
The greatest part of the clients existing on the market activate on the IT, financial or banking market or they offer counseling in different areas of expertise. This is somehow natural due to the financial potential of these companies that can afford to pay a higher level rent, many of these companies having a foreign capital and a very strict code as concerns the image that the offices they work in, should have. Noticing the boom that the business environment registers on the market in Cluj, along with the entering on the local market of international giants, it is to be expected that the office buildings segment will register important growths as concerns the marketable office spaces, an increase of the number of firms that will need spaces of over 1500-2000 square meters is to be expected.
Standards for an off-gauge country
The real estate market in Romania is, in general, a poorly standardized one, all the attempts done so far so as to facilitate the implementing of some structures meant to regulate the market, stumbled because of the convienience of some, on one hand and because of all the speculations that one could make on such a market, on the other hand. Beyond this chaos, either on behalf of the developers or on behalf of the real estate agents, practice ended up, as concerns some segments of the market, implementing a terminology that is in close connection to the standards used by some of the international organizations in the field. This has been done purely for advertising reasons. Referring to the office segment in Romania, practice imposed, somehow, an association with the international standards used by BOMA (Buildings Owners and Managers Association), an organisation that accomplished the rules used in the great majority of the office buildings in the USA. Unfortunately, this association did not bring about automatically the implemention of additional set of rules; there were many situations in which small buildings, without any exceptional facilities were catalogued as being class A office buildings, just because they had thermopane glass windows or connection to the Internet.
Although not compulsory in the USA, one having the possibility of working on the market without closely following those standards, these rules represent, in fact, one way of measuring big buildings, allowing the areas, which all inhabitants of the building benefit from, to be measured and divided proportionally. Besides, these standards guide a certain classification of the buildings according to their extent and facilities. In general, for the facilities offered, only the ones compressed inside the building are taken into consideration, without accounting for the proximity of certain objectives. The exception is represented by the fact in which the proximity in question affects (favourably or not) the greatest extent the building.
Class of buildings
Even if, as we have aforehand mentioned, the way in which the classification is done, is a subjective one, the practice differentiates between the following classes of office buildings:
CLASS A
These types of buildings are competing in order to attract the most valuable clients, having rents higher than the market’s average. The finishing works and the systems used are, in general, the newest on the market, the architecture highlights the building within the area in which it is located and its accessibility is a special one.
Besides these elements, the class A office spaces are graded according to their loction, the total building space – especially if this is of more than 10000 square meters, the proportion between the available net area and the sheer area, being of more than 85%- this representing the storey height up to the the paneled through ceiling,– of more than 2.70 square meters, parking lots – more than one parking lot for a rented space of 100 square meters, BMS (Building Management System) – automatic system administration of the building, as well as the the quality of the building’s finishing works and the services offered: reception, security and surveillance system, maintenance and cleaning, cafeteria and restaurant etc
CLASS B
The buildings in this class are competing in order to attract the majority of the clients, having rents in accordance to the market’s average. The finishing works and the services offered can be described as being medium towards good and they are, in general, at the “market’s level”.
CLASS C
In general these buildings address to clients for whom the image plays a less important role in carrying on their activity. The buildings in question have primarily a functional role, without offering exceptional advantages in relation to their location or finishing works. Besides, the rents levied are under the average of the market.
Areas calculation method
The difference made between buildings, based on their location, architecture, finishing works, and facilities has also led to the establishing of a rental areas calculation method, which is different from the method used when calculating the available area.
This was mainly due to the embedment of several design elements in the construction, which all the tenents of the building benefit from, as well as to the existence of several facilities and adjacent areas, serving as office locations.
In other words, for the rent calculation, especially of those buildings belonging to class A, all shared areas already existing in the building, were taken into account (meaning hallways, care centers, conference centers, refectories, etc).
Besides the available area for offices and shared facilities, also part of the storey on which the office is located, for the rental area calculation method, it is also taken into account the shared area of the whole building.
For the rent calculation, it is not necessary to determine the following areas:
- the sheer area of each storey and that of the whole building;
- the floor area of each storey (calculated as the sheer area minus the area of vertical pinmovings)
- the available area of each storey
- the shared area of each storey (calculated as the floor area minus the available area of the storey ) and the shared building area.
The rental area can be derived by applying to the available area some multipliers, previously obtained as a ratio between the storey areas and the available areas, on one hand and on the other hand, as a ratio between the whole building rental area and the whole area, without the shared facilities of the building.
Average Prices
Rent prices charged for class A offices, in Cluj, are at the moment up to 16-19 Euro/square meter. In addition, some building offices having similar subsidies to those from class A, charge prices around 13-16 Euro/ square meter, the location and the finishing works being very important in this respect. Still, the average rent prices for class B offices ranges from 10 up to 12 Euro/ square meter.
If in 2006 the average rent price for available office buildings was about 9-10 Euro/ square meter, we witness in 2007 an increase of this average price, having as main cause the increase of standard demands as concerns subsidies and finishing works. Another cause for this increase is also represented by the growing interest of foreign companies that are investing on the local market. These companies have a superior financial potential and can afford to pay a higher rent. In this respect, the average rent prices at the moment ranges from 10 to 12 Euro/ square meter.
Profitability
Nowadays building offices in Cluj have a 8 to 9 % profitability per year. The main reason concerning the discrepancy between Cluj and Bucharest – 10-12%- is due to the relatively small number of clients that are currently developing businesses in the area and that need office spaces between 500 and 1000 square meters.
It is expected, though, due to the development of the business market in Cluj, adding to this the increasing interest on the market and the emerging on the market of names like Nokia and Emerson that we witness far superior demands for office spaces to those already existing.
Even if there an interest on behalf of investment funds has been noticed, in order to purchase office spaces of big buildings from Cluj, the only transaction ever carried on in this specific area, was with the local investors.
The rent increase per square meter, on the local market can only be generated by the entering on the market of more and more companies with foreign capital that are capable of handling these high rents.
Where to Find the Best Value Lots in Costa Rica
May 10, 2008
You’ll pay big bucks for a home in Costa Rica’s Manuel Antonio,
but look south, and the prices are far lower…for now.
Where to Find the Best Value Lots in Costa Rica
International Living Postcards–your daily escape
http://www.internationalliving.com
Some of the most amazing scenery in Costa Rica is in the southern zone, in an area that runs south of Quepos to the border with Panama. Landscapes here are dramatic–panoramic ocean views…lush tropical rainforest…and sheer jungle-clad slopes, rising sharply away from pristine stretches of sandy beaches.
In a country with an established real estate market like Costa Rica, this sounds like just the type of place that would attract a lot of fervent investors. But it remains under the radar in terms of property development because it’s hard to get to.
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The Costanera Highway is unpaved between Quepos and Dominical and the airports are small, local affairs. The airport in Palmar Sur is a one-woman show–she issues tickets, checks baggage, and answers queries, all while you sit on a wooden bench overlooking the small strip, alongside your other co-passengers…all 11 of them. No duty-free or airport food here.
But these are exactly the kind conditions I look for when scouting for a good real estate opportunity as the property prices are low at the moment and infrastructure is set to improve.
Road improvements on the Costanera Highway are already underway and scheduled for completion in two to three years. This should cut the 90-minute trip from Quepos to Dominical to 25 minutes. Combined with plans to construct an international airport in Palmar Norte, due to begin this year and to be completed in 2010 (funds have been allocated by the government), it all adds up to one thing: Property prices are almost certain to climb.
For now, pricing here is among the lowest in Costa Rica. A 1.25-acre-lot close to Ojochal is available for as little as $55,000. Construction costs are roughly $85 a square foot. So for $225,000 you can own your own piece of this tranquil setting in a custom-built, 2,000-square-foot house on a large lot.
That really is a good-value buy considering a 2,200-square-foot condo in Manuel Antonio (nearer Quepos) averages $595,000; and a 1.25 acre lot is listed for $325,000. Compare this to a quarter-acre lot in a development in Tamarindo for $400,000 with valley and lake views.
The climate in the southern zone is tropical, with a dry season from December to April, and rainy season, typically bringing heavy downpours in mid afternoon. The temperature does not vary much and averages 79 degrees Fahrenheit year round. Elevated properties in the area normally have refreshing sea breezes. This is the perfect spot for outdoor activities, from surfing to diving, hiking to bird-watching, and whale-spotting to sport-fishing. The feeling is tropical, fresh, close to nature.
Ronan Mc Mahon
Editor’s Note: Ronan is the executive director of Pathfinder, and contributing editor to Real Estate Trend Alert, a new IL publication for individuals who want to take advantage of global real estate trends long before they become common knowledge. Read more here.
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I’ve Discovered New Bargains in Southern Italy…
May 10, 2008
I love Southern Italy. Meals can take hours, and you’re never far from the coast. But it’s by no means poor or abandoned.
I’m just back from a few weeks bargain hunting around the ‘heel’ of Italy. It’s a lively region that’s popular with northern Italians … the good food, wine, and beaches draw them in droves. I found a few flourishing areas and some great deals in our old favorites:
- Flats on the Adriatic coast with roof terraces and awe-inspiring sea views for $176,000
- Unique cone-roofed ‘trulli’ houses from $55,000 with olive groves
- Large farmhouses in need of restoration on sale from $102,000
- Quaint apartments in the historic centers of villages starting at $79,000
I’ll be revealing all at this year’s Ultimate Event. Full details below…
Sincerely,
Leigh Fergus
European Editor, International Living
A Private Meeting
to Recession-Proof
Your Retirement
It’s only open to 0.5% of our
subscribers. Much of the information
revealed is rarely made public.
Today, there are only a few seats left.
This is your invitation to participate…
Dear International Living Reader,
Once a year we meet behind closed doors with all of our international contacts… investment experts… scouts… country specialists… and roving editors.
It’s a private meeting where we exchange our best ideas… the latest opportunities and strategies we each bring from the four corners of the world.
The information we share with one another is rarely made public. But we do invite a few subscribers to listen in. Only a tiny percentage (0.5%) of our subscribers will get to participate. Attendance is by invitation only.
This year’s meeting is almost full.
That’s because, with the worsening situations in the US, more people are looking for ways to safeguard their savings and their retirement from the failing American economy.
As a result, this year, the available seats for our subscribers are nearly all booked. But there are still a small number of spaces left. That is why I’m writing to you today; I’m offering you a chance to book a place for yourself, and attend the event with us in May.
What will you gain from attending our meeting?
We’re revealing the latest strategies to preserve your retirement… Strategies to retire early despite the US economy… the collapsing US housing market… or the stagnant markets on Wall Street.
We’re flying in from Ireland, Uruguay, France, Slovakia, Panama, Belize and countless other places around the world.
We’ve been scouting out the best situations available. And this May, we’ll share them with each other, and a small number of our subscribers.
Today, millions of Americans are looking for a way to preserve their standard of living… to safeguard their retirement… by looking outside the US.
According to an in-depth investigation by Money magazine, “250,000 Americans are leaving the country for good every year. And millions more are seriously considering it.”
They simply can’t afford to retire in the US and keep their lifestyle.
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“Once you live outside the U.S., you realize that the world is accessible. You feel like you have a lot more options.” – Los Angeles Times |
For millions of people, the American dream has simply been priced out of their reach.
The cost of living has taken off… health care coverage… gas and utility bills… crime. They’ve all gotten way out of hand.
And now, the failing US economy… collapsing housing prices… and ailing stock market threaten the retirement dreams of even more Americans.
But as millions of people are discovering, you can make your goal of a simpler and better life a reality.
There are places where you can still own your own town home or beach house outright – and enjoy appreciation of 20%… 40%… 60% per year …
…where world-class health care won’t send you to the poorhouse…
…where the government doesn’t involve itself in every aspect of your personal life… and won’t even charge you taxes.
Many of these places remind me of the America I grew up in… small town America… where the pace is slower, neighbors still watch out for each other… manners still matter… and doctors still make house calls.
Some Americans found these places after years of research… or through trial and error.
But others took advantage of our private annual meetings, and got the current strategies and the best locations to rediscover the American Dream. And this year we’re inviting a select number of subscribers to meet with us again.
Join me in May for the Ultimate Event III, the third in this series of high-priority annual meetings.We’ll gather at the Fiesta Americana Resort in Cancun, Mexico, May 28 through 31.
We’ll reveal the six best places in the world to live and invest… As well as places off the mainstream radar—that are now becoming safe and attractive options in today’s shifting political landscape.
The meeting’s theme is Protect Your Future by Looking Outside the U.S. Borders. The world around us is changing fast. Each year doors of opportunity are opening in select countries… while the doors in others are closing fast.
That’s why we’re holding the Ultimate Event III in May this year… earlier than we did the past two years.
The economy in the US is declining rapidly, and important developments are taking place around the world that we need to share with you as soon as we can.
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“Whether the issue is crime, the economy, taxes, or the environment, there is a sense of dismay, a sense that the U.S. has gone too far in the wrong directions.” – Money Magazine |
We’ll reveal the best places in the world to retire, move to or invest in…
We’ll discuss how to buy overseas property with your IRA… today’s strategies to invest in global real estate… and the current secrets of wealth protection planning.
You’ll get the most important opportunities available… and the details of how you can take advantage of them.
If you are concerned about protecting your wealth, health, and lifestyle, I’m inviting you to join me at the Ultimate Event this May. It’s the best way to get all the information and contacts you need to make your goal of a simpler and better life a reality within the next year.
But you’ll have to reserve your place fast. As I mentioned, we never make these meetings available to more than 0.5% of our subscribers. And now, most of the seats are already taken… there are only a few places left.
Let me tell you a little more about our meeting so you can decide for yourself if it’s for you…
Where is the real
land of opportunity?
America was once a land of promise. People from around the world emigrated in hordes. The economy was booming. It was a melting pot of nationalities. Anyone could become an American. And anyone could become rich if he worked hard enough.
Life seemed simpler and safer… children played outside after dark and families ate their meals together.
I remember that time. We were calmer… happier… There was less focus on money and more focus on enjoying life and each other’s company.
Somehow, big government, big business, and special interests whittled away the lifestyle my parents took for granted.
But there are places where that lifestyle is still available… and affordable.
These places are drawing worldwide attention. And we’ve identified the six best ones where you can still live in a way not seen in America since the 1950’s.
These six locations offer diverse geographies and cultures. So regardless of your specific situation or preferences… we’ll show you one that’s right for you.
We’ll show you cities overflowing with culture… with Old-World architecture… opera houses… with theaters of drama and ballet…
…lively streets lined with cafes… with restaurant patios… and live bands…
…places where you can walk home at midnight without a worry… where children play safely on the streets… where young people still respect their elders.
Or you may be interested in a more relaxed pace of life. Where cool ocean breezes or mountain valleys create an eternal spring-like climate.
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“It’s the start of a wave of U.S. Baby Boomers retiring abroad, spurred by the ease of long-distance travel, Internet communications, well-trained doctors overseas and surging U.S. prices that have made traditional retirement sites like Florida less attractive.” – South Florida Sun-Sentinel |
Whatever your needs, we’ve found the six most likely regions to meet them. And we’ll show you exactly how you can take advantage of each one at the Ultimate Event III this May.
One hundred of our experts are flying in from around the world. If you’ve been to either of our previous Ultimate Events, you know we spare no expense to gather the most current and practical information available.
For instance, we’ll hear from…
ROBERT E. BAUMAN
Bob will reveal the latest changes and strategies for going offshore… including how to protect your retirement savings… how to get dual citizenship… dual passports… and much more.
He’s a former member of the U.S. House of Representatives. He was also a federal official and state legislator… and is a member of the Washington, DC Bar.
You may have read about him in the New York Times, Washington Post, Los Angeles Times, The Baltimore Sun, Wall Street Journal, and National Review.
He’s written countless books including The Offshore Money Manual… The Complete Guide to Offshore Residency, Dual Citizenship and Second Passports… Where To Stash Your Cash: Offshore Tax Havens of the World…
We’ll also hear from our overseas property investment expert…
LIEF SIMON
Right now, the US is struggling to keep its housing market from collapsing… But Lief Simon can tell you where you can still buy a renovated beachfront home for under $70,000… and expect it to keep rising in value for years to come.
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“I can buy a beachfront condo in Florida for $1 million; the same thing in Puerto Vallarta is $200,000. Then there’s tax – real estate taxes in some parts of Mexico are less than 0.2%, compared with about 2-3% in the US. And for $400 a month you can have a live-in maid.” – Financial Times, Nov 19, 2007 |
Lief has unparalleled expertise in buying and selling real estate around the world. He’s personally tackled foreign real estate laws and invested in 16 countries.
As an expert global real estate investor, Lief has helped thousands buy their second homes, retirement villas, or investment properties. He’s lived and worked on five continents and traveled to more than 40 countries.
And he has a keen sense to find the most profitable and overlooked markets. For example, in the past he gave us the details on properties in Mexico that rose 160% in 18 months… in Nicaragua that rose 120% in 12 months… and in Romania that gained 82% in 15 months.
In fact, if you’ve been with us at International Living over the years, we’ve helped you find a host of places that most people weren’t yet aware of…
In 1984, we told you about the southern coast of Spain… in 1987, Acapulco… in 1992, Roatan, Honduras. They all rose more than 800%…
In 1991, we recommended the Caribbean island of Ambergris Caye off the coast of Belize. Back then, you could have picked up a quarter-acre beachfront lot for $35,000 or less. A decade later, the same lot would have cost you at least $150,000…
In 2000, we recommended the sandy coast on Mexico’s Costa Maya. By 2003, prices had doubled…
In 2004, we found beachfront lots on Nicaragua’s Pacific coast for $34,900. Today, that same lot would list for at least $130,000…
In 2004 we also alerted you to ocean-view condos in Panama City at $120 per square foot. Now they sell for $350 per square foot.
Buying overseas property can be intimidating if you don’t have the right information. But Lief Simon and many other overseas real estate professionals will show us how easy it can be. We’ll also hear from experts in other areas…
RICH LUCHSINGER
Rich is the Associate Director of Sovereign International Asset Management, and he’s been helping people invest since 1985. He specializes in offshore investments, asset protection, and pension accounts.
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“…the experience of living in Mexico has been priceless. They have been stunned at the warmth and hospitality of their neighbors, and at how living outside the U.S. has given them a new perspective on the world.” – LA Times |
Last year he showed us how to buy foreign real estate with our IRA. He also told us about a hedge fund that has less risk, less volatility and twice the return as the American markets.
It has less risk, because in the past five years, the fund actually dropped for only one month. (It was down 5% and then went up again.)
Compare that to the US markets, which lost over 40% of their value and were down for nearly two years during that time. In fact, it took the US markets four years to recover.
In other words: If you had invested in this hedge fund, today you’d have $3,687 for every $1,000 you put into it. And you wouldn’t be worried about what’s happening on the Wall Street markets right now.
Rich is one of the best offshore money managers I know. You won’t want to miss what he’s going to tell us about at this coming event.
For years, many Americans fled to better places like Panama and Costa Rica. In fact, Panama was our top rated retirement haven for the past five years.
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“Everything I need is here,” the 63-year-old said of the shopping, medical care, and services. “And you just can’t beat the weather.” – Los Angeles Times |
It had everything going for it… affordable quality health care… tax exemption privileges… high-quality, low cost lifestyle…
But this year, another spot has become our top rated retirement haven. It’s the easiest place to retire outside the US.
That’s why I moved there myself …
The top-rated haven to retire today
I should introduce myself. My name is Dan Prescher.
I’m the publisher of International Living, and I’ll be your host at our meeting in May.
Before moving to Mexico’s Yucatan peninsula, my wife and I lived in Ecuador, Nicaragua, and Panama. But it wasn’t until we moved here that we felt like we finally arrived at home. Now we’re living the life we’ve been looking for so long…
We have a beautiful home in the city of Merida, and in many ways it reminds me of my hometown of Omaha, Nebraska (without the subzero winters, of course!).
Here the pace of life is slow and easy, and we have all the amenities of home… high-speed Internet… cable… great restaurants and convenient shopping around the corner.
And the US dollar still goes very far here. Right now, we’re having our home renovated. When it’s finished, it’ll be a 6,500 square-foot, three bedroom home with an office… workout room… four baths and a pool.
We also have beachfront lots and will build another home there one day. There’s no way we could have afforded comparable properties in the U.S. — nor would I have wanted to. Because here in the Yucatan, you can:
Buy a home for up to 70% less than the price of a similar home in the US…
…hire a full-time maid and a gardener for only a handful of dollars a day…
…enjoy warm, sunny, pleasant weather year-round…
…go deep-sea fishing, sailing, golfing, sea kayaking, surfing, hiking, snorkeling, and horseback riding…
…and if you want to get back to see friends and family, direct flights from Merida’s international airport to Houston are just two hours … and Miami is less than 90 minutes away.
It’s easier to move here than any other country in the Americas. That’s one reason more American expats live here than any other country.
In fact, some towns like San Miguel de Allende have become famous for their large expat communities. But Mexico is a huge country. It has 31 states and is three times the size of Texas.
In May we’ll show you specific places in one of Mexico’s states that have been largely overlooked by most Americans.
We believe these are the best places in the country to retire, buy property or invest.
You’ll hear all the details from two of our Mexico specialists…
GLYNNA PRENTICE
Right now Glynna is investigating some of the latest investment and asset protection opportunities south of the US border.
She’s the editor of our Mexico Insider publication. She’s traveled the world extensively, and had worked overseas in various positions including international banking in Brazil… and strategic consulting for Price Waterhouse in Spain.
She also holds degrees in Journalism from the Columbia University in New York… and an MBA from the University of Chicago…
You won’t want to miss her insider advice in May.
SUZAN HASKINS
Suzan is my wife. And without being partial, I can honestly say she’s one of the most informed people I know about the current opportunities in Latin America.
As the Editorial Director of International Living’s Latin American publications, she makes it her business to stay on top of the latest changes happening in this part of the world.
After getting her degree in journalism from the University of Nebraska at Omaha, Suzan spent 25 years working in the corporate world. But she got disillusioned with America’s rat race… and wanted to fulfill her dreams of a better life…and without the cold Omaha winters.
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“They say they’re living better than they ever could have imagined on $1,500 to $2,000 a month. They eat out frequently and have a maid and a gardener. After two years in their first home, they bought a four-bedroom house with a mother-in-law unit for $135,000.” – Los Angeles Times |
So for the past seven years, she’s lived in and visited countless places in Central America, including Ecuador, Panama, Nicaragua, Costa Rica, and Mexico.
I’ve been sworn to secrecy about some of the situations Suzan’s investigating right now. But join us in Cancun, and she’ll give you the best places you can rediscover the American dream in Latin America.
While Cancun isn’t really ‘Mexico,’ in my opinion, it is a fantastic place to hold a conference…the town was custom-built by FONATUR, the Mexican national tourism development agency. It’s a world-class convention and vacation center, with some of the easiest access and best travel deals in the country.
If you follow our annual Global Retirement Index, you may have noticed that Mexico knocked Panama out of the #1 ranking this year.
Does that mean your opportunity to retire in Panama is gone?
Not at all…
We’re ahead of the curve in Panama
On the contrary, without losing its tranquil natural beauty, Panama boasts every modern convenience you’d expect at home for a fraction of the price.
You see, the world has already discovered what we’ve been talking about for years. There is an endless list of luxurious high-rises for sale in Panama City. It’s hard to keep track of each new building that is going up. And if you listen to some of those developers, you’ll be convinced that prices in Panama City have all gone up.
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“I don’t miss the crime, the traffic, and the hassle. And we have friends here, real friends, not just business and professional relationships.” – Helen Givens |
But that’s not entirely true. You can still find plenty of great places under $100,000…if you know where to look.
In early 2006 for instance, we found ocean-view condos in Panama City selling for $139 per square foot. At the same time, developers were hawking comparable condos for $325 per square foot.
But we’re not limiting our investigation to Panama City. Now that it’s been mainly ‘discovered,’ we’re staying ahead of the game…and have found even better places elsewhere.
Panama is a wonderfully diverse country, with lifestyle choices and real estate deals that range from lushly wooded mountain homesteads…
… a countryside full of green, open spaces…to languid, near-deserted beaches.
Places where people have more manners and still greet one another in public.
Life here is simpler, slower, and more family focused.
It’s one of the six places we’re covering
Panama is definitely on our list of topics at the Ultimate Event. And depending on your situation, it may be the place best suited to your specific needs.
In May you’ll hear about the latest information on the exact places we’ve uncovered there. We’re bringing in a small army of Panamanian experts including real estate and relocation specialists…banking, legal, and financial experts…and advisers in every field you need to invest or retire in Panama easy.
Heading this small army of experts will be our own Panamanian specialist…
JESSICA RAMESCH
Jessica will give you the details on a little-known Panamanian law that gets you financing at 2% to 3% interest rates. The law expires this year, but Jessica will show you how to get in before it’s too late.
Jessica is our country expert in Panama. She’s also a veteran world traveler. She held a rank of Second Officer at Carnival Cruise Lines after getting her degree in International Politics and Diplomacy at the University of Richmond.
She’s worked for the Panama Canal Authority, and now uses her extensive contacts and resources to report each month in the Panama Insider.
Besides Jessica, we’ll also hear from…
LEE A. HARRISON
Lee has an extensive resume of international experience. In the past six years, he’s investigated and lived in many different places, including Nicaragua, Honduras, Panama, Chile, Argentina, Brazil, Colombia, Peru, Ecuador… and Punta del Este in Uruguay, where he decided to settle down.
He chose Punta del Este because it’s like traveling back in time, and living in the US in the 50’s… but with all of today’s conveniences.
The beach town is incredibly safe. Crime is nearly non-existent, so you don’t have to worry about holdups, violence, or car break-ins. And best of all, it’s in South America’s only low-tax, offshore haven.
Punta del Este is still pretty much off most people’s radars. And Lee came across opportunities you just don’t hear about anymore.
For instance, he found a way to buy auction properties at incredible prices … a 1,144-square-foot home with three bedrooms and two baths—just one block from the water… selling for $23,000.
Nearby, there was a two-bedroom apartment for $6,000… even a small house for $2,676.
Join us at the Ultimate Event and Lee will tell you how to take advantage of this beautiful haven, as well as some other places nearby. But our experts won’t stop there. We’ll also hear about…
Mediterranean Europe’s southern secrets
Most people have given up on finding an affordable retirement in Europe… especially in Italy, where Tuscany has captured the imagination of a whole generation of expats.
But there’s a part of Europe that’s been largely overlooked by most foreigners. It’s Italy’s ‘deep south’ hill towns and coastlines.
Here, life is still genuinely simple. People gather for long lunches on Sunday afternoons… and they welcome strangers with warmth, just as if they were family.
This is one of the top six places we’re covering in May. Our European correspondents have been gathering the latest information about investing, living, and retiring there. It’s one of the last overlooked places in Classical Western Europe. You can still live a simple life that’s pretty much disappearing in the US.
Our top researcher on this location is…
STEENIE HARVEY
Steenie’s most recent discovery is a group of medieval towns in Italy’s ‘deep south.’ They’re an hours’ drive from Rome and even closer to the Mediterranean coast and to the nearby ski slopes.
Here, you can still live luxuriously, yet within your means. For instance, a classical restored villa—complete with new electrical, plumbing… even furniture—will cost you as little as $41,711.
Steenie has stumbled across more overlooked places than anyone I know. In the last year she has investigated real estate in Thailand, Austria, Spain, Scotland, Crete, Poland, Switzerland, and the French West Indies… just to name a few.
Steenie travels every month, and is our roving editor. She’s the author of Live Well in Ireland, Adapter Kit – Ireland, and her latest book is Adapter Kit – a Guide to European Vacation Rentals.
Right now, she’s gathering information on the opportunity in Europe with another one of our top investigators…
LEIGH FERGUS
Leigh is our Paris-based European Editor. Originally from Guildford, UK, she’s lived in various places in China and France. She’s worked for both private and public sectors, including China’s state news agency and the Financial Times.
Recently, Leigh has been investigating the opportunities in Southern Italy… But also comes across similar—but unique—developments in France, Romania, and Morocco that you may want to know about. These situations may not be for everyone, but offer a great reward for the right person. She’ll give you the full details at the Ultimate Event.
We’re also following developments on another continent where you can still live a simpler, happier—yet exciting life…
The new land of opportunity…
The city of Fortaleza has a sizzling nightlife and great restaurants.
It also has families strolling in the parks on Sunday afternoons… modern high-rises, classical cathedrals and cobblestone roads. It’s surrounded by hundreds of miles of dazzling, white-sand beaches… and is the #1 tourist destination in northern Brazil.
Here, the ocean waters keep the temperatures around 80 degrees year-round.
What’s amazing is the regions along the coast are just now being discovered and developed.
Today, a relatively small group of Europeans have the beaches of this tropical coast to themselves.
They’re buying beachfront lots for $16,500… beachfront condos for $67,000… and downtown apartments with fantastic sea views for $50,000…
But in 18 to 24 months, these prices will be but a boastful memory of the few early investors.
We have a close contact who’s established a foothold in the area. And he’ll brief us on the specific opportunities currently available to us.
RONAN MCMAHON
Ronan has been active in the real estate industry his whole adult life. He’s the Executive Director of Pathfinder, which specializes in finding offshore real estate before most people catch on… and at prices you’d only think to find in history books.
Ronan discovered places in Nicaragua, Panama, Honduras, Argentina… long before the rest of the world had caught on to the incredible bargains and engaging lifestyles.
In early 2006 for instance, he uncovered ocean-view condos in Panama City at $139 per square foot… while comparable condos were pre-selling at $325 per square foot.
He also found the best beachfront buy in the Americas… beachfront lots on Nicaragua’s Pacific Coast, for just $34,900. Today, you could easily expect to pay $130,000 or more for those lots.
Ronan believes he’s found a similar situation today in northern Brazil. It’s one of the few places you can still live an exotic, yet affordable life. You can’t afford to miss out what he has to tell you about this year!
Join me in May at the Ultimate Event with over 100 professionals…
We’re meeting with attorneys, financial advisers, tax and banking specialists, real estate developers, analysts, country specialists, correspondents…and countless other advisors and specialists from around the world.
There are many more experts than I could possibly introduce to you in this short letter.
We’ll be gathering for four days in Cancun, Mexico, May 28-31. Like our previous two Ultimate Events, it’ll be a fast-paced whirlwind of information.
But don’t worry, we’ve made the meetings easy to follow… so you can get the most out of them, regardless of your specific interests.
In the mornings and after lunch we’ll have general sessions. These cover all the important information you must know about. And in the afternoons, we’re holding in-depth workshops to focus on the topics that may interest you most.
We’ve divided the event into four sections, one for each day …
A whirlwind of activity
WEDNESDAY, MAY 28, 2008
The first day focuses on the current opportunities and strategies to retire early. And our experts are some of the top authorities in their fields of international finance. They’ll fill you in on:
Current strategies to protect your wealth offshore… the pros and pitfalls of international real estate… how to buy it with your IRA… how currencies can safeguard your retirement…
…offshore trust planning… strategies to move money outside the US… opening an offshore bank account… and much, much more.
THURSDAY, MAY 29, 2008
On Thursday we cover the top six places we’re recommending right now.
Our experts will give you the details about the current situation in Mexico’s Yucatan, the top opportunities in Panama, coastal Ecuador, Brazil’s north coast, Uruguay, and Italy’s “deep south” hill towns and coastlines.
Midafternoon we’ll break into smaller groups to brief you more closely about the areas that interest you. This will also be your chance to get all your questions answered personally.
Besides our top six countries, we’ve also found opportunities in other countries… off the mainstream radar. They are unique situations that may not be for everyone. But we’d be negligent if we didn’t give you the choice to find out about them as well. During this afternoon, you’ll have an option to attend any of these workshops and get all your questions answered as well.
They’ll cover situations in places like Nicaragua, Argentina, France, Romania, Costa Rica, Belize and Morocco… to name just a few.
FRIDAY, MAY 30, 2008
This is when we get into the nuts and bolts of moving, retiring or doing business overseas. There are many things to consider and many topics to cover. You’ll hear from our experts about all of them including:
…health care strategies, how to save a fortune on premiums and still get the top treatments abroad…
…tax strategies… title insurance… managing health risks… step-by-step practicalities of making the move… building your home in the tropics… international tax planning… and much more.
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What people are saying about the Ultimate Event “All the information a person needs to relocate.” “The seminar really exceeded all expectations. So much that it will take weeks to absorb.” “Very thorough as usual! Great event! The workshops provided a choice of topics to delve into for more information.” “Actually exceeded my expectations. Variety of investment opportunities were very interesting.” “…broadened my perspective about places to invest, potentially move to.” “Many topics were new for me and often eye opening.” |
In the afternoon we’ll once again break into smaller groups so you can get the details about the topics that interest you most.
SATURDAY, MAY 31, 2008
On Saturday, we’ll cover all the more personal details of investing, moving, and living offshore. You’ll hear from people who’ve made the move themselves… get their personal insights and hard-earned advice.
You’ll also hear from our experts on various topics including:
…shipping your belongings… insurance, banking, and utilities… rental management of your overseas property… starting your own business abroad…
…staying in touch—communications …learning the language… finding work… common pitfalls and how to handle them… and much, much more.
We want to make sure that you’re fully prepared when you take advantage of any of the opportunities we present you with. That’s why we’ve left no stone unturned.
Over the past 28 years, we’ve helped hundreds of thousands of people find their ideal place. Over that time we’ve gathered volumes of information, services, and resources.
In May, we’ll give you what you need to make your decision as painless as possible.
We’ve anticipated questions you may not even know you have right now. And we’ve made sure they’re all answered by the time you leave the event.
You’ll be informed and able to make the best decision on the opportunities that are most suited for your specific situation.
When you come to the Ultimate Event, we’ll make sure all your needs are taken care of, so you can relax and focus on what means the most to you. You’ll get:
Coffee & Networking Breaks: You’ll have a lot to absorb during the event. So we’ve scheduled frequent breaks for you to stretch your legs… grab some complimentary refreshments or snacks… network and check out the various exhibits that may interest you.
Sponsored Lunches & Cocktails: Some of the exhibitors and overseas specialists offered to sponsor lunches and cocktails during the four days. Just check your day’s schedule to find out which ones you’d like to take advantage of.
Farewell Reception: We like to end our events the same way we start them… with a big bang. We’ll end off on Saturday night with our traditional Farewell Reception. It’s a great way to chat and end off an event that may well be the turning point of your life.
During the breaks you’ll get a chance to talk with our overseas specialists… visit our networking hall… conduct business… and get one-on-one consultations.
You can check out the exhibits… stop by the booths for free giveaways… and see which experts can help you reach you dreams.
It’s your chance to meet people who share your interests and can help you in ways you may not imagine…
You’ll rarely have so many experts and like-minded people under one roof, so make sure you take advantage of it.
As I mentioned, we’re holding the event at the Fiesta Americana Condesa Resort in Cancun. If you’ve never been there, you’ll be delighted at the chance to get pampered during the event…
Get pampered at a luxury resort
Cancun is one of the easiest and fastest cities to fly to in Mexico. After all, the city was originally designed and built for tourism.
It’s just two hours out of Houston and 90 minutes from Miami. It’s one of the most convenient places to get to. That’s why we’re holding our Ultimate Event there.
The beachside resort was the location of the 1989 Miss Universe pageant. But this May, it’s hosting a much more important event.
Your large contemporary suite comes with all the state-of-the-art amenities… even an oversized private balcony with ocean view, if you choose.
It’s the perfect place to relax and take in the sun between sessions. The Fiesta Americana is on a broad, white-sand beach in the heart of the hotel zone. Be sure to enjoy all the local amenities. And perhaps join us for a fun game of beach volleyball or a cool drink by the pool.
In May, the ocean temperatures are a warm 82 degrees… perfect for an ocean swim. The daytime temperatures are still comfortable this time of year. And you may even want to pack a sweater if you like to stroll on the beach in the moonlight.
But you may not be spending a lot of your ‘off’ time around the hotel. The shops, restaurants, theme parks, and nightlife are all within a short walk.
If you’re more interested in discovering some of Mexico’s history, there are many Mayan sites to explore within a short distance…
So come join us for the Ultimate Event III May 28-31 in Cancun. Your ticket includes all the seminars, breakout sessions, workshops, access to the networking hall, take-home materials, coffee breaks, sponsored lunches and cocktails, and the farewell reception… for only $1,195 a person, or $1,990 for a couple.
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You’re entitled to an even lower rate with these memberships… IL Magazine Subscribers: Panama & Mexico Insider Subscribers: $100 discount Lifetime Society Members: Publisher’s Roundtable Members: $350 discount World Club Members: Agora VIPs*: Keep in mind, we have to fill this event on a first come, first serve basis. So please make sure you book before the spaces fill up. *The discount applies to Oxford Club’s Chairman Circle, Sovereign Society Trader’s Ring and Taipan Inner Circle Members. |
For your convenience, you can stay at the Fiesta Americana Condesa Resort.
We only have a limited number of rooms available. Which is another reason you should make your decision to attend prudently, yet swiftly.
Please keep in mind this is the most in-depth event we hold. And we only do it once a year. We’ve had a lot of interest in some of the opportunities I mentioned here. So I wouldn’t be surprised if we sell out early.
As I mentioned, the economic situation in the US is changing fast. And important developments are taking place around the world that we need to brief you about as soon as we can.
So reserve your place for the event as soon as possible. You can do it by clicking on the link below. Or you can call our events team directly at
1-866-381-8446 (toll free in the US and Canada) or 1-410-895-7967 or e-mail us at events@internationalliving.com.
I look forward to seeing you at the event.
Sincerely,
Daniel Prescher
Publisher, International Living
PS: I can’t stress how quickly this event may sell out. Please don’t be left behind, I’d hate to see you miss out. This year we’re holding the event earlier in the year than we did with the previous Ultimate Events. Thousands of Americans are already moving outside the US each year. The opportunities we’re presenting at this event are very timely. They may not last for long.
