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Overseas Buying Guide Newsletter

Overseas Property Buying & Investment Newsletter 29th October 2008

In This Issue You'll Find: Have I got news for you! Interesting times indeed....from our Money Man Charles... Cyprus Investments! A key element to a wealthy, healthy move abroad Top Tip - Signing Contracts To Finish... Hi Charles! Recent difficulties in the financial markets are unfortunately having an impact on all our lives. Whether you like it or not, the media has made the whole thing worse and we are finding ourselves in very uneasy and disturbing situation. The majority of people in the UK have lost all faith in financial institutions such as banks and investment banks. Symptoms of recessions are becoming very apparent and we are all wondering when - and indeed IF - it will ever get any better. I recently went to a seminar which was dedicated to 'the man in the street' - people like you and me. On this seminar I learnt quite a bit and I was glad that it was in layman's terms that I could easily understand. A lot was said about how the situation actually started and who in the financial world bears the most responsibility for what has happened. Do you know what the term "credit crunch" actually means? I was fascinated to learn that it means a shortage of funds in inter-bank lending. In other words, it is the banks failure in lending too much without taking into account the risks entailed that has brought us to this crisis. If you would like to learn more about the way of using "credit crunch" in your advantage (and it CAN be done!) or you feel that current situation is affecting you and would like to chat about it, give me a call or drop me an email at: mailto:jana@overseasguidescompany.com In October's newsletter you can find interesting investment news and the investment of the month. I have also spoken to an Independent Financial Advisor and obtained valuable information about Second State Pensions and how you can benefit. I hope you find all of this useful to you: please do keep in touch and let me know if there is anything that would be of especial interest to you. I would be very happy to research or discuss anything might help all the people out there who are interested in investing in overseas property... Before I sign off, I have once more received and incredible response about a great overseas property insurance company. For the past two months I've included a link to them and each month several readers write back expressing positive views. Getting a quote is easy, take a look at them at: Insurance Quote Kind regards, Jana Korpova Overseas Buying Guide The Overseas Guides Company ltd 0207 898 0549 (call me!) mailto:jana@overseasguidescompany.com

Have I got news for you! Bulgarian news The low-cost air carrier Wizz Air is launching permanent flights to Bulgaria' s Black Sea, connecting the city of Burgas with London. The news was announced recently by the Director of the Burgas Airport, Kalin Barzov, who pointed out the new flights were the result of long-term efforts on the part of his administration. There will be Burgas-London flights every Sunday except in December-January, when there will be two flights per week. Over the summer season most of the foreigner citizens who travelled through the Burgas Airport came from Germany, the UK, the Scandinavian states, the Czech Republic, Slovakia, and Israel. Estonian rental boost! In a move that could boost investment in tourist property in the country, it was decided by The Estonian National Tourist Office that holding a promotional event in London was one of the best tools used to boost the investments. On October 9th they hosted a show at the London Guildhall, which included a workshop in the afternoon and a presentation by tour operators in the evening. The body commented: "Estonia is becoming increasingly important among UK consumers looking for something a bit different." Too true...much interest is being shown both in Bulgarian tourism and investments and this is a very good sign for the future. An increase in UK tourist numbers could boost the prospects for tourist lettings, something that may appeal to property investors. It was also suggested that the most attractive part of Estonia lies away from the capital city of Tallinn and it was important to make tourists, and therefore potential investors, aware f this. Thailand for investors! Thailand is considering relaxing the rules on foreign ownership of property to make it easier for non-Thais to invest there. Recent figures revealed that while prices increased by 5.6 % in the year ending the second quarter of 2008, this represents a real terms drop of 4.18 % as the house price rise is lower than overall inflation. Another factor that could make it easier for investors to buy in Thailand is the price itself, which seems to be dropping. If you have any questions about the above or anything else i may be able to help me with just email me at: mailto:jana@overseasguidescompany.com

Interesting times indeed....from our Money Man Charles... by Smart Currency's Charles Purdy. We live in what can best be described as "interesting times". It seems that UK taxpayers, and that includes myself, now own a significant part of our beloved high street banks. These are the same banks that are always so quick to charge for the slightest service but seem to have fallen foul of the people running them, who clearly thought that they were cleverer than they actually were. In the period when the banking crisis first started with the nationalisation of Northern Rock we have seen sterling lose significant value against the euro (nearly 20% at one stage). Where to now for sterling against the euro? I have no idea. And I am not alone. A very senior figure at the International Monetary fund once said the more he thought he understood the foreign currency market the more he realised that he had little idea on future movements in exchange rates. Is this a problem when buying property overseas? No as long as you budget properly and understand your options when it comes to securing a €/£ exchange rate. Any person buying a property in the UK would ensure that they had a very clear idea of what the total cost would be. This may not be to the nearest penny but would be fairly accurate and there would not be a last minute scramble to find more money. So why don't people do this when buying overseas property? They probably do a calculation which gives them a fairly accurate calculation in euros and a rough estimate of what this will be in sterling. But the sterling cost may include two errors. The first could be the use of a wrong exchange rate. I have seen this many times where an over optimistic exchange rate has been used which bears little resemblance to the current exchange rate. Also exchange rates move every second so the rate used at that moment in time may be very different to that used when payments have to be made. The way to avoid this is to sign up with a currency broker such as ourselves who will help you avoid the two problems. The first we will solve by being your eyes in the marketplace, ensuring that you understand what is happening and what the exchange rate is. The second is by explaining your options to you in detail and discussing how you can secure an exchange rate for the future, thereby avoiding that last minute scramble to find more money. Many clients who have used our services have secured exchange rates that have been better than they expected, that saved them many £££££'s and that relieved them of the stress of wondering what they may have to pay rather than knowing precisely what will be due. Latest on Sterling, the Euro and US$ After a positive start to the week which saw sterling make gains against the euro and US$, sterling only managed to maintain similar trading levels to previous weeks. The start of the week benefitted from renewed confidence born from the UK treasury's cash injection to the high-street banks and lending markets. There was unprecedented volatility in the stock markets throughout the week, the FTSE recoded its worst daily losses in several years, but this did not translate to the value of the pound on the markets and prices remained relatively steady. The Bank of England suggested this week that inflation was now expected to return to target levels sooner than had been previously anticipated, earlier in the year, and suggestions from one member of the MPC supported speculation on the likelihood of interest rate cuts in the coming months. The American government's solution to the current banking crisis was strikingly familiar to the British and a $250bn injection to its biggest banks and lenders was announced early in the week. Despite some rather down-beat but refreshingly realistic forecasts regarding business growth and productivity from the Federal Reserve's chairman and vice-chairman the US$ also maintained recent levels in the face of plummeting stocks and shares. Hints from the FED regarding a further cut in interest rates, potentially brining the base rate down to 1%, made little difference to the value of the US$ on the markets. The euro is losing ground. Having convened over the weekend to discuss the strategy to deal with the global financial meltdown the European member states opted also for large cash injections into their financial institutions with assurances and guarantees on deposits held. European market data showing that inflation has officially fallen from its peak in the summer which has now opened the door for the ECB to lower their interest rates sooner than expected.   Why overseas property buyers lose money... ...and how you can avoid it! To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm   To get a Better-than-Bank rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm or call Carl on 08081 630 102 freephone.

Cyprus Investments! Reasons to invest in Cyprus You may well be asking yourself as to why to invest in Cyprus. There are several reasons why people invest, buy and travel to Cyprus. Amongst many, this country is still developing and can offer great potential for stable capital growth. The east side of the island (Larnaca, Famagusta and Limassol) can perhaps agree with your budget and from the investment point of view this side will soon see new marina, always a good sign. I came across to this reasonable priced investment in the area which looked like really good value to me. The apartment complex consists of five 2 bedroom and one 3-bedroom apartments, all with large verandas. It is located in the heart of the picturesque village of Pervolia, which is only 15 minutes drive from Larnaca town. It is also only few minutes drive to the nearby sandy beach where one can enjoy the local water sports facilities or simply relax in the crystal clear waters. Prices start from EUR 148,000 - not bad, I am sure you will agree. If you are interested in hearing more about this, or indeed any other investment opportunity, please contact my colleagues or me at 0207 898 0549 or email me at mailto:jana@overseasguidescompany.com Exit strategy or why to buy apartment in Pervolia 1. Rental income - remember that you need to make an effort to rent your property out. If you don't, there are others (maybe your neighbours) who will make more effort to rent their apartment out and you may miss the rental boat! 2. Capital Growth - buying off-plan is known for great capital growth. In theory when you buy apartment off plan it should be cheaper than the fully built one. So in theory if you buy it now and hold on to it till it is finished your reservation deposit should earn some serious money - you need to ensure in your contract that you can sell when ever you so desire if this is your intention. 3. Exit routes - if you do not want to rent it out or you are not interested holding on to it, you can always sell. How to decide on your risk level when investing Nobody can ever guarantee that investing in properties abroad, or indeed in the UK, is ever entirely safe. I mean, look at the current crisis and at how unbelievably quickly it was upon us. On the other hand, keeping your cash in the banks isn't necessarily safe either (as we have seen recently - or ask an Icelander). Money under the mattress isn't generating any interest...so what on earth are you meant to do? Before you invest in properties you may want to decide what sort of investor are you. This can be based on your attitude to risk, your budget and your overall financial strategy. Once you establish what sort of investor you are likely to be and what your budget is, then you can go and hunt your investment properties down. If you are thinking of investing in overseas property and need help or advice with this, please give me a call on 0207 898 0549 and I will be more than happy to discuss it with you. If you would like more information on property go to www.OverseasBuyingGuide.com/investform.htm and fill out online property form and I will get back to you.

A key element to a wealthy, healthy move abroad The press is full of references to the turmoil in the financial markets at the moment but for those people committed to buying an overseas property (whether it be for investment, a second home or to start a new life) you can focus on the positives of enjoying your decision rather than the doom and gloom in the British Press. One of the main reasons given for buying abroad is for a better quality of life, but for a few the dream may not be all they hoped for. Choosing to speak to a financial expert is an important step towards making the most of your money, particularly when you are buying abroad. Whilst finding the perfect home is a priority, planning finances can be overlooked and doing so can lead to serious issues. Why should you talk to a financial expert? There are a number of issues you will want to be aware of, and take advice on, when buying abroad. Advance planning is essential as there are steps that can be taken to protect yourself financially. Here are some of the main areas where a financial expert can help you: Pensions. Whether you have already retired or still have some years to retirement, moving abroad will have an effect on your pension. Issues such as pension legislation, tax and currency fluctuations must be taken into consideration in pension planning. Investments. If and when you move abroad your investments may move with you. Did you know that in some countries your PEPs (Personal Equity Plans) and ISAs (Individual Savings Accounts) will be liable to tax? Similarly, did you know there are specialist investment vehicles available in other countries that allow you to shelter your investments from tax? Tax. Many people moving overseas don't realise that they may pay more tax than they did in the UK; however, with the right planning this doesn't have to be the case. Inheritance planning. The legal system in some countries abroad differs from the UK, in particular when it comes to laws surrounding inheritance. In order to make sure you set up the purchase in a way that benefits your partner and dependents, speak to an expert. Converting currency. Exchange rates can have a big impact on your wealth. It is vital that you speak to a specialist currency broker such as Smart Currency Exchange to ensure you get access to the best rates available and make the most of your money. Healthcare. You may need top up insurance to cover healthcare costs and to avoid potentially expensive medical bills when moving abroad. A good adviser will find the best solution for your needs and ensure you don't pay for what you don't need. These are only some of the main areas where taking independent financial advice is highly recommended. Advice should be based on each individual's personal and financial circumstances and be highly specialised and unique to each individual. As stated in the beginning, the main reason cited for moving abroad is quality of life; make sure yours isn't compromised by NOT taking independent financial advice from a fully regulated adviser with the appropriate expertise. Because we consider this so important, we at The Overseas Guides Company have specially sourced a reputable professional financial expert that can assist you with finding a financial expert. I highly recommend that you at least talk to someone independent and knowledgeable before you embark on your property journey. Please phone on 0207 898 0549 and have a quick chat to me, Jana. I will be happy to offer my thoughts and possibly point you in the right direction. You can also email me at: mailto:jana@overseasguidescompany.com

Top Tip - Signing Contracts Do not sign any form of contract until you are 100% certain that you are ready to proceed as you can lose any deposits paid if you do sign and then pull out later. Furthermore, ensure that clauses are written into the contract saying that you can withdraw from the sale if your mortgage application fails, or if something is found to be amiss with either the property or the deeds during searches and surveys.

To Finish... I hope that you have enjoyed reading October's newsletter, and that you found something interesting to inspire you this month. Keep well and happy and do let me know if you hear of anything you think I should be aware of won't you? Kind regards and all the best until next time, Jana Korpova Overseas Buying Guide The Overseas Guides Company ltd 0207 898 0549 (call me!) mailto:jana@overseasguidescompany.com

The Overseas Guides Company Ltd | 1 Hammersmith Grove | London | W6 0NB | UK Copyright © 2008. All Rights Reserved. The Overseas Guides Company All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the copyright owner. The contents are a general guide only and are not intended to be in substitution for professional advice. All readers are strongly advised to take advice from their solicitor, accountant and surveyor before proceeding with any property purchase.

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1 Hammersmith Grove
London, London
W6 0NB
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