Ten to beat the credit crunch

Top ten properties under £50,000

BuyAssociation.co.uk Property Editor Paul Collins finds ten properties in different parts of the world to escape the credit crisis without breaking the bank.

Introduction

As the economy in the UK continues to slow down and confidence in the domestic property market gets worse and worse, the temptation is to cash in on assets and get out of the country for good, in search of a simpler life where the latest movements of the stock markets or house prices don’t trigger panic.

The development of the overseas property market has seen prices grow to such an extent that now it is rare to find a bargain price for anything but the most run-down of renovation projects or some obscure corner of the world. While it is true that it is harder to find the bargain properties that everyone desires, there are still a surprising number of new and old properties that can be found without the need for a huge second mortgage. In fact, some of the properties outlined below will be within reach of some buyers without the need for finance.

So here are our ten properties to avoid the credit crunch, all of which cost less than £50,000.

Brazil

Much has been made of the investment potential of buying property in Brazil in the past couple of years, but the country is also now emerging as a destination for those who are looking for a more permanent base abroad. Not only is the lifestyle enviable, and the climate in the North East as desirable as any part of the Caribbean, but there is none of the overcrowding and claustrophobia that is sometimes the case in Latin American resorts. GEM Estates is selling apartments on the Ma-Noa Park resort just outside Maracajaú. The village is known for its superb diving opportunities while the park itself is centred on leisure facilities, with a water park and pitches and courts on-site for almost any sport you could wish – including the Brazilian staples of football and beach volleyball. One bedroom apartments are available from €56,340 (£44,560), with completion scheduled for 2009.

Dominican Republic, Caribbean

OK, so you don’t get a whole property in the Caribbean for under £50,000, but the reality of the overseas property market is that most people use their home abroad a couple of times a year, and then it lies empty for long periods. In this new off-plan development in the Dominican Republic, cabanas in the Buccament Bay resort are on offer for just £25,000 for a sixteenth share of the freehold. The fractional ownership scheme allows for a professionally-managed property to be owned by a number of different buyers, and in this case gives each shareholder three weeks’ personal use of the property per year. This also allows access to all of the facilities of the hotel leisure complex. If you are not going to be able to use your full allocation of time in the property, you could encourage friends and family to take it up, or even agree with the other owners to rent it out. Harlequin Property is also offering finance options on this development, making Caribbean paradise a distinct possibility.

Albania

The term ‘emerging market’ has been applied to almost every new country in Europe, and many others, throughout the past few years. Albania may be one of the last truly emerging countries in the overseas property world. With the development of its tourist resorts and more foreign investment coming in, property speculators are keen to make the most of the beautiful coastline and the potential of a country the borders Greece and Montenegro on the Adriatic Sea as a holiday home destination. Fresh Property has a number of developments available in both the capital Tirana, and in the coastal resorts. Possibly the best-known resort is Saranda, where new apartments in beachfront resort developments are beginning to appear. The Saranda Waterfront Resort, the closest waterfront development to the centre of the resort, has one-bedroom apartments available for €53,200 (£42,306).

Germany

Buying property in countries and regions need not be limited to those countries that are ‘emerging’ or have just gone through regime or economic changes to open up the property market to foreign buyers. Germany has recently been making its way out of a long and severe economic depression, and combined with a property culture that is far more tuned to renting rather than buying, gives investors some fantastic opportunities near the major cities. A studio apartment is being offered by local agent Top Immobilien, on the outskirts of Berlin, but well-served by public transport, and in an attractive old building. Even if you are not planning on using this property yourself, in some parts of Berlin up to 80 per cent of the population rents, so the opportunities for income are great. Available from €59,500 (£47,325).

Italy

For many people, the dream of buying a property abroad remains the idea of taking a neglected old cottage and restoring it to a glorious state of rustic luxury. Unfortunately, due to the fact that many others have the same dream, there are fewer properties than ever in the kind of state to allow buyers to snap them up for a song and set to work with hammer, trowel and paintbrush. House Around Italy has collection of buildings in Abruzzo, on Italy’s Adriatic coast, is being offered for sale as one lot. Coming with 3,500 sq m of land and a potential five bedrooms in the properties, a shade over £49,000 will net you this potential dream home. While complete restoration is needed, including the installation of a septic tank, the views across the hills are spectacular, and the opportunity to buy this type of property in the Gran Sasso National Park makes the €62,000 (£49,025) price tag seem like a bargain.

Turkey

British tourists have been travelling to Turkey for decades now, and the country has become an important destination for overseas property buyers in recent years. With this long history of association, you might imagine that prices have climbed to the levels to make buying in Turkey prohibitive for many, but there are still bargains to be found. In resorts such as Altinkum it is possible to buy new-build apartments for as little as £25,000, but in other areas there are great deals on resale properties. For example, in the resort of Kusadasi, Turkey property specialists Spot Blue have a semi-detached, two-bedroom villa on the market for just £43,532. While not the biggest or most luxurious of villas, this property could be ideal for holiday homes or permanent occupation, and to be able to find a two-bedroom property in a popular resort at this price makes life abroad very tempting.

Cape Verde

The islands off the coast of West Africa have been gathering momentum as an overseas property hotspot ever since Amanda Lamb identified them as an up-and-coming destination some three years ago. Direct flights have been introduced, development has spread to the smaller islands as well as the main land masses, and the range of property on the market has expanded to meet the needs of more buyers than ever before. The result of all this is that prices for some developments on some of the islands have increased to put them on a par with destinations that are far more established as tourist resorts. Buyers looking for a bargain on the islands that have been called the closest thing Europe has to the Caribbean have to find smaller developments and resorts. That said, it is still possible to get some very good deals on off-plan properties on Cape Verde. Agent Escape Verde is selling the Oasis Village development on the island of Boavista, the third biggest of the archipelago. These front-line apartments start from just €46,950 (£37,362), giving buyers a slice of island life for less than £40,000.

Egypt

The Red Sea Riviera of Egypt has become one of the premier winter sun destinations for Europeans, and allows access to the world-class diving and snorkeling just off the coast and into the Ras Mohammed National Park. Following the first, fevered rush of development to get the resorts established along the coast, tighter controls have been introduced for builders and developers. This has had the effect of pushing up prices and increasing interest in the properties that are already built or have planning permission in place. Hurghada is possibly the most popular spot for holiday property along the coast, but some of the best bargains can be found elsewhere on the coast. Marsa Alam, further to the south, is set to be the next resort to take off in Egypt, having learned lessons from the development of other resorts further up the coast. The current top spot for holidaymakers is Sharm El Sheikh, with an expanding international airport and great beach resorts. TLC Overseas Properties is marketing the Laguna Vista development, which offers buyers not only the full facilities of a five-star resort, but also a rental guarantee over five years. The apartments in the development start from £40,000 with completion due in 2010.

Crete

The Greek island of Crete is one of the most popular for tourists and property buyers alike, and enjoys the climate and friendly local atmosphere that keep young and old coming back time and again. Property on the island can be found in almost any size, shape, price, style and state of repair imaginable, but one of the biggest attractions is that housing density, even on new developments, is low. In this way, new-build property on Crete has more open space and better views than might be found in other countries. Prices have been rising in recent times, but it is still possible to buy at levels that won’t scare the bank manager. Crete Property Consultants cover the whole island, but have a small apartment development outside the village of Makrigialos on the south-east coast of the island. Makrigialos is currently about two and a half hours from Heraklion and its international airport, but in return for the drive, you get a quiet village location and a walk of only a couple of minutes to the beach – and all for €48,000 (£38,123) for a studio apartment.

Bulgaria

Following the almost-crazed way in which British buyers flocked to the Black Sea coast of Bulgaria and partially prompted the massive overheating of the market, there has been some calming of the rate of development and speculation in the country. While many investors are now more wary of the coastal areas, the ski and city destinations appear to be continuing to make headway and attract tourists in greater numbers. The Super Borovets resort is a huge new resort destination that is said to be one of the most ambitious projects in the whole of Bulgaria and is aiming to attract tourists throughout the year with agreements with tour operators. The development will be built in numerous phases, but the early stages of the building are attracting investors with low entry prices and the pick of plots. Dream Resorts is selling studio apartments at pre-release prices of just £37,000.