The subject came up at a dinner party I was at recently. Some friends and I were discussing what we would do with our time if we were to retire early. Someone mentioned spending it in a care home, however as my mother always says, you won’t see me in one of those!

So whether the care home is good or not so good, you wouldn’t want to put yourself in one, although it has to be said, there is a strong case for investing in a quality care home – even if you don’t plan on being in one.

If we look at care homes purely as an investment they may not be as glamorous as a Florida Villa with Pool or as tempting as a discounted apartment investment in Istanbul – what they are is a relatively simple means to gain a very good return on investment  over the medium to long term.

If we put the Zimmer frames to one side for the moment, it is possible that an investment in a UK care home could well fund your retirement in a more glamorous setting, where the sun will keep those aches and pains at bay for a few more years at least.

Care and Nursing Homes are the latest emerging asset class to offer a solid hands free return on investment without the usual hassles of a traditional buy-to-let investment.

The number of older people in society is rising rapidly as people live longer and the inevitable expansion of this older population means we are seeing a corresponding growth in care homes. Yet not enough of them are being built – meaning that there will be strong competition.

According to the Office for National Statistics the number of people aged 65 and over is predicted to rise by nearly two-thirds by 2031.

They also predict that the number of people aged over 85 years will increase from 1.3 million in 2008 to 7 million by 2081. Now that is a lot of octogenarians for the number of good care homes we have at the moment.

There are currently around 24,000 care homes in the UK and this number will need to more than double in the next 25 years to satisfy demand. This will create conditions where the best care homes will generate much higher returns for investors.

Guy Hands boss of Terra Firma, who is more famous for rock and roll, bought record label EMI for £3.2 billion in 2007. After losing all their money on that, they have turned their attention to Four Seasons, the UK’s biggest care home group.

I can only assume that Terra Firma would have been more cautious this time around. This tells us that UK care homes are less rock and roll and will be around longer than some of those rock and roll artists at EMI.

As I often say to my investor friends, if you want a hands-off rocking chair investment that is fully managed and recession proof, then care homes are worth a look.

Click here to review UK Care Home Investment.

Are you more rocking chair than rock and roll when it comes to investment? Please leave your comments below.

Kind regards

Loxley McKenzie
Managing Director

The good news is it has just got a lot easier to invest in Turkey property after The Turkish Parliament finally passed the long-awaited draft bill that eases restrictions on property investments by foreigners.

So what does this mean for you the investor?

The reciprocity principle was a major stumbling block for investors from those countries that did not have the kind of open relationship with Turkey which would allow them to freely invest in property within its borders.

Investors from countries which did not have a reciprocity agreement with Turkey have long been forced to jump through hoops to allow them to invest in its lucrative property market.

This included a large number of our investor clients from the Middle East who needed to set up a company in Turkey and then invest in property using that company.

Trying to get through all this red tape was frustrating and went against our view that everything connected with investing in property should be an easy, hassle free experience.

Not only that, as we like to say at Colordarcy property should pay for itself. Unfortunately with an extra £12k per annum in running costs to pay – due to the high administrative cost associated with running the companies – investing in Turkey property was really expensive.

The lifting of the reciprocity principle will now allow citizens of Central Asia and the Middle East to own property in Turkey. Alongside the bill approved this month, the total amount of real property that a foreigner can own has increased from 25,000 square meters to 300,000 square meters.

The new law also states that the amount of property privately owned by foreigners in a district cannot exceed 10%. It goes on to say that the total area of the property that a foreigner can own in the country is limited to 300,000 square meters, however here too the Cabinet is authorized to double this amount in some cases!

We expect this to trigger unprecedented demand for property in Turkey, which I am pleased to say will give investors even more reasons to invest in Istanbul or holiday homes on the coast of Turkey.

We have been busy contacting all our clients who were, until now, based in restricted countries to inform them about this important change of the law. As a result we have 115 clients now ready to invest and we have also taken four further reservations directly as a result of this change in the law.

In my humble opinion, the demand for Turkey property will immediately double from its current $2.5 billion a year as those who previously could not buy in the country are now able to do so.

Investors already have the resources, so now that these restrictions have eased, I expect a surge in demand which therefore makes further price growth inevitable. This will be good news for those who have invested and those who are about to consider Turkey following the law change.

Click here to review our Turkey property portfolio.

Has the lifting of the reciprocity rule influenced your decision to invest in Turkey?  Please leave your comments below.

Kind regards
Loxley McKenzie

Managing Director

Before then, owning a property was beyond most working class people, however the sudden realisation that home ownership was in reach convinced my cautious parents to invest in their three bedroom home, which they still live in today.

In fact they are now in the lucky position of owning it.

‘Minha Casa, Minha Vida’ or ‘My house, My life’ is part of a similar government drive in Brazil to provide the opportunity for people to own their own home at a reasonable cost they can afford.

Brazil’s middle class represents the majority of the population for the first time in the country’s history – thanks to a period of exceptional growth in the economy which has seen it climb the table to the 7th largest in the world.

For a Brazilian, in common with most people in the world, owing your own home is a crucial step towards the feeling that you have arrived. It is even more crucial for your average working class Brazilian who wants to get married and have something to offer their partner in terms of home home comforts.

Minha Casa, Minha Vida was launched in 2009 with the aim to build 1 million properties for taxi drivers, nurses and all those other working class people who had no hope of buying their own place.

This target was reached before the end of 2010, however last year, the government decided to build another 2 million properties with 400,000 of them in Natal to satisfy a waiting list of 50,000 people.

This will cost the government in excess of R$71 billion a sum that is heavily subsidised by the Brazilian Government through La Caixa Economica Federal Bank.

Will it be enough? I doubt that demand for these kinds of properties will go away anytime soon – as more and more people aspire to own their own homes and property prices continue to rise this year.

Cities like Natal in Brazil are growing rapidly and with Brazil hosting the World Cup in 2014 and the Olympics in 2016, we will see another major boost to the local and National economy.

For investors this is a way into the Brazilian market that is very simple to understand. There are no bubbles as the price of property is fixed at a level people can afford and homes are sold only to those in the local community.

You also have a ready-made client base that will buy a product accessible to their budget. This is a hands free investment with typical guaranteed annual returns at 24% over 24 months.

In my opinion this is seriously exciting investment with some serious returns for those who invest in these types of projects. You also get to make a difference to people’s lives and profit at the same time.

Now that is surely better than money in the bank earning a low rate of interest or tied up in an underperforming pension. Back in the 80s people were cautious about buying, however now they can look to a trouble free retirement, my guess is Minha Casa Minha Vida is a similar opportunity for investors in Brazil property.

Click here to review our Minha Casa, Minha Vida Guaranteed Investment.

Have you invested in Brazil social housing or would you like to find out more about it? Please leave your comments below.

Kind regards

Brett Tudor
Property Expert

Being part of the rat race isn’t fun, I was watching Bee Movie with my daughter today, this movie sums up perfectly why we should all strive for financial freedom. During graduation the young bees are taken for a quick tour of the hive, the place where they will be spending the rest of their lives.

The guide, Trudy, says,”you’ll be happy to know that bees as a species haven’t had a day off in 27 billion years. Whew!”. A concerned Barry B. Benson asks ”So you’ll just work us to death?” to which Trudy replies “We’ll sure try” with a grin and a blank expression.

When you decide to become a property investor, you are in a sense leaving the hive.

Property investing is like a drug, once hooked few people want to get out of the business because it can be so rewarding.

In what other business can you earn a passive income using the bank’s money? Or make an investment that will begin paying for itself from the time you invest?

This is what becoming a property investor is all about, it will not only give you the freedom to choose your own path in life, it will also provide you with an income that just keeps growing over time no matter what the economy is doing.

When you’re part of the rat race, it can often be the case that you will be watching the clock. Believe me, I’ve been there when it’s 4 o’clock and you’re tapping the pen on the desk or surfing the Internet thinking it feels more like 6pm. The problem is your boss is unlikely to share that feeling.

In a 9 to 5 job we are under pressure to perform and abide by the rules and regulations of the company, step out of line and you will lose your job and your income. Toe the line and you sentence yourself to a lifetime of work, where free time usually only comes at the weekend and the holidays – if you are one of the lucky ones.

Lose a job and this can be catastrophic and in some cases it can take years to recover from the financial loss particularly in a competitive jobs market.

Property investing on the other hand doesn’t depend on you being there, other than to sign the documents and keep up the mortgage payments. You may need to inspect your properties now and again, however there are specialist agents to do that for you.

It is worth remembering that building a property portfolio is a serious business, you need to be sure of your goals and objectives from the outset. Is your goal financial freedom or a nest egg for retirement?

Most professional investors starting out will look to make a living from property. To do this will require the patience to invest in the right locations at the right time. Properties in good locations will provide the rental income to cover the costs of ownership and the mortgage.

The capital growth will then create the income necessary to begin making a passive income from property as in this example using a conservative estimate of 5% (average) annual growth:

The smart investor will invest in property that pays for itself and puts cash into his pocket. I personally do not invest in any property unless, after all the costs are paid, I can safely expect a net yield of at least 5% per annum.

Capital growth for me is a bonus I can enjoy on top of this – and over the long term I usually get a very big bonus.

Let us assume for example I have a passive income earnings target of £30,000 per year. To achieve this I will need to build a £600,000 property portfolio that provides me with a minimum 5% net yield per annum. So I now have five properties costing just £120,000 each.

By sticking to my tried and trusted method of always investing in property that pays for itself you will put the cash into your pocket that will get you where you want to go.

I can also tell you that with proper advice, building your very own £600,000 property portfolio is not that difficult. When you consider that the average buy-to-let investor owns five properties this projection is conservative. So if you really want to leave the hive, why not become a property investor?

Are you planning to become a property investor this year? If so what are your reasons for doing so. Please leave your comments below.

Kind Regards

Brett Tudor
Property Expert

Currency fluctuations can have a dramatic impact on property investment overseas, yet if you raise the subject in a room of people, few will be willing to put their neck on the line and say what they think will happen with any certainty. You are more likely to get answers like “I don’t think it makes any difference” or the “I’m not sure, so let’s just ignore it” type of response.

So I’m going to put my own neck on the block and give you my humble opinion on what we can expect this year. After a period of dollar strengthening in the second half of 2011, it looks like we are heading for another period of weakness similar to the start of 2011.

Despite the obvious problems in Europe we have seen the euro continuing to rise against the dollar and the same happening with the pound.

You Get More For Your Money

The most obvious benefit of this to anyone who deals in those currencies is that they will get more for their money and that of course includes property. Now when we are talking about the large sums involved in property investing, currency rises can make a big difference to the price you pay.

The dollar hit nearly $1.70 to the pound in 2011 before falling back to $1.53, however there are clear signs this month that the value of the dollar is again declining. If the dollar returns to the level it hit at the start of last year then this would be like having an extra 10% discount on a property.

This will only improve the situation for investors entering a market where house prices have fallen 20% to their lowest levels since 2004 in some US States including states like Florida and cities like Atlanta. This is to the point where experts are saying that these markets are undervalued.

You Get Value For Money

If you happen to be considering buying a property in Florida, there has probably never been a better time to invest with foreign tourism likely to increase when you consider the value for money you would be getting over more expensive holiday destinations elsewhere.

You Get Property That Pays For Itself

Of course there is a flipside to all this good news. US citizens will be having to pay more for their goods and services as the price of oil increases, this situation will be compounded by those in the unfortunate position of being unable to pay their mortgages.

This will inevitably push up rents as has been the case in Atlanta where rents are now 50% higher than mortgages. Yields will also increase in the long term with property in areas like Florida now said to be 13% undervalued.

With recovery in the US housing market now widely assumed to be underway, property investors holding stronger currencies can enjoy the party while the opportunity presents itself.

Please give us your view on what a weak dollar means for property investors and why. Please leave your comments below.

Kind regards

Loxley McKenzie
Managing Director

When I look at a property market in a major city, I like to take a look at what stage the market is at in terms of price growth and rental. London has scored a pretty good innings in terms of rental growth, with rents rising 27% since 2009 – not bad at all!

The rise in rents was driven by demand outpacing supply and a tightening of mortgage lending post 2008 which prevented anyone with less than a 5-star credit rating and a huge deposit getting a mortgage in the UK.

London has proved itself to be a safe haven for investors in times of trouble, however, there are signs that rental growth is beginning to slow. Third and fourth quarter figures  from 2011 showed that the breaks were well and truly on with successive figures of 0.6% and -0.1% indicating a slowdown.

There comes a point in any market where supply begins to catch up with demand. A host of new residential completions in the capital are giving tenants more choice than they have had since 2009.

Suddenly we find that tenants are in the driving seat in some areas of London and this is beginning to have an effect on rents.

London has also seen a surge in foreign investment from those looking to cash in on the excellent rental potential of properties in London. This has seen prices in the UK capital actually rising through 2011 while the majority of the UK saw price declines.

The increases are to a large extent driven by competition amongst foreign investors who were seeking a safe haven during the worst of the crisis. This effect has also been seen in other European capitals like Paris.

However, net yields on prime property in central London are currently around the 5.5% mark, while property prices have risen by just under 3% in 2011.  As property prices increase then these average yields will be driven down by more expensive properties and static rents.

There is little reason to suggest competition for property will subside anytime soon particularly in Olympic year, which is why I see the emerging city of Istanbul as a more profitable alternative for property investors.

If you compare the current net yield in Istanbul of 8.5% this already looks far more appealing from a cash-flow point of view.

Prices are also less than half what they are in London, even in prime areas, so the near 15% rise in property prices in 2011 look set to be repeated or even bettered in 2012 when competition for property heats up.

The lifting of the reciprocity rule, will trigger a flood of investors from additional countries when they are granted purchasing rights.

Rents are also still at low levels compared to those in London, yet apartments in good locations can still generate 1,000 Euro per month in rental income which should more than cover any mortgage payments and associated costs.

If we compare London directly with Istanbul, we see the former moving sideways in 2012 with rental growth fairly static. Istanbul on the other hand is likely to see another surge in property prices driven by foreign investment.

The young increasingly affluent population will not have the means to buy as prices rise out of reach which will help keep rental demand high. This will give investors more cash-flow through rising rents and strong capital growth which will translate into higher yields in the short term.

So now that the worst of the economic storm appears to be behind us, it is worth looking to emerging cities like Istanbul which I expect to outperform Western European capitals like London in 2012.

Which market do you think will offer the best prospects in 2012, London or Istanbul? Please leave your comments below:

Kind regards

Brett Tudor
Property Expert

This is why I will explain how property can give your retirement a much needed boost.

I am assuming that you want to be rich when you retire? Of course you do, nobody wants to try and live on a state pension of £89.00 a week. You may be one of the lucky few who have a pension yet even that will only provide you with around £5,000 a year or £96 a week if you are lucky.

The above figure is above average for pensions, so if you haven’t been thinking about retirement lately or leaving the fund manager to control what you will be getting in your old age – maybe it’s time to look at the benefits of investing in property.

I remember old grandfather Hayes stocking up on tinned food whenever it was on offer just to make sure he had enough food to live on for the week. Heating was rationed and even having the TV on was a luxury.

He deserved better and so do we. Now what I’m going to reveal now might surprise you…

Investing in property will not only pay your bills in retirement, it can also provide you with a regular income even before you retire. With your traditional pension on the other hand, you will have to wait years until you retire before you receive anything back.

If you invest in the right kinds of property, your rental income will more than cover your monthly mortgage payments and expenses. In markets like Atlanta at the moment, you will be making 50% more a month than it costs you to buy.

By investing below market value, you will also receive locked in equity. Now this equity is virtually guaranteed to grow at a rate averaging between 5 and 6% per annum.

The value of property is unlikely to be eroded by inflation either as prices will rise roughly in line with inflation in the longer term. So as the price of bread, milk and those other essentials goes up, you can relax knowing that the value of your property is also going up with it.

The best thing about investing in property when you compare it to traditional pensions is that you are in control rather than your fund manager. You decide when to change direction and you decide when it is time to sell your asset to release a lump sum of cash.

You can also use the bank’s money to invest in further properties and build your own multi-million pound property portfolio if you really do your homework.

I like to say that when investing in property there really are no limits to what you can achieve for now or in the future. You are only limited by what you imagine you can achieve.

Are you worried about your pension? Are you considering investing in property to build a better retirement pot? Please leave your comments below:

Kind Regards

Brett Tudor
Property Expert

Imagine buying a property in Turkey with a lovely sea view, a place where you can return to year after year for your holidays and even bring along some guests to stay in one of the three bedrooms.

The property only cost you around £40,000, an absolute bargain compared to the £200,000 you would probably have paid for a similar sized property in the UK.  You spend four happy years living in the property and then you get a phone call from your neighbour.

He tells you that all your things have been moved out and someone has taken ownership of your property while you remain blissfully unaware back at home. Your world falls apart and you wished you had used the services of a good lawyer, however it’s too late and the chances are you will lose your money and your property.

This story is the stuff of nightmares for property investors and unfortunately it was a true story for one couple, who featured on “Homes From Hell” TV show.

This cautionary tale should alert you the investor to the pitfalls of not having a lawyer to represent you when making a major purchasing condition.

Anyone who has bought properties in their home country will know that the services of a solicitor are invaluable when it comes to sorting out the red tape. The same thing applies when buying abroad.

A lease agreement on an apartment block alone can run into several pages, so imagine the minefield that awaits those investing in a country with different laws and different rules and regulations for foreign investors.

Using a solicitor may not be a legal requirement for those buying in Turkey but it will certainly provide the peace of mind of knowing that you have covered all aspects of the legal issues.

A good Turkish lawyer will help you deal with one of the most important things you need to know before investing – Knowing who you are dealing with. Turkey is not part of the EU yet and is not subject to European law therefore your customer rights will not be protected in quite the same way.

Like the unfortunate couple I mentioned, people quite often make the decision to invest in Turkish property while on holiday. This can be a dangerous time when people are more relaxed and decide to meet up with an Estate Agent without doing the research, leave a deposit and fly home.

Often they will have got themselves a bargain, while those less fortunate will end up with a property they have paid way over the market value for. They may not even get the important Tapu (Title Deed), which is the most important piece of paper when it comes to property transactions.

Without a Tapu you will have no legal entitlement to the property.

Then there are the maintenance issues and service charges to consider. If you’re buying a house or apartment as an investment, you will need to ensure there are no nasty surprises when it comes to the upkeep and maintenance of communal areas.

Looking longer term it is also worth considering what will happen to your investment when you are no longer around. Here too Turkish law differs from other countries

In Turkish law there are two types of property;

1.    Land and buildings
2.    Other property eg. bank accounts, stocks and shares.

It is important to distinguish between the two because in the case of 1 – Turkish law will apply even if you are a non-Turkish national.

Under Turkish law you don’t get to choose who you leave your Turkey property to when you make a will. The next of kin cannot be excluded and at least part of the property will be due to them.

This will be further complicated by which next of kin are alive at the time of the owner’s death. Therefore if the owner’s wife and children survive him, they will inherit the full reserved portion, but if there are no children and no wife then the portion of the property will be inherited amongst close family members.

Hiring a lawyer should make the process of buying and securing your investment in Turkey a whole lot easier. It might also save you a whole lot of money in the long run.

Are there legal issues when buying Turkey property we haven’t covered? What are your experiences? Please leave your comments below.

Kind regards

Loxley McKenzie
Managing Director

As you know, we at Colordarcy are passionate about serving you, our most important client. We work tirelessly every day to give you more than you expect and we back this up with our lifetime guarantee of being your property investment partner every step of the way.

We are not about to rest on our laurels though, we are already looking ahead to maintaining and improving this year as all the best teams do. As a young footballer I was told that in sport it’s tough to get to the top and even tougher to stay there!

However this is not Total Football we are talking about, this is what I like to call Total Property Investment and we will be ready for the year ahead with some of the best developments in the UK, Turkey, Florida, Atlanta and Brazil.

Here is what the AIPP Award judges had to say about us this year:

Most Outstanding Example Of Customer Service

“The judges were impressed by the way the company went over and above their role of duty to look after their clients, even when problems were created by other companies. Their passionate customer service ethos is second to none.”

Best Agent

“The judges were impressed by the high standard of due diligence, passionate customer service ethos, transparency of information, strength of their partners and their range of services.”

Thank You!

We would like to say a special Thank You, to all our VIP Members, who took time out of their busy schedules to be interviewed by the AIPP about our level of service and helped us win these awards.

About The AIPP Awards (Association Of International Property Professionals)

The AIPP Awards are wholly owned and organised by the AIPP. They are an independent, not-for-profit initiative focused on rewarding excellence in customer service within the international property sector.

As a consumer, when dealing with an AIPP approved company, you can be confident that you are in safe hands and receiving the highest level of service and professionalism.

The Colordarcy Advantage

• Specialising in overseas property that pays for itself – safeguarding you from monthly deficits!
• A real company with real offices; visit us for a face-to-face consultation.
• One of the fastest growing global property investment companies in the world today.
• We carefully select and research each development that we market to you.
• Before and Aftercare: we take care of property management, mortgages, lawyers, taxation, viewing trips, currency and more.
• Every client is appointed an experienced Portfolio Consultant.
• We are passionate about property, but even more passionate about serving you.

No Finder’s Fee – Guarantee

Colordarcy’s “No Finder’s Fee – Guarantee” ensures that our VIP Members are not charged additional purchasing fees. The property developer or seller is responsible for our remuneration – not you.

Our BIGGEST and Best Start To A Year – Ever!

Thanks to our VIP Members, Colordarcy have made the best start to a year in our history. You have been quickly snapping up investment opportunities in Atlanta, Brazil, Florida, Turkey and United Kingdom.  The majority of our projects are on average 70% Sold Out.

Colordarcy…for more than just an investment.

Kind regards

Loxley McKenzie
Managing Director

This was fine for a while, Barry is the kind of guy who likes to be in control of things and when his portfolio grew to a size where he was able to give up the day job and devote more time to his properties he thought, great! Freedom at last.proper

However, financial freedom was one thing, the amount of extra work he was starting to take on was quite another. One particularly bad winter turned the whole dream into a nightmare for the unfortunate Barry, who ended up rushing out to help the tenants of two of his properties on a particularly icy morning after they had suffered burst pipes.

This came after another bad week when one of his tenants decided to throw a party which ended up creating all sorts of damage in the apartment block he had recently invested in.  Dealing with all these problems all at once and at all hours of the day and night caused him a great deal of stress.

In the end Barry began to feel very disgruntled with the whole idea of buy-to-let and began thinking about selling his properties and returning to work again.

This story will be a familiar one to many buy-to-let investors who prefer to ‘do it hands-on’. However, it is worth remembering that property investing is a business and trying to do everything yourself is actually counter-productive in the end.

The more time you spend on maintaining properties and dealing with tenant issues – which can happen at any time of the week, day or night – the less time you will have spare to source properties and grow you portfolio.

Becoming overstretched will mean that the limit to what you can achieve will be reached quite quickly. So what’s the solution? Hands-off property investment has been gaining in popularity for some time now because it offers a low risk, low maintenance alternative to traditional buy-to-let.

Hands off should mean just that for investors who don’t want to end up like Barry and prefer others to do all the hard work for them. That way investors can concentrate on building their portfolio, which is a lot more fun and profitable, unlike doing all the maintenance work

Investments in student accommodation, for example, come fully managed with a strong supply of tenants ready to fill units every year. Security maintenance and safety issues are all taken care of by experienced property management companies, therefore avoiding any issues with tenants.

If your investment is truly hands-off, you probably won’t even need to see a tenant particularly if it’s a hotel investment where it is up to those who manage it to deal with any day-to-day issues. Yields on these properties can often be higher as a result, with low voids and guaranteed rental.

So unless you enjoy dealing with the daily issues and needs of your tenants nationally and in some cases internationally, it is well worth considering the benefits of being a hands-off investor.

Are you a hands-off or a hands-on property investor? Which do you think is best? Please leave your comments below.

Kind regards

Loxley McKenzie
Managing Director