Neil Lewis from the website and himself an experienced investor says: "As we predicted earlier this year, when Eastern Europe joined the European Union (EU) in May, property investment in this region gives UK investors the potential to make huge profits. This is because the area currently offers investors a chance to enjoy high rental yields and high capital growth and new types of property finance
"A top economist** has predicted the States joining the EU will experience an ‘economic miracle’. The foreign and EU money pouring into Eastern Europe is stimulating economic growth, and new jobs, as well as creating a new demand for recently built homes as post-communist housing literally crumbles away. This combination makes investing in this area is a fantastic proposition".
Lewis highlights the potential of buying in Eastern Europe by showing that a typical Buy to Let investment in Prague is forecast to achieve a 15% annual growth (and, allowing for the cost of loans, maintenance and renting, deliver a profit of £261,499 on an initial deposit of £35,775 over 10 years).
He explains: "We forecast a 15% annual property price growth for ten years delivering a four fold increase in property prices between now and 2015. This assumption is supported by the fact that the average Czech salary of 494 Euros per month compares with the EU average of 2,335 Euros per month.
"Additional evidence to support our forecasts is that the EU estimates that it will take 15 years for the Czech Republic will achieve 75% of the GDP of the EU average and it will achieve this by achieving significantly above EU average economic growth.
"This predicted rapid growth will bring increases in salaries as well as the creation of higher paid jobs. As always, this salary increase will be transmitted into rising property prices".
Lewis is keen to point out that while some people may have concerns about investing in the Eastern Eight, it is little different to investing anywhere else – whether at home or abroad.
"People may say - supposing I get ripped off? Or what about finance? What about any investment risk? But, you’ll have the same concerns whenever you buy abroad. The key is to do your due diligence on any investment to ensure that you know what you are doing.
"Investing in the East European property market might seem a riskier proposition than investing in the more traditional overseas markets, but this is not necessarily so. The truth is that the risk in most of the Eastern European countries is probably only marginally greater than in the more established markets such as Spain and France – yet, as we have highlighted, the potential returns are substantially greater!"
Lewis refers to a unique new book, East European Property Secrets where the secrets of how investors can take advantage of this exciting new market are revealed and explains, step-by-step, what to consider – and what you need to know –when investing in the ‘Eastern Eight’. He summarises: "Eastern Europe is the hottest place to invest and has already captured wily property investors’ imaginations. The past 4 months has seen the UK investor switch his interest away from the stable UK and towards the huge opportunities in Eastern Europe".
