Buy-to-let: What all landlords need to know - Property - Extras - The Independent

Buy-to-let: What all landlords need to know

They're no longer easy money, but rental homes can be good earners. Norman Miller has the essential tips for beginners


Berlin



After decades behind the Iron Curtain, property prices in the former East Berlin have languished behind those in the rest of the city. Now, Berlin's booming economy has put the city in the investor spotlight.

Central flats start from as little as £40,000, although average prices are in the £70,000 to £100,000 range. The German tradition of renting (just 13 per cent of Berliners own their homes) means that properties are often sold with long-term tenants in place, providing rental security. Ten-year management deals are common, and typical yields are 5 to 6 per cent. Signs that the renting culture is changing offer hopes of good capital growth.

Well-maintained period blocks dominate over new-build. The best areas of the city include Charlottenburg, Schöneberg, Mitte, Prenzlauerberg and Friedrichshain.



Montenegro

While prices have leapt in its Balkan neighbours, Montenegro's property has lagged due to political links with troubled Serbia. With these now severed, Montenegro offers the beauty of Croatia for less. Montenegro is likely to gain EU membership in the not too distant future, and the financial benefits of that will drive capital growth. A gorgeous coastline and the striking walled city capital of Kotor are seeing tourism begin to flourish, boosting holiday rental prospects.

A studio flat at the Boka Bay resort costs from just £35,000, with two-bed villas available for £85,000. A seven-bed villa containing three substantial apartments costs £210,000.

www.propertyshowrooms.com



Morocco

On the north-western tip of Africa, just a dozen miles from Spain at its closest point, Morocco has seen tourism numbers triple since 2001. The ruling authorities are determined to attract investment by establishing a safe, sound infrastructure based on the Plan Azur and Vision 2010 initiatives. High-quality developments are being built in six coastal resorts with incentives to overseas buyers including rental guarantees and generous capital gains tax breaks.

Le Jardin de Fleur resort at Mediterranea-Saida offers a renewable nine-year touristic leaseback agreement and projected rental returns of between 7 and 11 per cent of purchase price. Companies in this market include Feltrim International, New Era Overseas and Gem Estates.

The vibrant city of Marrakesh is also seeing major rises. As well as traditional riads, Morocco Properties is offering a luxury resort development just three miles from Marrakesh. Flats start at £62,500, while riads are from £208,000, and 60 per cent mortgages and a management scheme are available.

www.moroccoproperties.net (0870 004 6042)



Poland

Property in Poland is an increasingly attractive investment opportunity for overseas buyers, and since Poland joined the EU in 2004, much of the red tape that used to surround the property market has gone. Strong inward investment, a growing economy and the forthcoming introduction of the euro add to Poland's appeal.

Annual capital growth in the capital Warsaw and the historic tourist city of Krakow has hit 30 per cent in the past two years. Incentives include zero capital gains tax if you keep a property for five years, or if you reinvest in another property within two years of the sale.

You can buy two-bed flats in cheaper areas of Warsaw for £50,000, though a prime central location will double that. In Krakow, a two-bed apartment in the Old Town recently sold for £72,000, though new-build apartments just outside the centre cost from £55,000.

www.krakowproperty.com



North-east Brazil

Brazil looks the best of the more exotic property hotspots, with a booming economy complementing a glorious coastline and year-round sunshine. Property lending by Brazilian banks doubled last year, while north-east Brazil has become established as a holiday destination for Brazilian and US tourists as well as Europeans, with UK flights to Natal taking around eight hours.

The beach resort of Pipa, an hour from Natal, promises net rental yields of 10 per cent, according to developers Experience International. The complex offers luxury three-bed flats from £55,000 and three-bed villas from £120,525. Units include balconies, alongside a spa, open-air restaurant and 24-hour security.

A similar distance from Natal, the D'Santo Cristo Resort is a development by Bridge Property near the fishing village of Sao Miguel do Gostoso. Chalets and apartments are under construction, with off-plan prices from £34,000 to £200,000 and the first units ready in September 2008.

www.experience-brazil.co.uk (0203 102 5030); www.bridgepropertyinternational.com (01293 763 028)

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
Arts and Entertainment
Emma Thompson and Bryn Terfel are bringing Sweeney Todd: The Demon Barber of Fleet Street to the London Coliseum
theatre

Returning to the stage after 20 years makes actress feel 'nauseous'

News
peopleThe Times of India said actress should treat it as a 'compliment'
PROMOTED VIDEO
Property
Home body: Badger stays safe indoors
property
News
The programme sees four specialists creating what they believe are three perfect couples, based on scientific matchmaking. The couples will not meet until they walk down the aisle together
tvUK wedding show jilted
Arts and Entertainment
US pop diva Jennifer Lopez sang “Happy Birthday” to Gurbanguly Berdimuhamedow, president of Turkmenistan
musicCorporate gigs become key source of musicians' income
Arts and Entertainment
You've been framed: Henri Matisse's colourful cut-outs at Tate Modern
artWhat makes a smash-hit art show
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
filmsDaniel Craig believed to be donning skis as 007 for first time
Student
The Guildhall School of Music and Drama is to offer a BA degree in Performance and Creative Enterprise
student

Top conservatoire offers ‘groundbreaking’ arts degree

Sport
Mikel Arteta pictured during Borussia Dortmund vs Arsenal
champions league
Voices
Yes supporters gather outside the Usher Hall, which is hosting a Night for Scotland in Edinburgh
voicesBen Judah: Is there a third option for England and Scotland that keeps everyone happy?
Arts and Entertainment
Pulp-fiction lover: Jarvis Cocker
booksJarvis Cocker on Richard Brautigan
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week