Slovakia Investment Property

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Slovakia Investment Property Newsletter
April 2005 - Issue # 7
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Dear

Welcome to our April newsletter. Now that the warm and
sunny days have started bringing the tourists back to
Slovakia and its most popular destination - Bratislava,
we will take a look at what future awaits this fast
developing and exciting city. Could it become part of
the new economic centre of Europe? Read on...

In this issue you will find:

1. Investor's Paradise
2. "Twin-City"- A New Economic and Cultural Centre of Europe?
3. A Fantastic Opportunity on the Horizon
4. Your Questions Answered
5. Win a Bottle of 'Tokaj'! (Prize Draw)
6. Tell Us What You Think!

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Are you looking for property in Slovakia?
-----------------------------------------
If you're ready to buy this summer, and
searching for a perfect investment property,
a funky holiday home or a place to relocate
to, Amanda Lamb is ready to help on Channel 4's
new prime time series of A Place in the Sun.
Please email miae@fftv.co.uk giving your name,
age, telephone number and budget.

===================== FEATURE EDITORIAL =================

1) Investor's Paradise

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In 2003, Steve Forbes (of Forbes magazine), a man of vision,
predicted Slovakia to become an investment paradise, a new
Hong Kong. Today, the once skeptical voices became quiet as
Forbes's vision is turning into reality.

Slovakia has been attracting significant foreign direct
investment ever since 1998. The real boom, however, started
in the most recent years. In 2004 alone, Slovakia received
investments of $ 2,35 billion which came to the country via
43 projects. These resulted in nearly 14,000 new jobs -
almost twice as much as 2003.

Analysts predict new investments in 2005 and 2006 will
create 60,000 - 80,000 new jobs in Slovakia. The Slovak
government plans to place one big investor in each region
of Slovakia, with special focus on areas with higher
unemployment.

The ministry of economy is currently working on eight major
investments, each of them expected to create 900 - 3000 new
jobs.

***

Meanwhile, economic growth is expected to rise by 5% in
2005, up to 5.3% in 2006 and as much as 6.1% in 2007.
Just as Steve Forbes had forecasted, Slovakia is fast
becoming the dynamo driving the growth of an entire region.

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2) "Twin-City"- A New Economic and Cultural Centre of Europe?

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Worldwide there is no other situation where the capitals
of two countries are merely 50 kilometres (31 miles) apart.

Bratislava and Vienna always had lots in common. From their
history within the Habsburg empire, cultural similarities,
up to the fact that german has always been widely spoken
in the Slovak capital.

After the collapse of the Iron Curtain the links grew
closer once again. Austria is one of the biggest investors
into Slovakia, mutual trade flourishes...and, at last, the
necessary infrastructure will also be completed in very
near future.

For more than 10 years Austria has been criticized for
failing to complete the highway connecting Vienna to
Bratislava (the Slovak party had completed the section
on Slovak territory).

Finally, in 2004 works began on the Austrian side and the
country has committed to complete the joining highway before
the end of 2007. Once the highway is in operation, commuting
time between the two cities will be as little as 30 minutes.

Improvement of the Vienna-Bratislava rail links is also
planned for the next few years. The entire railway line
will be modernised to allow for higher speed trains and
extended to connect directly with the airport.

Vienna and Bratislava, significant ports on Europe's
second largest river Danube are also co-operating on
further optimisation strategies for the ship transport.

Studies by a number of international institutes (including
the Organisation for Economic Cooperation and Development)
have found that the Vienna-Bratislava region is one of the
areas in Europe that has the most potential for development,
making it very attractive to investors.

Last year Bratislava and Vienna, recognising the mutual
benefits, decided to link the two cities, airports and
Danube ports so that joint development is possible.
The "Twin-City" project was born.

"Twin-City" is not just about sharing business projects,
but also human capital, know-how, and projects in the fields
of culture, science and research, education, tourism and
leisure. (One example is the joint project for a university
of automotive technology with english as the teaching language.)

Slovakia and Austria see "Twin-City" as an opportunity to
create a new powerful economic and cultural centre in Europe.
The potential is certainly there.

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3) A Fantastic Opportunity on the Horizon

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Those of you familiar with the city will know that no
area of Bratislava has a greater appeal than the old
city centre. Tourists, expat workers, locals...they all
love the Stare Mesto (district I).

With very strong and consistent rental demand, good
quality properties in the centre are clear winners.
Now, finding them is more difficult than you might think...

A vast majority of the residential pre-war buildings
commonly seen in this area have had little maintenance
done in the last five decades which is witnessed by
the rather unappealing communal areas of most blocks.

Not surprisingly Slovak home buyers see little appeal
in old-style properties and are keen to get their hands
on a new or newly built apartment (of course with the
obligatory underground parking ending everyday's struggle
to try to find a parking spot on the street).

Meanwhile, tenant demand is strong for high quality
apartments, new and classical. Although a majority of
tenants will prefer a brand new property, upon lack
of new apartments in their target area a good property
in a refurbished block will be equally popular.

And, well, you guessed it...the only area 9 out of 10
tenants (not counting students and lower income local
population) will consider is the city centre or its
immediate vicinity.

The bad news is, the city centre's pre- and post-war
blocks mixed with old merchant houses, shops, office
blocks, banks, hotels and eateries leave little space
for new construction. So, what is an investor to do?

Well,if you can get hands on a well built new property
(with parking - a must in this area) on a street with
good car access (and preferably no trams - there is
nothing noisier than having a tram running under your
windows!), don't think twice. You can't get it wrong here.

The good news is, we may be able to help you out soon.
We are currently awaiting the zoning permit (first stage
of planning) on a very rare new project in the very
centre of Bratislava. As usual, the outcome of the
planning is very unpredictable, and it could take longer
than expected. However, we believe the development will
receive the green light.

We should have more information and update in the coming
weeks. In the meantime, if you are interested in this
opportunity, please register your interest by replying
to this email.

This will be a small development (in between older-style
pre-war blocks) and given the demand for centrally located
apartments from Slovaks and foreigners alike, it is likely
to be sold instantly once planning permission is issued.

As usual, we have been pre-negotiating with the developer
to secure our investors better payment structure, superior
contract conditions, guarantees, and more. As for prices,
two bed apartments should start at just 110,000 GBP
(inclusive VAT) which is an outstanding price for a new
property in Stare Mesto!

So, register your interest now and you will get a chance
to secure your apartment before the development is snapped
up. (We will keep you updated on the progress; please note
at this stage it does not depend on the developer or
ourselves but is fully in hands of the planning office
and the other over 70 institutions that have to give
their ok before zoning and planning permits are issued.)

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As a registered member of Slovakia Investment Property you
will always receive first notification of developments and
first opportunity to choose and reserve your preferred unit.

If this email was forwarded to you by a friend and you are
not a registered member, please remember that you need to
register in order to be able to receive notifications and
view our deals.

To join FREE of charge, please follow the link below:
http://www.slovakiainvestmentproperty.com/register.php

PLEASE REMEMBER:
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Slovakia Investment Property is not your typical UK
company of UK nationals claiming to be foreign property
experts. Not only have we teamed up with the best local
experts in Slovakia, we are Slovak nationals with first
hand experience of the Bratislava market. And yes, we
also put our own money into the opportunities offered.

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4) Your Questions Answered

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What is the typical lenght of lease in a leasehold flat
in Slovakia?

Well, the answer is easy: There is no leasehold concept
in Slovakia. Apartments as well as houses are freehold.
That means your property is yours for good and there is
no ground rent to be paid either.

If you have any question you want to see answered here,
please send it to us: contact@slovakiainvestmentproperty.com

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5) WIN a Bottle of 'Tokaj'! (Prize Draw)

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As every month, it is again time to give one of you the
chance to win a bottle of some of Slovakia's most popular
wines and liquors. This time, a bottle of the famous Tokaj
(or Tokay as it is known internationally) wine awaits a
lucky winner.

The lucky March winner is Mr. J. Penny. Congratulations!

All you have to do to be entered into the prize draw is email
your answer to our Question of the Month before 10 May to:
competition@slovakiainvestmentproperty.com.

It's as easy as that! We will contact the winner to obtain
the postal address. Good luck!

Question: "What is the purpose of your (potential) purchase
in Slovakia?
1. Residential investment/buy-to-let
2. Second home for own use or retirement
3. Holiday home with hopefully some (future) rental potential
4. Commercial or other investment

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6) Tell Us What You Think!

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We would love to hear what you think of this issue of our
newsletter. We hope you find the information useful and
wish you best success in your investment activities.
And of course, if you have any suggestions for upcoming
issues that you'd like to share with us, please send them!

Just e-mail us at: contact@slovakiainvestmentproperty.com

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We are looking forward to seeing you next month. In the
meantime, if you have any questions or would like to
request further information, please contact us at
info@slovakiainvestmentproperty.com or at
+44 (0)207 152 4014.

Best of success,

Petra Gajdosikova
Managing Director
Slovakia Investment Property
www.slovakiainvestmentproperty.com

Slovakia Investment Property is a trading name of
Alpha Real Estate Investments Limited