Slovakia Investment Property

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Slovakia Investment Property Newsletter
July/August 2008 - Issue # 44
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Welcome to the joint summer issue of your Slovakia newsletter.

As you may already be aware, along with sourcing the best
buy to let deals in our core areas of Slovakia and Germany
this year we have also been searching for niche markets
that conform to our stringent criteria for property investment.

Today along with some excellent news from Slovakia I am
going to present you one such credit crunch beating opportunity.

As usual, if you've missed any of our previous newsletter
issues, they are available for you here:

www.slovakiainvestmentproperty.com/newsletters.php

In this issue you will find:

1. Slovakia # 1 for Property Price Growth
2. Fantastic New Opportunity from Just £20k & Over 10% Yields!
3. Slovak Property Deals - City and Ski
4. Tell Us What You Think!

===================== MUST READ NEWS ====================

1) Slovakia # 1 for Property Price Growth

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The Slovak currency's final conversion rate against the euro
has been set at SKK 30.126.

This marks the last formal step for Slovakia to start using
the euro on 1 January 2009. Slovakia will become the 16th
member of the euro zone.

* * *

Economic growth in Slovakia has slowed slightly but continues
at very high rate. After the record breaking 14.3% y/y growth
in the QIV 2007 the economy grew by 8.7% y/y in the Q1 2008
and by 7.6% in QII.

* * *

In July the Slovak base rate remained unchanged at 4.25%.

The National Bank of Slovakia (the country's central bank)
increased its inflation estimates for this year by 0.7% to
3.9%. It expects inflation to fall to 3.4% in 2009 and to
3.1% in 2010.

* * *

Moody's rating agency raised Slovakia’s rating outlook from
stable to positive. Slovakia has the best rating in Central
Europe from Moody's, Standard & Poor's as well as Fitch.

* * *

On 15 July the Slovak koruna reached another historical
high against the US dollar when the rate fell below 19.00
SKK/USD.

* * *

A report by Global Property Guide shows that while prices
fell in most countries in the first quarter compared to the
same period last year, Slovakia topped the list of markets
with growing prices.

Slovakia experienced the highest year on year property price
growth in QI 2008 (up 29.3%), followed by Shanghai in China
(up 28.5%), Hong Kong (up 25.9%) and Singapore (up 21.6%).

On the other hand, markets such as Estonia and Latvia that
have seen massive price growth in recent years driven almost
fully by foreign demand (which has now dried up) have been
hit by the highest price falls (up to 30%) in QI 2008.

* * *

Belgian KBC bank paid 350 million euros for Istrobanka, one
of Slovakia's smaller banks. The price KBC paid to the
Austrian Bawag (Istrobanka's owner) was considered too high
by many analysts. The price was at 3.5 times the book value
of the bank. The Bawag group acquired Istrobanka in 2001 for
double the book value. However, compared to bank sales in
other high growth markets such as Russia the price to book
value ratio was similar than in the Istrobanka acquisition.

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2) Fantastic New Opportunity from Just £20k & Over 10% Yields!

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When it comes to looking for a successful property market
displaying the right conditions to become a buying target,
in our book strong economic fundamentals are essential.

Well, the opportunity we are presenting you today is in a
country that has had the highest level of GDP growth on its
continent for the last 10 years (averaging 5% annually),
consistently low inflation, higher home ownership rate than
the UK (81%), a top class education system and a government
that is very pro foreign investment.

It is a WTO member and has an Association Agreement with
the EU. Furthermore, it was ranked the most competitive
economy of the African continent as well as the first in
the entire Arab world (World Economic Forum, Global
Competitiveness Report, 2007).

As well as being a successful centre for regional business,
with 1,300 km of amazing coastline it is a well established
tourist destination!

However, as we know these are not the only guiding factors
when it comes to property investment. Just as important is
a vibrant and growing influx of investment into the country,
its property market and infrastructure.

Well, apart from a buoyant domestic market, this country is
now also attracting strong and fast growing demand for
property purchases from private and foreign investors.
Furthermore we are seeing massive investment from international
property developers. The largest Dubai based companies alone
have already poured in $20 billion recently. All of this,
along with the extremely high demand from local home buyers,
has already caused prices to start heading northwards.

So, what is this destination poised for fast growth and
lucrative property investment? It is Tunisia.

Tunisia embodies the marriage of a rapidly developing modern
nation set to a backdrop a rich historical significance from
the Phoenicians and Carthaginians to the Romans. Throw in
fantastic year-round weather, golden beaches and amazing
value for money and you can see why Tunisia has a thriving
tourism industry attracting millions of holidaymakers from
the regional and domestic as well as international (mainly
European) markets.

For us Tunisia ticks all the boxes of a potentially huge
growth and extremely low entry opportunity. The factors
below are just some of the many reasons why we consider
this vibrant emerging market to be one of the best property
investment destinations worldwide.

• Stable country with fast growing economy
• Favourable legal framework and taxation system
• Outstanding capital growth potential
• Strong and consistent holiday rental market
• Excellent value and very low property prices
• Great exit strategy - strong local property market
(81% home ownership rate)
• Direct flights from the UK and Europe
• Exciting holiday home destination for you, your family
and friends

Finding the right geographical location is only half the
fight, as investors we still need to be sure we are moving
on the right property to enjoy success in property investing.

We have been working closely with a developer who is currently
building the country's first fully 5 star holiday apartment
complex. Located a mere 20 minutes drive from an international
airport the complex sits on a beautiful strip of coastline
with its own golden sandy beach.

With a flight time of under 3 hours from the UK there is
no shortage of airlines servicing the area with direct flights
from many locations in the UK (as well as numerous European
countries).

The apartments not only have projected yields of over 10%
but can be yours at rock bottom prices - starting from an
amazing 20K GBP!

This high-end resort includes its own private beach, a
world class Thallasso Spa incl. an indoor swimming pool,
Turkish baths, sauna, gymnasium and beauty & massage
treatments to name but a few of the facilities. Restaurants,
bar, supermarket, two pools and an on-site rental management
agency will also be part of the complex, and two 18-hole
championship golf courses are nearby!

Table 10 year structural guarantees along with escrow
protected deposits on top of a fantastic growth potential
and I am sure you can understand why we are excited about
this vibrant and unexploited investment destination.

We truly believe Tunisia will prove one of the most rewarding
markets for property investment. So if you are looking for
the next low entry destination with massive growth potential
contact us now to register for your full information pack.

Simply reply to this email or email us at
info@slovakiainvestmentproperty.com (or info@alphare.net).

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3) Slovak Property Deals - City and Ski

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With one of the world's fastest growing economies, an
extremely strong domestic property market, ease of resale
(thanks to very high demand from local home buyers), access
to mortgages at competitive rates, no signs of credit crunch
and, importantly, strong growth in property prices, Slovakia
continues to be one of the best destinations for property
investment today.

We have a large range of properties suitable for long term
letting, with city apartments in Bratislava starting from
approx £75k.

New apartments (off-plan) in a high-end resort complex
in the famous High Tatra mountains, with skiing, an 18-hole
golf course, tennis courts and many other facilities are
starting from just under £80k (for 1 bedroom units).

For further information please email us at
info@slovakiainvestmentproperty.com or reply to this email.

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4) 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