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How to get it Right as an Investor in Ghana

real-estate-investment

This article will be of maximum importance to investors who are or intend to do a build-to-let or buy-to-let real estate investment in Ghana. Most real estate investors put weight on expected returns on investment (ROI) when considering which properties to invest in. However, depending on what kind of investor you are, and the locations within which your investment is made, a few other considerations which are mostly overlooked will be necessary to get the maximum return on investment.

Over the course of the last three years a real estate broker, I have observed that there are just a handful of locations in Accra that offer high ROI to real estate investors. These high ROI locations are Cantonments, Labone , Osu, Ridge, Dzorwulu, Abelemkpe , Ridge, Airport Residential Area and East Legon.

Because of the high ROI’s on Real Estate Investments in Accra, there has been growth in investment in Real Estate property in Ghana over the last decade. Currently, a major part of the ongoing real estate projects in Ghana are been developed by investors from Italy, UK, Turkey and Isreal.

Direct Investment – For Rent

If you are looking to Invest in Ghana on a built-to-let or buy-to-let basis, then kindly note the following success factors;

Location – As mentioned in the earlier part of the article, rental properties have high ROI in very few areas in Accra. These areas are Cantonments, Labone , Osu, Ridge, Dzorwulu, Abelenkpe , Roman Ridge, Airport Residential Area and East Legon. As an investor, you have to ensure that your development is located in one of the above listed areas. ROI in these areas range from 8% – 12 %. As a buy-to-let investor, kindly ensure that all purchased property(ies) are in the areas above mentioned. Land in these prime locations will cost you between $500,000 – $1,000,000 per plot if you are looking to build.

The high cost of land in these prime areas serves as a barrier to entry for most local developers. In the few instances where local developers build property in prime areas, there is usually a profit sharing arrangement between the land owner and developer, an arrangement which makes the land owner an equity holder in the development project.

Tenancy Rate – Tenancy Rate is a measure of how often apartments are occupied or rented by tenants. The tenancy rate will give an investor an idea of how long it will take before an apartment is rented after the expiration of one tenancy agreement. As a direct investor, you should notice that tenancy rate is affected by such factors as location, design, size of room, design concept among other things. Though there is no public data on tenancy rates of apartments in Ghana, an investor can contact an experienced agency like SellRent Ghana LLC to help understand the average rates in different areas in Accra, Ghana. Kindly note that the biggest factors that affect the tenancy rate in Accra are the uniqueness of the Architecture or design of the property and the Price. An investor who can get these two factors right will be in a position to earn high returns on their investment.

Architecture & Amenities – The more unique and aesthetically pleasing the design of the property, the likelihood for higher rental yield. In the residential development space, a few builders in Ghana are going a step further to include shopping centers at the ground floors of their apartments to offer maximum convenience to their tenants. All high yield properties have to come with swimming pool (rooftop preferable), garden, gym, concierge reception and should have sizable compound. The interior of the property should also be sizable and modern.

Rental Price – The average price of properties in the prime areas in Accra are as follows;

1 bedroom – $ 1,500 per month (Apartment) and $1,000 (Studio)

2 bedroom – $ 2,450 per month (Apartment)

3 bedroom – $ 3,500 per month (Apartment and Townhouse)

4 bedroom – $ 3,900 per month (Apartment) and $4,000 per month (Townhouse)

Commercial Property – $ 28 to $42 per sqm

Like in many other parts of the world, price has a direct effect on sales and rental of property. Higher prices are not necessarily bad for business in Ghana. However, ensure that there is unique value for which reason the prospective client will pay a premium for your property.

Opportunity

At the moment of my writing, there is shortage of decent, well-priced 1 bedroom apartments for singles in the prime areas above mentioned. An investor looking to gain high tenancy is therefore encouraged to build or buy these apartment options.

By: Yaw Opoku

Real Estate Broker & Advisor




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Getting an Alternative Mortgage Program After Filing for Bankruptcy

As said earlier, there are Mortgage lenders willing to work with you even after bankruptcy. They are referred to as the B-C-D Lenders and can be found almost everywhere in the United States. They finance mortgages for those who are not qualified for conventional mortgages. But be ready to pay high fees and interest rates. Bankruptcy affects your credit score in a direct manner. Majority of this mortgage lenders use you credit score as a factor to know if you qualify for a mortgage and assess the level of risk you create for them. With the presence of “BANKRUPTCY” in your credit report and history, it is suggested that the level of risk you pose to the lender is High, This is why these lenders ask for a higher fee and places a higher interest rate because they feel this way, they will be recompensed.

Please keep in mind that these alternative mortgage programs have a principle or requirements on which loan will be approved. Your application for a mortgage may be approved or rejected based on your ability to meet these requirements. Most of these lenders have requirements. If you try a mortgage lender and you can not meet some of these requirements which mean you can not qualify for the lender’s loan, try other ones. Let us assume that a loan program requires not less than 20% down, a credit score of 580 or more or no late payment on your rental history for the last one year, a different loan program may have identical requirements but will accept a credit score of 550.Firstly, You should think about each loan program and make sure the one you choose fits into the one that will have a good influence on the approval of your mortgage. If one does not have a good effect and will not aid in the approval of your mortgage, please find another. Keep searching till you find the one that suits you.

Seek information and advice from a mortgage broker who has knowledge and skills in mortgage after bankruptcy. This is the best way to find out precisely if you qualify for mortgage after bankruptcy or you do not. A mortgage broker can obtain your data, check your financial condition, search for alternative loan programs and compare the prices and everything that has to do with them. They can be in the best position to know which of these mortgage lenders will be ready to do business with you even after going through the Bankruptcy experience. for more helpful articles from mortgage professionals, Click here

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Common Contingency Clauses in a Real Estate Contract

Contingencies are commonly included in most real estate purchase agreements or contracts. They are written clauses that give protection to both the buyer and the seller of a home as well as give them time to assess important aspects of the home before proceeding to the closing. These are normally included in an effort to allow potential buyers and sellers to back out from the deal without facing legal issues in the event the contingencies are not met by either of the parties involved in the transaction.

The common contingencies are usually seen in pre-printed contract forms used by real estate agents. Below are some of them for your guidance.

A home inspection is normally asked by home buyers to ensure that the property they are buying is free from material defects. If in case some defects are discovered during the purchase period, they can ask for an immediate repair from the buyer or they can just back out of the deal. The contingency clauses can specify which party will shoulder the repairs and to what extend. Other options can be included for homes that require repair. A professional home inspection report specifies the date of the inspection and the status of the residential property concerned.

Other inspections such as those on the presence of lead, radon, mold and other toxic chemicals may be included in the contingencies. In addition, inspections and tests may also be performed to check infestation by termites, verify if water from private wells is safe and check if a septic system or well is functioning well. In some areas, water rights to the property may have to be verified to avoid any violations should the new owner decides to dig a well. As for the septic system, a contingency clause may ask for an approval to build a waste system in the absence of one in the property.

Home buyers are also particular about appraisals as they usually want to invest their hard-earned money on a property with a fair market value. With an appraisal report, they can feel confident that the home they’re buying is not overpriced.

Financing is another important contingency. The contract should state the kind of financing preferred by the buyer and which the seller is willing to accept. An appropriate timeframe is also necessary to allow the buyer to get a loan. In some cases, though, the seller can also include his or her own financing contingency such as accepting an offer only after the potential buyer successfully sells their home or only if the buyer is pre-qualified to avail of a home mortgage loan. It is vital to note then that home sellers pre-qualify their prospective buyers so as not to waste their time.

A contingency on deeds is applicable as well. The purchase offer can state what type of deed the buyer expects from the seller during closing. This should be accompanied by a statement from the seller ensuring that the real estate property will be free from liens and other issues that cropped up with the past owners.

So in essence, these contingencies are with a purpose thus, it is vital that they be stated in the contract in the most specific way as possible.

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Writing a Good Character Reference Letter For a Landlord

Writing a good character reference letter should not be a difficult task, although the mere suggestion of having to write one seems to strike fear into the heart of many. You may be asked to write one for someone if they are in the process of finding a new apartment to rent and the landlord requires one.

In the movies, landlords are sometimes portrayed as evil, greedy people with black hats and curly mustaches. This is not the case at all these days, as landlords must have the best interests of their tenants at heart in order to remain in business and out of the government’s watchful eye.

Landlords have a financial interest in their property and seeing to it that their apartments or homes remain fully occupied and the tenants are happy to live there. In order to do so, landlords try to screen their potential tenants in order to keep out the bad or troublesome renters. Rental applications ask a lot of questions that are constructed in order to gather enough information in order to decide if you, the potential renter, will be a good renter or a bad renter. In other words, the landlord is trying to reduce the risk of losing income by renting to the good renters more often than bad renters. In some cases, the landlord may request a character reference letter in order to further reduce the risk by gathering the independent opinion of a third party.

Character reference letters are usually written in support of an employment application or an apartment rental agreement, or lease. In any case, employer or landlord, the letter is intended to attest to the veracity of the person for whom the letter is written. In short, this means that the letter backs up the information provided on the applicant’s application form.

A good character reference letter is written around those areas that the landlord will consider important in making a decision about the applicant’s character. As a friend, you probably know that he or she always pays the rent on time, always cleans up after themselves, never disturbs the neighbors, and hasn’t ever had the utilities cut off for non-payment. It should be easy to write a number of short paragraphs about you friend’s social history to support their application. Be truthful and be honest when writing the letter. Never lie for a friend, no matter what! It will make your friend look bad and reflect directly back on you if your friend doesn’t live up to the rosy picture you have painted of them.

If you need some ideas of what you should write about it should be a simple matter to pick up a copy of the rental application. Look it over, picking out three or four areas that you know the most about and feel the most comfortable writing about. Begin with a short introductory paragraph describing how you know the person and for how long you have known them. Then delve into your knowledge about your friends past and hopefully good behaviors as it relates to the three or four areas you’ve selected. End your letter casually and with an invitation, or permission to contact you for further information if needed. Don’t forget to include your contact information.

With these guidelines in hand, you should be able to write a good character reference letter for a landlord or an employer. You may want to write a few drafts before keyboarding the final letter, which will be sure to help your friend obtain that much sought after apartment or job. When writing, always remember that the key to success when writing a good character reference letter is honesty.

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Investment Property Loan Types

An investment property mortgage is a loan for non-owner occupied property. There are two main classifications of investment property mortgages. These classifications include: commercial and residential. A commercial property mortgage is for a dwelling that contains 5 or more units and/or is zoned as commercial. A residential investment mortgage is for a dwelling that is one to four units and is zoned residential. Commercial and residential mortgages are two completely different loan types and have significantly different qualification standards. The following is a basic description of each mortgage type.

Residential Property Investment Loans

Residential property investment mortgages have similar qualification guidelines as standard owner-occupied mortgages. Although, they do have higher down payment and credit score requirements. Below is a summary of the general guidelines for residential investment mortgages.

• Credit Score Requirement – The minimum credit score requirement is typically 680 or above for investment mortgages.

• Debt to Income Ratio – Typically, the debt ratio limit for an investment mortgage is 40% of the borrower’s verifiable income. Besides W2 income, the borrower’s last 2 years tax returns will be needed to calculate the income that can be used from other rental properties or other sources of income.

• Down Payment – Investment property mortgages require at least 15% down, but the down payment requirement increases with lower credit scores and the greater the number of units in the property.

• Income – Lenders typically will only use rental income if the borrower has a two-year history of owning rental properties. This is usually documented via the tax returns and schedules.

Commercial Property Investment Loans

Commercial loans typically have higher rates, greater fees, and shorter terms than residential mortgage. The two most important factors for lenders on this loan type include: a positive cash-flow for the property, and the borrower’s past commercial property management experience. Below is a summary of the general guidelines for residential investment mortgages.

• Credit Scores Requirement – The minimum credit score requirement is typically 720 to 740 for a commercial loan.

• Down Payment – The minimum down payment for a commercial mortgage is typically 30% or greater. When refinancing, the maximum equity position is usually 70% of the appraised value of the property.

• Debt Service Coverage – This is a ratio used by lenders to calculate the property’s ability to generate cash flow. It is a calculation comparing the net operating income minus the mortgage payment and the other debt payments.

Other funding sources include: hard money lenders and private loans. Hard money loans are short-term loans from private investors. Private lenders typically use the equity position in the property as the determining factor whether they will approve and fund the loan. There are usually excessive closing costs and fees (points) charged on this type of loan. Private loans are loans that a person would receive from their family or friends. The terms may or may not be similar to hard money loans. Both hard money and private lenders typically only put a lien on the property and do not report payments on the borrower’s credit report.

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Do You Know About The Most Popular Real Estate Scams?

Real estate scams are more and more popular, even though we can’t see them yet. Compared to robbing a bank, stealing $200,000-worth property via a false deed or an identity theft is trivial – and remarkably safe for the thieves. Their imagination is remarkable and oftentimes we can’t do much more than minimizing the damage they inflict. By becoming aware of the most common real estate scams, you may be able to protect yourself or someone you know.

False Deeds, Part 1

Most real estate frauds revolve around forged deeds. The most popular scam is using a false deed in order to get a loan secured against a property. The thief then vanishes with all the money, leaving the real owner in danger of foreclosure by the bank – oftentimes the danger is real if the owner doesn’t react on the first warnings received from the bank.

False Deeds, Part 2

Another common real estate fraud is selling a property without the owners consent. The uninhabited, recently inherited and otherwise unguarded property is the most probable target for such scams. The most inventive thieves are able to even sell the same property to several buyers at the same time. However, if they have sold it only to a single buyer, the fraud can go unnoticed for months or even a year. By that time, the “owner” is long gone, usually in another state, selling another home to someone else.

Real Deeds

The false deeds are bad enough, as such scams usually hit at random and they often can be reversed after the deed is thoroughly checked. However, the problem begins when the fraud is performed using a real deed, one that was either stolen or simply taken from the owner. The sad thing is that such thieves often recruit from our family and closest friends, people we would never suspect of anything.

The most popular way is to get some kind of authorization (or truly, just a signature) from the owner in addition to a deed. This way the thief can do whatever they like without any real risk for being caught. This is an especially popular scam used against elderly people – a nurse or a family member either take a loan in the name of the elder or just force them into taking it.

Another, even more outrageous, real estate fraud is performed by unethical door-to-door loan sellers. Under the pretext of making home repairs, they force the seniors into signing some documents which are truly high-rate loan contracts secured against the property. As most seniors are unable to repay such debt, their homes are taken by the creditor (which was its goal from the beginning) and the elder is left homeless.

Defense

Defending against such frauds is difficult. If the thieves use false deeds, it is possible to prove that you had nothing to do with the loan or purchase. However, if they use a real deed and/or have your authorization, this gets dicey. And taking effective legal actions is next to impossible if you sign the loan papers.

Here are some tips to help protect yourself from such scams: 1) never sign anything you haven’t thoroughly read and if you are in doubt have your attorney review the documents before signing; 2) throw out any peddling loan lenders; 3) keep important documents, such as your deed, in a safe deposit box.

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Should I Opt for Refinancing My Home Loan?

If you are a home-owner, refinancing is something that can come along as either an opportunity or a necessity. But, whichever it is, it is a big decision that will require a lot of thought and research. Many people are aware that refinancing is an option but are confused about:

>> Where to start; or

>> Whether it is the best path to take.

So, if you are considering refinancing your home, here are a few basic questions you need to ask yourself:

Question 1 – Why do you want to refinance?

Before you do anything at all, you must first evaluate the reasons behind your desire to refinance. To help you, here is a list of reasons why you might be considering the option to refinance:

You may want to lower your monthly payment

Sometimes interest rates drop, and you might find that you can refinance in order to lessen your monthly mortgage payment. However, you might have a problem if you owe more than your house is worth. You may also want to make sure that your interest rate won’t be higher as the result of your lower monthly payment.

You may want to lower your total costs

Sometimes refinancing can be the best way to pay off your home loan faster. As you pay less interest by refinancing, you can lower the overall cost of your home loan. If you are eager to pay off your loan quickly, be careful. It is because refinancing to a shorter term loan might also increase your monthly payment-in which case it may not be worth it.

You may want to switch interest rates

Switching from a “variable” interest rate to a “fixed” interest rate is one reason to refinance. This can make your mortgage payments simpler and easier to manage in the long run as the interest rate will remain unchanged for a fixed period. Also, switching to a fixed interest rate can also protect you against any potential interest rate rises.

You may want some cash-out

This type of refinancing option involves using the equity in your house to enable you to get cash for other purposes. If the reason for refinancing your home loan is to get cash-out, then make sure that your new mortgage is still affordable, and that you are seeking the cash-out for an essential reason, otherwise you may run into serious trouble in the long run.

Question 2 – What will it cost you?

This is probably the biggest question that you may ask yourself about refinancing. When it comes down to it, you need to be aware of all of the potential costs before you can make a proper decision. Once you have considered all of the possible outcomes, you can then make a well-informed decision. If you are looking to cash out, your purpose is to get more money immediately, so it will obviously cost you a little more in the long run.

So, if you are looking to save some money and you may want to avoid any fees where possible, then here are some aspects of refinancing that may cost you money:

Penalties

Check out the fine print on your current mortgage. If you are not sure what it means, have an expert finance broker or solicitor look at it. There is a chance that there may be some penalties involved for paying off your home loan early. If this is the case, it might not be cost-effective to refinance.

If you owe more than your house is worth

Houses can decrease in value. If you owe more than your house is worth, you might end up having to pay the difference yourself, and that may make refinancing a less attractive option.

Question 3 – How long are you going to stay in your home?

A lot of your decision-making will depend on how long you intend to stay in your home, such as:

>> If you intend to move in a few years, then refinancing with a “variable” interest rate mortgage loan may be a good option or not refinancing at all may be the best choice for you.

>> If you intend to stay in your home for a very long time, a variable interest rate home loan might not be the best idea. But, refinancing to a “fixed” interest rate home loan may help you in the future.

Question 4 – What do you do now?

So, you have now weighed up all of your options and you know for certain that you want to refinance. What do you do now?

First, you need to make sure that you will be able to refinance. This means:

>> You will need a good credit score;

>> You will need to ensure you have enough “equity” in your home (i.e. this might be 10 or even 20 percent of your home’s value); and

>> You will need to have proof of a good source of “income” and steady “employment”.

After you have considered all of the above, you should check your current mortgage for any possible penalties for paying it early, and make sure that the penalties will not outweigh the benefits of refinancing.

Next, seek expert and professional advice from a qualified “finance broker” who will:

>> Have access to interest rate comparisons;

>> Be able to show you the long-term savings benefits; and

>> Be able to confirm if these savings outweigh the short-term costs.

Refinancing helps you lower your home loan cost and ensures maximum savings. Do not get overwhelmed by the complicated refinancing process. You can contact an expert finance broker to help you.

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Realty Vs Real Estate Vs Real Property

Realty and personal property terms have often been confused as to what they exactly mean. Here we will clear that right up for you. We will look at the terms personal property, realty, land, real estate, and lastly real property.

Let’s begin with personal property. Personal property also known as chattel is everything that is not real property. Example couches, TVs things of this nature. Emblements pronounced (M-blee-ments) are things like crops, apples, oranges, and berries. Emblements are also personal property. So when you go to sell your house, flip, or wholesale deal, you sell or transfer ownership by a bill of sale with personal property.

Realty.

Realty is the broad definition for land, real estate, and real property.

Land

Land is everything mother nature gave to us like whats below the ground, above the ground and the airspace. Also called subsurface (underground), surface (the dirt) and airspace. So when you buy land that’s what you get, keep in mind our government owns a lot of our air space.

Real Estate

Real estate is defined as land plus its man made improvements added to it. You know things like fences, houses, and driveways. So when you buy real estate this is what you can expect to be getting.

Real property

Real property is land, real estate, and what’s call the bundle of rights. The bundle of rights consist of five rights, the right to possess, control, enjoy, exclude, and lastly dispose. So basically you can possess, take control, enjoy, exclude others, and then dispose of your real property as you wish as long as you do not break state and federal laws.

Lastly there are two other types of property we should mention.

Fixture

Fixture is personal property which has been attached realty and by that now is considered real property. So you would ask yourself upon selling to determine value “did you attach it to make it permanent?” The exceptions to this rule are the garage door opener and door key, these are not considered fixtures.

Trade Fixtures

Trade fixtures are those fixtures installed by say a commercial tenant or can be the property of the commercial tenant.

I hope this clears up some misconceptions about personal property, realty, land and real estate and now fixtures and trade fixtures!

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How to Market Your Apartments For Sale Or Rent

Selling an apartment or flat in a condominium is a little different than selling a house. Apartment comes handy when you are looking for a small residence in some highly populated area but the problem arises when you have to sell it. Many people prefer to stay as tenants instead of purchasing an apartment. One thing that you must consider when buying an apartment is its resale value. For instance, an apartment at uppermost storey might sound OK to you but families with young children or some old members will just reject the deal, because it’s not possible for the children or senior fellows to go up or downstairs in case the lift is out of order. Therefore, you should look at the apartment from a general point of view before purchasing it, so that it won’t be a problem when you decide to sell.

Emphasizing on strong features in ads:

Think of an appealing title that will immediately catch attention when giving ads in the classified section of a newspaper (or property portal). For example, instead of choosing titles like “two bedroom apartment for sale” or “studio apartment for rent”, use titles like “perfect apartment for a family, with schools and markets in close proximity” or “ideal apartment for young professionals”. You must think of some strong points for your property and then highlight these features in the title.

Choosing the right medium:

As stated above, you must think of the strong features and then target some specific type of customers according to those features. In addition to the catchy titles, choose your advertising medium according to your targeted customers. For example, if your apartment will be best suited for students than advertising the apartment in a college campus makes absolute sense. Similarly you can choose internet, social networking websites, magazines, newspaper, etc in accordance to your targeted customers.

If you can’t replace, at least repair:

Once you’ve put on the ad, you can expect some prospective buyer or tenant to visit the apartment. If the apartment is newly built and vacant for some time, a little clean up will do. However, if you or some of your tenants are currently residing in the place, it means you must go through the basic repairing and cleaning work. Pay special attention to the kitchen and bathroom, and make sure your apartment is odor-free. That familiar scent of cigarettes may not trouble you or your friends in general but it may put off some buyers at once, especially if they are looking to move in with family.

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Real Estate – Property Tax in Cyprus

We’re all aware of the annual property tax which is based on the property’s value as this is set by the Lands Office and with the valuation date 1.1.80. It is appreciated that values as at that date 1980 were very low by comparison to today’s, even now recessionary, prices. The existing tax system is scaled and it is as follows:

From 0 Up to €120.000 Tax 0% *

€120.001 €170.000 0,4%

€170.001 €300.000 0,5%

€300.001 €500.000 0,6%

€500.001 €800.000 0,7%

€800.001 €+ 0,8%

* Note the percentages are per thousand not per hundred

The new proposed law (not approved as yet) which will become effective from the new year 2013 suggests the following.

The values as set at 1.1.80 will be upgraded based on inflation, which is 3.5 times i.e. an apartment valued as at 1.1.80 for €100.000, it will now have a value of x 3.5 €350.000.

In addition the tax scale will be as follows:

From + 0 %

0 €150.000 0

€150.001 €500.000 0,6%

€500.001 €1.000.000 0,8%

€1.000.001 +1%

So the apartment which had a value of €100.000 1.1.80 and which was tax exempt, now it will be:

€100.000 *3.5 = €350.000

Less tax free €150.000

€200.000

Tax 0,6% €1.200 p.m.

This is a very large hike on taxes and it is especially hurtful when one considers that:

  • Cos are not allowed to benefit the €150.000 exemption.
  • Individuals property value is the total of all the properties that one owns, e.g. if one owns 3 properties i.e. the flat €100.000 a holiday house €80.000 and a plot €30.000 (at 1.1.80 values) the total of €210.000 will be increased by 3.5 less the exemption (only €150.000) and the appropriate scale levied.
  • This will hurt especially the developers who own large holdings sold or unsold units, who will pass on the higher tax to the buyers.
  • Most buyers are liable to pay the property tax after delivering of a property. A buyer who is tax exempt on his own will most likely find that he will be taxed on the 1% rate. But if he has deposited his sales contract with the Lands Office he can claim back the difference (or the total if tax exempt).
  • Property which belongs to more than one person, each person will be taxed separately, reducing thus the tax accordingly since each person will be taxed exempt by €150.000.
  • If you are wondering what the 1.1.80 is and if you have a title, the value of 1.1.80 is so recorded on the title (middle space).

This is a temporary measure until the Lands Office carries out a new valuation at current prices (one expects of course that the scales will be reduced).

You do appreciate that an apartment having a 1.1.80 value of €30.000 (real example on Kennedy Avenue – Nicosia) which is owned/not yet transferred by the developer to the buyer, he will be charged at the top scale of 1% (€30.000 x 3.5 x 1%) = €1.050 p.a. – but if he has no other property, he could claim it (once he pays) back.

In order to continue with the bad news and because the local authorities use the value of 1.1.80 for the local municipal taxes, sewage etc, if they are to adopt the 3.5 factor, you do appreciate what we are talking about.

Those who consider to transfer to a Co each one of their property to separate Cos, bear in mind the setting up cost of the Co, the annual tax of €300 p.a., the auditors fees etc, better check this with your accountant if it pays – bearing in mind the Cos do not have the €150.000 exemption. Some people transfer their property to the spouse and children in shares, but one must consider the side effects of this.

This is a crazy law at this point of time when people are hard up for cash while straggling developers might go under since their property/municipal taxes will no longer be affordable with the 1% rate. No wonder that people are turning to churches in an increasing numbers as well as to the casinos!!