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Central Twenty-two: Under Market Value Villas in Bratislava [ SOLD ]  Region: Bratislava  Price: EUR € 39 975  Bedrooms: 3  Property Type: Villa  Development State: Off Plan

Features: Garden, Parking, Terrace / Deck Amenities: Shops, Bars & Restaurants, By a Lake, Lake View, In City Description:
Central 22 represents an advantageous investment opportunity, incorporating impressive financing options, and offered to clients at 21% below market value. Based upon an estimated capital appreciation of 20%, the value expected at completion is £393,984. If taking advantage of the financing facilities, the 70% mortgage would be £275,299, which after payment of the final amount would give the client a £153,109 cash sum (383% COC) return, with the mortgage payments subsidised by the guaranteed rental income. After the 2 year rental period, based upon the total purchase price (not purely the capital invested), the client stands to gain an outstanding return on investment of 192%.

Initial Investment
The Central 22 project offers some exceptional financing options for clients that aim to minimize capital outlay whilst maximizing capital appreciation. The total initial investment required for a 3 bedroom townhouse prior to completion is an unbelievably low £39,975.

Mortgages
Additional to such a low entry level, a unique financing scheme is being offered to purchasers of Central 22 to facilitate the final balance payment due upon completion. Clients will be introduced to an appropriate mortgage lender locally in Slovakia who, providing a clear credit history, will supply a 70% mortgage. Not only this, should a client with a clear credit history be refused a mortgage facility, the client has the option to reclaim all funds paid to date, which the developer has committed to reimburse.

Rental Markets and Exit Strategy
Bratislava has over 500,000 permanent residents and due largely to the city’s established connections and close proximity with Vienna, a further 130,000 people commute to the city every day. Add to this the fact that Slovakia currently has a severe shortage in the supply of property - an approximate 220,000 units are currently required, which under current construction rates would take 15 to 20 years to equal – a strong rental and resale market already exists.

Furthermore, the tourist industry is rapidly expanding with 30.6 million tourists already visiting the country. The Government has invested almost £10 million to market the location as a desirable destination and has also pledged £1 billion over the next five years to improve infrastructure of the ski and spa-focused tourism. Bratislava Airport is to be reconstructed during 2008-2009 with planned expenditure totalling £7 million. The primary objective is to build greater passenger-handling capabilities to meet with the increase in traffic.

Impressive house price growth is expected in Slovakia, with analysts predicting in excess of 15% growth per annum over the next 3 to 5 years, indicating an excellent climate for property investment. Residential property in Slovakia has seen the average price per square meter increase with quarter 2 of 2007 registering a year-on-year rise of 21.3%, and an incredible 104% rise over the five year period. The Bratislava region registers the highest per square meter price for residential property with a 6% quarter-on-quarter increase, and is Slovakia’s fastest-developing property market. Despite this, Bratislava remains one of the most affordable cities in Europe.

Security of Investment
After the initial low payment of £39,975, the developer will burden all construction and build costs until completion of the development. Only at completion will the final balance of the payment be due. The developer also helps to reduce the pressure of the final payment by introducing the client to an appropriate mortgage lender locally in Slovakia who, providing a clear credit history, will supply a 70% mortgage to cover this final payment. Furthermore, if a client is refused a mortgage on provision of a clear credit history, the developer offers clients the option of full reimbursement of all funds paid to date. In addition to all of this, to assist with mortgage payments the developer is offering a guaranteed rental for the first 2 years at 5% equivalent to £16,000.

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