DEMANDING MORE THAN EASTERN PROMISES

Ann Collins Property Ltd.

While many Irish buyers continue to buy in the emerging markets such as bulgaria and turkey Ann Collins, who has bought over 20 properties around the world, is not so keen, reports Shane McGinley.

Brought up in Meath Ann Collins always had an interest in property and studied auctioneering and business studies at college when she left school. After her graduation she left Ireland got nearly ten years experience working in American and then in London.

In 1996 she returned to Ireland and her and her husband bought a pub. A few years later she decided to get back into the property business and bought the first of her many overseas properties. She reports that she now has personally bought close to twenty properties around the world.

Personal Portfolio

“In almost every place I sell I’ve bought and not sold anything yet,” she says and her personal portfolio ranges from Humber Valley in Newfoundland, Canada to Antigua in the Caribbean to Cape Verde in Africa and Myrtle Beach in the US. Initially Collins worked on a freelance basis selling properties in the Humber Valley Resort, in 2004 she became the companies Managing Director and in October 2005 set up her own business Ann Collins Property Limited.

While there are many areas of the world that Collins sells property when it comes to Eastern European markets her policy is “I wouldn’t touch them” and her reasons are very personal and straight forward. “The reason I wouldn’t sell them is because I wouldn’t buy there,” she says adamantly.

Cause For Concern

“Turkey is a very Muslim orientated country and very set in their ways,” says Collins and she believes local Turks will only buy in certain locations. Recent terrorist problems in the region have also deterred her from recommending the region and she is surprised that people continue to buy there. In Bulgaria Collins believes that the Mafia and corruption elements should not be overlooked and believes that in three or four years, once off-plan developments come to fruition, problems may arise. She reports that already she has heard numerous stories of buyers who have had uncomfortable dealings after buying properties in Bulgaria.

Such concerns were supported by a European Commission monitoring report last year which raised issues with corruption and organised crime levels in the country. However Bulgaria, along with Romania, is still scheduled to join the EU next year. “People are buying a dream and buying with their heart not their head,” believes Collins. However buyers still continue to be attracted to Turkey and Bulgaria and the recent ‘Global Emerging Markets Index’ report compiled by Currencies Direct showed that Turkey and Bulgaria were the top two emerging markets where buyers were spending their money.

Affordability

Furthermore Turkey was voted the 3rd best destination in the world to buy a property and the best destination in the world for affordable, high earning growth by ‘A Place in the Sun’, the Channel 4 property TV show. At the end of the day, despite concerns by Collins and many others the real reason buyers seem to be spending money in locations such as Turkey and Bulgaria is the affordability of prices and high predicted capital appreciation growth.

Property agents 1 Casa report that in Turkey land prices have doubled in the last 2 years in the most popular areas and in 2005 tourism was expected to increase by 25%. In Bulgaria tourist number are expected to reach 20 million by 2010 and many agents still claim that returns of 30% are still possible. “Maximising your return comes down to buying in hotspots that offer sustainable growth” says Caroline Hollingworth, Managing Director of agents Hollingworth and Taylor.

While the situation in Turkey and Bulgaria has yet to be fully materialised and observers, such as Collins, are sceptical of its viability many Irish buyers still seem prepared to buy into the area.

A Reputable Agent

“I am not selling a nice holiday home but pure investment,” says Collins, so when it comes to finding a solid investment she believes that buyers should look at an area’s economic situation and also the developers behind the projected. She also admits that for buyers they are often depending on agents having done their homework so she believes that using a reputable agent is a top priority. The newly launched Association of International Property Professionals or the Federation of Overseas Property Developers, Agents and Consultants are two good places to start. Location wise Collins still has faith in Canada, believes Cape Verde is only beginning to come into its own and the ever popular Caribbean island of St Lucia will continue to attract Irish buyers.

Contacts:
Ann Collins Property Ltd: Tel: 046-94 30823 or www.anncollinsproperty.com
Hollingworth and Taylor: www.hollingworthandtaylor.co.uk
1 Casa: www.1casa.com
AIPP: www.aipp.org.uk
FOPDAC: www.fopdac.com