If you are familiar with Istria, you are familiar with the variety of incredible and fresh ingredients, such as olives, olive oil, truffles, wine, prosciutto and seafood. And, if you are not familiar then you are really missing out on one of the top gourmet destinations in Europe.
Because Croatian ingredients and products are not really mass produced, it is quite rare to find exported goods from Croatia available in the supermarkets and shops of other countries. For that, you should definitely spend some time in Croatia, and during this visit, you better be hungry.
Food lovers will love Istria!
Istria is famous for having great and high class cuisine, with the fresh and tasty seafood of the coast, together with the hearty meat-based fare of Central Europe.
Depending on the time of the year you decide to visit Istria, you can get served a fresh Scampi Buzara dish, some prosciutto (pršut), or asparagus risotto, even some traditional Istrian pasta fuži or pljukanci with black or white truffle, fish or shrimps with white truffle, steak with grated truffle, truffle ice-cream, chocolate cake with olive oil and truffles…and this delicious list goes on.
People coming from all parts of the world get impressed by the stunning and nearly untouched beauty of Croatia. This attributes surely bring people looking for a perfect holiday destination, in which case Croatia fulfills this requirement, but also impresses and attracts entrepreneurs and investments. Recently, around the 15th of October, The Croatian Employer’s Association organised a couple of meeting with the US delegation.
The delegation included outstanding guests
This delegation brought along Jeffory Blackard, who is the founder and Chief Executive Officer of Blackard Global, Inc. A company that is the first firm in the world to advocate for the creation of modern-day villages. Before developing moder-day villages, Blackard Global, Inc developed over two billion dollars worth of real estate of varying kinds.
Jeffory Blackard is responsible for the completion of over 30 Master Planned Communities and 15,000 single family home sites. With almost 40 years experience, during various developments, he had his first experience with the country of Croatia.
You will find that plenty of the real estate Croatia opportunities are located in the overcrowded cities. And, if you have done some initial research on real estate investment opportunities, you will most definitely have heard of Njuškalo, the main and most known portal in Croatia.
This month, Njuškalo held a conference in Zagreb which the subjects approached were tourism, being the main industry in the country, combined with real estate investing. Together they have created a market with huge potential and definitely worthy of investing in.
During the conference, Robert Pakrovac, from Estre, one of the top banks in Croatia, said “ We’re an open book on which other sectors such as tourism, and ultimately the retirement of people in Croatia, lean on”
It is common to find real estate prices in overcrowded areas higher than in other locations. Due to the simple fact that there is more demand for these real estates. This is because many of these areas are popular destinations for both tourists and first time buyers who are less knowledgeable on Croatia and the real estate market.
However, recently more and more tourist and first time buyers are looking away from these popular areas and are in search for authenticity, privacy and unique experiences. These can be found in the lesser known regions of Croatia.
One of the best investments one could do is property investing, but it can also be very difficult decision requiring research on the area the property is located and on the property itself, apart from a lot of budgeting or financing for most people. For that reason, It can be really a decision for life if that is the case as if you decide to finance you will have a couple of year of mortgage awaiting for you.
How then to make the most of your money and depending on the area even an income?
To make an income it is important to decide on a property that is located in a very attractive area or country. This way you guarantee there will be away interest from tourists to stay in your house if you decide to rent it. That is the core of buying an investment property as well as in an area. Buying an investment property has to both ways, for the investor and for the guests.
To make this comparison simpler we selected a few countries and the prices for a house in comparison to Croatia. So, here is a brief list of properties in Europe. There are requirements you can stick to when looking for an investment property abroad, on the list below the requirements were either price or number of rooms.
Social media is being bombarded with Croatian landscapes during the summer of 2018. Sunny weather, clear turquoise sea, picturesque lanes and buildings make the perfect combination for that snap you are looking for.
Receiving the amount of 18.5 million tourists only last year, makes it easier for the spread of dreamy summer holidays in Croatia, and Instagram is playing a large role on this exposure.
If you plan to buy a property for sale in Croatia, you might be wondering about the numbers, how much capital you have to invest, what are going to be the costs and the maintenance and finally, your return of investment.
Surely those numbers are really important, but you should also consider a property for sale in Croatia as a home you could live in. During the building stage of your home, you look for high quality materials, best performance and the effect they will have on your pocket.
Croatia is know as a sunny and warm country, but what many people don’t know is that, during the winter the temperatures can go as low as -5 degrees on January, and as high as 38 degrees on the peak of summer in July.
The temperature variation is a very important factor that you have to consider when buying a property for sale in Croatia.
That is why it is fundamental to check if the property has good appliances but mostly importantly, good thermal insulation that is be able to maintain the heat and the cooling in the house. Like this, you will have to turn those appliances on less often, reducing the bills and increasing the life expectancy of those equipments.
China has a long term history with Croatia, 700 years to be more precise, but recently a smart investment from China opened the doors to Croatia. The potential that the country has for investing is for sure very attractive
Another aspect that raises interest from China in Croatia is its tourism, not only to invest in the industry but also to facilitate the arrivals of Chinese tourists to the country.
With a very extended coast comes a large amount of Croatian islands. 1,800 kilometres of coastline in the entire country and nearly a third of this coast, including islands and islets, is Istrian!
The location of your villa in Marčana is central, giving you a favourable position you to explore the surrounding paradises.
Let’s start near
The closest island and National Park to your luscious investment property is called Brijuni and it is formed by 14 islands and islets.
According to the Istrian legend, God created Istria as an extension of Heaven. The devil then, out of jealousy, scattered stones around the peninsula. Angels then gathered the pieces of Heaven remaining among the scattered rocks and protected them by the sea waves. And created Brijuni.
The island was owned by an Austrian who had the intention of turning it into a resort. The eccentric taste, brought some exotic fauna and flora to Croatia.
In the early 80’s the Island was considered a National Park. Nowadays, everyone can easily reach this piece of heaven by ferry. To get from your villa to this beauty, you can drive towards to Fažana port, only 25 minutes away, and catch a ferry from the port to the island. After that, all you need to do is enjoy your day!
Planning and building an investment property in Croatia, or any other kind of project, requires good management and processes. At Candy Brick we researched and planned the project meticulously, developed solid processes, and selected very well our team. In this article we are going to present these key elements to you.
Planning and Execution
Think of a building, there are foundations and structures underneath the superficial layers of paint. Even if you can’t see them, for example the bricks, they are extremely important during the construction and ensuring the building remains stable.
Within a project team, it works the same way. Even though you might not be able to see or hear some team members, they are still fundamental to the successful project execution. It is therefore important that all team members are competent and synchronised.
What is the status of the current industry and market? This is an aspect you should definitely consider. You don’t want to make the mistake of starting in an industry that is already over-saturated. And if you do, then make sure you innovate in this industry.
We started our investment research based on the growth of real estate market in Croatia. Here we noticed increasing rents mixed with affordable property prices, and low taxes and costs compared to other countries. Which made the idea of purchasing an existent investment property in Croatia and reselling it, an appealing investment.
Know the Place
Do extensive research of the area your project is based, and adapt your research to the project needs. If your project is an investment property in Croatia, then location is key for an excellent return on investment.
If the region has abundant natural resources, take advantage of it, innovate and implement it in your project. Croatia’s 300 sunny days a year gave us the opportunity to innovate our villas by putting solar panels on them. This makes them self sufficient and increases the value of your investment property in Croatia.
Deni Tomisic, our geodesist at Candy Brick, gave us plenty of local advice that was crucial at the early stage of the project. His expertise and knowledge was able to point out fundamental aspects missing from some sites. Such as, no electricity or water and no possibility for connecting them, no usage permits, chemicals in the ground, low quality materials, and even a pending mortgage on a house.
After more in depth research on the local searching tool, http://www.katastar.hr/, more legal problems were found in relation to the sites. Purchasing terrains with issues can be a nightmare in many ways, making you spend more to fix them. If this step is missed then the whole project can fall apart.
The selection starts with defining characteristics that every member of the team must have. It is important all team members share the same fundamental characteristics in order for the group to be synchronised.
When your in a foreign country it can be hard at first to identify your desired characteristics in people. But a local references and advice can help you hugely.
At Candy Brick we choose people who are honest, loyal, driven to make the project go forward, and have a will to evolve.
From the Geodesist, responsible for selecting good and suitable terrain, and taking the right measurements to be used for later stages of the project.
To the architect that has to understand the intention of the client’s project, translating the needs into a drawing. And then has to clearly specify the materials to be used, the precise measurements, and the instructions about their drawing.
To the engineering supervisor, responsible for checking all the stages of the construction, disapproving any step that is not correct, and having the initiative to correct any mistakes.
And the Project manager responsible for controlling the project quality, budget and timing. He does this by checking everyday the construction progress, negotiating with suppliers in order to get better materials for better prices, and working on behalf of the company and not himself.
The choice of a good team of builders is also essential. Many mistakes can be done when constructing if the builders are not experienced and competent. And the fixing of these mistakes can be costly and can slow down the project if the wrong person is chosen. In Croatia there is a scarcity of workers and it can be quite difficult to find honest and qualified workers without the help of local advice.
Importantly, None of this can happen if your not legally allowed to. It is important therefore to have full legal understanding on your team, and a person who is familiar with law, contracts, rules. And not just for one country, but internationally, as laws can change from country to country.
Finally, we working internationally, communication becomes vital. It is crucial to have perfect translators in the team to avoid any error through miscommunication.
Talking about communication, marketing is extremely important for any company and team. Having a really good team and product is essential, but without really good marketing people will never get to hear about them or their achievements.
The sales person also has to understand fully the product and the companies values, and has to be able to transfer those values to the client. It is fundamental having a person who creates a connection with the client.
The administration is key to keep the internal engines of the company running smoothly, initiative and communication skills are necessary for a good administrator.
The accountant’s role may consist of primarily financial data collection, entry and report generation. The accounting structure of a company is an essential component to business operations. It is therefore essential to have an accountant that is honest and does not misrepresent the firm.
The External Team
Beyond your core team, there is also the external team to consider and the same selection process should apply for them. These are your partners and collaborators. Let’s compare them to other external factors in a construction project, such as the weather.
You have everything needed to start your construction project, like materials and constructors, but then it rains and you can’t start building. This is external factor interference.
With your partners and collaborators, it is the same and they can equally influence the progress of your project. The only difference is you can actually choose your partners and collaborators. You can’t choose the weather.
A legal partnership is a contractual relationship involving close cooperation between parties having specified and joint rights and responsibilities. Each party has an equal share of the risk as well as the reward.
A collaboration involves cooperation, parties are not necessarily bound by a contract. This is a relationship, but it is usually less formal than a legal partnership. A good collaboration can only exist when several people pool their common interests, assets and professional skills for a joint project. Importantly, organisations don’t collaborate – people collaborate.
It is better to chose partners and collaborators that are aligned with the project and will respect your goals.
For building investment property in Croatia, we chose partners and collaborators that are available, precise and responsive.
Good planning is fundamental to strategise and reach your goal
We hope that the tips given on this article help your planning and researching process, either if you are starting or already have an on going project.
Don’t be mistaken. Tax in Croatia isn’t like it is in a haven such as the Cayman Islands. It can be quite high. However, this won’t be the case with your Candy Brick investment property that gives you a high return on investment.
If you purchase your villa as a natural person you will have to pay VAT which in Croatia is 25%. This would be an additional €87,500 which you wouldn’t be able to claim back.
That is why we recommend you open a private limited company in Croatia (d.o.o.).
This is more advantageous as you can claim your VAT back in 30 days! If you can’t cover this amount for the 30 days, we can offer you an interest free loan to cover it.