18.10
2018

Real estate Croatia: big loan for a big improvement

A huge loan designated to real estate Croatia is ahead, and coming from The World Bank Group. For the ones who don’t know The World Bank Group, it is nothing more nothing less than the world’s largest sources of funding and knowledge for developing countries. Their intention and commitment is to reduce poverty, increase shared prosperity, and promote sustainable development. And the Country now on their table is Croatia.

 

19.7 million euros on its way to Croatia

 

An incredible amount of 19.7 million euros to develop, ease and improve the Administration System Project. The advance is clearly on the days of waiting at  Land Registry Offices that decreased by 75% from 46 to 12 days, for mortgages and property transactions, and also on the Cadasters Offices, decreasing by around 33% from 30 to only 8 days.

 

But it has been coming this way since 2016

 

Long ago in November 2016, a system called Joint Information System was implemented, it is easy, completely accesible and modern, so people can register online with their personal details, instead of the going through the painful experience of having to go to a public office. 

 

30.09
2018
Triple Check

Property for sale in Croatia? Triple check everything

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.

Home abroad

 

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.

 

 

<<CONTINUE TO READ>>

21.01
2018

Protect your investment: how to avoid legal risks with the LEGAL GUARANTEE

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I know that you are focused on the minimum income that you can get with Candy Brick villas (at least 20.000 – 25.000 euro each summer).

And I agree with you: it is a very high income (protected by the CANDY BRICK RENTAL GUARANTEE) .

Probably you are also very focused on the opportunity to sell the villa in the future, at a higher price.

Candy Brick villa is an asset that improves dramatically your financial situation, creating income and value at near-to-zero risk.

But all this is not possible with a property that is not covered with the CANDY BRICK LEGAL GUARANTEE. 

Foreign buyers in Croatia: stressful journey with no happy end in sight

Meet John (Birmingham, UK), Anna (Padova, Italy) and Peter (Potsdam, Germany).

3 foreign property investors, who wanted to have their house in Croatia: a luxury escape, few minutes driving from the seaside, where to spend time with their partner and monetizing with rental to tourists during the season (from June to September).

Unfortunately, their journey as investors in Croatia is not the one they wanted 😰

And what makes them even more furious is that it will continue on a difficult and stressful track also over next years 😱

Meaning that, instead of enjoying their villa with pool in Croatia and renting it to tourists, today they are still struggling to end their nightmare in Croatia.

But WHAT has happened?!

Signing a purchase contract with NO legal guarantees

John, Anna and Peter have been watching closely the real estate market in Croatia for over a year before taking the decision:

“Yes, I want to be the owner of a villa with pool in Croatia”.

They learnt where should be located and how many rooms should have a villa to get the highest profit.

They visited the Croatian coast few times before the purchase and felt confident when evaluating houses on njuskalo (website with ads) and Real Estate Croatia (portal with real estate offers).

In 2016 they found a real estate in Croatia of their interest.

The arrangement of the rooms and the location seemed to be exactly what they were looking for since a long time.

They knew, they should have controlled the documents of the house and plot before going to the notary. But….

(If you are thinking now, hmmm… I’m buying a house in Croatia… why should I control the plot, your money are at risk and YOU NEED TO LISTEN to the podcast with geodesist Deni Tomisic: click here to listen to the podcast). 

But…

… the man from the real estate agency pressed them. He wrote the agreement, organised the translation and set the meeting with the Seller at the notary.

Fast. Faster. Fastest.

Commission of 3% was too attractive to let go 3 foreign buyers.

If you can read in the agent’s head, you would read:

You know… if I give them 2 more days to analyse, they may change their mind or change the conditions of the contract. I need to close the sale quickly. Immediately!

“Don’t worry our boss has 13 years of experience, our agency operates since 1997, we know how to protect you, Buyer”

This is what the investors heard from the agent. They checked and in fact it was true. The agency has been opened since 1997 and the boss started working in real estate 13 years ago.

But will they really prepare the contract to protect mine, buyer’s interests? That question was in the head of John, Anna and Peter.

Meeting at the notary has been organised. Monday morning at 9:00.

Time is running, but let’s consult the agreement with a lawyer.

First lawyer was busy.

Tick tack, tick tack.

The second one spoke only Croatian.

Tick tack, tick tack.

Should I sign what they give me without even proposing any conditions?!

Tick tack, tick tack.

Let’s do it. I am tired of searching for a house for sale in Croatia.

Tick tack, tick tack.

And if they have bad intentions? Uff, I need to delay the notary. Find another lawyer. Where is my phone to call the agency?

Tick tack, tick tack.

But… if that property is my life time opportunity? Location is perfect and so is the interior design. The season is about to start. If I don’t buy now, I’ll loose a year. And then… investments carry some risks. Even if I get the consultancy from the lawyer, I can’t be 100% sure. Lawyer I don’t know. He thinks to earn a small percentage of the purchase contract and there are little changes he will enter all the aspects (with all the workload he has).

Million thought. But there was really no time left to think. Go, go.

Phone is ringing.

John, we are waiting for you at the notary. Where are you?

9:15. Notary. Signature. Stamp. Done.

Let’s celebrate! 🎉🎉🎉

John

7 months has passed and the Seller still did not transfer the ownership on John.

John has transferred the agreed sum to the Seller, but he is still not the owner of the house in Croatia.

Agent tried to find the Seller, but he left Croatia and went back to Russia.

John’s lawyer (yeahhh now he got him) is sending letters to the Seller. They are coming back to Croatia.

He changed his residence address.

John do has the keys to the house, so in theory he could enter the place or rent it somehow, but there is a problem.

The house requires a little renovation (around 19.000 euro investment) and John doesn’t want to pump money in a house that is not of his ownership.

Sooner or later John, with his lawyers (that cost a lot too) will find the Seller. And the ownership will be finally transferred. But nobody will give John’s the money back for the lawyers and his time back to solve this case.

And he will also never get back his time and health.

When it will finish? Nobody knows.

Until today the situation is blocked.

Anna

After the purchase, Anna went with her husband to celebrate the start of their new journey as investors in Croatia in a nice bar, just on the coast of Rovigno.

They posted a photo on Facebook, got 200 likes, 100 comments with congratulations.

Today, after a year, Facebook remind that day to Anna.

Anna is a calm person. Even if someone is rude to her, she tries to ignore without getting angry.

But now, when she thinks that, on the “purchase day” she has even offered the flute of champagne to the Seller – Ivona, she rather looks like a mad Rottweiler with drooling saliva.

Ivona, tall and light blonde doctor from Zagreb, over her 40-ties.

Anna trusted her quickly.

Maybe it was because Ivona seemed to be a woman Anna always wanted to be – independent, smart and quick in making decisions?

Ivona was also quite attractive too. But Anna will never tell you that it was also a factor that pushed her to trust her so quickly.

Today, at Anna’s house nobody remembers Ivona’s name. When talking about the house purchase in Croatia, they call her THAT SL*T.

But, what did Ivona do to be called that badly???

Well, at the day of purchase the documents of the property were fine: Anna and husband controlled many things, but most importantly there was no mortgage on the property.

Unfortunately, Ivona was a real b**ch and the contract they signed had no legal guarantees to Anna, the Buyer.

And next??

How should it be? Anna transfers the money to Ivona’s account. Ivona transfers the ownership to Anna.

But how it was? Anna transferred the money. Ivona got a mortgage on the house – object of the contract. And only after she had transferred the ownership.

What a surprise to Anna when she discovered to have 100.000 euro mortgage on her new house in Croatia! Nightmare!

Peter

When you’re buying a plot. A list of things to check is really long.

In fact, it’s very easy to buy a plot that will be a nail in the coffin of your investment ☠☠☠

One of many points on the “to do list” before the purchase is checking the distance from the electricity pillar and the power left that the closest pillar has.

And it’s not something you are used to check when you’re buying a house, as you think that a house is already connected to the electricity.

Peter was also thinking like you.

He bought a house in Croatia.

And only then he discovered that his new house is not connected to the electricity.

It had only a temporary access that has been provided for the construction phase (it’s an electricity with a lower voltage not enough for you).

WHAT?!

Shock.

Ok, let’s fix it.

Electricity company is saying:

We have no voltage available for you in the village. We need to build a new pillar.

Cost of this is 900.000 kunas. It’s over 120.000 euro. OVER 120.000 EURO FOR ELECTRICITY?!

But, but, how can it be? Who should pay for this?

 Who needs electricity pays: you will pay, Peter.

Peter, you should have though about this before!!!

One simple condition in the contract and the Seller would be obligated to pay for this.

Or… maybe… one simple check and you would never buy this house???

Peter, we are very sorry for you, but now you are with this problem alone. And soon you will be also with 120.000 euro less on your account. Profitable investment in real estate in Croatia? If you expect to live 1000 years, maybe you will start seeing some returns 😉

Solution for Investor in Croatia: Candy Brick Legal Guarantee

All this problems (property not transferred on time, mortgage out of nowhere, well, out of Ivona, unexpected and huge cost of electricty connection) and more (join mailing list) have as a reason a certain type of Seller – a person who is selling you a property with legal problems or who intends to create legal problems after the signature, with intention.

Is it rare to meet such Seller? Anna, Peter and John met and it may happen also to you.

But you can learn how to identify them.

Here’s how:

You want to put conditions in the contract, the Seller rejects or says it will never happen or he’s telling you that you are exaggerating or that you don’t trust.

You are the first one asking us so many things. Trust us more instead of delaying the signature of the purchase agreement!

Blah blah blah

Be careful. When the Seller looks only at money and not your satisfaction, he will present you the simplest contract possible to close the deal quickly.

A simple contract of 2 pages means there are no paragraphs which explain what will happen if you…

  • discover the mortgage as Anna
  • can’t get the property transferred on you as it happened to John
  • see that to connect the house to electricity you need to spend 120.000 euro
  • … THERE ARE MANY OTHER “IFs” to be explained, IN THE CONTRACT!!!

Don’t worry. If it happens we will solve.

No, no, no. Before you sign all the “IFs” must be on the paper, leaving no doubts or hidden unexpected risks.

And this is what the Candy Brick Legal Guarantee covers – all the uncertainties.

So, what’s this CANDY BRICK LEGAL GUARANTEE?

When signing the contract for your Candy Brick villa you will never hear “you don’t trust us”, accompanied with a sad, unsatisfied face of an agent or a no-name seller:

What’s important for you from the legal perspective must be written clearly in the purchase agreement, with no beating around the bush, in a language that you understand.

It happens that although you don’t know Croatian language, agencies or no-name sellers make want to sign the agreement in Croatian, providing no translation.

For buyers who can’t get a Candy Brick property, even the start of their journey is painful.

At the notary in Croatia everything will seem like a video in which they push the SPEED UP x 16 BUTTON.

Agent will bring them contract, 2 seconds after, they will be pointed where to sign.

The sellers will be staring at them, waiting with their turn to sign.

The notary will be staring at them too, showing where to sign.

Signed.

Then, they will realise they signed the last paper of the contract without even seeing the first page.

And if the first one is today different that the one they have seen on their mail a day before?!

They will see when it will be all over.

Anyway, even if they give them 2 more minutes to re-read the contract, what can they understand in Croatian??

This is what happens far from Candy Brick, although on the same planet of Istria in Croatia and what you will never experience.

We will suggest you a series of conditions to put in the contract that protect your interest.

And we can do this, because Candy Brick villas has no legal problems of any type.

We’re realising a long term plan of brand development that in few years will find an interest of important international capital groups and our mission states our values and the quality of our projects.

Sample conditions

  • If the ownership is not transferred in a period of 10 working days, the Seller needs to refund the Buyer and pay a penalty.
  • The Seller guarantees that the property do have the usage permit. Shall this be missed, the Seller will refund the Buyer and pay a penalty.
  • The Seller is not allowed to burden with mortgage the property for which it has signed the sale agreement. Shall this happen, the sale agreement is invalidated.

Additionally, the sale agreement will contain all necessary conditions to ensure that you will be the only owner of a villa Candy Brick and to exclude any undesired surprise that could occur when things are not done in the right way.

20.000 euro (at least) each summer sounds great.

But being secure from the legal side is even more important for your investment in real estate in Croatia.

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