For those who are not familiar with Virtuoso, it is nothing more nothing less than a huge network of the best luxury travel agencies, with more than 17,500 advisors worldwide.
Virtuoso releases a luxury european tour report every year, in which displays what the travelers seek when looking for a perfect holiday destination. The report for this year, revealed that people are looking for pristine, unique and less-known destinations to visit.
In 2018, Croatia featured on the second place on list of top emerging destination, amongst Japan, Portugal, Cuba and Iceland.
If you think of Croatia, you instantly might think of the popular spots such as Dubrovnik, Hvar, Split and Rovinj. Although those regions are espectacular and have plenty to offer, the uniqueness and authenticity of destinations that are still not very explored and overcrowded are attracting the attention of tourists.
Davis Cup – originally known as International Lawn Tennis Challenge Trophy -, is the main and biggest international tennis tournament in the sports scene. It attracts tennis players from all over the globe, giving them the unique opportunity to represent and play for their homeland.
How did the tournament start?
With Davis Dwight, born in 1879, as well as serving as Secretary of War was also an incredible athlete. In 1899, Davis, in partnership with others, proposed the idea of an international tennis competition.
In 1900, he then bought a trophy dedicated to the winner of the first contest, the international championship was then founded. The first contest worth the trophy was a match between USA and British Isles, that took place in the Longwood Cricket Club in Boston.
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.
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!
Over 1 million tourists arrived in Istria in August 2018, generating 8.5 million overnight stays all over the peninsula
The region of Marčana in Istria, where Candy Brick villas are located, had an increase of 9% arrivals in comparison to August 2017. This generated an impressive 5,000 more overnight stays. These numbers keep increasing over the years.
The good news about these numbers are that they show the region of Istria is attracting an incredibly large amount of tourists. This is impressive considering that there are only 208 thousand inhabitants in an area of just 2,813 km².
Istria is divided into 10 officially designated cities and 31 rural municipalities. During the summer peaks, it can get overcrowded and lack of options for accommodation creating more opportunity for rentals.
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.
The Istrian Y motorway is responsible for the connection of Istria with international motorways.
Istria attracts a great amount of tourists that decide to visit the country. Investments in Croatia and improvements easing the access to the region, are extremely important for the overall picture.
The extension of the concession to Bina-Istra until 2032 was notified by Croatia to European Commission in March this year.
On the 14th of June 2018, EC released:
“The European Commission has approved under EU State aid rules a Croatian plan to prolong the Istrian Y motorway concession agreement between Croatia and the company Bina-Istra.
This will allow €165 million of new investments to go ahead, while limiting distortions of competition.”
Commissioner Margrethe Vestager, said:
“The prolongation of the Croatian Y motorway concession will promote regional growth and investment, as well as enhancing citizens’ safety and reducing congestion.
Our decision will ensure that the motorway extension can be built, while limiting any potential distortions of competition.”
The project meets EU State requirements of infrastructure investments to stimulate regional economic growth, and facilitates the traffic, not only for locals but for tourists that are willing to visit the peninsula.
This concession will permit Bina-Istra to finance the works of a 28 km long, second carriageway on the north-eastern side of the motorway.
Investments in Croatia and especially in the Istrian region are always very welcome.
The improvement of the motorway eases the access for tourists to reach, affecting the infrastructure developments in the peninsula.
Since 2000 the increase of traffic in the region has been notable. As guests are mainly arriving by car, this change will directly benefit them.
Better roads and easier access, motivates and attracts more people to come back to visit the region, and spend money in the area.
Bina-Istra has also interest on financing local roads for the towns of Višnjan, Vodnjan, Pula and Pomer, encouraging companies to relocate, base their factories and their businesses from the capital to Istria.
How does it affect your investment in Croatia?
The infrastructure developments on the surroundings, only increases the value of your investment property in Croatia.
This kind of investment improves not only the access. With the access more traffic comes along, meaning more tourists spending their holidays in the region.
The construction of the extension is expected to begin in the autumn
Before you start searching for a rental property for sale, decide WHERE to buy investment property.
In this article you will find comparison between 2 options – Candy Brick in Istria (Croatia) and Algarve (Portugal).
The choice between investment property Candy Brick in Croatia and buying a house in Portugal is simple.
Is buying an investment property about sunbathing at the pool, when tourists are out? No, don’t focus on that.
So, maybe it is about listening to your colleagues from job saying big “WOW” and then, after a deep breath, how much they wish they had a holiday home as you do??
No, it’s not about that!!!
Although investments are a journey (you have heard it in this video), when you search for a rental property for sale, think rationally and base your decision on numbers.
Focus on earnings that you will get from the property over time.
If you follow this advice, you will know where to buy investment property.
And you will enjoy your decision too, also sunbathing at the pool 😉
Time for numbers!
Let’s push Candy Brick in Istria (Croatia) and Algarve (Portugal) to the wall, so you know everything!
Overnight stays (this shows YOUR PAYING CLIENTS)
You have over 27.400.000 overnight stays in 2017 in Istria (Croatia). This are Candy Brick clients!
(The number of overnight stays is published month by month by the Istrian tourist board. You can easily monitor it here.)
Now, you need to see the number of overnight stays in Algarve.
The first try didn’t work out well.
I found only old data and… and the most recent article was not very promising for an investor considering Algarve, when answering the question where to buy investment property.
That was an article about a large drop in the number of UK holidaymakers in Algarve.
Old data from Portugal makes you think that nobody truly cares about providing reliable information to investors, who want to check if Algarve can be called the best place to buy a holiday home abroad.
Let’s keep on searching using different words, limiting time frame. You need fresh batch of data!
Finally, you’re visiting the website of Statistics Portugal – that one should be the most valid one with updated information!
3 days ago (!!!) they published a document, which shows data on tourists arrival from… 2016!
OK, you don’t want to share with investors, who want to know where to buy investment property, data from 2017.
Then, we’ll make a usage of 2016 data: there were 18,1 mln overnight stays in Algarve in 2016.
(But, just tell me, how is that, that Istria releases official statistic data month by month??!).
Overnight stays: OVER 27,4 mln (Istria, Croatia) vs Algarve 18,1 mln (Algarve, Portugal)
The difference is huge, of almost 10.000.000 paid nights!!
It’s like you had almost 10.000.000 more occasions to rent your Candy Brick property in Istria (Croatia), than in Algarve.
Not bad at all, especially when investments are a “game” of numbers and experience. And with Candy Brick in Istria you have both 🙂
Another aspect to compare: AVERAGE BOOKING of almost 7 days (Istria, Croatia) vs 2,5 days (Algarve, Portugal)
You can’t know where to buy investment property, if you don’t know the average length of booking.
In practical terms (read: in $$$), while in Istria you pay for cleaning once a week or once in 2 weeks, in Algarve you pay 2-3 times a week.
Or you want people to stay in dirty rooms and dry up with used towels??!
Given the medium stay of less than 2,5 day, with a property in Algarve your fixed costs get higher and automatically you make less profit with you house.
At the same time, minimum bookings that you receive, as an owner of Candy Brick property in Istria, are guaranteed of 7 or 14 days.
Type of client who comes to Istria and Algarve and his spending possibilities.
If you have a couple of children, need to travel with a bag full of toys and a dog (sometimes with 2 and a cat too :)), travelling by plane gets just impossible.
You just choose a family-friendly place in the sun, that you can reach in few hours by your own car.
And this is Istria (Croatia), where Candy Brick villas are located.
Who spends here mostly time and book our villas? Families, mostly from Germany, one of the richest European nation.
Pictures illustrates the reasons why more than thousand words.
Distance by car from Germany to Pula, Istria (Croatia)
Family which booked your villa, leaves early morning, and they can have lunch at the terrace of your Candy Brick villa 😉
Distance by car from Germany to Faro, Algarve (Portugal):
6 days of exhausting travel with children and dog are just impossible for your villa clients who mostly have 14 days of holiday.
In fact, German holidaymakers prefer going to Istria (Croatia) with their families and not to Algarve.
Family friendly atmosphere
Istria is preferred destination by families, not only because its distance.
The second reason is that Istria is a truly family-friendly place offering high cultural activities.
This is what you get if you google “faro algarve party”
Young people (read: empty wallet), who book cheapest apartments on Airbnb or hostels in dormitory rooms.
And this is when you google “pula party”:
In almost all the pictures you can see Amfiteatar in Pula (Istria).
This place hosts concerts, theatre and other cultural events, which costs more than a single euro to enter in.
Such events attract a different than in Algavre type of client to Istria.
Families who come to Istria have high requirements for cultural activities and book accommodation in Candy Brick villas with pools and not in cheapest apartments or hostels.
Where to buy investment property: TIME FOR KNOCKOUT
Families, who come to Istria (Croatia) book mostly a very specific type of accommodation: villas with pools.
If you own a Candy Brick investment property, you target a yearly earning of 20.000 – 25.000 euro in a year, for years.
And tourists make bookings for your villa a year in advance! Often anticipating a part of total payment different months before the season!
What’s more, tourists book for 7 – 14 – 21 days, long periods. Rental, arrivals and departures are perfectly organised.
And no, Candy Brick property doesn’t cost 500.000 euro!!!! 🙂
And what about Algarve? Tourists stay mostly in hotels, holiday villages and holiday apartments.
They book rather last minute (younger and more flexible than in Istria tourists) and stay for 2,5 days in medium only.
Nobody will book your hotel room or an apartment on Airbnb a year in advance guaranteeing you 20.000 – 25.000 euro in a season!
Impossible in Algarve, but also very difficult if you buy a property from a no name sellers or via a real estate agents, who cares only about his commission in Istria!
5 Security Guarantees, which protects your interests to get 20.000 – 25.000 euro in a season
Candy Brick villas are the ONLY ONE covered by 5 Candy Brick Security Guarantees, which protects your interests.
With a purchase of a Candy Brick villa you enter a narrow circle of (9) privileged investors, who get:
- Legal Guarantee
- Quality Guarantee
- Rental Guarantee
- Local Master Team Guarantee
- Exit Strategy Guarantee
Guarantees will be explained in next articles 🙂
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In the next articles you will also find comparison between Croatia and buying investment property in: