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.
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.
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.
When arriving to Croatia, you might wonder where to go for a classy and refined experience. Istria has many of those places but one worth the visit is Opatija.
You won’t regret sightseeing this elegant city of Rijeka, 1 hour and a half driving from your Candy Brick luscious investment property, is a must go day trip to take your family or to relax on your own. The great thing about this city is that it can be delightful during the summer but also during the winter in Croatia.
If you are looking for a gluten-free diet while in Istria, you are in for a treat. Croatian food is traditionally is based naturally in gluten-free ingredients, while celiac-friendly pizzas will make your Croatian food experience complete.
Croatian food and Istrian cuisine is celiac-friendly
Traditional Istrian cuisine is a Mediterranean one, with a dose of continental influence. Locals rely on fish, olive oil, fresh fruit and vegetables, and throw in a piece of pork or ox meat for good measure.
For those looking for a healthy, gluten-free diet, it means their options are readily available in farmers’ markets, restaurants and shops. A bit of planning in advance will make sure they taste all the flavors of Istria.
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.
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.
Your Candy Brick investment villa is not only a luscious and high quality property but it is also self-sufficient
Considering that Croatia has around 300 sunny days per year, the potential for solar energy generation here is massive. That’s why your Candy Brick villa comes pre-installed with photovoltaics and solar thermal water heating. So your villa will generate enough energy to cover it’s electricity need.
You can classify the types of solar energy in two systems:
- Photovoltaic (PV)
- Solar thermal
PV technologies produce electricity directly from sunlight by converting solar energy into electricity. Many PV cells are linked together to make up a PV solar panel. Instead, solar thermal technologies use the solar energy to produce heat. Electricity is then generated from the heat collected.
Both systems generate direct current (DC) energy and then convert it to usable alternating current (AC) energy with the help of a power inverter. AC energy then flows through the home’s electricity panel, distributing energy accordingly.
What will these system supply electricity to?
Well, apart from providing the electricity to charge your phone, laptop, or maybe even your Rimac Concept One electric car. The solar energy systems on your investment villa will also provide the heating for your water. As a result the underlay of pipes of water placed below the flooring will provide you with spectacular underfloor heating.
These systems will also supply energy to other applications implemented in your investment villa:
- Heating and cooling for the swimming pool;
- Air conditioning for the whole property;
- Hot water for showers and general use;
Zero electricity bills maximise even more the financial return of your investment villa
The cost of electricity bills coming from old and polluting sources can be quite a burden on the pocket, as well as for the environment. Opting for an innovative and clean way to generate energy is the only way to reduce or even extinguish this cost completely.
So, thanks to these innovative systems producing enough energy for your investment villa to be completely self-sufficient, you will get the best return on your investment.
Can this get any better? Yes, it can!
Any excess electricity your solar systems produce that is not used, can be sold back to the grid to make you an extra income. Consider, in particular, the times when you will not be enjoying your investment villa or it is not rented out to guest. It will be generating you an extra income. This could be between €3-4 a day! In the future, your income could increase up to 10x should the government reintroduce feed-in-tariffs
In 2017, prices for a property in Croatia rose 2.3%
According to the Global Property Guide:
Properties in Croatia best performers are coastal regions, like Šibenik-Knin County (4.2%), Istria County (3.13%), and Lika-Senj County (1.94%).
The costs of living involves different services and items.
Accommodation, food, clothing, transport, activities, education and some eventual meal or drink out.
All of those items are then compared to the wages that a single person averagely earns, making it possible to measure if the income generated by a this person is enough to cover those expenses.
A very interesting tool to check or even compare – not just the costs of living, but also other categories such as, crime, quality of life, health care and other aspects that living abroad or moving might involve – is www.numbeo.com
According to Numbeo, the cost of living index of Zagreb, is ranked position number 128 out of 206 European cities entries.
The lower the city is ranked, the cheaper the cost of living is, listing Zagreb before only 78 cities, mainly Romanian, Russian and Ukrainian cities.
The data related to the costs of living in Croatia is an input of 12843 entries in the past 18 months, from 886 different contributors. Having the last update in June 2018.
The costs of living for a single person in Zagreb is around € 593 without rent.
The expenses include:
- Eating out;
- Coffee shops;
- Local Cheese,
- Monthly Utilities;
- Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment,
- Prepaid Mobile,
- Entertainment and Activities;
- Fitness Club,
The cost for renting a 1 bedroom apartment in City Centre is € 400, if not rented on high seasons when prices can vary.
Average Salary in Zagreb.
For instance, the average salary for a waiter or a supermarket worker is around € 400, taxi driver € 600 and a school teacher around € 700.
The average net salary in Zagreb is around € 850, like anywhere in the world it varies and depends on the sector that the individual works in.
Certain occupations tend to have higher wages, such as IT sector and like.
Successful entrepreneurs come here and make their own opportunities by investing in property or starting businesses.
Many times, they also have a competitive advantage by bringing in new innovative ideas and ventures that have yet to hit the market here.
The country can not only be an affordable cheap place to live, depending on your occupation.
It also has a few other really important characteristics that can not be quantified by currency, such as safety.
Croatia may be one of the last truly safe places on earth. Kids play outside without the parents watching over their shoulder.
There’s a strong sense of community in each town and village. For this reason, it’s a great place to raise a family.
This topic brings the fact that there are two separate costs of living. One, is the single individual, and the other is the costs of living for a family, for example, a family constituted by 4 members.
The costs of living for a family are around € 2.013 without rent.
Their expense for accommodation is around € 691, for a 3 bedroom apartment in city centre.
Other costs for a family could involve:
- Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child = € 178
- International Primary School, Yearly for 1 Child = € 1.387
- Household Supplies, approximation using (groceries index) x 4 family members = € 57
All of the estimative are based on average costs of living and prices, and of course it can vary depending on, occupation and power of buying of each individual or family.
Croatia is an affordable and safe place that accommodates single individuals but also families greatly.
All of the numbers ranks Zagreb in Croatia 323th out of 539 with the lowest costs of living cities in the world.