Research from property investment specialist Assetz shows Bulgaria has lengthened its lead over other overseas hotspots rising from a 116% return on cash invested in March to 137%.

Borrowing in Bulgaria is cheaper than it was in the spring, with mortgage rates having fallen from 7% to 5.95%. Deposits required have also dropped from 30% to 25%, meaning greater gearing and bigger returns for investors.

Assetz said Bulgaria has now established a stable resale market and is proving it has staying power as an investment destination, especially with the strong tourist market in ski resorts such as Bansko, the introduction of no frills airline routes and the approaching EU membership expected in 2007.

Greece is now showing positive price growth, with house prices having risen by 7.9% over the last 12 months. This brings the total return on cash invested from 2% previously to a more respectable 25%.

It said Poland’s property market has had an excellent first half of the year. Indications are that prices have risen between 20% and 30% in 2006 so far.

Warsaw’s property prices remain amongst the lowest in Europe and the introduction of major industry to the city is attracting an increasingly young and wealthy population.

Investors in the United States have seen the value of the US dollar fall from $1.75 in April to $1.88 currently to £1 Sterling, which equates to a 7% loss of capital for British investors who bought there for cash or remortgaged their UK home in order to buy. However, those who took out an American mortgage will be less concerned, as the Sterling value of their debt will have fallen by the same amount. US house prices rose about 12% over the last 12 months, but Assetz said much of this gain would have been wiped out by the recent currency shift.

Finance Update:

Mortgage funding for developing countries is available from up to 85% to make these investments much more palable on the investment budget. UK Remortgage business is booming for clients looking to raise deposits for overseas purchases from their main residence in the UK says

With capital gains of 12.8% Spain is also still in growth mode, albeit at a slower rate than in 2004 and 2005. Official house prices have continued to rise, but Assetz suspects this is mainly the result of rises in declared house prices, with less cash being involved in transactions.

Stuart Law, managing director of Assetz, commented: “The choice of overseas destinations available to investors is growing increasingly wide, driven by EU expansion, new low cost flight routes and the prospect of hefty returns particularly in emerging markets such as Bulgaria and Poland. More traditional destinations such as France and Cyprus are still stacking up very well against the competition and hold huge appeal for investors who are attracted by a stable growth pattern, uncomplicated buying process and guaranteed resale market.

“However investors keeping an eye on home turf will be interested to know that the six major UK house price indices are now averaging 6.8% growth, resulting in a healthy 44% return on cash invested.” are as always very pleased with this news and are happy to assist investors looking to purchase properties in the hottest locations globally.