JUNE 2010 |
www.opp.org.uk
THE RUSSIAN REPORT Advice for agents | 37 Developer profi le
need a lot of info regarding lifestyle, health insurance, setting up a business etc. They are generally not interested in renting out their property.” Andrea Marston, director, Montenegro Prospects.
“According to our research, 20% of Russian buyers buy in foreign resort areas for vacationing with families; 20% are searching for countries to retire to and 27.5% want to emigrate. Just 5.4% of the respondents consider owning foreign properties as a symbol of their high social and business status. The rest are buying as investment or for business purposes.” Ibrahim Saleh, vice president,
Kharafi Group. ... in terms of fi nance?
“It is important to note that the recession in Russia was quite different. Whilst there was an overheated economy that needed to be slowed, there was minimal debt. Less that 6% of the population has a mortgage and there was little other credit to hinder
recovery. There has been little slow down on the opening of elite shops and restaurants during the last 18 months. The crisis reminded people that growth is not always guaranteed and for some it was a shock that this fast developing economy had slowed. However this was a timely reminder and many have become more cautious. They demand accurate answers to their detailed questions and appreciate that it is a buyers market.” Kim Waddoup, CEO, A I Group.
“Higher interest rates for Russian buyers, when compared with what Western European buyers can get from their banks and building societies, and long delay in mortgage approval are holding back some Russian buyers.” Alper Apaydin, managing director, Advantage Properties International.
“The biggest problem at present for Russian clients is the mortgage situation. Very few banks are offering mortgages to Russian clients (an exception is Unicredit) and it is extremely important that clients can prove all of their income streams and provide all the documents required
by the bank. If they fail to do this the underwriter at the bank will not offer a mortgage. If they do there is usually no problems provided that the mortgage requested is €100k plus.” Richard Hazel, director, Windrush Alliance.
What should Russian agents do to sell better?
“Russian agents should offer honest and reliable independent advice to their clients, and make them aware of all the risks/gains involved. Providing a detailed due diligence report and careful analysis of investment will help to develop more confi dence and trust between agent and buyer.” Alper Apaydin, managing director, Advantage Properties International.
“Russia remains an emerging market and needs to be treated accordingly. Past experience from other well established markets cannot be used in Russia. Any developers/agents looking for success in Russia must learn the client’s requirements and local customs, taking time to formulate their offers and sales methods to suit. Listen
to professional advice from people well experienced in the market, learn Russian and succeed!” Kim Waddoup, CEO, A I Group.
How should a Russian buyer choose the right developer?
“Organise a four-day inspection trip. Stay in completed properties and view other completed projects by the same developer. The developer’s track record of completion and running the project is vitally important for buyers.” Alper Apaydin, managing director, Advantage Properties International.
“Make sure they are building and that they will defi nitely fi nish the development. Look for ready to move in property.
Make sure they have Russian- speaking staff, not only in sales but in aftersales too. And don’t go for the easy money: high commission does not mean a better property and customer satisfaction, it usually means it’s not very good and you are not giving your client the best service.’
Armando Macia, marketing director, Grupo Marjal.
Antonis Loizou of Antonis
Loizou & Associates. “Sales are not so much concluded through advertising and promotion, but more through personal contacts, including Russian friends.”
Liudmila Shapedko,
Consultant, Better Homes. “They are professional, business savvy, successful, confi dent and de- manding. They are on the lookout for markets with new opportunities.”
Julia Smagina,
Albatros Property. “In terms of commissions, Russian agents should expect from 2% up to 5%. Higher percentages are not normal - it is better to sell.”
Kim Waddoup,
CEO, A I Group. “For Russian buyers, Bulgaria remains the market leader with Turkey, Egypt, Spain, Italy and Finland close behind.”
RUSSIANreport
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