Parnu River Development

New apartment for sale in Estonia. The development is on the River bank of the Parnu River close to Parnu town centre and all the facilities Parnu has to offer. The development has wonderfull green surroundings and the River is suitable for sailing on with over 60km of navigable river.

Description : Key selling points

Cosy Residential Complex
Quiet desirable location on Parnu River bank
Close to Parnu centre and excellent beaches and facilities offer
Finance Available
Excellent buy to let potential

Parnu river development is located on the banks of Parnu River. Property prices are expected to increase rapidly in the area because of the location, excellent services and lovely river setting.

Location The development is on the River bank of the Parnu River close to Parnu town centre and all the facilities Parnu has to offer. The developments has wonderfull green surroundings and the River is suitable for sailing on with over 60km of navigable river. Also excellent fishing can be had on the river. With in a very short drive is one of Estonia’s premier rally tracks where you can learn to rally drive should you wish. Close by is also a local pub. There are just 10 apartments in each building which keeps the feeling of privacy. The local area is quite and green, with roads and paths and privately owned houses surrounding the area. Excellent walk’s along the river bank and local woodland. The apartments are of a very good size, varying from 47-71 sqm. This size of apartment is in very high demand as they are ideal for the buy to let market and they are extremely competitively priced.

Key Facts 8 individual blocks of 10 apartments in each block 2 floors per block High quality materials and finishes Completion end of December 2007 Property Management Available Only 30% deposit required Finance Available

Buying in Estonia Foreigners are freely permitted to purchase property in Estonia. The purchase of land can be restricted if you are looking at purchasing large tracts of agricultural land However you are permitted to purchase areas for development and smaller holdings and all of our apartments, villas and land are fully vetted and sold as freehold. Our advisers will be able to assist you with any questions that you may have with regards to land ownership

Typical Payment Terms This is dependent on whether you are purchasing a new off plan property or a resale property. If you are interested in a resale property our advisers will be more than happy to guide you through the buying process for your chosen property as this does vary from property to property. If you are looking at an off plan development the buying process is relatively simple. Estonian developers will usually ask for a non-refundable deposit. This amount varies but is typically a £500 holding fee followed by a further downpayments normally due 15 to 30 days later of 30% of the value of the property. Once again our advisers will be able to assist you.

Stamp Duty/Transfer Fee/Taxes Tax Liabilities Stamp Duty - 0.3% to 0.5% Stamp duty in Estonia is paid on a sliding scale and as in the UK this is payable when the property deeds are transferred (i.e. upon completion). Property Price (EEK) Property Price (GBP) Stamp Duty (GBP) 50,000 2,178 11 100,000 4,375 17 500,000 21,783 37 1,000,000 43,565 62 5,000,000 217,828 630 10,000,000 435,658 1739 * Exclusive of VAT, ** in case of sums over 10 million, an additional fee equalling 0.4% of the transaction value is applied. Land Tax - 0.2% to 0.7% Land tax (the equivalent of council tax) is payable annually and the amount varies depending on where your property is located. At present the rate in Tallinn varies between 0.2 to 0.7 percent of the assigned value of the property. As in the UK this tax is normally paid by the tenants. Income Tax – 23% Flat Rate Estonia has a flat income tax rate of 23% and this could decrease as the government in publicly committed to reaching 20% (in 2009). All legitimate expenses associated with the property (i.e. mortgage, management costs, maintenance, mortgage interest, any visits to inspect the property) from your before tax income. We have in house English speaking accountants and property management teams that will be able to assist you with your accounts. Capital Gains Tax (CGT) - 23% Capital Gains are considered as income and as such are charge at the prevailing rate of income tax (currently 23%). The Estonian government is publicly committed to reducing the rate of income tax to 20% in 2009. It should be noted that our property prices include notary fees, land transfer fees to make your transaction easier so that you are not caught by an unexpected fees or bills when purchasing your property.

Finance Finance is available up to 70% loan to value on the development on full status basis for foreign investors. Interest rates are amongst some of the lowest to be found anywhere in Europe. Our in house financial advisers will be able to assist you with any mortgage questions you may have and they will also be able to assist you with your mortgage application forms. An indication of the associated cost and a typical mortgage repayment cost is included with our purchase costing table

Purchase & mortgage cost examples Example 1 Example 2 Apartment price : £35,000 £53,000 Area size sqm: 47.2 71.8 Sales Fee Nil: 0 0 Financing First deposit %: 30% 30% Typical Interest rate: 4.5% 4.5% Term of years: 25 25 Deposit to developer: £10,500 £15,900 Monthly mortgage cost: £136.18 £206.21 Total initial cost up front: £10,500 £15,900 Pärnu – Town between the River and the Sea Pärnu, the best known Estonian resort, is more than just a summer town. It is also a place for conferences, theatre performances and concerts. Besides being a resort, Pärnu is also a Hanseatic town, a harbour town and a university town. However, the sleepy rhythm of Pärnu changes completely when the flag of the Estonian summer capital starts flying high on the summer equinox – life on the beach, dozens of festivals, night clubs and the big party crowd that have moved here. People say that if you haven’t seen your friends for some time, you will see them all in summer in Pärnu. The pleasure of bathing in the sea in Pärnu was discovered by the Baltic Germans in the 19th century and the population of the town tripled in the 20th century as people from all over the Soviet Union flocked here. And now, in the 21st century, we are being discovered by Scandinavia and the rest of Europe. Spas and recuperation centres are booked a year in advance.

The attraction of Pärnu lies in the shallow sea bay, which becomes warm in June, and the fine, white sandy beaches. There are other beaches besides the town beach in Pärnu where people can spend their holidays – Valgerand, Kabli, Matsirand, Uulu, etc. And you can get a tan particularly quickly here thanks to the clean sea air. Activities in the area include bowling, billiards, petanque, squash, amusement parks, paintball, tennis,swimming, cycling, golf, horse riding, canoe trips, fishing, hunting, hiking, skiing, flying, ATV rental, fitness, Stick walking, badminton, saunas, boat trips, adventure tracking, archery and yachting. Banking Estonia is a lawful member of the European Monetary Union. At present the Estonian currency (EEK) is pegged to the Euro. The Estonian government anticipate conversion to the Euro by January 1, 2007 as a target date. At such time the European Council will take a decision that Estonia is ready to participate in EMU and the national currency in Estonia will be substituted by the euro. Economic Overview and why to invest in Estonia House prices in Estonia rose by more than any other European country last year, the Royal Institution of Chartered Surveyors (Rics) has found. The Rics report on the European housing market shows that Estonian house prices rose by 28%, ahead of Denmark at 22%. By contrast UK house prices rose by just 2%, while prices in Germany actually dropped by 2%. The report suggests that prices in Northern Europe are now catching up with those in the Mediterranean