Assetz, the leading property investment specialist, yesterday released their quarterly Property Investment Tracker, comparing key performance indicators across 14 countries.

Assetz' Property Investment Tracker brings together all the key investment criteria for UK and overseas property hotspots to form a quarterly comprehensive and authoritative investment Tracker.

The Tracker reveals that in the second quarter of 2006 Bulgaria has lengthened its lead over the other hotspots even further, rising from a 116% return on cash invested in March to 137% currently.  Borrowing is now also 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.

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. Any destination hoping to oust Bulgaria from the top spot where it has been since February 2006 still has a long way to go.

Greece growing, Poland positive

Interestingly 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 much more respectable 25%.

In addition, Poland’s property market has had an excellent first half of the year. Word from the professionals on the ground indicates that prices have risen between 20% and 30% in 2006 so far, which would give tremendous return on capital for investors there who can buy with typically 20 or 30% deposit. 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.

Spain powers on while the US stumbles

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 about 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. U.S. house prices rose about 12% over the last 12 months, but much of this gain would have been wiped out by the recent currency shift.

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. This is because of increased transparency in the Spanish house-buying process. However, the market continues to be underpinned by strong demand from Spanish locals as well as overseas investors, resulting in gross rental yields of 8% and a total of 43% return on cash invested.

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.

He added: “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.”

Assetz is a group of well known and successful property investment companies offering selected UK and overseas property, education, buying assistance, finance and after-sales service.  For more information visit www.assetz.co.uk