Investing in Romania, is it a good idea?

[cochranehanna]

Property Romania

It appears as if it is the sellers lawyer and not your own when he is giving you such bad advice. Transylvania Investment is correct in what they say. Please proceed with caution.


David Howe

Investment Romania

HI David

Thank you for you advise. THe lawyer had emiled us with a memo asking for money and documents to be sent to him. I am awaitin a response from Transylvania Investment in relation to this company thing.

Can you tell me if you have any information on the Sydney development?

 

[David howe]

HI David

Thank you for you advise. THe lawyer had emiled us with a memo asking for money and documents to be sent to him. I am awaitin a response from Transylvania Investment in relation to this company thing.

Can you tell me if you have any information on the Sydney development?

We are familiar with the development and the area in general. Please contact us direct to discuss further your dilema.


David Howe

Investment Romania - Property Romania, Invest Romania, Investment Romania

 

[teepee]

is this the Horizons development? I am planning a visit out to Arad in 2 weeks time for a site inspection , so would appreciate any other feedback you have.

 

[David howe]

is this the Horizons development? I am planning a visit out to Arad in 2 weeks time for a site inspection , so would appreciate any other feedback you have.

No this development is in Bucharest.


Investment Romania - Property Romania, Invest Romania, Investment Romania

 

[teepee]

Is this the Horizons development in Arad? I am planning an inspection trip in 2 weeks time so any feedback or advice you can give would be appreciated. I know that bermo are the developer on the Horizons project.

Has anyone investigated or invested in the development in Arad from Casa Rom - since transferred in a very unsatisfactory way to Bermo. I would love to know other people's views and experience. I refused to transfer my contract because they could not meet the legal requirements so am still holding the original contract but have received very little communication from Casa Rom, and nothing from Bermo despite several e-mails and phone calls.

 

[David howe]

All depends on what price people are paying for it. Everything can be value.


David Howe

 

[romanianoffer]

Value at Sydney development?

David, perhaps you can show me where is the value at above 300,000 EUROS? For a town house/apartment in Tunari?
Obviously when people from abroad all that see on the net is Sydney they have little idea of the reality of the market...

 

[David howe]

David, perhaps you can show me where is the value at above 300,000 EUROS? For a town house/apartment in Tunari?
Obviously when people from abroad all that see on the net is Sydney they have little idea of the reality of the market...

I totally agree with you that it is not worth the colour of 300k. What I said was it has a value and it does!!!!! When I replied to that thread it was because I felt your comments were unjust to the development and developer.

I agree it is not great, but I do not think it is as bad as you are saying. What I see terrible about this development is the price the intermediary agents charged people under the phoney illusion of investment. The developer cannot be blamed for this. I am of the opinion that the price the developer was originally asking and offered to the market was about right or possibly slightly on the high side, but only marginally. The intermediary takes more profit here than the developer in my opinion. That share in my opinion was about or in excess of 30% of the sellers initial asking price.

 

[David howe]

Sydney and the likes done by this developer could have only value if somebody desperately needs to live in that area. However, that means mostly Romanians which so far they had little choice. The time is now changing since there are now much better developments than Sydney and actually cheaper. All in better locations still in the north. If anybody is interested just contact me directly.

As for investment at the current prices if anybody is stupid enough to buy such a thing will see for themselves. It has the value of loosing money.

And David don't worry about South Pacific profits, I can show you they are more than 100% you can't believe the price at which they got that land. Anyway is a past thing Romanians will not buy there anyway.

I do not agree with you! Everything has a value and Romanians will buy if the price is right. You are under the illusion that the price is what the developer/agent is asking. At 65% of the asking price they represent value. No one can be so naive as to think they have no value. Personally I do not like the development, but would never be so naive as to say that it has no value.

Show me a better developemt than what Sydney can be bought for, not what the developer agent is asking? I can get you Sydney for 210,000 negotiable for 145 meters constructible. Please now show better alternative.

Regards.


Investment Romania - Property Romania, Invest Romania, Investment Romania

 

[ovra]

hello

Hi everyone,
I was just wondering if anyone had the heads up on what the outlook is for investing in Romanian property?
Are there any areas to target or steer clear of and are you aware of any budget airlines that fly out there?
It seems the developers haven't been over in force and saturated the market yet, would I be right?
Also, how long on average does it take for a sale to go through?

Thank you very much.

Romania is still a very good market to invest in. but not all the areas. some of the areas are over developed and the prices ar high. You have to concentrate near the big cities and black sea coast. I'am a Roumanian and along with my goodfather we have invested over 20 mil euro in this market and it still generate medium to high returns. Ofcourse he invested the money but i did all the work. and belive me is hard as a Roumanian to find the real oportunities on the market.
there are several companies that fly here.
i dont know if you been here but i ashore u will be susprised what u find here
So if you look carefully for good opportunities

 

[southernknight]

southernknight

Hi David,
This week a friend in Bucharest wrote that he is attempting to purchase an apartment. He was approved for a loan of 75,000 euros, but at the last minute the bank told him he needs to pay 2.5% of the loan in advance, could I help him? Are purchasers normally required to pay 2.5% in advance, and is 75,000 euros a reasonable cost for a 2-bed apartment. Thank you for your help.
Mark

Hi kevin,
I'm not much of a specialist. I can tell you about my experiance with Romania: I bought a flat in Bucharest and I'm buying one at the moment in Transylvania. Both deals required 10% deposit until completion ( for the one in Bucharest I have to pay another 15% in one year, as the completion is later on). I am looking at the moment at Cluj, I've heard only good things about it and it is forecast to do great!
If I can help you with anything, please let me know.
Have you invested at all in romania?

 

[deanedgar]

2.5% advance required

Southern Knight,

You dont mention what the loan to value is ? Generally the banks will loan to foreign nationals, but require anywhere from 10% to 35% deposit. So if you have a 1005 loan, 2.5% is reasonable. However being told this just before you need the cash, is typical of some lenders

Dean

 

[southernknight]

Hi Dan

Thanks for responding. My friend is a Romanian national. I believe the loan is for the entire amount of purchase, or close to it. I understand it is a special loan for couples with good incomes. He called the 2.5% a "tax" which may be a bad translation. I would be lending him the money, I just don't want to scammed.
Thanks again. Mark

Southern Knight,

You dont mention what the loan to value is ? Generally the banks will loan to foreign nationals, but require anywhere from 10% to 35% deposit. So if you have a 1005 loan, 2.5% is reasonable. However being told this just before you need the cash, is typical of some lenders

Dean

 

[deanedgar]

loan

Thanks for responding. My friend is a Romanian national. I believe the loan is for the entire amount of purchase, or close to it. I understand it is a special loan for couples with good incomes. He called the 2.5% a "tax" which may be a bad translation. I would be lending him the money, I just don't want to scammed.
Thanks again. Mark

Ok, its probably upfront 'commission'. I work with Credit Europe, Bancpost and BCR here. I would be happy to have a chat with our friend, if you want.

Dean

 

[David howe]

Hi David,
This week a friend in Bucharest wrote that he is attempting to purchase an apartment. He was approved for a loan of 75,000 euros, but at the last minute the bank told him he needs to pay 2.5% of the loan in advance, could I help him? Are purchasers normally required to pay 2.5% in advance, and is 75,000 euros a reasonable cost for a 2-bed apartment. Thank you for your help.
Mark

Is this 2.5 or 25% of the loan. 2.5% is very high for an arrangement fee. 25% of the property valuation is the norm. As for 75,000 for a 2 bed apartment. I know of no where in Bucharest that you would bbuy such a property for 75,000 euro. Average 2 bed apartment will be around 100 meters constructible including common area. Pure build costs on this alsone would make it impossible at this price. No one is buying a 2 bed apartment anywhere in Bucharest let alone Romania at this money.


David Howe

Investment Romania - Property Romania, Invest Romania, Investment Romania

 

[Transylvania Investment]

75k for flat in Bucharest?!!!

Dear Mark, am also very curious where your friend found an apartment in Bucharest for so little money. Has he checked up the ownership issues thoroughly prior adventuring into purchase?
Also bank's arrangement fee is too high. Could you tell me what bank he used?
Thanks,
Diana Marinescu
Transylvania Investment

 

[romanianoffer]

Bucharest apartment for EUR 75 K

Actually, it may be possible to buy an apartment in Bucharest for this money. Obviously will be the end range of the market and in some bad condition. And for this I would NOT advise the purchase. If not exactly Bucharest city then again chances are even higher, since in the suburbs there still are offers in that range.

However, if you extend your search outside Bucharest then you can then buy a NEW 2 bed one in other cities. From Mark's message is not quite clear where his offered apartment actually is. That's why it is important that Mark uses a property professional to guide and help appropriately.

 

[Transylvania Investment]

Some Romanian issues, pour les connaisseurs

Romanianoffer, I agree with you if you buy a flat in a red dot building perhaps you could get it for 75k, perhaps I say, because in Bucharest there are so many schemers and also so many naives to please them. Most of the foreigners have no idea Romania is a seismic country (seismic refers to earthquakes) and we happen to be shaken quite often, not to mention we expect a big one soon (meaning degree 7 or 8 on Mercali scale, pour les connaisseurs). Red dots were placed on the buildings already affected by earth-quakes that need immediate consolidation and that might collapse even if a big truck passes on the street! And there are many such buildings, particularly in the well respected and let's say desirable areas of the Romanian capital.
You may also buy a flat in a "nice" neighbourhood like Ferentari or you can even venture to Magurele, however don't be surprised if someone beats you up just because you happen to have "a funny face" and you don't belong to the local street gang. Anyone willing to get a place in the ghetto? Not me, nor any sane person.
As for "luxury developments" such as Pipera or Tunari areas, I'm very certain when the real estate market will crush and will crush soon, those would be the directly affected areas (frankly, I can't wait!). Common sense, which is I think very handy to anyone who keeps the eyes open when walking on the street, can tell you a city with MAJOR infrastructure problems and no systematic program to remedy the situation on the medium term at least, is not going to put tenants into apartments/villas built too far from the hot spots of the metropolis. So no wonder so many investors call saying they are forced to set up company (very bad deal, btw) in order to buy new developments in the surroundings of Bucharest and are being pressed to buy furniture packs of 10k when the real value of the Ikea quality furniture the service company places in is 4 to 5 k! No wonder fortunes are being made in Romania over night! I thought snobbery is a Romanian issue, but I see how easy it is to ask and how many fools gather around you to give! Question is once you bought, can you resell for a higher value and after paying all taxes are you left with anything?
I don't like Sydney either. Of course everything that exists on planet Earth has a value, but is the asking price correct?

Regards to all,
Diana Marinescu
Transylvania Investment

 

[nadiala]

I have been visiting Transylvania regularly since 2005. I bought an apartment and a piece of land (the same one I cannot build on for some reasons) in this fabulous region of Romania. I am outraged at the metamorphosis of the urban landscape in the area. Do the developers know that they are disfiguring their towns?Have they got any idea of what they are building? It's a urban tragedy; municipalities have no control over the building permits enforcement (except when it's a foreigner trying to build a "home"). I am so sad to see those pointed roofs tearing the skies of Cluj apart...I am disgusted by the rows of project houses that are supposed to look better than the communist era buildings...well, I don't think so, they are as ugly believe me! I have pictures to prove it if someone challenges me. Romania is following the path of "Concrete Bubble" (another nickname for Dubai). Speculation oblige!!! Sorry if I sound "blasee"...I am.

 

[nadiala]

Romania, a urban disaster

I have been visiting Transylvania regularly since 2005. I bought an apartment and a piece of land (the same one I cannot build on for some reasons) in this fabulous region of Romania. I am outraged at the metamorphosis of the urban landscape in the area. Do the developers know that they are disfiguring their towns?Have they got any idea of what they are building? It's a urban tragedy; municipalities have no control over the building permits enforcement (except when it's a foreigner trying to build a "home"). I am so sad to see those pointed roofs tearing the skies of Cluj apart...I am disgusted by the rows of project houses that are supposed to look better than the communist era buildings...well, I don't think so, they are as ugly believe me! I have pictures to prove it if someone challenges me. Romania is following the path of "Concrete Bubble" (another nickname for Dubai). Speculation oblige!!! Sorry if I sound "blasee"...I am.