Hello everybody!
This is dedicated to everyone who considers investing in Romania. If you have any doubts, thoughts, experiences that you might like to share, you are welcome to do so. I personally think Romania is a very resourceful place and one of the best investment destinations in Europe. I would not like to enter details here, but I think Romania's potential for investment exceeds Bulgaria or even the Baltic Region.

This is one of funniest posts on this site.

Sounds like Ceausescu's propaganda.

If you do not have time to offer details, why bother??

I see you are an expert in Ceausescu's propaganda, Catara. May I ask if you have studied it or if you worked in PR or Public Communication fields? I would be impressed if you were an expert in so many fileds, wow! However it would be very amusing for me and very silly for you had you simply used a name in order to describe everything you don't agree with. I never considered forums to be a place for serious documentation and accurate market research, but it seems that you have very few, yet strong opinions about it and you think it is professional to start analyses here about the potential of a market.
Apart from the fact that one can write books on why Romania has more potential for investment than Bulgaria or even the Baltics, it is quite an obvious choice if you think about it from a reasonable perspective as Romania is bigger than Bulgaria and a bigger country means a bigger market for goods and services and for real-state as well.
I shall give you a few data as I see you thirst for knowledge, although you have a funny way of getting it:
In Romania the GDP growth is attributable to industrial investment unlike Bulgaria & Turkey where foreigners buying ‘Dream Overseas Holiday Homes’ (Investments) have contributed so much to the extent of their GDPs.
The inflation rate is the highest in Romania, but there have been and continue to be credible reductions in the past 6 years
As for unemployment rate, you will note only Hungary is 1.9% lower that Romania, whereas Bulgaria has almost twice the percentage of people out of work.
Romania has the highest investment after Bulgaria, compared to Turkey, Poland, Hungary and of course Bulgaria.
The public debt is very low in Romania and this is a very important factor when we talk about investment potential.
You don't have to believe me, Catara. Take a look on the World Bank website www.worldbank.org for a change (if you have the time and desire to do so of course and if you think too many letters might actually not harm your sensitive eyes)
To the data I provided before please add the level of education in Romania used to be quite good, indeed many bright minds left this country and maybe nowadays the youth of Romania is on average not so skilled and intelligent, yet you can prove me wrong and I hope through your future conduct you will do so. However, your last comment was very much in the "nowadays" category and it's a shame. Yet there is hope as I said, because I can't help but notice you have a very inquisitive mind. To feed you with yet more analyses (I'm sure you have investigated this website thoroughly before posting here and probably you think you have some experience with the investments in this country as well) please take a look at www.propertysecrets.net as well. Oups! there you have to pay something. Well, I'm sure that for a successful consultant such as yourself it will be no problem.

If Romania is such a great place, why are most of the people of working age in Spain?

Unfortunately for you, I read daily many newspapers from Romania and I know the disaster over there. 3 milion people left after EU opened the border in 2002.
besides, all the capable persons think of leaving the corrupted country. If you do not know the right persons, it is impossible to succeed in Romania.

In what concerns the property, the prices are artificially high such that the thieves can squeeze the last drop. I have invested there, I made some money and I am still making money with my properties.

Nevertheless, I really do not see any reason why people would "invest" in Romania except maybe land. Romania is ruled by bandits and liers, until some more honest people come to power, there is no hope.

Toate cele bune.

Catara, I live in Romania, so my experiences with this country are very direct. I see many things changing. This is not a wasteland, lawless and full of thieves. As disastruous as you claim it is, economy is growing, the people who work in Spain return and invest here quite a lot. You must not forget Romania made it into the EU and is very likely it stays there. As a matter of fact I've just seen on the news a Romanian family who got robbed in Bulgaria and their car was set on fire, so happy invest there! Don't get me wrong, I've been in Bulgaria too, I have friends there as well, it is a wonderful country, but I think Romania is more interesting from the investment potential perspective.
As for your properties, you say you have invested in Romania and the properties are offering you some revenue. I don't know what sort of revenue, I see you are sad about investing here. It's very bad that when you made the purchase you haven't had a good adviser to tell you what is worth buying and what is not interesting.
On the other hand, I've met so many investors who refuse to pay legal advice or financial advice and claim they know them all, so they'd rather spend 60k on something because the agent/owner seemed nice, than talk with a specialist and pay him/her 1000EUR! They would not pay 200EUR for consultancy and legal help. Actually they think Romanians should serve them for free. When I meet these kind of people with this slave masters attitude and mentality, I become disgusted and am very glad for all the misfortune they might encounter in this country or elsewhere.
Another matter regarding investing in emerging markets is the way you look at things: if you expect a great capital growth and a huge rental return in a country already developed, you should forget about it, go to the pub and get hammered! Capital growth comes only in a country under development and rental return is improving as well as the country is growing.
May I ask on what grounds do you fundament your allegation about land and only land?

Markinspain, so did the Polish when they entered the EU. As a matter of fact Ireland is full of Polish nowadays and if you don't trust my word take the plane to Dublin. And not only Ireland: UK, Holland, France, Germany, etc.
Are you trying to tell me Poland is a rubbish country? Bulgarians flooded Europe as well, take a look around!
Many Romanians working in Spain want to return home, they have money and they begun to invest in properties back home. Their families are back here, so if you are afraid they might stay in Spain, I assure you very little of them will chose to remain there when the wages here suffice their needs. Many declare that a 600EUR salary in tourism is enough to keep them home and I believe in a year or two this will be the case.

Only people who cannot make it in Spain are returning to Romania.

I did not say that Romanian is a land of thieves. But the people in power are thieves.

I have a question: why isn't Valea Oltului being developed? I think that the region around calimanesti is among the best I have ever been to (mountains, river, thermal waters, fresh air).

About my investment in Romania, I made them long ago so they are 8 to 10 times more now than when I bought them (also considering that I bought in dollar and now everything sells in Euro). My point is that I am not sure if an apartment at 30 km from Piata Univestitatii (like many are sold nowadays) is such a good investment. How is somebody going to make it to work in time?

Actually, I think DianaM and Catara are both right (and both wrong).

1) Rumania is a cracking little country run by crooks.

2) The Land Registry, issues of Title etc are nowhere near as good as in other latin countries. And if you've ever got Title issues, you need steep discounts.

3) There is no yield. DianaM is talking nonsense when, even if salaries increase dramatically, she asserts rents will increase. There is no known case in the entire post-Soviet bloc EU entrants where increases in income have translated into increased rents. The marginal propensity to spend is never directed towards rent. Capital is so scarce, increased income is treated as capital and deployed accordingly. The only exception to this has been in cities where the local population have had to compete with foreigners. And that is a purely urban phenomenon. There have been nominal increases but these have been destroyed by inflation.

4) So if there's no yield, you'll run into a "Minsky Moment" sooner or later which they are currently re-discovering in NY and London and pretty soon will do in Spain. And that is, when the insufficient income generated by an asset is artificially disguised by capital gains, you always need capital gains to plug the cash-flow loss, and when these stop, the merry-go-round does and assets get re-priced based on their income-generating ability. This will happen in many parts of the States, large parts of Southern England and almost all of Spain. It's also true of Rumania. Prices have run way ahead of their investment value. The Capital Price of a Property Asset can only run ahead of its Yield because of Credit. Geddit ???? Or (zzzzzzz) it has to be "different this time". And there is a little bit of that in Eastern Europe.

5) I repeat, Rumania is a great little country, a poor man's Ticino, at a fifth of the price, but it's still not cheap.

6) Finally, property prices often depend on social infrastructure. You might argue that Rumanian prices are a tenth of London prices but that's not the whole story. Property prices are often a case of arbitrage. A few years back agricultural land in the Punjab rocketed and lots of them cashed in and bought farms in Canada - what really swung it was 1. Canadian re-training grants 2. Free Universities for the children 3. Pensions 4. Health Service. When you put a monetary value to all that Canadian farms were actually cheaper than the Punjab. Now, let's be clear about this. No Buy-to-Let baron is ever going to be given re-training grants, etc in Rumania.

7) In short, there are good reasons, why Rumanian property has to be cheap. Until Prague and Berlin have proved the case otherwise, demand draconian discounts to EU property.

8) In twenty years time, you might not have a Health Service in Rumania, so it's, at the risk of some understatement, unclear how many Westerners you are really going to have retiring there (in what is, admittedly, a very beautiful country.) The Scandinavian countries and Switzerland have sucked every dentist, every anaesthetist etc etc from Poland and Germany. The same will happen in Rumania. All skilled medical will leave and the country will fall into the hands of other professionals, who do not have cross-border skills (at least in the same way) such as lawyers and accountants but even they will either leave or become barons.

Catara thinks Spain is ridiculously over-priced and I tend to agree. But there is a reason the rich and successful think Barcelona and Palma are worth silly prices. And that is, that they are seriously nice places. Ignoring the silly bubble on the East Coast and around Malaga, it still has to be said that Seville and Granada are sunny places with sunny people and sunny food. From Norilsk in the North to Kosovo in the South, the rain in Spain is betta, innit ?

Togo Joe (the Ni-Kto from Kyoto)

An excellent post, Togo Joe, best I've read in a long time. So much of what you say can be applied to other overseas threads and to propery in general. Two key things that you have explained very well and I consider when buying property are 1) yield and 2) social infrastructure. I have never bought without at least one of these being in place or there being a strong likelihood that they will be in place. If the yield isn't there (or the likelihood of a yield isn't there) then there are no (sensible) investors and if the social infrastructure isn't there then there are no home buyers. Investors need to consider these things as, without secondary investors or home buyers, there is no coherent exit strategy and prices will experience the Minsky Moment. In many cases, overseas property investors don't quite appreciate the extent to which they are indeed speculating and dependent upon the creation of acceptable rental yield and basic infrastructure and that many commercial, economic and political influences beyond their control can delay or derail the outcome. Having said that, if you've got money to lose and an appetite for risk, there is a lot of money to make if you do your homework and have a bit of luck. Just be clear that it is not the same as buying a flat in Cambridge.

I more or less agree with you.

Point 1) Everybody is aware that the crooks run the country. But you know what, many enjoy this... To be a crook in Romania is received as a sign of being smart.

Point 2) Depends where. In Transilvania the ownership is much more secure than in the Muntenia or Moldova. Banat and Transilvania are about 20 years ahead as compared ot the rest of the country.

Point 3) + 4) I agree. The only problem is that your professionals (who are still being unfortunate to live in Romania and try to succeed there) need to buy apartments now for theimselves and families. They need to pay the current overinflated prices.

There is no reason to purchase asa foreigner in Romania, only if someone wants to actually live in Romania (which is OK-ish if you have a Western Europe salary).


Point 8) Everybody who is smart and not lazy and not scared of unknown left the country or is leaving the country now. The mediocre people (and the crooks discussed above) will become the elite in Romania.

Enjoyed reading your comments Togo Joe. Just one point I'd like to add to. That is:



In general I feel this statement holds. We all know property is worth what people are willing to pay and credit, as you have pointed out, impacts what people are willing to pay. There are other factors that infleunce price (and will continue to do so.) One such factor is the desirability of particular areas. There will always be places that are more desirable than others. In these locations the value of property will be less constrained by yield.

I assume your strategy is to identify opportunities that will deliver high yields (rental rather than appreciation) and when the yields start to fall (expressed as a proportion of up-to-date property valuation) you will start to think about existing the market. (Theory being that capital appreciation will be weaker when yields are lower and you will do better by finding another market that provides stronger yields which should lead to stronger appreciation.)

Is that your strategy? If so, where are you looking at for your next investment?

Soup, its not just yield that drives prices. If the infrastructure is in place, lower yields are more tolerable so prices can keep moving ahead. Togo Joe referred to universities, pensions, health services, seriously nice places, people and food as being relevant.

Sean, we agree there are many factors that influence price, I’d just interpreted point 4 of Togo Joe’s post as being a broad rule that applies to anywhere and point 8 being specifically on concerns individuals thinking about retiring in Romania should have.

Sorry to disappoint you people, but the credit market was inexistent in Romania till very very recently. So whatever applies to UK or other European markets, doesn't apply to Romania!

Togo Joe, I like your post but I do not agree fully. This is why:
1. We must not forget Romania is close to the Balcan area and corruption is a tradition in these parts.
2. Taking title in Romania is safe (pitfalls are everywhere, if anyone is so naive as to think can purchase on a foreign market without legal advice, then he should stay home, right?)
3. A Brit buddy of mine rented his flat by the House of the People with 900EUR/month. If this is not a good rent, I shoot meself! Another firend of mine has a flat in Budapest in the centre and the rental revenue on that is around 5%, while for the one in Bucharest, teh Brit gets 8% easily.
Never stated that yield applies to all properties sold in Romania. There are areas of interest in this country. However, to respond Catara once again, I don't think Bucharest is such a top investment destination anymore, as prices in the centre of the city reached 5000EUR and that is too funny to talk about!
4. Never claimed Romania was cheap (should it be?), only mentioned affordable and having a huge potential.
5. Even Prince Charles bought here and it wasn't a blue-blood mood in it. There are free universities here, name a few free good ones in UK or even in Spain. The kids here get scholarships in the major universities of teh world based on what they learn home, so learning here can't be that bad.
6. Demand for Eastern Eurpoe is pretty high actually among a certain target of investors.
7. Please tell me on what you fundament your statement re the inexistence of Health Service in Romania in 20 years.

Anyone who likes to live under the sun is likely to choose Spain. Does that surprise anyone?
And have I mentioned anywhere anything about retiring to Romania? I am only thinking of buying, renting, selling in 3 years max.

Catara, I see this country really upset you. On the other hand, instead of calling the youth of Romania mediocre, take a look at what the youth of Romania is doing abroad. I mean what jobs are being offered to them abroad: au-pair, nanny, medical care jobs (lowest rank most of the time), bartenders, nudy bar dancers, construction, agriculture, etc.

It does not matter where you invest, Romania, Poland or Bulgaria. Younger Romanians, Poles and Bulgarians, as you say are working in Europe in places like Dublin. Their aim is simple. They want to save enough money to buy a home in their own country. This is the main factor, I think will fuel an increase in property prices. However Bulgaria seems the best bet having arguably a much better educated work force. Also Bulgaria is arguably a more interesting place to visit. Try looking at a few more websites dealing with Poland, Romania and Bulgaria. A good place to start is Hiday.net

This is totally WRONG!! Young Romanians,Poles and Bulgarians feel excluded from their societies by the crooks who managed to grab the power. They do not have any intention of going back. Maybe the lower skilled categories yes, but not the people with a college degree, they run and never look back. And, at least in Romania, the lower skilled categories who go back, build housesd by themselves and not purchase from speculators.

I have a friend who worked in Amsterdam as a prostitute in order to get her studies finished in Holland and stay there, but after graduation she returned and is now branch manager in a big company. I also know many people with university degrees from Romania who worked as babysitters and waitresses in Uk and Ireland and did return cause their work permits expired and they were forced to leave. Abroad nobody is offering them better possitions, so in a way or another and lacking someone there who could help them stay (like getting married with someone), they returned.
The low educated as you call them return in their own villages and build new houses on their own ground. It's a tradition thing,besides the houses they left behind when they left were mostly made of clay.

Prices of properties in Bulgaria dropped this year and I sincerely doubt you will ever get the promissed rental return.
Romania is far more interesting from tourist perspective, but less known. Plus tehre is no national tourism strategy set up yet and that's indeed bad.

OK, if a hooker can become branch manager, than things are good. I always knew that the good sex can get you far in Romania.

On the other hand, only losers return to Romania. Everybody I know managed to get a well paid position somewhere in Western Europe, canada or USA.

Catara, your remarks are sexist, misogynist and racist and I've had quite enough of it! That girl did anything she could to study and she got that position in that company because she completed her studies abroad. I am absolutely sure she is a very hard working professional because I know her and you don't. And I also know she didn't have to ****** anyone to get ahead in her career.
Romanians working abroad must take extremely much humility from the authorities and from the employers. A very small group is lucky enough to get high positions in big companies abroad and get paid as much as a national of the country they work in. Most of the times they are paid less for the same amount of work and for the same difficulty of the tasks! I am sure you are familiar with the phenomenon, but you play the ignorant when that is in favour of your rage against this country and its people.
I don't know why you hate Romania so much. Frankly I suggest you to visit a specialist as I think you are in an extreme hatred and that can be very dangerous both to yourself and to others, judging from the racist comments you've passed on this forum! You should be ashamed of yourself and of the way you think. So far you haven't come with one comment to the point in which to describe with facts why Romania is interesting or not from the investment point of view. Your logics is purely destructive and you attack in every message everyone who submits and opinion even slightly different than yours.
I have tried to keep the discussion in the terms of polite conversation, business conversation, but my level of annoyance came to the point where I have to tell you some things that I would not normally say to anyone decent, even if he had a different opinion.
I am absolutely disgusted in even addressing you these words as I honestly think you don't deserve even this much!

I cannot hate Romania because one cannot hate his/her mother country. I love the country but I hate the politicians and the people who cannot adjust to the new post-comunist order or take advantage by becoming crooks.

I can tell you that almost nobody who left for university or for PhD abroad returned to that country. There is no incentive to do that. My mother is full professor at university and she gets 800 Pounds in hand after 43 years of work. Somebody who starts the career can get 150 Pounds. Can you live with those money in Romania? I guess not.

Anyway, if you are Romanian it means that you are blind and do not see the disaster which surrounds you.

If you are not Romanian than you are just naive and cannot understand the disaster which surrounds you.

DianaM:- Don't worry too much about Catara's comments. When he says something useful people will take stalk, but when he is just offensive people will know it is so. It doesn't take much to tell which angle he is coming from.

Going back to an earlier comment you made where you quoted me, I think you have either misunderstood or not conveyed your point in a fashion that is easily understood.

When Togo Joe had made his “Minsky Moment” comments they were about property in general and not Romania in particular (or at least I took it that way.) I take on board your remark that credit for bricks and mortar is a relatively new thing in Romania. To build on that you should perhaps have said that Romania, being a new market in terms of mortgages, was not over inflated like other countries mentioned. I have for some time applied similar logic to that Togo Joe stated. It applies to everywhere, it is just that credit market (one of many factors that affects house prices) should not have affected house prices like elsewhere.

I agree with you Soup Dragon, Romania is very new to mortgage and other kinds of credits for properties and therefore not over inflated like other countries. The only reason for overrated prices here (because they exist like they exist everywhere) is people's desire/madness to sell their properties for as much as they can. Usually this type of properties remains unsold for years and years and eventually they have to reconsider their initial intentions.

Catara, with your racist comments you have done more harm on this forum to this counrty and its people than any supid authority running it! As a matter of fact you are so blinded with your own hatred that you've become a liar as well, by stating that you love Romania. How can you be trusted after such an allegation?
I am glad you made it abroad, but judging from your narrow minded, primitive attitude, I doubt you did. Westerners are very sensitive to this aspect and they can never possibly respect a person with so many issues like you. You can't even keep one phrase to the point, using a business language. All you can do however, is talk in a personal fashion, exhibiting your personal frustrations, fear and anger. I honestly think a property forum is hardly the place to solve your personal issues and I tell you once again: go to a specialist and have a few sessions!

Discussion over.

DianaM, Catara's comments may be insensitive but there is often substance and I appreciate his contribution. This is an online forum and the anonymity leads to the odd wreckless comment. If you read through the thread again with an open mind, you will notice that your comments are not exactly focused on the topic alone.

Just my 2 pence. I came from Romania, I am teaching at University in UK, I would never go back to live in Romania. Even the couple of weeks/year visits are painful because of the anger I get after seeing that things have changed for worse in the last years.

Bucharest has barely any trees left, the dust is almost unbearable all year long but especially during the 45 Celsius Summers,
when the asphalt raises the temperature by another 5-10 Degrees. People live 5 year less in Bucharest than the rest of the country.

The Black Sea resorts lost hundreds of meters of prime beaches due to errosion, the mountains are littered after tourists do not collect their trash and the streets are overcrowded and dangerous. Horse driven charriots are still driven at night, with barely any light so they are a tragedy waiting to happen.

40% if the population smokes as cigarretes are cheaper than food.

I can continue if anyone is interested.

Sean, I appreciated Catara's comments as well up until they became filled with misogyny and very racist. I happen to have zero tolerance to that and yes, you can say I have something personal with this kind of people. Last time these attitudes were tolerated, we had a holocaust. Someone who despises his land and nation so much can't be trusted, simple as that.

Oh, and now Catara likes to be called Rondy. If this is a person worth taking seriously I come from planet Mars and I happen to be green and glow in the dark!

Sorry to say, but you really have big problems.

What is to tolerate? I was just saying that the politicians in Romania wrecked the country after 1989. Young people did not and do not have a chance in their own country, unless they are connected to people in power or, very few, lucky. This is why they leave the country. The ones which would really be important for the country (doctors, professors,lawyers, engineers) manage to find jobs abroad and never go back.

The ones that go abroad to collect strawberries or contruction workers might go back, but they are not so important for the progress of the country because they cannot contribute to creating a better younger generation. Even they do not tend to want to go back as I have recently red in newpapers (I am not sure if you speak romanian so this might be relevant to you)).

What was racistic about this??? Holocaust you say?

The only thing I could have been mysoginistic about is about your prostitute friend and this is just because I know the attitude of men towards women in Romania, especially if they know that the respective woman sold her body before.

One last thing: for people interested in purchasing in Romania, you can go to

www.ansamblurirezidentiale.ro

It is (mainly) in Romanian but some information is also in English. You can access a big number of off-plan properties.
You can contact directly the constructor/promoter and I am sure som,ebody from their comopanies will speak English.

Catara, read your comments once again and you'll see that you passed accusations towards Romanians in general (not only against the people who rule Romania)
You are so low you couldn't even stick to your own opinions as you now try to lobby for a real estate website selling off-plan properties in Romania (the worst thing is to buy off-plan in Bucharest, by the way!)
So what is it? Now Romania is interesting because you have an interest and these people who run this website pay you some fee for advertising for them or is it because you work for them on regular bases?!
Pathetic!

I told you have serious problems.

Why would a foreigner pay you to find a property for him/her when they can buy directly from the developer, without paying your fee?

If you were a bit smarter and/or with some knowledge of romanian language, you could have seen that the site I pointed out does not sell properties but just advertizes them. You do the same but then ask money for "finding" the properties.
So you are more or less stealing people's money to find the same things which can be obtained for free.

Other good sites for romanian property:

http://www.imobiliare.ro/
http://www.anunturiimobiliare.ro/

Catara, you are an amateur in the real estate, honey (or better said bitter thing)
Both anunturiimobiliare.ro and imobiliare.ro send the investors to the agencies and I haven't seen one agency that actually understands what investment is.

As for your off plan developer, they teach investors they should start company in order to buy an apartment, which is economical suicide. You want to know why I think it is economical suicide? Not going to tell ya! Do your own homework and well and then talk, ok?

But the women are better looking and the food is better.

As a tourist, I like Romania. But like you, I wouldn't like to live there permanently. A few months at a time is very nice though.

There are many others sites which sell properties, they are easy to find.

You tell me to do my homework? I was buying and selling properties in Romania when you did not have any idea that Romania existed. I am sure you still do not have much idea of what is happening around you over there and try to steal money from people who are lured by your so-called "experience".

Anyway, I am sure you will not find many customers with this kind of atitude so I advise you to learn a lesson or two from your ex-professional friend and change your career.

I have some questions.

Do you think the Romanian housing market will be shielded from the credit-crunch downturn because there is so little mortgage/personal debt amongst the population.

Will the economy continue to grow at its present rate?

Do you think the next generation of Romanians will be owners or renters?

Romanians are not so much in debt now so they might still buy. But it is hard because salaries are very low and the cost of living is high.
The Romanian economy is not yet very much connected to the real economy so economic shocks are not yet felt in Romania.

The economic growth will continue, but the current situation is very bad so one can always achieve a good growth starting from zero.

The next generation of Romanians will be mostly owners or renters abroad. Seriously, a young person does not get any chance to buy apartments in Romania. They do not even have money to rent and live with their parents and hope to inherit the apartments from their granparents...

One problem one should be aware of: many old buildings are not earthquake proof. The latest earthquke in BUcharest was in 1977 and the previous one in 1940 so another big one is now due. This will mean lots and lots of building will simply fall. They have a red star on them which the owners hide.

Thanks for the details.

Catara, I am perfectly aware of your professionalism as I think it is obvious for the people posting on this forum also.
You should stop using words like stealing money from people and so on. I never stole 1 penny from anyone and I never tried to advertise silly development websites like you did, so accusing me of stealing you actually accuse yourself! How many customers have you discovered with your "Romania is no good", may I ask? You have no idea what the ****** you are talking about, nor do you possess any experience in the field, all you do is have a big mouth, speak shit and claim you are so ******ing smart! Grow up or ****** off! that would be better!

Bucharest has many problems, apart from the earthqauke proof or not. As a matter of fact, there is no desirable area in Bucharest. Flats in the centre sell for aberant sums, however.
Romanians start to have more and more access to credits. Besides, huge amounts are coming from abroad from the ones who work there and wish to return one day.
The mentality in Romania is that you must own the place you live in, rather than rent one. If tendency maintains, we will have owners rather than renters.
Yet before jumping in the buying off-plan train, I advise you to get in touch with a business/financial consultant. Developers and agents will advise you to start company prior purchase and that is economical suicide.

Thanks for the advice. It's much appreciated. I do have connections in Romania and have been there many many times. I purchased an apartment in Constanta to stay in whilst doing business there. After some thought I decided to rent it out instead and use the money to stay in a hotel whilst there. It made no sense to have the place empty for 9/10 months of the year.

Do you think it would be a good idea to buy more apartments out there? These would be regulsar apartments in blocks, for locals, not new developments, off plan etc.. Also, do you recommend anything in particular to look into or avoid?

Multsumesc.

I am not selling properties in Romania, you are the so called agent. Anyway, you have no idea what you are talking about so get a life.

I am glad you could rent your flat in Constanta so easily (generally rent there goes well mostly during the summer). Was a smart move, after all why not get both rental return and capital growth.
In Bucharest I think it's better to go for flats in the centre if you find them for a reasonable price (that will be very difficult). It depends on your budget, but in I would go for an apartment in a nice villa, rather than in a block of flats built during Communism times. If you decide to go for that, get legal advice for checking ownership issues.
Earthquake proof can be asked also before purchasing.
If you are tempted by off-plans, you can also go for that (after all, new developments brag they offer better comfort), however, chose it carefully, see what area they are in, check if the final price per sqm is worth investing in it, etc. The soil in Bucharest is sandy so many buildings can simply sink after a while, so the developers must provide all the data re the safety of the building, also have the project insured.
Get a financial consultant in both cases as there are taxes the developers/agents do not mention to you. They advise you to set up company in order to get the land that comes with the flat, however it is not the only way you can become owner of the land as a foreigner. Legal advice is also a must if you wish to avoid the hassle of starting a company in Romania!
Address to a company that provides you with property management after purchasing. Don't waste your energy and time trying to rent it yourself.
It is best if the company you address to has both lawyers and financial advisers to guide you through the purchasing process.
I do not advise you to pay all the money when you make the buying. First place a deposit of 10% from the selling price and do further checks (if property turns out it can't be sold or has problems, the seller must give you back double the deposit). This way, you don't risk too much. However, if you give Power of Attorney to anyone, make sure you get your copy of the purchasing contract and keep an eye on the company that facilitates the transaction, as some add up to 20% to the selling price without your knowledge and claim that they put a smaller sum in the purchasing contract to save the seller from paying to much tax (seller must pay a tax between 2 and 3% from the sum he cashes from you). In order to avoid this, make sure the money transfer made in the day of signing the final contact is transferred from your account directly into the seller's account, and not through the accounts of the company that facilitates the purchasing deal.

Romania is full of so-called experts advising foreigners where to buy and what to buy without having the slightest interest to actually help these people, nor having the basic knowledge about laws or tax regime.
The funny thing is most of the potential investors get so confused they either give up the idea of buying anything in Romania, or simply put their money into a total crap and make a nice loss. It's really sad when that is a small fortune obtained on credit.
Recently someone from UK contacted me re buying a property in Brasov and after being guided and shown good properties, he went straight to a jerk who was promissing him 600% capital growth in 1 year on top of a mountain where there aren't even proper roads. So probably that adviser thought raising chicken would actually offer our investor this 600% profit. Amusing!

Can you help me with Cluj, please? I think I might be ripped off. What is your e-mail or website as I suppose you don't put your telephone number on this forum?

Hi Katharina,
please drop me a line at diana@transylvaniainvestment.com. The site is www.transylvaniainvestment.com and you can find aditional all contact details there.
Regards

Wow diana, thats incredible.Romania has better potential than Bulgaria....

im sorry but this really is not saying much

It seems this place is full of agents trying to flog their sh!t in third world countries

romania is a third world country like Bulgaria Diana, there is no resale market and the local cannot afford a loaf of bread let alone to rent a new build apartment

hope you dont take offence

Dear Anthony,
I received at least 3 calls this morning from people who demanded apartments for rent in Bucharest. I must say the rent they are about to pay is at least 800 EUR/month.
Anything clients bought through us can resell the next day without hassles and waiting.
Sorry for offending your Spanish interests or whatever other interests you might have on this forum. If your 1st class countries are so bloody good, why the hell are you feeling threatened by 3rd worlds like ourselves?
I couldn't help wondering what are these investors are going to do when Spain is going to be simply to warm to live in.

Regards,
DM

I was in Romania a few weeks ago and ended up being shown round a few developments.

I must say it is a very poor place. I cannot imagine how a local person could afford 800Euro per month in rent. An agent told me, after much prodding, that the average wage in Bucharest is 350Euro per month (Edit: Wikipedia says that the average wage in Romania is €421.49. This doesn't change my argument). And Bucharest is obviously much more prosperous than anywhere else in the country.

Adding to this the surroundings of Bucharest are one huge building site. Oversupply very soon is a certainty.

I visited Bucharest, Constanta, and Brasov. All of these places are full of concrete housing, which was given to the population by Ceacescu. With the flood of skilled workers out of Romania I would suggest that there is an oversupply even of this FREE housing.

I cannot imagine a situation in the near/middle future where Romanians will be able to afford the sale price or rent of the new properties currently being foisted onto idiot Western speculators.

Yes DianaM, you may be able to resell any property you want at the moment, but with any downturn in the prosperity of Western Europe (and particularly Britain) you will find your entire market dissapear.

I suspect that there will be many people with Romanian property in a year or so who simply will not be able to sell or rent, for any price.

This is not me having a go at Romania. The same problem will surface in Bulgaria, Spain, Italy, France... etc. All bubbles to a greater or lesser extent.

Hi Nowthenagain,

I value your remarks and I never stated Romania was a rich country. Actually poor countries where prices are still low make the best investments.
I also didn't mention to whom am I renting/letting the properties I manage. I can tell you they are not Romanians in general, but I was able to find a few Romanian tenants able to pay 800 EUR/month. I don't know what agent took your for a ride in Bucharest, but he must have told you what is the rent like in the centre of the town.
The need for houses is big in Romania, the thing is not everybody affords them. Nowadays the credit market is starting to grow here as well. However the credit market here is at a baby level, you can't possibly compare it to UK or Ireland or even to Spain. Actually prices of houses in US and UK went down because of this.
For Bucharest the necessity for houses will be fully covered in about 9 years, so there is plenty of time to invest and resell.
This evening the road from Bucharest to Brasov was blocked by cars going to the mountain resorts for the weekend - Brasov is one of these resorts. (Romania is a poor country, but have you noticed how many new, expensive cars are on the roads?)
I don't think a country with the size and potential of Romania is an investment bubble, but I respect your decisions and points of view. There is full of estate agents promissing 600% capital gains and full of estate agents that look into taking your money by all means possible (more or less legal), taking advantage of the fact that you don't speak the language or you don't know the laws here. So yes, I undertand your frustration.
I wonder which consultant you visited, I might have a very good hunch about the person.