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House Price Crash Forum


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About DianaM

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    Brasov, Romania
  1. The economic crisis is just at the beginning. My idea is the developed world should let it go on and stop concentrating on social (read socialist) measures that would only prolong the agony and the duration of this economy situation. However I would stay away from the properties in the countries that rely on food imports to sustain a growing population. Esmeralda, Catara here was advising us to invest in Dubai. I wonder how long Dubai will maintain its development course since the oil will be less and less needed in the future and the developed world is turning to other technologies to power our cars, rather than to make some countries, otherwise scarce in resources, aberrantly rich! Slovakia is a good place to invest. Very interesting and beautiful place, extremely serious people and huge potential.
  2. Last year about this time I was talking with a French buddy who told me Morocco USED to be a good investment destination for medium/small investors. He actually bought a cozy mansion in Casablanca, central area and paid very little for it at that time (that was about 4 years ago) He intended to sell it due to financial difficulties in France (kids had to be put in good schools) Why can't you people see a very simple thing: when the fever of purchasing is already there it means the place is already second best for investment! It's one thing to buy a property for very little sums and resell it double or triple price (or even more) and quite another to go for off-plan (someone already bought the land cheaply, made a development on it and resells it to you with capital growth already in it) or already expensive properties. Sorry folks, but I think the time to make insane money in Morocco is gone
  3. I saw the counrty is developing rapidly and it's high investment potential there. Am wondering if the place offers the stability many consultants claim. I am not looking for off-plan properties there as I find them rather expensive and I can't trust the rental returns they offer. I have very little trust in off-plans anywhere in the world, I may be wrong, but it's the way I feel from some experiences. Am wondering if you have any knowledge on the fiscality in Brasil, for example what happens when you resell, also what is the real rental return you can expect. And last but not least, outside Rio the infractionality is just as high or is it mostly a scarecrow for the foreign eyes.
  4. True, a better place for exotic destinations property investment is Dubai I think. Have you knowledge on Brasil?
  5. For Romania it depends where you buy and what you buy! Anyone venturing on the market without being guided by experts in fiscality and law is taking very much risk.
  6. Hi Ian, Thanks for the reply. I believe fiscal and financial knowledge is the key in any investment action and this is where we are very good at. I haven't heard of this project, but Bucharest is booming with all sorts of developments from commercial to residential to logistic. You can also post on http://transylvaniainvestment.phpbbsite.com/index.php if e-mail doesn't work (sometimes messages can be interpreted as spam - yeah, bless the techies!) as I'd like to know more about this development. I'll contact you back and tell you my opinion of it and probably recommend you other developments if the one you look into seems rather too expensive in the terms we discuss here. You can also give me a call on the number posted on the website (www.transylvaniainvestment.com ).
  7. VAT changes in Romania from January 08: companies WILL be paying VAT, so anyone who believed setting up company to buy will save them 19% were wrong. Agents say this is not a problem since VAT can be claimed back at the end of the fiscal year, but I see some problems with this: 1. Some peoples budgets are on very narrow margins and do not have the additional 20%, 2. according to authortities getting the VAT out of the Romanian state takes 28 days, but in reality I think anyone relying on this would be better off looking at somewhere between 28 weeks and 28 months. 3. Once you claim the VAT also wait for thorough checking from the Fiscal Authotities, Financial Guard, maybe Chamber of Labour as well and who knows what other authorities. Even if your accounting is perfect they are always finding something wrong therefore expect penalties of at least 1,000 RON. The poor accountants also, being blocked with these checkings! PLUS: Buyers beaware! According to Government Decission (OUG) no 106/Sept.2007, that is being applied starting with 1st of January 2008, a company can recover the VAT from purchasing a property. However, the company CAN'T recover the entire sum paid as VAT. You calculate the depreciation and then you calculate the VAT to that. Only the VAT calculated on the depreciation rate can be claimed back. Morals: Don't establish company in order to buy. Do the purchase as a private person!
  8. I totally agree with you Catara on this one. Flats were actually quite expensive in the communist times, comparing to the wages people received! Re the crash in the UK, I'd add to your comment the public debt problem in the UK and in Western Europe in general.
  9. I don't know what the reason of this mentality is, figures show Romanians even today prefer to buy their houses rather than rent. I doubt the boom of last years will disappear, as for the inflation, there have been a few episodes of this sort during each winter time. One of the reasons for the recent drop of the RON is actually the speculative capitals that made it rise. Bankers expected that and I had this information last spring already.
  10. 150 sq. m in the centre of Cluj comes for 200k EUR. The average price per 1 sq. m is around 1200 -1500 EUR. The smaller the apartment, the bigger the price per sq. m. In the off-plans it can go up to 2000 EUR. More interesting would be to purchase land in the centre of Cluj and build on it, then sell the flats, but that exceedes the possibilities of a small-medium investor. Just as in Brasov or even Bucharest the rental revenue is around 5 - 6%. Everywhere you go in Romania you will discover Romanians are not renters, they tend to own the houses they inhabit. It is a matter of mentality which means it takes a lot of time to change this behavior. Romanians even purchased the flats they inhabit in Spain or Italy (just to give you an indication of how deep this mentality is! I did not say Brasov is too expensive nowadays, I said it would have been better for you if you bought last year and any hesitation and waiting will make it it less and less interesting for investors to buy properties in Romania, anywhere. I had land in the centre of Brasov for 200 EUR last month and now it's 250 EUR and while my clients were still thinking about it, the price went up and now they complain. If you compare the price in the centre of Brasov to the price in the centre of Bucharest you will discover the difference is very reasonable. In Brasov, central location it is 1300 - 1500 EUR/1 sq. m while in Bucharest exceedes 2000! Brasov has another advantage: it is tourist town so you can rent on daily bases as well, which returns even better than letting your flat. If interested in Cluj, Brasov or even Bucharest, contact me directly and let's talk about the real potential, renting opportunities, etc ([email protected]) we also offer property management solutions (I presume the guys you visited only promissed you big rental returns but took no responsability for their words and did not offer property management after purchase, right?)
  11. Sorry to disappoint you Catara, I agree Bran-Fundata is nice as landscape, but you have little to no rental potential there. The roads are fairly impossible in winter as the snow can stay on a road for weeks or even months without any competent authority's concern. And prices are way, way too high for what the area actually offers! To this add the fact that Bran is very cold even in the summer. I did not say properties in Brasov are overpriced, I refered to the off-plans now on sale in Brasov. A clever investor can easily spot value for good price even in the centre of Brasov. Cluj is good, we have land for sale in the centre there if anyone interested.
  12. Knowathingor2 I agree the newest developments in Brasov are crap (sorry, folks, the best word to describe the situation). Developers contacted us and tried to get us into selling that to our clients and we had to turn them down when we saw the offers. I don't see any chance to rent those apartments they are selling. However everything you buy in the centre or even in the business area you can rent and resell after a while for very good money. The good developments sold last year when I was telling people how good it is to invest in Brasov, who listened to me then, is not sorry today. The airport might be another hoax unfortunately, I would very much like to see an airport being built in Brasov, but there's too much hassle and agitation and very little things done, also too much political implication and that is always something wrong in this sort of projects (see more about the subject on http://transylvaniainvestment.phpbbsite.com/index.php) A more medieval town than Brasov is Sibiu, however the potential of Sibiu is smaller. Capital growth is smaller, rental return is smaller and the town is smaller as well, even if it has an international airport fully operational! I would not disregard the business area of Brasov - if you visited Brasov you probably know the area where all the banks are. There is money to be made there, as many businesses fled from the constant traffic jams of Bucharest into a more quiet area like Brasov. Catara is also right here, Brasov will not have the destiny of Bansko. Of course any country has its thick people and probably many Romanians who overworked in Spain will come back to put money in this crap developments. Too bad for them, but it's a result of the mentality: "I don't need a specialist, I can do it myself, I know better"
  13. Hi Euro, I admire your tastes re good living (good food, good wine occasionally, and excellent company) Romanians make a true obsession about eating. Not everybody affords to eat very well, but in general, eating well means happiness. There are many campaigns on TV re eating healthy (bio food) and people generally prefer this sort of food to the mass produced one. Bought from the supermarket it a bio chicken comes for about 12 RON which means 3.45 EUR, about 2.4 pounds. Wine in Romania is one of the best in Europe and this year was an excellent year for good wines. The drought helped the production of grapes. It is also a very affordable wine and unfortunately not very much advertised. The majority of Romanians speak English and women are very beautiful and kind. Romanians are a Latin nation and that shows both in the temperament and in the way of living. Of course not everything is la vie en rose in Romania. There is still much poverty and people often try to con you. However if you take your time and deal with professionals, you can't lose. The prices of properties are still low here. Judging by what you are saying re your dream standard of living, I suggest you not to purchase in Bucharest, but to go for places like Brasov.
  14. Spondge, why only in holiday destintions? Why not buy something you can let/rent the entire year! Crash2010 what makes you think there's going to be a global crash in 2010? Sounds a bit like the Apocalyps, it's all about numbers that end in 0...
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