Transylvania Investment: Investment Transylvania, Properties in Brasov, Properties in Sibiu, Properties in Cluj
A year ago when everybody was consumed with the throught of buying off-plans I said investing in off-plans is not a good idea at all. The numerous calls and e-mails received ever since confirm my saying, nevertheless the situation is not so bright for those who didn't take my advice and the advice of other agents who told them the same.
First of all you have to think that an off-plan is actually a building placed on a plot of land that cost considerable money when it was purchased, which means the developer must create a big construction in order to make a profit out of it. Most of these big buildings are very ugly and Romanians prefer smaller developments to the mammouth size-buildings.
The developer must also add to the price to increase his profit. Normally a plot of land already expensive is purchased by someone who then finds a developer who then finds an agent who is selling the project to you. Therefore you are not the first in this investment, you are mayble the third or the forth in the line. You buy an illusion, because the building is not yet constructed, so if the builders do a bad job or your square meters in the contract are less in reality you spend time and money (and time is already money) to remedy the situation in court.
Older buildings have in Romania what new builds can't achieve: they have location and location is essential in the real estates.
Another issue when you jump into buying off-plan is you need to know if there is any local, demand for it and if there are other agents selling the same property. Not once people bought with foreign agents operating here and the price they paid was higher than the one offered by local agents to Romanians. Flashy displays and complicated Anglo-Saxon names are not a guarantee of quality or honesty.
Not all off-plans are to be left aside, some are actually interesting, however you need solid legal advice and availability to carry proper due diligence when buying. Simply cutting costs never made anyone rich.
We hope you will find our website useful no matter what is your intention regarding buying in Romania: relocation, investment or you have already invested in Romania, we are ready to help you.
See below what can we do for you.
DIANA MARINESCU - Managing Partner
To view the properties we currently have for sale or to let, see the Romanian Properties and the Lettings pages.
Property Management
Most agents simply sell you a property and let you deal with renting issues alone. Others, introduce you to a property management company and with this their liability ends.
We do not only sell property, but also offer a full managed service solution for after sales to cover rentals in Property Management
This means when we sell you a property we also undertake the obligation to rent it for you.
Property Valuations
Due to the fact many clients we have had throughout the time asked us for independent valuations, we can guide you towards independent valuators. These persons are grouped in a professional organisation in Romania. Generally each bank has its own valuators, so when you ask for mortgage, a valuator accepted by the bank will contact you and valuate your property.
Tax Advice
It is not enough to get a good lawyer when you buy property. Most of the agents, developers and lawyers will advise you to set up company in order to get the land. DON'T! unless you really want to do business in Romania, you have the will, the money and the bright ideas. It is a matter of tax. When you resell having bought through the company you will have to pay 16% tax on profit and 19% VAT. To this, add the monthly expenses you make with a company, also the termination fees and time wasted and you'll come to the conclusion your investment is actually a loss. Therefore when you deal with us, you will have one accountant/economist (specialized in tax issues) and a lawyer working together on your case.
Mortgage Issues
The market in Romania matured enough to allow people demand credits for buying/renovating properties.
Many financial institutions offer such financial means and people can easily find themselves lost in this net, often making mistakes and being unaware of the hidden commissions when signing a contract with a bank.
As a foreigner, the situation can be even more problematic because only a few such institutions offer credits to non-rezident citizens.
Viewing Tips:
Flights:
There are cheap flights companies operating in Romania, such as WizzAir, BlueAir, MyAir, etc as well as the majority of the standard price flight operators such as KLM, Britis Airways, Tarom, Air France, Lufthansa, etc.
Airport pick up:
We are collaborating with a few car rentals companies and on request we can arrange to pick you up from the airport when you arrive in Romania
Accommodation:
We can arrange very convenient accommodation for you in all the towns we will be visiting with you, including Bucharest.
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