'BUYER BEAWARE WHEN YOU BUY PROPERTY IN ROMANIA '

BUYER BEAWARE WHEN YOU BUY PROPERTY IN ROMANIA

By Diana Marinescu at 05/22/07 13:06

You are considering investing in real estate in Romania? I agree with you it is a very nice place to invest, but from my experience and knowledge I'd say there are two more years before the properties become too expensive and are no longer worth buying. Prices go up everyday, especially in Bucharest and in tourist towns such as Brasov, especially now that Romania is an EU member.

However, the real estate agents here can be deceiving or simply stupid many times. They don't know the law, they are opportunist and ready to do the kill and move on. They are after your money and are not at all interested to give you a good property, something that's worth buying.

There are a few investment advisors around here, who are professionals and can give you the best choice for a quality investment. Nevertheless they are sharks and follow their own profits desperately. They are true businessmen coming from the West and they are not satisfied simply with the commission like the Romanian real estate agents. They add up to 20% to each property they sell you and they take commission as well. They might seem very thoughtful and helpful, they will call you to advise you about your errors in buying a certain property, but what you have to know is that they are not satisfied unless they make at least 15k for themselves out of a deal.

Feel free to comment or request more information regarding this issue!

OK! then what is the right way to get into real estate investment in Romania??!

The best way is to get informed before you buy, don't trust anyone, visit as many agencies as you can and compare prices, pay experts to explain you about legal issues, don't get cheap with these things when it comes to spending large amounts on a valuable property.

I'm going to agree with Diana, not only will these agents here deceiving everyone, I know I have been living in Romania for many years. Unless you can take a loss, look elsewhere. I know many Germans and Brits. Who are now stuck with real estate in Romania that cannot sell it. Or worse if they do sell it , they have to sell it at a loss. No one bothered to tll them that the Romanian market is overpriced by 60%. All those Investors that bought in Balotesti, and in the Northern Areas of Buchrest that was suh a hot area. Are now all taking a loss. Most of the brokers they dealt with are now not even in the business. The companies that are still around have closed many of their divsions , Basically the boom went bust.

If you bought property in Romania, Check to make sure that the property you where shown is the one you bought. Many brokers where howing buyers a certain property and selling them another one. Usually they would show you a property along a major road or highway, But in reality when you bought the property is was really a plot way off the road or highway. The law firm I del with ( a small one) has about 15 cases in court. One investor got caught in one of these scams and is facing 4 years in court and a loss of 1.3 million Euros. Also don't beleive the lies that they conjure up here about some village or area that will be rezoned and drive the property prices up sky high. I can tell you speculators have lost alot of money in thos lies as well. It takes alot for a area to be rezoned in Romania to drive prices up. Like the lie brokers came up with about the areas around the airport of Bucharest. It will not happen and even if it does, it will take many years. I know this market very well. Trust me do not invest in Romania now. Unless you like to be scammed or lose alot of money. My suggestion is maybe in 2010. The prices will be back to normal or what they are really worth. After overvaluation of 60% just in Bucharest and surrounding areas. It may take a while to get there.

DEAR DIANA

i THINK YOU HAVE ONLY BAD EXPERIENCE IN ROMANIA,YOU SHOULDNT BE A ROMANIAN

Are You all sure Romania is the best selection for real estate investment for all people...

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