Quote:
Originally Posted by 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
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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