I have been visiting Transylvania regularly since 2005. I bought an apartment and a piece of land (the same one I cannot build on for some reasons) in this fabulous region of Romania. I am outraged at the metamorphosis of the urban landscape in the area. Do the developers know that they are disfiguring their towns?Have they got any idea of what they are building? It's a urban tragedy; municipalities have no control over the building permits enforcement (except when it's a foreigner trying to build a "home"). I am so sad to see those pointed roofs tearing the skies of Cluj apart...I am disgusted by the rows of project houses that are supposed to look better than the communist era buildings...well, I don't think so, they are as ugly believe me! I have pictures to prove it if someone challenges me. Romania is following the path of "Concrete Bubble" (another nickname for Dubai). Speculation oblige!!! Sorry if I sound "blasee"...I am.

Dear Nadia


I would like to be able to say you are wrong and contradict you. I have noting but total agreement for what you say. There is a serious need for town and countyry planning here. Moe than once I have said that Prince Charles would have a heart attack if he wee to see some of the designs etc.

It will change eventually, lets just hope it is not to late.


David Howe LLB. LLM


INVESTMENT ROMANIA - Investment in Romanaia, Property management, Due diligence, Renting in Romania

I agree to you re Cluj! It's madness to build a 11 floors building in a houses area with 2 floors level of height according to the urban development plans. But the big developers have it their way, just as it happened with Ireland a few years ago.
I however disapprove the entire Transylvania region is a subject to herendous development. There are many off-plans in Brasov that are pretty nice, in Sibiu they preserved the town very well, in places like Oradea or Arad the things will start to look better, in Sighisoara the renovation program already started, etc.
I think Bucharest is far worse from this point of view and still it's very tasty regarding real estate investment.

Your company setup price is way out of line, to be honest double, accounting etc is not that difficult nor expensive. Regarding your mortgage you can easily get 75%LTV on your own name as non-res. just have to send all paperwork notarized and some also with apostille (the Hague) and translated, banks are happy to hold mortgage. Rates are more then anywhere else in europe, but that will hopefully come down.

HI, you are referring to the commissions (2.5%) loan approval and is fairly normal that banks charge this upfront, when you (your friend) did the loan application it is all explained
Regards,
Brian

Totally agree with you, 1448E/m2 construction is still over priced, but all depending on the finished quality. But knowing the developers if they use marble floors, you will end up with a cheaper windows.
If you are really interested in investing or buying, buy land and construct yourself and only pay 700E/m2 for high quality finishing
Regards,
Brian

Marks friend might have been the smarter ones in Bucharest, "The Scenario":
Sell you apartment in Bucharest and bank/invest the money for a good return. Then move outside the City and buy same size and maybe quality for half the price or much less. Depending on apartment refurbish etc, and go on a holiday and enjoy.
just some thought.
Brian

With all due respect Brian, mortgages here are not eaily gotten for foreigners and no one should enter into a contract before receiving written guarantee. Bank managers will promise you anything you want with the famous Romanian phrase of 'No problem' then show how incompetent they are when it comes to delivering.

Mortgages are also not available for companies unless proof of income and self employed people will not be considered.

Bottom line, mortgages are not simplistic and we have numerous clients who are testament to this.

On taking into consideratin the above, it can be done, but anyone entering into a pre-contract and reliant on a mortgage must have a clause subject to finance or they will lose their deposit


David Howe LLB. LLM

www,investmentromania.com

Attention! The requirements for credits offered by banks in Romania to private persons are very different than those for companies!
It is best to find out about it BEFORE someone tells you to buy on the company is the best move.
As for credits for foreigners, the offer is very limited at the moment for non residents and due to the crisis on the financial markets we will see more restrictions in the future. Honestly (even if that would turn into a risk for our business) I agree with these restrictions as it is not desirable for Romanian banks to have clients who often have credits all over the world, but claim not to have any and are at some point unable to pay the mortgage. Banks should not turn into real estate agencies, having to cope with all sorts of off-plan developments which suddenly enter their full possession. These speculations also put the price up for the locals, who can't afford a home anymore. The result is nobody profits from these games, most of the time the speculants also have to lose, except for the ones who were there first.


Elie Katz
Transylvania Investment Partner

Mortgages in Romania are no different then any other country when being a foreigner. Banks need to have their security for payment of the installments.
I agree totally that Romanian banks are more difficult, mortgages being fairly new to the market here.
Company wise, it is only logical, that newly formed companies will not be considered, not having any income to pay the mortgage. Its like a natural person without a job.
But for foreign investors their are many other possibilities to obtain a mortgage in Romania, and with better interest rates.