With Romania due to join the EU in January, property investors are significantly escalating their interest and investments in the country

1. With Romania due to join the EU in January, property investors are significantly escalating their interest and investments in the country. This will inevitably lead to price rises, so if possible any purchases should be made sooner rather than later
2. If purchasers are buying anything other than an apartment they will need to establish a Romanian foundation or company via which the property investor can own the land on which the property sits
3. The purchaser should have an independent survey carried out for resale property investment
4. In terms of the associated extra costs a property investor in Romania should budget for, they should allow for an extra 3-4% of the original purchase price. Costs will include the lawyer and notary costs as well as state taxes and there is an annual property tax payable in Romania as well
5. Chose a location carefully. Some places are becoming saturated and it will be difficult to guarantee year-round rental with so many other properties nearby also to rent. It is always best to visit a site before buying. Find out how easy it is to get to and from the site and what amenities are available nearby
6. Look for hidden costs. Remember apartments will have an annual maintenance charge built in
7. It is not currently possible to obtain a mortgage to purchase a property in Romania either in the UK or Romania, although this is likely to change in the near future and in all likelihood will be possible by the time the country joins the EU
8. There is so much choice with regards to buying in Romania that it is always best to use a reputable agent to help you separate the chaff from the wheat
9. It is best to use an agent with local knowledge which can bridge the gap between foreign buyers and sellers or developers who may not speak English
10. Speak to Romania Revealed on 0845 054 8697 / www.romaniarevealed.com

Source:

Ashton Billige Property Marketing Ltd