Every Friday: Answering your questions
“After all the price rising, does it still worth in 2008 to invest my money in Romania?”
Nick F. – London
Well Nick, honestly answering, YES. But you have to stop believing that Romania is a paradise where you just close your eyes, point an area on a map, you invest there and you have profits. Now it is the year that people will appreciate more the services of the serious real estate agencies. You can find opportunities in just 5% of properties, or up to 15% if you are optimistic. The rest are either expensive or with problems. This year is the year of the other cities, out of Bucharest and in Bucharest the year of the rare chances and the very fast moves. In all cases, much speed will be required, in order to catch the opportunity this year.
“What do you think about Buftea? Is it going to be 150 euros / sq.m. this spring”
Manuel R. – Saragosa, Bucharest
Dear Manuel, you make me worried. Are you ok in health? Was there any problem lately? Any wrong pills or what? Who was the liar who promised you this? Today I can still provide you with properties in Buftea with 30 – 40 euros / sq.m and the best with 70 – 100 sq.m. (not recommended to be purchased in 99% of cases). I can give you lands in Mogosoaia or Corbeanca with prices starting from 40 – 60 euros / sq.m. while best locations reach asked prices of 100 – 200 euros / sq.m. and deals are signed in the area of 80 – 140, Ok, if the property is by the lake, it can rise in the future to these limits, but today I consider for Buftea anything more than 80 euros / sq.m. WAY TOO MUCH.
(PS. So, if someone purchases a land in Buftea with 150 euros / sq.m., is he going to resell it with 300 euros / sq.m.? Please, guys, I know that several “real estate crooks” try to speculate on your back, but I am sure that you have the experience so as easily to understand the reality).
“Is it true that if I buy a property from a Romanian citizen I have to pay VAT? Because he proposed to me to find a solution and to pay half and save the other half”
Charles A. – London
I am sorry to disappoint you, Charles, but you are dealing with someone who does not know the new law (or he pretends he does not understand it). When we buy a property from a Romanian citizen, there is no VAT charged. This is charged only when we purchase a property from a company. This guy simply tries to steal from your pocket the half of 19%. This means that you should crosscheck the whole deal again, because these people are not the most honest you can find in this country. And don’t forget, we are foreigners, we are not “smart” so as to avoid taxes. We pay all necessary and we are peaceful, saving all possible by collaborating with a very good accounting company.
There are so many millions of serious Romanians, why don’t you deal with them?
“If you don’t like the behavior of Romanian people, why are you here and you don’t go back to your country?”
Carmen P. – Bucharest
Who says I don’t like Romanians? Describing my reality does not mean that I hate the people here. But, I am a foreigner, I am not used to this way of behavior by people and whenever I see unserious persons, I am disappointed. My motto says “Romania is not my destination, Romania is my destiny”. But this does not mean that I will close my eyes to the world around me. On the contrary, I think that 90% of Romanian people have the same opinion about the situation in this country and it is our duty to spot the problems, describe them and fight for the change. I respect your opinion, but I guess that after some 4 years here, I have the right to have mine too.