Answering your questions…
While I am still trying to get used to my new apartment (moved there 2 days ago, you will have the full story of my search for apartments to rent in the next days), I receive calls that really worry me… Big businessmen worried or desperate, normal people in trouble, while some lovely ones still say that everything is fine…
Out of tens of questions you sent me lately, here are some answers to them (more to come soon, don’t complain… I have to work, to make a living too!):
Vasile M. says: Why do you keep talking about a crisis? I was in Predeal for the holidays and on New Year’s even there was a super party in a club there… you should see hundreds of people dressed with very expensive clothes, especially ladies. The champagnes were opened without an end (especially for a super brunette dancing…), probably we opened more than all France opened that night! Where do you see the crisis then? The ones with real money are here and they are still big spenders. Stop with this exaggeration, you scare people for nothing.
– My friend, during the Second World War, while Greece was conquered by the Germans, people were dieing on the streets from hunger. Others were selling their house for 100 kilos of wheat or few medicines for their child. In the same time, there were still lots of parties in Athens, with expensive dresses and food, where people were gossiping like nothing changed (or they were saying that they also “heard” about other people’s problems).
I don’t say that the situation now is so bad, we are far away from this kind of things. But the problems are ahead, the market is in a crisis and I will also tell you what is the rule for the ones who are the big spenders in every holiday season. They are…
1. Rich ones with “new money” who like to show off (the really rich ones are never presented on media or in public as big spenders these periods, usually you see them doing welfare…).
2. Normal ones who collected money all the year so as to show off these days (or they were stupid enough not to collect and now they are in debts).
3. People who are ready to bankrupt, who collect their last money, so as to show off and prove to the others (usually to a client they wait for a deal or the banker for the loan which will save them) that they are ok, rich and have no problem to spend money from their huge profits.
I hope that all the people who were spending like crazy these holidays will remain wealthy enough so as to do the same next time too (but I doubt…)
Jim L. says: Thanks for the nice stories, but anything more useful? Any good place to go? Any club you like? About restaurants?
– Sorry to disappoint you, Jimmy, but I rarely go clubbing. I heard that there is a new one, “Eleven” in the centre, Magheru. Ofcourse you can always go to the big ones of the centre- North, which are all still fashionable too. About places to eat, my favourite here is “La Mandragora” (Mendeleev street) and I like many ones too, yesterday I was to “Argentine” (Tomas Masarik street), where I enjoyed a nice tenderloin with a sweet too (special diet…).
John K. says: Mister Elias, I like your work. I want to buy a land in Dorobantilor – Capital area, but I want a big discount, prices like 2005, maximum price to pay 500 euro / sq. m. You think I can find? You can help?
– I don’t understand, why are you so generous with the owners? Why the prices of 2005 and not the prices of 2000, or 1995, or 1990 (even better)? Actually you should tell them that as there is no client now in the market and they have to pay big property taxes, they should give you their lands for free and you will be generous enough to pay their taxes instead.
I am sorry, but I can not help you, actually I don’t agree with your approach too. If the market will go back to 500 euro / sq .m . for a land in Dorobanti area, then we will all be financially dead. Romania will see new lower prices, down from the bubble of the past, but when the bubble created the prices in Dorobanti from 4.000 – 7.000 euro / sq .m . (asked price), I consider that a fair one (depends on the property, location, cut etc) is between 1.500 – 3.500 euro / sq .m .
Romanian economy is not ready to bankrupt, it passes a very difficult phase. I would suggest to you to respect the people here a little bit more. Ok, of course the money is yours and you are the only one who will decide what investment you will do, but a… 90% deduction from few months ago sounds insulting…
PS. I admit that I have offered myself many times very low prices to crazy owners, but always the price was the real one the client was willing to pay. As an example above, with the reality between 1.500 – 3.500 euro / sq .m ., someone with an asked price of 7.000 euro would be insulted too, but for wrong reasons.
Makis Papadopoulos. says: Ilia, any good offers to buy now? Where would you propose, what area?
– Now you have endless opportunities, depending on the available funds you have, your investment strategy, your time schedule, type of investment, etc. If I know these, I can tell you more. Just avoid what could be described as “completely dead”, except if you like risks.
Remus M. says: What do you think about the North of Bucharest? Is it good to buy there? I know that you Greeks bought there with 1 – 2 euro and sold with 10 – 20 few months or years later.
– For every Greek you know who did this, I know another 10 who are blocked in stupid properties, for which in many cases they don’t even have all papers. Ofcourse Greeks speculated in prices, but I don’t know who did not do the same, when he was investing in areas like Crevedia, Balotesti etc. Honestly, Greeks, Romanians, Italians, Turks, Israeli, Cypriots… everyone had more or less the same strategy, as you described it. This led to the situation when owners of properties located “in the middle of nowhere” were asking for 20 – 50 euro / sq .m ., sure that a stupid foreigner would buy, waiting to become again many times more.
This story has ended. Right now, if you want to invest in the Northern part of Bucharest, you should follow the basics of investment, which apply everywhere and in everything. I never proposed to anyone areas like Bilciuresti and Niculesti, I didn’t do transactions there, no one today searches me so as to kill me for destroying him. Choose something mainstream, negotiate it good and keep in mind that you should always reply to the question “why the next one should buy it from me with a bigger price?”