Prima Casa II: Is it possible for minister Vladescuto introduce “collaboration” in the vocabulary of Romanian Real Estate market?

This week we have the official launching of “Prima Casa II”. While the numbers of guarantees are known and everyone has focused on them, I was captured by another parameter of the new programme: Public Finance Minister Sebastian Vladescu announced that there is a new guarantee introduced, when seven or more people will associate so as to develop something together. I thought I didn’t read well: “Association”? “Together”? Do these words exist in the vocabulary of Romanians (and Greeks), especially in the Real Estate market? Not so far.

What does “Prima Casa II” bring to the market?

I was reading www.capital.ro about the regulations from now on. (You can also check at http://www.capital.ro/articol/prima-casa-in-grup-garantie-de-75-000-de-euro-pentru-fiecare-asociat-131961.html). In brief the new conditions are:

• 60.000 euro guarantee for apartments in old buildings and dwellings in new projects, which have already started.
• 70,000 euro guarantee for dwellings that are planned to be built (new projects)
• 75.000 euro when there is an association of minimum seven persons, who will develop a project together.
• Also, Prima Casa will be available for the apartments of ANL (National Housing Agency) as well. (Like this the State will guarantee for properties which will be sold and the… State will receive the income!)

Associations: An interesting new idea to debate upon…

All the rest are known and more or less discussed. I want to focus on the idea of associations, something genuine for Romania. Even by hearing this project, many people asked me “what does it mean? That I will have to apply together with another six strangers, in order to have a bigger guarantee by the State?”

It is true that there are not many associations today, formed by seven or more individuals who will develop a project together. There are the unions of several categories of people (teachers, public servants etc), but this is something else. If I am not wrong, this new idea describes the association of seven or more private people. Why is it new? Why wasn’t it developed all these years?

Romanians: Very difficult to associate…

There are many opinions, I will tell you some of them:

• Unfortunately the Romanian society (especially the society of Bucharest) looks like having been built like many other post communist ones. People are usually selfish, everyone is helping only himself (and / or his family) and noone trusts anyone else.
• You can see the results of this approach in almost everything around you. From words and actions. I know hundreds of Romanians who complain that the others are “nesimtiti” (without feelings) and I notice them doing exactly the same actions for which they complain (when someone else does).
• Thus trust is an element which is missing from this society. Is it good? Or bad? Right? Or wrong? It is a fact and usually when someone is open and positive to others, he is considered “naïve” and “stupid, victim waiting to be tricked”.
• (All these actions happen especially in the Southern part of the country. The more you drive away from Bucharest, the less you see them).
• In almost everything, everyone behaves like he knows all. So it is normal the same to happen in Real Estate too. At least it happened until two years ago, before the crisis to start.
• So, how could someone hope to put on the same table so many people with different opinions, prejudices and wishes, in order to initiate them to associate? Sounds impossible…
• (Between you and me, I don’t blame them. Living in a society like this makes you adjust and protect yourself in the best way you can.)

Associations: What do they mean for the famous class of… “normal people”?

This is not a measure for the rich. Neither for the poor ones. It targets directly to the so called “normal people”, the middle class of the country. Maybe also the ones who complain that they are overcharged when they want to buy an apartment or house developed by someone else. Now they have their chance. If they will associate, they will:

• Access bigger funds.
• Save money, avoiding the profits of a developer.
• Negotiate the costs better.
• Choose their friends, with who they will live together in the years to come.
• Change their life and improve its quality.
• Learn to collaborate, decide together with others, be responsible for their actions, create a plan and implement it.

Or… we will witness endless legal battles between them, if one will try to trick the other. I hope not, but for sure there will be plenty of people who will come up with “wrong” ideas.

What is missing (in my humble opinion)

In order this measure to have better effects, there are few tips which could really help to bring results for everyone involved:

• A special law – directive which will specify all the details of an association like this. If it is too much to be a law, an official proposal by the State, with several variants. People should know and then they can choose whatever they like.
• Some special classes for lawyers  and notaries (20 – 30 hours), just to understand this new procedure of associations. The ones attending these classes should be announced, in order for the people to know who are the first “experts” to help them.
• Same classes for consultants (20 – 30 hours), as there might be a need to draft a budget, learn how you collect offers and then compare them etc. Maybe there are people who want to associate and they don’t know these details. Some trained consultants can help.

Either it will bring results or not, the idea is correct

I don’t know the minister. But the idea he introduced is correct. The next level for the Romanian society is indeed to increase the level of professionalism, people to trust each other a bit more and like this to respect each other a bit more. What is better initiative for this, than the possibility of saving money by associating together?

The measure is good. I don’t know if it will succeed to introduce in the vocabulary of the Romanian Real Estate market the word “association”. I am not sure if it will work in today’s society, but it is definitely on the right direction. For many reasons, but especially for one: I strongly believe that Romanians are MUCH better than how they describe each other. I am here because I believe in the values and advantages of the country and its people. It is time for them to have the chance to prove it too.

PS. I declare that I am not involved into Romanian politics. I don’t know any politician and I don’t have any friends or enemies between them. The text above is just the explanation of the announced measures, plus the results I predict these measures will bring. This does not mean that I am against or that I support the Government or anyone else.