“When do you advise me to buy an apartment, because I want to get married”

My interview to www.hotnews.ro , part 6
to read part 1, please press here
to read part 2, please press here
to read part 3, please press here
to read part 4, please press here
to read part 5, please press here

On Tuesday, 6^th of July I had given an online interview to www.hotnews.ro, the number 1 news site of Romania. I was replying live to the readers’ questions and after this I also gave a short recorded video interview. You can access this interview here:
Ilias Papageorgiadis, investitor in piata imobiliara: La sfirsitul lui 2010 si pe durata anului 2011 vor incepe executarile silite. Atunci vor aparea preturile reale

Today I present to you the sixth part of this interview.

“In the end of 2010 and during 2011 we will enter into the period of foreclosures. Then we will reach the real prices”

“In 2008, Ilias Papageorgiadis – A real estate player in Romania – was warning that property prices in Romania are inflated. Few people would stop from the madness of buying and selling at huge prices, most of them having contracted a loan in this regard. Now although the market is totally blocked, many owners and developers kept their prices high. Ilias Papageorgiadis Ilias a former journalist from Greece, talks on-line about the future of the real estate market in Romania.

Ilias Papageorgiadis will answer our readers questions

Question no. 12 Razvan

Hello,
Have the model and the trend of the Romanian Real Estate been perhaps previously registered in other neighborhood countries? If so, do you think it will follow the same course? The culture of each nation influences the trend and development of Real Estate? Do you think that the historical minimum has been reached? Because for the last two years every day we hear talks regarding this historical minimum. At this point I’ve noticed a real media war between the two sides – buyers and sellers – in which everyone states  his opinion – ”declining prices or the apartments are getting expensive” – even if from the economic point of view, Romania is not on an upward path.  Thank you,

Ilias Papageorgiadis
Romanian real estate market followed, indeed, the same trend as in other countries. But here the reasons were different. Also, people’s behavior after receiving large amounts of money was different. As a society, we made lots of mistakes and today we pay them. Other societies that have made fewer mistakes are going through more easier period right now. It is obvious that the mentality here is different, with good and bad things. What people refuse to understand so far is that we need to change, improve and benefit from the excellent potential that this country has.

Question no. 13 Michael

How do you estimate the prices for apartments in Bucharest in the next 2 – 3 years? Will they fall? I want to buy a 2 – 3 rooms apartment, but I still expect prices to fall. I have already a part for the advance but for the rest of the money (70%) I should contract a loan. I would be willing to pay up 60.000 – 70.000 Euro for a 3 room apartment. When do you advise me to buy? Currently I have where to live, but I hope to buy my own apartment because I want to get married. Mihai

Ilias Papageorgiadis

I know that Romanians and Greeks have it their blood, the desire to own properties. But we live in a difficult period, so please don’t  bind a marriage with an acquisition of a property .If you are happy with your future wife, you can marry her, stay a few years in a rented apartment and then move in your own one, when you  will be ready to invest in it. The rents reached low levels now and they will be forced to go even lower in the next 12 months.

Nobody knows what tomorrow will bring us. Maybe tomorrow the politicians will decide to change the whole system and this will change your life in Romania. .But considering how the Romanian market and economy evolves, you should consider buying a property in the next 12 – 18 months. It will be an excellent period for investments. I can’t tell you that the best time to invest is on November 14, or such things. The next period will be good for you, especially after September.

The more we enter in the era of foreclosures, the better it will be for you to find what you are looking for. But please do not be confused. You don’t have to buy when the time seems perfect, but when you find your ideal property.  If you find it in 20 days or six months, do not wait for another year, hoping that prices will fall. They might fall, but nobody says that you will find the apartment you desire in the area you desire and for the price you desire.

Have you ever heard somebody saying that investments in properties are linked to “time, time and once again  time? “It is also about the moment you invest, but all experts insist upon “location, location, location”.  I think you’ll agree with me that they know more than me and more than you do as well.