Ilias Papageorgiadis' blog

03.02.2012: Q&A of the day

Editor — Fri, 03 Feb 2012 20:45:13 +0000

Q: I would like to exchange my 4 room apartment in the Dristor area to a house with one floor in Pantelimon town. I noticed that there are properties that would fit this price range. Can such a transaction take place? IP: If you have also studied the monthly costs that this change will bring to your life, go ahead and conclude the transaction! You can always find Real Estate consultants to organize the deal, but they should not “help” you. They should work and be paid for the result of their effort, expertise and experience. Now if you trust a private person, even better. [...]

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02.02.2012: Q&A of the day

Editor — Thu, 02 Feb 2012 20:45:41 +0000

Q: How longer must we wait for a 30-50% decrease of the prices? IP: 1. It depends on which part of the market you are referring to. If it is the residential segment and old apartments, we will know this year. If it’s other segments, I would need to know more , before answering. 2. There are already investors who bought packages of 50 – 100 new apartments at 600 – 700 Euro / sq.m. But these are not located in the heart of the city, only at the outskirts. 3. If the banks decide to “clear” their portfolios of all kinds of “problematic” loans [...]

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01.02.2012: Q&A of the day

Editor — Wed, 01 Feb 2012 20:45:41 +0000

Q: Are these prices on these studios and apartments real? Why do they have such small prices? 2000 euro ... it's a mistake, right? IP: If you see prices like this, they are usually a bait by Real Estate companies, trying to “fish” clients. Usually you call and you are informed that “this was a mistake, but we have an excellent offer for THAT price somewhere in the area” or that “this is the money for the owner, but there is also a loan of 100.000 Euro to pay back” (Don’t worry, you are not the first one. This was my first reaction when [...]

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TAX ALERT! Certification of the non-deductibility of VAT

Ilias Papageorgiadis — Wed, 01 Feb 2012 16:00:23 +0000

The following memo was sent to me a few days ago from Baker Tilly Klitou, one of the most important accounting firms in Romania, in regards to the no.33 Order on the 11th of January 2012 for certifying the statement regarding the non-deductibility of VAT related to expenses. The document listed below is a step-by-step explanation of the Order which I think warrants a careful analysis. I think that this information is worth your attention. “Certification of the non-deductibility of VAT related to expenses recorded in reimbursement requests submitted to the management authority Official [...]

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31.01.2012: Q&A of the day

Editor — Tue, 31 Jan 2012 20:45:46 +0000

Q: If an apartment has a mortgage and is sold, what happens with the new owners? Do you they undertake the mortgage? Or does it continue being the problem of the previous owners? IP: If an apartment was sold with a mortgage, the new buyers know this. In the “cartea funciara” there is an interdiction noted that the bank has registered a mortgage on the property. This is why when the new owner buys the property, usually either he pays the bank and he cleans up the papers, or he continues the loan (having the bank’s approval). In order for you to buy such a property, you [...]

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30.01.2012: Q&A of the day

Editor — Mon, 30 Jan 2012 19:00:54 +0000

Q: I want to buy an agricultural land but the owners only have a property title and no other documents. Is there any possibility of a precontract at the notary until the problem is sorted out? IP: In theory it exists. It depends on the surface. If we are talking about a few hectare, it can happen. If it’s hundreds of hectares, with tens or hundreds of owners, simply forget it. You will lose time and money, without having a serious result. Make sure that you will collaborate with lawyers specialized in this field. And also keep in mind that this is one of the most difficult tasks for an [...]

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27.01.2012: Q&A of the day

Editor — Fri, 27 Jan 2012 20:45:12 +0000

Q: I'd like to know how much prices have gone down since 2005? IP: It is not sure that prices are down comparing to 2005. It depends on the area, the type of property etc. Imobiliare.ro has Real Estate indicators, measuring from 2008, I have a personal archive from 2004, I don’t know who can give you a precise answer. But for sure this answer requires more feedback from your side. - the question was asked during the q&a session organized by imobiliare.ro - [...]

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26.01.2012: Q&A of the day

Editor — Thu, 26 Jan 2012 20:45:09 +0000

Q: What is the trend of asking prices for apartments in Bucharest in 2012? IP: I am expecting that the prices for old apartments will have a declining trend in the first half of the year, due to many reasons: · Prima Casa is influencing the market less than in the past. · Banks will provide fewer loans. · The European and global instability make more people cautious before they proceed in an investment. · [...]

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Romanian Real Estate 2007 vs. Romanian Green Energy 2012. 5 major differences between 2 “golden periods”

Ilias Papageorgiadis — Thu, 26 Jan 2012 09:02:17 +0000

Last week I participated at the “Wind Power Romania” event, one of the most important conferences for Green Energy in Romania and the Balkans. I was impressed by the quality of speakers and their presentations. I consider it a “training” by some of the top experts in Green Energy today in Romania and Europe. It was clear that the interest is very strong for Romanian Green Energy, especially in the wind and solar segments (hydro and biomass will move as well, but not as fast). Hundreds of investors want to enter the market, reminding me sometimes of the “golden [...]

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25.01.2012: Q&A of the day

Editor — Wed, 25 Jan 2012 20:45:20 +0000

Q: I'm looking for a 2 room apartment in a semi central area through the Prima Casa program. Do you think I can handle it on my own or should I hire a real estate agent? IP: I definitely suggest you collaborate with a Real Estate professional. If he is a good one, he will be a positive factor in your search and will help you save time and money. But this does not mean that everyone is good for you. The market is full of “tarani” who have 0 respect for their clients, so you should choose based on such principles as: Respect for the client, good knowledge of the market, [...]

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