| I have to admit it. I had almost no knowledge | | | | landscape ranging from a large stretch of |
| of the country of Romania just five short | | | | seaside along the Black Sea Coast to the |
| years ago, when I came here for the first | | | | impressive Carpathian Mountain range in the |
| time. What came to my mind were images of | | | | fairy tale land of Transylvania. In between |
| Dracula, Frankenstein, and under-cared for | | | | is just about a little of everything else, |
| orphaned children, the kind that were | | | | from natural healing springs, to flatlands |
| featured in fund-raising specials that | | | | highly suitable for agricultural use, to a |
| appeared on television when I was a kid. At | | | | host of medieval and modern cities such as |
| least I can say that I knew for sure that it | | | | Sibiu, Cluj, Brasov, and Timisoara, which is |
| existed, and so did it's province of | | | | perhaps the most Westernized of all Romanian |
| Transylvania. That's partially contrary to | | | | cities.I spoke with a number of real estate |
| what I was taught in elementary school, by | | | | experts about what the best speculations for |
| the way, when our teacher assured us that | | | | the real estate investor would be, asking |
| Transylvania was only a storybook land and | | | | questions like cost of entry, minimum length |
| therefore we need not be frightened that the | | | | of time for investment to mature, etc. All |
| horrible creatures that inhabit it actually | | | | seemed to agree that land, all over the |
| exist!Today, five years later, I have a | | | | country, was the best bet. Only one problem |
| radically different and much more | | | | though. Foreigners can't own undeveloped land |
| well-informed | | | | without an attached dwellingHowever, I |
| | | | discovered a loop-hole that not only allows |
| view of Romania. The things that used to | | | | the foreign investor to own land but also to |
| come to mind about this country, | | | | diversify his investment portfolio, if he |
| | | | wishes, and invest in the the three hottest |
| rarely do anymore. When I think back about | | | | areas of Romanian real estate at the same |
| my old preconceptions of Romania, | | | | time - land, homes, and office space. It's |
| | | | called a REIT- Real Estate Investment Trust.A |
| it never ceases to take me aback the great | | | | REIT is a security that sells like a stock on |
| difference between the infamous | | | | the major exchanges and invests in real |
| | | | estate directly, either through properties or |
| legends and surprising reality about this | | | | mortgages.REITs receive special tax |
| country.Now, instead, I am captured by many | | | | considerations, and typically offer investors |
| of the same things that ancient Roman | | | | high yields as well as a highly liquid method |
| emperors like Cesar and Napoleon found so | | | | of investing in real estate. |
| alluring about this place. (Romania was a | | | | |
| part of the Roman Empire and takes it name | | | | The REIT concept is in action in Romania by |
| from the Latin word for Rome.) From | | | | a reputable American firm and is designed |
| incredible natural resources to majestic | | | | specifically for the purpose of enabling |
| mountain and seaside landscapes, Romania is a | | | | foreign investors to have the opportunity to |
| place that has a little of everything you | | | | invest in Romania's greatest real estate |
| would find elsewhere and a number of things | | | | opportunity (land) and to diversify their |
| you can't find anywhere else. And as for | | | | real estate portfolio, even with minimum |
| Transylvania, my teacher was right on one | | | | funds for investment. (The usual entry |
| point - it is a storybook land- but, on the | | | | investment is 25,000 Euro.) Investors should |
| contrary, for it's beauty and that of it's | | | | be willing to hold there money in the |
| people.Ultimately as concerns Romania though, | | | | portfolio for about 5 years. The yearly gains |
| the most important discovery I made in my | | | | over that period of time are expected to be |
| search for the truth about this land of | | | | quite significant and investors who currently |
| legends, is the tremendous real estate | | | | have invested in an REIT have already made |
| investment potential that exists here.Romania | | | | considerable returns on their investment.A |
| presents the investor with an exceptional | | | | more explanatory overview is available for |
| opportunity to benefit from the ascension of | | | | those interested.Another promising |
| an eastern block country to the European | | | | development for Romanian real estate is |
| Community. The timetime line this | | | | created by the construction of a new 2 |
| opportunity, however, is limited. Romania is | | | | billion EURO super-highway being realized |
| one of the last European countries in | | | | with the financial backing of the EU. This |
| ascension talks with the EU and it is | | | | new super-highway built with the technology |
| projected to enter in either 2007 or 2008. | | | | of the American firm contracted to complete |
| The expectation around this hallmark event | | | | it by the year 2010-12 will dramatically |
| has resulted in much needed economic and | | | | change the face of Romania. It will cut the |
| government reform, making conditions more | | | | travel time between Bucharest and major |
| suitable for foreign investment.The | | | | European cities down significantly and |
| pre-ascension excitement has also given way | | | | literally create new major destinations in |
| to a dramatic increase in real estate prices | | | | Romania, overnight. Cutting through the |
| in recent years, especially in major cities | | | | Western portion of the providence of |
| and tourist areas. For example, a friend of | | | | Transylvania, numerous towns and potential |
| ours bought a 2-bedroom apartment in central | | | | resort districts abounding in raw natural |
| Bucharest in early 2002 for $25,000 USD. | | | | beauty with mountains, springs, and rivers |
| Today his apartment is valued at 75,000 EURO | | | | will suddenly be centrally located. Rather |
| ($100,000 USD) and the amount of interested | | | | then remaining isolated, somewhat |
| buyers is more then sufficient.So much so, | | | | hard-to-reach hidden treasures, these gems of |
| that potential buyers have actually posted | | | | Mother Nature will now be as close as turn on |
| advertisements on the entry door to his | | | | the off-ramp. Truly, many of these locations |
| apartment building stating that they are | | | | surpass the potential found in the current |
| eagerly looking to buy an apartment in the | | | | tourist areas that are easier to reach. |
| building or a nearby one. This friend of ours | | | | |
| can choose to sell his apartment today at a | | | | .The ability to start an inn or bed & |
| significant profit or hold on to it until | | | | breakfast in one of these areas is ripe. We |
| closer to the actual ascension of Romania to | | | | even know of a top Bucharest hotel chef ready |
| the EU, allowing him to benefit from the | | | | to pack his bags and commit his energy to |
| greatest possible appreciation in value of | | | | starting a restaurant in one of these new |
| his property. During the mean time, he could | | | | destinations for a small piece of the |
| continue to rent out the apartment at 700 | | | | potential profit he believes it will yield. |
| EURO ($890 USD) a month or get in on the | | | | Those who are in Romania, know the market, |
| burge oning short-term rental market which | | | | and have seen what has happened thus far, |
| offers an alternative to the over-priced | | | | have little doubt what the future will yield |
| hotel room rates in the city, and with a | | | | and are ready to do almost anything to get in |
| pretty good occupancy rate, rent the | | | | on the action. |
| apartment on a daily or weekly basis at 50 | | | | |
| Euro per night.Our friend is just one of | | | | For those who are looking to relocate, the |
| countless foreign citizens and Romanians who | | | | opportunities likewise are great. This is the |
| have already profited greatly from investment | | | | chance to live in the best of both worlds - |
| in the Romanian real estate market. Yet, as | | | | old and new - and position yourself and your |
| you will soon discover in this article, there | | | | loved ones in what will be one of the biggest |
| are still better deals out there to be had | | | | member countries of the European Union.An |
| then the one he and others have so far | | | | American friend of mine owns a beautiful home |
| benefited from. | | | | in a lakeside suburban community with a |
| | | | wonderful view over the lake and 2000 meters |
| While the prices have already jumped | | | | of land. This two-story home with three |
| significantly in recent years, the | | | | bedrooms cost him about 150,000 Euro to |
| near-certain speculation is that they will | | | | build. The premises also contain an outdoor |
| continue to rise dramatically until the time | | | | kitchen, orchards groves and gardens. In |
| of the ascension of Romania into the European | | | | short, a dream home.By deciding to build his |
| Union. The certainty of this speculation is | | | | dream home outside of the city, about 25 |
| bolstered by the 10% rise in cost of houses, | | | | minutes downtown Bucharest, in what Americans |
| apartments, and property in Bucharest over | | | | would consider a nearby suburb, my friend not |
| the period of December 23, 2004 and January | | | | only saved on land costs, he also set himself |
| 5, 2005. With the amount of interested | | | | up for a great growth in value.As he put it, |
| clients sufficiently high this means that an | | | | draw a circle around any Western European |
| investor could have bought and sold a | | | | city of 25 kilometers and you have the city's |
| property and made a 10% profit in less then 2 | | | | suburbs. As Bucharest continues to expand |
| weeks in the Romanian real estate market | | | | this area will become a centrally-located, |
| while he or she was celebrating the holidays | | | | well-saught-after suburb, especially with the |
| with family or busy skiing.. | | | | large lake and forest that it contains.. |
| | | | |
| The amazing reality is that such | | | | There is still a limited amount of property |
| opportunities for substantial profit continue | | | | available both in this and neighboring |
| to exist, for now at least, here in Romania. | | | | communities for construction of similar |
| In the capitol city of Bucharest, deals can | | | | homes. The best bet seems to be the build |
| still be found for investors with ready cash | | | | your own home with a reputable construction |
| from sellers looking for quick money. Another | | | | firm, according to your tastes, and pocket |
| great speculation is office space in | | | | the savings that this effort will yield for |
| Bucharest. At 1.2 Euro per square meter, | | | | you.A home in the suburbs, of course, is not |
| Bucharest is now close to the cost of office | | | | for everyone. The true romantic may be more |
| space in Vienna which is currently at 1.8 | | | | intrigued by a "conac" the Romanian name for |
| Euro per square meter. These prices continue | | | | a cottage of the aristocracy of the Country |
| to accelerate. Such opportunities though are | | | | at the turn of the 20th century where gentry |
| only the beggining. | | | | would spend their weekends and summers |
| | | | sipping wines from the surrounding vineyards |
| While the general over-evaluation of real | | | | as well as the basement vaults. |
| estate in Bucharest has caused prices to rise | | | | |
| and made the average cost of entry higher | | | | .These home often need a little fixing up, |
| then just several years ago, this very | | | | but are worth it as the lingering aroma of |
| reality, gives clear indication that clever | | | | the wine harvested on their estates and |
| investors can continue to benefit from this | | | | spirit of days gone by continue to fill the |
| over-evaluation of property value in the | | | | premises with an air of magic. |
| mayhem surrounding Romania's anticipated EU | | | | |
| entry.It is generally held that prices will | | | | For the cost of an acre in the Napa Valley |
| continue to rise sharply until leveling off, | | | | (or probably less) you can have a functioning |
| or perhaps dropping slightly, after the entry | | | | micro-vineyard and getaway home located in |
| of Romania into the European Union. This has | | | | the Romanian wine country, situated in the |
| created a short time period in which | | | | steppe to the Carpathian mountains, a short |
| investors can yield serious turnaround on | | | | drive from Bucharest.Another alternative |
| their investments and those wishing to | | | | would be a mountain home or getaway which be |
| relocate can do so while getting in at a good | | | | had from anywhere from 20,000 Euro and up. A |
| bargain.The best bet for investment oriented | | | | superb villa in a choice location would be |
| apartment-hunters in Bucharest today is | | | | about 100,000 Euro. Most such homes come |
| high-end luxury apartments. The potential for | | | | with spectacular mountain views and often |
| profit off of lower to middle end apartments | | | | with other natural beauty close by or on the |
| has began to tweak off as prices have already | | | | grounds of the property, such as fragrant |
| risen closer their final expected levels. A | | | | pine tree forests and meadows.Romania offers |
| luxury apartment however, which can currently | | | | excellent services and conditions for expats. |
| be had for between 120 to 200,000 Euro (2-3 | | | | The general cost of living is much less then |
| bedrooms), will likely climb in value 10-20% | | | | in the European Union and allow the |
| a year, over the next two years leading up to | | | | non-European the chance afford-ably stake his |
| EU ascension. By looking at the price of | | | | claim in the European Union and establish a |
| luxury apartments in any European Union | | | | life in what will be a flourishing European |
| capitol city versus Bucharest, the capitol | | | | superstate. |
| city of Romania, one can observe the great | | | | |
| disparity in prices which still exists at the | | | | Whether one is looking for a short-term |
| moment between the luxury apartment market | | | | investment turn-around in an European capitol |
| here verses in EU capitol cities. While the | | | | city like Bucharest or to start their own |
| investor waits for his investment to mature | | | | resort inn in the breathtaking wilds of |
| he can rent out his apartment for 1,500 to | | | | Transylvania, opportunity is readily |
| 2,000 Euro per month, further adding | | | | available for the serious-minded |
| significantly to his overall profit. The | | | | investor.This opportunity which is available |
| number of multi-national companies present in | | | | in the present is akin to that which was |
| the city makes this a relatively easy sum to | | | | available in the Czech Republic 10-12 years |
| get for such a place on a rather consistent | | | | ago. Many speculate, based on Romania's size |
| basis. | | | | and natural assets, the future yieldings will |
| | | | actually end up being much greater.These |
| . At this point it stands to mention that | | | | opportunities will not last long. As the EU |
| any real estate purchase made by a foreign | | | | accession gets closer and the new highway is |
| individual can be financed by leasing | | | | paved, the potential for revenue-making that |
| available through only one Romanian company, | | | | currently exists will clearly subside and |
| as long as a 20-30% deposit is initially | | | | diminish. For those who missed out on |
| made.While Bucharest abounds with investment | | | | investment in the Czech Republic and Hungary |
| opportunity, the opportunities outside of the | | | | and don't want to miss out again, the time is |
| capitol are also ripe with potential for | | | | now in Romania.Kevin Stillmock has been |
| significant profit matching or exceeding that | | | | involved in real estate investment since |
| of Bucharest. Romania offers a diverse | | | | 2000. |