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