Indications that Romania is a great place to invest in overseas property can be seen by Fords recent investment in the country along with impressive house price rises. Ford has shown investors they way by officially taking control of Automobile Craiova, the former Daewoo operation. The property market which offers homes at very low prices has in some areas of Romania seen bullish growth rates of 25% to 30% p.a. for the last 3 years
Fords commitment includes plans to boost the plant’s annual production capacity to 300,000 units and double employment to 7,000. Ford executives said the factory will assemble the Transit Connectin 2009 and a new small car in 2010.
John Fleming, president and CEO of Ford of Europe, said the Transit Connect, a compact commercial delivery vehicle, will go into production in Craiova in mid-2009. The vehicle currently is built only in Turkey, but Ford’s assembly operation there is at full capacity. Earlier this year, Ford announced plans to begin marketing the Transit Connect in the U.S. in summer 2009.
Romania has proven to be a safe place with high capital appreciation especially in the Bucharest area. Romania is currently undergoing major infrastructural developments which will see further capital growth all over the country.
“The growth trend is expected to carry on for the next 5 years” says Damien Thiery from Romanian Properties Ltd, who adds: “Romania joining the EU January 1st 2007 along with the development of tourism on the Black Sea coast and in Transylvania, will prove that Romania in the years to come will have one of the fastest growing economies in Europe”. The “Super Highway” between Constanta and Budapest which will go through Bucharest and Brasov will be a critical element in securing Brasov’s role in Eastern Europe on a long-term basis. Not to mention that low cost airlines fly to several cities in Romania lead by Wizz Air and Easyjet. British citizens are increasingly purchasing properties in Romania either as investments or holiday homes.
Where to buy in Romania
Romanian property prices are very cheap in rural areas but you need to be prepared to spend some time and to have renovation expenditures for your property to achieve British standards.
Steps to buying in Romania
Doing your research as well as finding a well-established agent based both in Romania and in the UK are key when purchasing in Romania.
Mortgages are now available for foreigners. Should you wish to buy a villa or a plot of land, you will need to set up a company which is a very simple process – your estate agent should assist you with it. Purchasing a new or off-plan apartment can be carried out in your name without necessarily requiring a company formation.
