Non Status Mortgages in Romania

[eppiblue]

Hi,

Myself and a business partner are looking to invest in a off-plan apartment, most likely in Cluj. We have a budget of around €70,000.

Im self employed here in London (I.T Consultant) and even though my wage is relatively high, I do not have an employment contract or 3 years worth of my company accounts. Does anyone know if Romanian lenders give non status mortgages? 75% of 70K is only €52500 so it isnt a bit mortgage anyway.

Any info on this topic would be appreciated.

many thanks
Cal

 

[andreim73]

Mortgages for foreigners in Romania

Hi,

For the moment this is not possible in Romania. No bank gives you mortgage but it will happen soon. It's just a matter of time.

Why don't you take the mortgage in UK because the APR is much better there. Here is about 8% as the loans business started in 2005-2006 and now it is very low but the competition is increasing.

2nd step is to open a local company here..it's very easy and it costs only 300 EUR.

Why do you opt for Cluj? The best area are Bucharest, Black Sea and mountain (Brasov)...Cluj is almost dead for the moment.

Should you need more help, don't hesitate to contact me. triplew.intnet.ro

Cheers

 

[eppiblue]

mortgage

Hi thanks for the info

Is it possible to get a mortgage here in the UK for a property in Romania? I do not own a property here.

Also, yes we are intending to start a company in Romania. We like Cluj because we think it has good potential for growth in the future.

 

[Transylvania Investment]

Hi Eddieblue

IT IS POSSIBLE to get mortgage in Romania even as a non-resident. One of the banks who provide these financial means is Volksbank, and they are probably the best since their competition doesn't cover 70% of the property value.
If you chose to become resident, then almost all the Romanian banks offer these services. However, becoming a resident implies a few taxes you have to pay to the Romanian state, so you should think about it and talk with a Romanian financial consultant before you jump into that train.
Regards,
Diana Marinescu

 

[Accession]

No you can't, but...

They do not, yet. But if you are buying off-plan then it is highly likely you will be able to get them in time. If not then you will have to buy through a company that you set up - very easy to do and then you can raise money, currently 80% LTV through that.

 

[Transylvania Investment]

Yes you can

I don't know what sort of information you use, but we had clients who got mortgage in Romania.

 

[Janoulaki]

There are mortgages available to non residents

 

[Accession]

Mortgages

Just to clarify - yes you can get mortgages as a non-resident, no you cant get self cert.

Eppiblue - As for investing in Cluj - an excellent idea, ***** are building there and need 15,000 people to start working for them by the end of next year. They are also funding part of the UNi and there are two other major players moving to the area. So if you are going to invest there, now is the chance, I just ran a development there and it sold out in 2hrs.

In fact everything is going up all over Romania, better to be more concerned about who you are buying from and what terms it is on.

 

[Transylvania Investment]

Just to clarify - yes you can get mortgages as a non-resident, no you cant get self cert.

Eppiblue - As for investing in Cluj - an excellent idea, ***** are building there and need 15,000 people to start working for them by the end of next year. They are also funding part of the UNi and there are two other major players moving to the area. So if you are going to invest there, now is the chance, I just ran a development there and it sold out in 2hrs.

In fact everything is going up all over Romania, better to be more concerned about who you are buying from and what terms it is on.

I agree with you Accession. Cluj is very good opportunity and from next year, Brasov will develop greately.

 

[Accession]

Your right Trans, bought there already in Brasov, and just about to do it again - on the East side I think, where the motorway is coming anyway - also waiting for a good op in Cluj, so if you know of any....

 

[Transylvania Investment]

Your right Trans, bought there already in Brasov, and just about to do it again - on the East side I think, where the motorway is coming anyway - also waiting for a good op in Cluj, so if you know of any....

Hi Accession,

We also operate in Cluj. We not only sell, but also administer after selling. Send me a private message and let's talk more about it.

Best regards,
Diana Marinescu
Managing Partner Transylvania Investment

 

[anna2]

I am told that the mortgages that are being offered to non-residents in Romania are not really mortgages ie they are not secured against the property and are in reality a personal loan with pretty steep terms.

So for Cluj, its not an attractive city and there is no obvious reason for tourists to go there. So growth will be only from local demand. The outskirts of the city are already very built up with communust apartment blocks.

 

[Transylvania Investment]

I am told that the mortgages that are being offered to non-residents in Romania are not really mortgages ie they are not secured against the property and are in reality a personal loan with pretty steep terms.

So for Cluj, its not an attractive city and there is no obvious reason for tourists to go there. So growth will be only from local demand. The outskirts of the city are already very built up with communust apartment blocks.

You are wrong about Cluj, Anna. It's not all about tourism. Cluj is a major university town, so where there is knowledge and universities there are only business going on.

 

[anna2]

You are wrong about Cluj, Anna. It's not all about tourism. Cluj is a major university town, so where there is knowledge and universities there are only business going on.

All I'm saying is that of the major Romanian towns/cities Cluj probably has less going for it than most. Both the town centres and the surrounding areas are more attractive in Brasov, Sibu and Sighisoara. And Timisoara has a better university.

 

[Transylvania Investment]

All I'm saying is that of the major Romanian towns/cities Cluj probably has less going for it than most. Both the town centres and the surrounding areas are more attractive in Brasov, Sibu and Sighisoara. And Timisoara has a better university.

I agree about Brasov and Sibiu (in Brasov there are many new developments but they are too dear in my opinion, the properties in the centre have better prices and they are easier to rent) Sibiu is a town with a very good perspective for the future and the prices of properties are generally small.
It also has the German influence both in architecture and in the mentality of the inhabitants.
Sighisoara is historical place, but rather small.
I can't pass any judgements about the ranking of the universities in Timisoara. Cluj is however an important university centre and attracted many investments lately.

 

[anna2]

I agree about Brasov and Sibiu (in Brasov there are many new developments but they are too dear in my opinion, the properties in the centre have better prices and they are easier to rent) Sibiu is a town with a very good perspective for the future and the prices of properties are generally small.
It also has the German influence both in architecture and in the mentality of the inhabitants.
Sighisoara is historical place, but rather small.
I can't pass any judgements about the ranking of the universities in Timisoara. Cluj is however an important university centre and attracted many investments lately.

I think Romania is a beautiful country with great investment potential and I think the general rise in the market will have an effect in Cluj as well. I just can't see why an investor who can invest anywhere in Romania would pick Cluj.

Sibiu's Saxon mayor has done a lot for the town already. Do you know if the renovation on the main square has finished yet?

Sighisoara is a World Heritage Site and has the best preserved Saxon architecture in the country. The level of tourism here will explode over the coming years.

So why Cluj? Has there been a lot of industrial investment there recently?

 

[Transylvania Investment]

I think Romania is a beautiful country with great investment potential and I think the general rise in the market will have an effect in Cluj as well. I just can't see why an investor who can invest anywhere in Romania would pick Cluj.

Sibiu's Saxon mayor has done a lot for the town already. Do you know if the renovation on the main square has finished yet?

Sighisoara is a World Heritage Site and has the best preserved Saxon architecture in the country. The level of tourism here will explode over the coming years.

So why Cluj? Has there been a lot of industrial investment there recently?

Hi Anna, never said you SHOULD invest in Cluj! I have only said there are many investments there and new developments sell fast. I am talking industry, commerce, developments, etc. How long will these tendencies last I can't predict. What I don't like about Cluj (same for Bucharest) is they develop chaotically.
Yes, Sibiu's restoration is almost completed everywhere in the Old Quarter, the Big Square looks fantastic! We sell especially in Sibiu and Brasov actually. The prices in Sibiu are very good for investment nowadays and I expect them to grow in 1 year or so.
Sighisoara is undoubtedly a beautiful and historic place, however it is too small for industry, big business, etc. its main attraction is tourism and actually that is a good industry too, however medium size. So in terms of investment I don't think you can get a good annual rental return if you buy in Sighisoara. Would be nice if we investment oportunities would be judged simply from the point of view of architectural/historical significance, but unfortunately it is not quite so.

 

[anna2]

What are your views on investing in land rather than property aroun the major cities?

 

[Transylvania Investment]

What are your views on investing in land rather than property aroun the major cities?

A few years ago land was ridiculously cheap. Nowadays land is rather expensive particularily in touristic areas. Another issue about land is property titles that have to be checked and are not in order all the time. Another issue is related to reselling the land. Even if the price is good when investors buy, they have difficulties in reselling their plots later when they add the capital growth.
Romania has unfortunately a bad infrastructure and that nearly cuts off interesting parts of the country. Due to this, big areas remain undeveloped while others such as Bucharest are overpopulated. Unfortunately the state is putting money in the already developed areas, leaving aside the less developed ones. So even if there is potential it cannot be valued unless opportunity is created.
Bucharest infrastructure itself is very bad and it is ridiculous for an EU capital to have only 1 ring road!
Because of these aspects I tell people to buy land in areas around the major cities, land with development potential, if they can find for a reasonable price of course.

 

[LuckyNumber]

OK

I got a heads up that villas are being launched on Saadiyat. The office opens tomorrow from 6:45 to call and make appointments. You probably are aware already - but here is the number "Saadiyat island villas launched sunday - have to call 600 522299 from 6.45am to confirm appointment."