Apartment in Romania

I've been looking at an apartment development out here in a city close to where I live (Romania). The price and location are unimportant but the yield is 5% (based on my own estimates of the local rental market).

There is no rental guarantee and no 'furniture pack' included. I reckon it would cost me 5k to furnish. This is over and above the purchase price so detracts a bit from the yield. That said I would intend to hold it for a minimum of 5 years.

If I take a local mortgage then the project just about 'washes its face' at 7.5% mortgage.

Is this attractive or would I be better to buy elswhere?

as a rough rule of thumb your rent on a buy to let ought to cover your financing with an additional 25% to 50% to spare on top of that. At first glance the yield not terribly attractive.

Could I get that sort of return anywhere in Budapest? I'm only a 3 hour drive away from B and my brother-in-law speaks hungarian.

Have to say that I'm a little concerned about Hungary (its a market about which I know little enough) at the moment but if the deal was right then maybe it would be worth the effort.

Prefer something in Debrecen as it's closer to home and thus easier to keep tabs on. Anyone know anything about it?

p.s. my other option is to buy land here in Romania but there is the issue of no rental return and my wife just presented me with a babys soother wrapped up in a box with a bow on the top tonight! Not sure what that means but probably that she's going to split in two and become more expensive!

PPS
For anyone who is interested, here is a good site which makes interesting reading for those considering investing in Romania.

It's a little bit (well more than a little bit) Bucharest-biased but it covers topics which are pertinent from legislative changes, the economy and property.

www.thediplomat.ro

Please note I have no affiliation with the site. Just something i came across in my research.

You can also look back through the archives.