Interested in investing in Montenegro - any advice ?

[dovest]

I recenly read about a holiday apartment development in Montenegro.

Does anybody have any experience of investing in property in that country ?

I would not plan to make any personal use of the apartment.

Supposedly it is good for potential capital appreciation; but is there a
holiday rental market there ? That would be my concern. No point in investing in a property which cannot be let.

 

[Guest119]

Re: Interested in inveting in Montenegro - any advice ?

So, you "read" about a development in Montenegro, and 'supposedly it is good for potential capital appreciatioon". Who told you that ?. Just a wild guess - the agent trying to flog it ?.

Please try and do some basic research. There are many people on here, far more experienced than myself, who are only too willing to offer free advice but do some legwork yourself first.

In any case, holiday lettings, if you are lucky, only cover basic costs. If you are looking at investment, and not personal use, then your focus should be on areas of demand for long term rental, i.e. towns & cities.

However, as the world's economies are tanking I wouldn't consider holiday developments anywhere.

 

[REXO]

Re: Interested in inveting in Montenegro - any advice ?

My advice is stay away from it, any apartments over there are overpriced. also beware of the russian mafia who run the law firms over there. I was over there on a similar escapade this summer.

 

[Capricorn 1]

Bought an apartment in Montenegro just before the break with Serbia. It has almost trebled in value. However, as is the case everywhere, property there at the moment doesn't seem to be shifting. I have been there 3 times this year and all the agents still have the same properties on their books. My view is that the big gains in Montenegro have already been made. On the other hand, it is a very small mountainous country where land is at a premium, so on the basis of supply and demand, property might rise in value in the future. I didn't have a problem with the purchase process.

I don't let my apartment - the rental period is quite short, June, July, August, some of September and maybe a week or so in May. The government in Montenegro have imposed a tax on rental income. The rate is €87 per month for up to 10 beds and €118 thereafter. If you fail to register your property for letting, the penalty is a fine or worse. I am a member of a Montenegro Forum and some of the members have had their rental property traced by the authorities on internet property websites and have been asked to pay the taxes.

Montenegro is a beautiful country and is very easily accessible from Dubrovnik (Aer Lingus fly to Dubrovnik 3 times a week). The cost of living is very cheap and the people are very nice. I am really glad I bought in Montenegro.

 

[Lollix]

For a punt right now, Montenegro is about one of the worst places to invest. If you're not interested in the investment potential of your purchase, and you really want to buy a home there, then fine. Otherwise, avoid it like the plague.
Things to bear in mind:
1. Ethnic cleansing, be sure that what you are buying has a history of ownership that goes back far enough to protect you.
2. Lawyers, be sure that they are in your corner and not in the developer's corner.
3. Currency. Montenegro effectively doesn't have one. They use the euro, but it has no actual formal role there. If a country is so screwed up economically that they can't even sustain a currency, is that somewhere you'd like to invest?
4. Earthquakes. Not a major problem with well-built projects, but have been known to flatten whole towns.
5. Rent. Season is short and rents are very low, and hard to get unless you live there and can manage them. If you live abroad, you may find that all of your rent and even some of your own money disappears in taxes and management charges.
6. Access. Apart from the Dubrovnik link across the border, the airports in the country itself seem to operate sporadically.
7. Price. As previous posters mentioned, prices are way too high and nothing is moving. Gains that people feel that they have made may be hard to realise in reality.
8. A creepily corrupt country that has thugs (locally known as war heroes) at every level in society

Well, would you prefer my advice or that of a sales agent?

 

[dereko1969]

It has almost trebled in value. However, as is the case everywhere, property there at the moment doesn't seem to be shifting. I have been there 3 times this year and all the agents still have the same properties on their books.

how has your property trebled in value if properties aren't selling? asking prices may have trebled but if they're not shifting then the prices are too high. why anyone would take a punt on an investment property abroad at the moment astounds me.

 

[Capricorn 1]

My property has trebled in value according to current prices. Bear in mind that I bought before the break with Serbia. If I put it on the market now, I'm sure I would definitely get at least twice or two and a half times what I paid. Never again, will property in Montenegro be that cheap. The apartment has 18sq metres of balcony with uninterrupted panoramic views of the Kotor Fiord, so I'm sure it would sell.