Investment in Zagreb or Brussels?

Hi folks, just interested in your opinions here. If one were going to buy a two bedroom apt, taking into account I think the tax is the same in these two countries, or similar...which would be a better investment property location??

Have contacts in Zagreb, none in Brussels so far...

thanks mica

I live in Zagreb and it is a great city but..

- property is not cheap, even relative to Ireland
- rental return is quite low
- limited new development in the city, mostly office recenty
- much of the available properties require complete renovation, air con etc

From properties that I have seen for sale, You could pay between 70,000 -450,000 for a two bed apartment depending on distance from city, area etc

From the people I know here who rent ( I am in serviced accommodation so not a fair reflection) they are paying between 250 a month for a one bed to 420 a month for a two bed in the city centre.

The one thing that does seem interesting in Croatia is coastal property. The rental season is getting longer and the capital growth is good at the moment.

If you have any specific questions, I can adopt my ask a local strategy !

Brussells is home of un and in centre of europe etc and will always be a better bet.

I come from the region, and would agree with Ontour. Coastal property would be a better bet.

Brussels 10% a year for last 20 years.

High entry cost 17% but yield of in and around 6-7% on small property up to 10% on bigger stuff and cheap money from banks.

Brussels my bet.

Unless you buy in on of the diplomatic areas, etc on or around Bosanska Ul, you're going to get variable rent return or value. Zagreb isn't cheap but a lovely city. Be careful of where you're looking along the coast, or better still, if you have the money, Brussels is always a good spot.

Hi folks, thanks for all the replies, always good to get a variety of feedback...to see other perspectives. Ontour, I'll keep you mind if I have any further questions cheers! I like Zagreb too but have only been on holiday so far different perspective!

I realise property isn't cheap in Zagreb but had seen a few promising looking 2 beds... nice design etc. I feel that Zagreb property value may be rising more quickly than Brussels, correct me if I'm wrong! But would be concerned if the rental market wasn't going to be as strong or as dependable as Brussels...from a rental point of view Brussels is probably without doubt stronger...for obvious reasons of the EU etc. But the entry price is quite high, 22% tax on new properties and high enough tax to register. And since I have no contacts I would have to get an agency to rent it for me.

At the back of mind is the fact I intend on going to Belgium to live for a year next year, so having a place would be handy. Decisions! Maybe I'll look up a rental agency or two in Brussels and Zagreb, see what they say. It might help me decide which is better worth my while. thanks again and if anybody else has anything to add, I would appreciate it.

to follow up..

[broken link removed] have some good information on their site about the process of buying in Croatia, setting up a company and the costs and taxes involved.

Thanks Ontour, think I have a lorra reading up to do before I do anything...I'll start with that website...anything in engleski is a help, have not learnt hrvatski just yet cheers again! hvala lijepa!

Ecstatic,

When I looked at Brussels, I calculated yields of 2.5% gross! Can you give some references for your yield results?

The tax in brussels is 17% and not 22% but it all depends on the property.

You need to chat with ur bank regarding this.

A quick look on this site which has overpriced property by 10% with your costs in your looking at around 6.5% yield.

[broken link removed]

The bigger the numbers the bigger the yield.

Rental okay 3 year tenancy agreements rents are controlled.

Thanks Estactic, I've looked at immoweb before but need to become more familiar with it.

I know there are various taxes to be paid on property in belgium and I need to familiarise myself with those too. baby steps!

thanks again.