Montenegro purchase opportunity

Hi, I have been offered to purchase an off the plans apartment in Becini in Montenegro. It will cost me 2,500 per metre sq. Anyone think this is a good opportunity for an investment property or will it be another Bulgaria and I will get stuck with the property.

Any advice appreciated.

Thanks

That's about the price per square meter that you'd expect to pay in an expensive German city. Sounds a tad expensive for Montenegro IMHO.

Niall, anything over 1,000 per m2 outside of a coastal town, large upscale development or luxury villa is overpaying in Montenegro. Ideally you'd look for a max of 800-1200€ per m2.

At that price level, it's completely nuts. Walk away!

Be really careful in Montenegro. This newly formed country doesn't even have a currency (uses the euro, but the euro is not the country's currency, despite the impression being given by many of the people selling there). Also look out for serious players in the organised crime field. This country is no place for amateur investors.

There was a program on TV last night, "Selling Houses Abroad", which showed a couple who got ripped off in Montenegro. They bought off plan 3 yrs previously and when filmed had not yet gotten keys to the apartment. In fact, the land registry papers were never completed and somebody else was living in the apartment. When they eventually sorted it out (due I'm sure to the presence of TV cameras), they found that the apartment they had paid GBP 43,000 for was actually worth GBP 18,000. The builder had received GBP 18k, and the dodgy middle man got GBP 25k.

Avoid....

Thanks guys, I walked away from it. I always find I am more confident in purchasing property ay home rather than abroad!

Niall M said:

Thanks guys, I walked away from it. I always find I am more confident in purchasing property ay home rather than abroad!

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At home or abroad is not the issue; you can be fleeced at home just as easily as in another market, but there are some places that are full of pitfalls for the unwary and Montenegro is one of these.

As a general rule though, there is no more risk in buying abroad than at home, provided you buy the right property at the right price in the right location. Avoiding stuff that is over-hyped by large agencies who don't know (or care) about the nuances of a market is another good philosophy.