Planorama Apartments, Bucharest

T

tech

Guest
Hi,

Great site.

I am considering buying one of these apartments as an investment
http://www.therightmoveabroad.com/property_detail.php?id=129
The developer is BSR group. Its an 11th floor apartment, 42 sq metres, 55K euro. Payment is 25% now, rest on completion (15 months).

I will be borrowing 75% of the property value. It will be a long term investment, 10-15 years, my main aim is capital appreciation not income generation. I am hoping the rental income will cover the mortgage payments but I can afford to cover it, if it falls short.

Does anyone have any opinions, advice, or knowledge about the area, developer, or vendor?


Thanks,
Tech.
 
The neighbourhood is middle class - will get better over time.
As a long term investment, I think it's a clever decision, as prices are on the rise.
If you want to be sure you got the sharpest deal from therightmoveabroad, you can always give a call to Romanian Properties, and see what they can offer.
Success!
 
The price doesn't see excessive for Bucharest. One caveat I'll offer is not to buy on the top-most floor. Romanians are traditionally very cautious about buying apartments under the roof. Comes from years of bad experiences with water ingress.

Floors 1 & 2 will be the easiest to sell-on in years to come in blocks without lifts but I'd be happier, in your position, if I bought at floor 6 or lower.
 
I had a reservation on this development but cancelled as I found from talking to people that it was in an industrial area and didn't seem that "middle class"/residential.
 
Ancutza said:
The price doesn't see excessive for Bucharest. One caveat I'll offer is not to buy on the top-most floor. Romanians are traditionally very cautious about buying apartments under the roof. Comes from years of bad experiences with water ingress.

Floors 1 & 2 will be the easiest to sell-on in years to come in blocks without lifts but I'd be happier, in your position, if I bought at floor 6 or lower.
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The other issue with Romanians vis a vis buyig on higher floors is the historic unreliability of lifts in Romanian apartment buildings. This may become less of a problem in the future, as will the water ingress issue, so I would personally go for the higher floors and ideally the top floor in a new develpment -- assuming always that the pricing still reflects market antipathy to the top floor.

About this particular one, it is incorrect to say that it is in the city centre, it is in an area that is quite grim and unpleasant, and pricing is at the very top end of what you would expect for there, at best. However the Bucharest market continues to defy reason, so is is possible that even this project will add value in time.
 
As well as the lift issue, Im also led to believe that there use to be an issue with water pressure and hot water on the higher floors. Surely though, potential tenants are intelligent enough to realise this has improved now.

Planorama has good reviews and at those prices I dont think you can go wrong.
 
Bnage said:
Planorama has good reviews and at those prices I dont think you can go wrong.
Click to expand...

You go wrong the minute you pay more than the local rate for property. This one is priced a little on the high side for where it is. Probably reflects a fat commission added on for the promoter, but it should be possible to buy it a bit closer to local rates. Still, even at the prices quoted, its not too far off the beam, and won't be a disaster by any means for investors.

I agree though that a new development should be safe enough as regards the upper floor issues.
 
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