Romania

A

amyd

Guest
Hi,
Just wondering if anyone has any experience on investing in Romania? Apparently foreign investors must set up a company in order to purchase land. However companies without a trading history can't borrow so catch 22 if you want to borrow to invest there. Any solutions to this?
 
Hello,

[broken link removed] has been mentioned on this site before as a information source on romanian property,I have no connection with the company but they do seem to promise the earth in terms of returns, not tryinn to highjack the thread but - has anyone had any dealings with them?
 
No easy solutions to the issue of borrowing in Romania on the back of a romanian registered company to buy land. You still need the trading history to access credit here.

One positive aspect of this arrangement is that cash is king and those who can get the where-with-all together to purchase land from their own reserves are in a very strong position and ahead of the pack, so to speak.

There ARE various lines of credit available if you wish to develop land which you have already purchased, most readily available if you also have outline planning permission secured on said site.

As far as IRO is concerned then I don't know the principle there, David Howe, personally although I've talked to him on the phone. My business associate has met him before we went into business out here and says he found him straight talking, switched on and a decent chap. At the same time be aware that IRO is still an estate agency and only last night I was reading an article on the web quoting Mr Howe in which he states that foriegners with residency can buy tracts of land. This is patently untrue. The law has NOT changed in this regard YET despite what you may hear.

I've said it before and I'll say it again. Stay AWAY, FAR AWAY, from Bucharest if you are thinking of investing in Romania. It's a market in which you will much more than likely get ripped off as a small foreign investor. Look a little at the provinces and the other major cities. A more sane environment IMO and I'm buying out here for a number of years now.
 
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