Investment Management articles: tips, advice, ideas, strategies & solutions

Subscribe to our Investment Management Articles Feeds


Feeds

What's this?

Home > Investment Management

An Investors Guide to Romania

thumb it up Karl Hopkins
A member of the European Union since 2007, Romania is a country of almost 92,000 square miles - roughly the same as the UK - but with a population of only 22m people.

This one time communist state has borders with Bulgaria, Serbia, Hungary, the Republic of Moldova and the Ukraine. To the east it has a Black Sea coastline of about 120 miles. The Carpathian Mountains are in the north east and the Transylvanian Alps are in the centre. The Danube marks the southern border.

Bucharest, the capital, is in the south and home to 2m Romanians. Other major cities include Arad, Oradea and Timisoara to the far west, the Black Sea town of Constanta (the country's largest port) to the east, and the centrally situated Brasov and Sibiu.

Principal tourist destinations are Bucharest, Black Sea resorts such as Mamaia, Eforie, Neptun, Jupiter, Venus, Saturn and Mangalia, and mountain resorts such as the Prahova Valley close to Brasov.

There are also many spas (offering mud baths and various cures and reinvigorating treatments) and national parks, and ancient towns such as Tirgoviste, the 15th century capital ruled over by Vlad the Impaler - immortalised in literature as Count Dracula.

Ski resorts include Poiana Brasov, the most developed although still small by western European standards, Busteni and Predeal.

The main international airport is Bucharest-Otopeni (opened in 1970), located just over 10 miles from central Bucharest. Constanta - Mihail Kogalniceanu, Timisoara, Arad, Sibiu, Suceava also have international airports.

Romania generally has warm summers but cold winters when the average temperature is minus 3 degrees C. The mean annual temperature is 11 degrees C in the south and 8 degrees C in the north.

Annual rainfall is highest in the mountains but otherwise rises from east to west.

Reforms since the 1989 fall of the Ceausescu regime and more recently entry into the EU, Romania has experienced economic major development and advances in its infrastructure including new motorways. Arrival of international banks has made finance, including mortgages for house purchase, more readily available.

The Foreign Office says most visits to Romania are trouble free although like most places there is an underlying threat from terrorism. The main types of incident for which British nationals required consular assistance in Romania in 2007 involved petty crime, especially replacing lost or stolen passports. 'Beware of young pickpockets in city centres especially in crowded areas', it warns.

Visitors are advised 'to maintain at least the same level of personal security awareness as in the UK'.

Health risks include rabies - there have been outbreaks in rural areas - and Hepatitis. There have also been outbreaks of Avian Influenza in the Danube Delta, Transylvania and Bucharest although the Romanian authorities have taken measures to contain the outbreaks and the risk to humans is believed to be very low - no human infections or deaths have been reported.

Other possible hazards include earthquakes, which are not uncommon in southern and south western Romania, with small tremors recorded throughout the year. The last major earthquake was in late November 2005 although there were no casualties or significant damage.

Property prices, especially in Bucharest, have been rising fast with annual increases of 30 per cent to 40 per cent not uncommon. Demand, both local and from overseas investors, has outstripped supply of modern dwellings. With a strong economy, supply is likely to be behind supply for some time to come.

Romania has a land registry and the buying process follows the continental model, with the formal paperwork - including a purchase contract and final contract and registration - overseen by an official notary.

Until the EU entry non-Romanian citizens were not allowed to own land. However that changed with EU membership. Now EU citizens can acquire land in Romania, subject to a five year deferral in the case of residential property and seven years in that of agricultural land, forests and forestry. When the deferral period expires the ownership of the land will pass to the buyer.

None of this affects the ability of the foreign buyers to rent their properties or to sell them before the deferral period expires.
About the Author:
A focus on investment property Romania is one of many dedicated country focus sections that can be found on Fly2let.net, the free unbiased resource for overseas property investors. For UK buy to let investments visit Residentiallandlord.co.uk.
 

 

No. of Times this article has been viewed : 98
Date Published : Dec 10 2008

Most Recently Published Investment Management Articles as of

Jun 17 2009    It's Keen to be Green

by Dr. Duane Scott

This article is twofold that highlights the importance of the green economy and the role investors will play in it.

Apr 13 2009    Ethically and Ecologically Responsible Investing

by Wilfrid Baptiste

Socially responsible investing is gaining traction worldwide. Here's a quick primer on what it is and what pitfalls to avoid to be successful at it.

Apr 7 2009    A Word About Taxes

by Dr. Duane Scott

This article informs the reader about the certain tax advantages of investing and holding onto those investments long term. The article also informs the reader of risk managemnt through tax abatements and write-offs.

Mar 19 2009    Should You Invest in Annuities?

by D.J Raymond

Investing for retirement offers many options. Today's economy makes the decisions very difficult. If you are looking for stability and guaranteed income, consider immediate annuities. Security and stability make fixed annuities a wise choice. Understanding annuities and how they work...

Mar 14 2009    Don't Buy Tax Lien Certificates Until You Read This

by Joanne Musa

Some real estate gurus make tax lien investing sound like it's a sure thing. That you're guaranteed to make huge interest rates and that it's "government guaranteed." Unfortunately for You, they leave out a few facts and are stretching the truth quite a bit. Read on to find out the truth...

Mar 14 2009    6 Tips for Beginning HYIP Investors

by Chris Sandberg

Beginner investing can be difficult and can cost a great deal. It's nice to have a little hard earned experience handed to you to help you along your way. If you review and apply the guidelines I lay before you, it may just be the best investment you ever make.

Mar 1 2009    Reevaluating Resource Companies for a Potentential Rebound

by Jim Letourneau

The global financial crisis has hit the resource sector hard. A powerful commodity bull market started in 2003 and most investors were expecting it to continue for many years. What should investors do now?

Mar 1 2009    REIT Buyers - Going to the Head of the Real Estate Investing Pack

by Robert Shumake

In the world of investing there are two kinds of people, those who make money and see a profit and those that don't. Everyone wants to be a part of the first group, but not everyone knows how to do it.

Feb 26 2009    Why Formulating Short Sale Exit Strategies is Important Even Before You Begin the Investment Game

by Kyle Edginton

Your overall profit margins are going to depend on several factors. To be a successful investor, you must formulate suitable exit strategies in line with your individual situation and liking before you even step in to the real estate investment arena.

Feb 26 2009    Why this is the Best Time to Buy a Home

by Fritz Thorp

How you can buy a home in a real estate recession when the bottom is very close. Many factors are lining up for a housing rebound in 2009.

Feb 18 2009    So What Really is the Broker's Role?

by David Schirmer

You see the whole stock market is a marketing organization. It exists for the sole purpose of transacting shares from buyer to seller and seller to buyer.

Feb 17 2009    How The EMA (200) And Supertrend Indicators Can Assist Stock Market Investors

by James Woolley

One of the safest ways of making money from stock market investing is by always ensuring that you are trading in the same direction as the overall trend. This is very important and is something you should always bear in mind, so in this article I want to discuss two technical indicators that will he

Feb 12 2009    Online Forex Trading Broker System

by Caterina Christakos

What are Automatic Forex trading systems? Here they are explained along with their benefits and drawbacks.

Feb 12 2009    Important Terms to Understand When Doing Multifamily Deals

by Lance Edwards

Are you afraid to take the plunge into owning multifamily properties because you believe that multifamily property deals require knowledge of complex math formulas? Put your fears to rest! All that is required is simple math.

Feb 11 2009    10 Advantages of Owning Multifamily Properties

by Lance Edwards

Do you know why owning multifamily properties is a great investment of your time and money? Here are 10 sound reasons for investing in multifamily properties.

12345678910...
Search for ebooks on Management & Business