More and more people are realizing that it's not just the American real estate market that's turned into a buyer's market. The East European real estate market is also benefiting from a housing boom and many Americans are discovering that a European vacation home is well within their reach. Real estate in Eastern Europe is in a unique situation. Real estate properties are currently low enough to be attainable, yet are rising quickly enough to offer a healthy return on the investment.
Soaring Property Values In Eastern Europe
Property values in Eastern Europe are rising, but are nowhere near their peak. This combination makes now a great time to buy. East European real estate can be purchased for as little as 40,000 to 60,000 euros in countries such as Romania, Turkey and Poland.
Industry experts expect the market to explode in the next 20 years and are encouraging their clients to buy now. It is expected that over 24 million people will be searching for a home to rent or buy throughout Eastern Europe and because of this large influx of people, money will pour into Eastern Europe. In turn this will encourage new industry, jobs and housing options.
Your Financial Situation
Finances play an important part of any real estate transaction. Obviously before looking into purchasing East European real estate, you need to make sure your finances are in order. Do you have the funds available for down payment, taxes and any required maintenance and upkeep the property requires?
After looking at your own finances, the fun begins! It's time to start researching countries. Are you interested in a property in Poland or a Turkey villa? East European real estate can be overwhelming at first so a little research is a must.
Find A Company That Specializes In European Real Estate
A company that focuses on East European real estate is vital. For most Americans, traveling back and forth multiple times to house hunt isn't a viable option. This where an Eastern European property company comes into the picture. They can help find properties that fit your specifications and can help narrow down your geographical area if needed.
Once you choose a few properties to visit, they can assist with any language barriers and local customs that need to be observed. Your real estate company can also help with the small, yet important details like how and where to get currency exchanged and the set up of local services like telephone and utilities.
With the real estate boom happening in Eastern Europe, it's important to find an established company. When planning an overseas move, you'll need someone with years of experience instead of someone just starting out in the property business.
By following these guidelines, you'll be well on your way to a seamless and profitable real estate transaction. Whether you purchase property in Poland, homes in Russia or a Turkey villa, you may enjoy Eastern Europe so much that you make it your permanent home!
Eastern Europe continues to experience explosive growth as the nations modernize their economies, leading to terrific opportunities for savvy investors. Real estate in Eastern Europe is a solid investment with significant growth potential. As with any investment, you need to educate yourself about the potential problems. Inexperienced investors run the risk of losing their money, whether they are buying homes in Turkey or putting money in CDs at their local bank.
Here are three of the major pitfalls that people investing in East European real estate should avoid.
Never Buy Unseen Property
Some investors feel that Europe is so far away that to visit their potential property would be expensive and difficult. If that is the case, then this is probably not the best investment for you. It is absolutely essential that you inspect any real estate in Eastern Europe that you plan to purchase.
The seller is going to present the property's best features and is likely to underplay any problems. This doesn't mean they are dishonest, but any buyer should still look at the property in person. In addition to your own visit, have a home inspection professional examine the property. Structural defects that may be invisible to the casual observer will be obvious to a qualified home inspector and could save you thousands in repairs or prevent you from making a bad deal.
Understand the Local Laws
You must seek counsel from an attorney who is familiar with the real estate laws in the country you are buying property in. Real estate in Eastern Europe is governed by laws that may be very different from the laws in your home country.
This ensures that all of the papers are completed correctly and the sale goes through as planned. It also protects you as a property owner if you know all of your rights. Although laws governing private property in this part of the world have changed substantially in the last few decades, many countries still have laws that hark back to their socialist roots.
An example of how property owners can be hurt by foreign laws would be the Valencia land grab in 1994. It was an effort by the Spanish government to speed urbanization of the area by giving developers rights to develop private land, but some unscrupulous organizations used the law to legally buy land against the owner's wishes at far below the market price.
Can You Afford It?
Buying real estate in Eastern Europe may incur substantially more additional legal fees and taxes than buying locally. Investigate the full cost of a piece of property, not just purchase price quoted in a listing. Also be sure to inspect the title deeds of the property.
These extra costs are compounded by fluctuating currency rates. Depending on the future of the currency in your property's country, you should decide whether you want to get a local mortgage in your home nation's currency or a foreign mortgage in your property's national currency.
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