Introduction -
Romania has been tipped as a top place for investors to acquire property at
bargain prices. Although prices have increased quite considerably in recent
years, they are still relatively cheap compared to other European countries.
Romania in line with many other European countries, can suffer from severe
flooding and has been known to experience the odd earthquake. In 2004 a strong
earthquake measuring of 5.8 on the Richter scale and centred in Vrancea, hit the
country) Holiday, second home insurance and cover for investment property is now
available from the United Kingdom and should cover a wide range of insurance
perils. AssetSure are
able to help arrange insurance for a Romanian holiday home. If you
are letting your property, you will need to make sure that it includes the
correct form of liability insurance cover. It is worth noting that most
insurance policies will also include a sum insured for loss of rent or
alternative accommodation . Such cover is usually afforded under policies but
only in respect of claims arising out of an insured peril occurring at the risk
address. It will not normally provide cover following a default in payment by
the tenant.
Why Buy a Holiday Home in Romania? - On 01st January 2007, Romania became a
member of the European Union and the president of Romania stated that "EU entry
was an "enormous chance for future generations". Certainly, investors from
outside of the country have been pouring money in to buy property which is still
considered very cheap. The infrastructure of the country is improving rapidly
and Romania is is one of the most stable and prosperous states of central
Europe. The economy is growing at steady pace ( 7% per annum) and
according to a recent World Bank Study, Bucharest, the capital city is set to
double its population in the next ten years to in excess of 4 million persons.
This creates good opportunities for property investors looking for long term
rental options. Among the places that are attracting a lot of growth at the
moment are the following; Bucharest, Ploiesti, Constanta, Cluj, Oradea, Brasov,
and Timisoara.
Ho to Buy a Holiday Home in Romania - The process of buying a property in
Romania is still a little complicated but it is hoped that in time this will
change. Foreigners are not permitted to buy land in the country and thus, unless
you are buying anything other than an apartment, you need to set up a limited
company ( In Romania) to get around the problem of actually owing the land that
your building stands on. Whilst this is not overly cumbersome, you could expect
to pay around £1000.00 to set the company up. You will definitely need
good quality legal advice and it may be worth paying a little extra to make sure
you get it. There will be estate agents they will offer to help you but you
should be aware that a few people have been victims of scams in the past and
thus it is of paramount importance to deal only with reputable companies.
Investors are taking note that the law relating to foreign ownership of
properties is set to change in perhaps as little as a few years time. This will
see the same rights bestowed on citizens of other European union member
countries as Romanians. This will greatly simplify property purchase and prices
may increase again. A solicitor will be able to help set up the required
company for you and should be able to brief you on any special laws or permits
that are required before you can let your property. A frequent mistake that is
made by investors is assuming that rental property laws are the same in every
country, they are not and careful consideration should be applied to the letting
procedure. As in most countries, the sale will begin with a verbal offer
and acceptance but before the purchase process begins, the vendor will have to
provide provide a fiscal certificate and a certificate to confirm that the
property belongs to him or her. They must also state that the property has no
mortgages or other legal encumbrances attached to it. As the buyer, you may be
asked to sign a preliminary contract as an agreement to purchase the property
and it is usual at this stage to pay a deposit. The final contract has to be
signed by both parties in front of a notary. Some of the costs involved with the
purchase of property are as follows; a stamp duty, including a fixed amount and
percentage calculated on the value of the property usually ranges from 0.5% to
3% .Mortgages and transfers of property must be certified by a notary. The fee
is of course negotiable but normally ranges from 0.5% to 1.5% of the property
purchase price.
So if you are seeking an holiday home insurance quote for a property in
cities like Bucuresti, Constanta, Timisoara, Iasi, Cluj Napoca or Brasov, why
not see if we can help? In addition, Assetsure provide overseas property
insurance and holiday home insurance for other countries including Australia,
Austria, Belgium, Bulgaria, Brazil, Canada, Cape Verde, Chile, Croatia,
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Egypt, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania,
Liechtenstein, Luxembourg, Malta, Monaco, Montenegro, Morocco, Netherlands,
New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South
Africa, Spain, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates,
United Kingdom (UK) and Venezuela.
