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I have to admit it. I had almost no knowledge of the country of Romania just five short years ago, when I came here for the first time. What came to my mind were images of Dracula, Frankenstein, and under-cared for orphaned children, the kind that were featured in fund-raising specials that appeared on television when I was a kid. At least I can say that I knew for sure that it existed, and so did it's province of Transylvania. That's partially contrary to what I was taught in elementary school, by the way, when our teacher assured us that Transylvania was only a storybook land and therefore we need not be frightened that the horrible creatures that inhabit it actually exist!  Today, five years later, I have a radically different and much more well-informed view  of Romania. The things that used to come to mind about this country, rarely  do anymore. When I think back about my old preconceptions of Romania, it never ceases to take me aback the great difference between the infamous legends and surprising reality about this country.   Now, instead, I am captured by many of the same things that ancient Roman emperors like Cesar and Napoleon found so alluring about this place. (Romania was a part of the Roman Empire and takes it name from the Latin word for Rome.) From incredible natural resources to majestic mountain and seaside landscapes, Romania is a place that has a little of everything you would find elsewhere and a number of things you can't find anywhere else. And as for Transylvania, my teacher was right on one point - it is a storybook land- but, on the contrary, for it's beauty and that of it's people. Ultimately as concerns Romania though, the most important discovery I made in my search for the truth about this land of legends, is the tremendous real estate investment potential that exists here.  Romania presents the investor with an exceptional opportunity to benefit from the ascension of an eastern block country to the European Community. The timetime line this opportunity, however, is limited. Romania is one of the last European countries in ascension talks with the EU and it is projected to enter in either 2007 or 2008. The expectation around this hallmark event has resulted in much needed economic and government reform, making conditions more suitable for foreign investment.

Bucharest Kevin Stillmock Comments: As a result of the unexpected number of individuals who have contacted me regarding real estate opportunities both for investment and relocation purposes, I am organizing an orientation tour to Romania for those interested. The costs will be as attractive as possible and the tour comprehensive and personalized.  If you are interested in this or have any other questions and comments about Romania, including anything something you read above, please do not hesitate to contact me directly Click Here - To Contact The Author Other Articles On Romania By Kevin Stillmock Romania: Europe's Final Frontier And Next Hot Spot -  Romania: Europe's Final Frontier And Next Hot Spot - Check your preconceived notions about Romania at the door. Your experience here will not be defined by encounters with street children, Gypsy's, or Dracula. While all three may very well exist, none of them accurately defines modern day Romania. Romania's Road To Heaven - Romania's Road To Heaven - Imagine a path that led you along a dramatically changing natural landscape of spectacular waterfalls, rugged mountains, ancient underground temples, volcanoes, and prairies where wild buffalo still roam. You might believe that it was the path to Heaven itself. In fact it is Romania's own road to Heaven; a brand new superhighway under construction, costing about 2 billion EURO, with an expected completion date of 2010-2012.

Our friend is just one of countless foreign citizens and Romanians who have already profited greatly from investment in the Romanian real estate market. Yet, as you will soon discover in this article, there are still better deals out there to be had then the one he and others have so far benefited from.  While the prices have already jumped significantly in recent years, the near-certain speculation is that they will continue to rise dramatically until the time of the ascension of Romania into the European Union. The certainty of this speculation is bolstered by the 10% rise in cost of houses, apartments, and property in Bucharest over the period of December 23, 2004 and January 5, 2005. With the amount of interested clients sufficiently high this means that an investor could have bought and sold a property and made a 10% profit in less then 2 weeks in the Romanian real estate market while he or she was celebrating the holidays with family or busy skiing.

While the general over-evaluation of real estate in Bucharest has caused prices to rise and made the average cost of entry higher then just several years ago, this very reality, gives clear indication that clever investors can continue to benefit from this over-evaluation of property value in the mayhem surrounding Romania's anticipated EU entry.

It is generally held that prices will continue to rise sharply until leveling off, or perhaps dropping slightly, after the entry of Romania into the European Union.  This has created a short time period in which investors can yield serious turnaround on their investments and those wishing to relocate can do so while getting in at a good bargain.
 

At this point it stands to mention that any real estate purchase made by a foreign individual can be financed by leasing available through only one Romanian company, as long as a 20-30% deposit is initially made. While Bucharest abounds with investment opportunity, the opportunities outside of the capitol are also ripe with potential for significant profit matching or exceeding that of Bucharest. Romania offers a diverse landscape ranging from a large stretch of seaside along the Black Sea Coast to the impressive Carpathian Mountain range in the fairy tale land of Transylvania. In between is just about a little of everything else, from natural healing springs, to flatlands highly suitable for agricultural use, to a host of medieval and modern cities such as Sibiu, Cluj, Brasov, and Timisoara, which is perhaps the most Westernized of all Romanian cities.  I spoke with a number of real estate experts about what the best speculations for the real estate investor would be, asking questions like cost of entry, minimum length of time for investment to mature, etc.  All seemed to agree that land, all over the country, was the best bet. Only one problem though. Foreigners can't own undeveloped land without an attached dwelling  However, I discovered a loop-hole that not only allows the foreign investor to own land but also to diversify his investment portfolio, if he wishes, and invest in the the three hottest areas of Romanian real estate at the same time - land, homes, and office space. It's called a REIT- Real Estate Investment Trust. A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.

The REIT concept is in action in Romania by a reputable American firm and is designed specifically for the purpose of enabling foreign investors to have the opportunity to invest in Romania's greatest real estate opportunity (land) and to diversify their real estate portfolio, even with minimum funds for investment. (The usual entry investment is 25,000 Euro.)  Investors should be willing to hold there money in the portfolio for about 5 years. The yearly gains over that period of time are expected to be quite significant and investors who currently have invested in an REIT have already made considerable returns on their investment.

A more explanatory overview is available for those interested. 

Another promising development for Romanian real estate is created by the construction of a new 2 billion EURO super-highway being realized with the financial backing of the EU. This new super-highway built with the technology of the American firm contracted to complete it by the year 2010-12 will dramatically change the face of Romania. It will cut the travel time between Bucharest and major European cities down significantly and literally create new major destinations in Romania, overnight. Cutting through the Western portion of the providence of Transylvania, numerous towns and potential resort districts abounding in raw natural beauty with mountains, springs, and rivers will suddenly be centrally located. Rather then remaining isolated, somewhat hard-to-reach hidden treasures, these gems of Mother Nature will now be as close as turn on the off-ramp. Truly, many of these locations surpass the potential found in the current tourist areas that are easier to reach. 
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The ability to start an inn or bed & breakfast in one of these areas is ripe. We even know of a top Bucharest hotel chef ready to pack his bags and commit his energy to starting a restaurant in one of these new destinations for a small piece of the potential profit he believes it will yield. Those who are in Romania, know the market, and have seen what has happened thus far, have little doubt what the future will yield and are ready to do almost anything to get in on the action.  For those who are  looking to relocate, the opportunities likewise are great. This is the chance to live in the best of both worlds - old and new - and position yourself and your loved ones in what will be one of the biggest member countries of the European Union.  An American friend of mine owns a beautiful home in a lakeside suburban community with a wonderful view over the lake and 2000 meters of land.  This  two-story home with three bedrooms cost him about 150,000 Euro to build. The premises also contain an outdoor kitchen, orchards groves and gardens.  In short, a dream home.  By deciding to build his dream home outside of the city, about 25 minutes downtown Bucharest, in what Americans would consider a nearby suburb, my friend not only saved on land costs, he also set himself up for a great growth in value.  As he put it, draw a circle around any Western  European city of 25 kilometers and you have the city's suburbs. As Bucharest continues to expand this area will become a centrally-located, well-saught-after suburb, especially with the large lake and forest that it contains.

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There is still a limited amount of property available both in this and neighboring communities for construction of similar homes. The best bet seems to be the build your own home with a reputable construction firm, according to your tastes, and pocket the savings that this effort will yield for you. 

A home in the suburbs, of course, is not for everyone. The true romantic may be more intrigued by a "conac" the Romanian name for a cottage of the aristocracy of the Country at the turn of the 20th century where gentry would spend their weekends and summers sipping wines from the surrounding vineyards as well as the basement vaults. 
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These home often need a little fixing up, but are worth it as the lingering aroma of the wine harvested on their estates and spirit of days gone by continue to fill the premises with an air of magic.  For the cost of an acre in the Napa Valley (or probably less) you can have a functioning micro-vineyard and getaway home located in the Romanian wine country, situated in the steppe to the Carpathian mountains, a short drive from Bucharest.  Another alternative would be a mountain home or  getaway which be had from anywhere from 20,000 Euro and up. A superb villa in a choice location would be about 100,000 Euro.  Most such homes come with spectacular mountain views and often with other natural beauty close by or on the grounds of the property, such as fragrant pine tree forests and meadows.

Whether one is looking for a short-term investment turn-around in an European capitol city like Bucharest or to start their own resort inn in the breathtaking wilds of Transylvania, opportunity is readily available for the serious-minded investor. 

This opportunity which is available in the present is akin to that which was available in the Czech Republic 10-12 years ago. Many speculate, based on Romania's size and natural assets, the future yieldings will actually end up being much greater. 

These opportunities will not last long. As the EU accession gets closer and the new highway is paved, the potential for revenue-making that currently exists will clearly subside and diminish. For those who missed out on investment in the Czech Republic and Hungary and don't want to miss out again, the time is now in Romania. 

(the author is making best-effort speculations based on serious study of the Romanian market including personal experiences. any predictions made in the article should not be considered as certainty)
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Contact The Author: . For more information on Real Estate & Investment Opportunities in Romania  - Contact Kevin via eMail - . More Articles & Resources On Romania: . Romania - Lions, Vampires, Bears, And Gypsys - Bucharest is a striking mélange of different cultural influences. Historically, the Romanians have looked north and west to their European and Slavic neighbors for their cultural, emotional, and religious succor, spending most of their leisure time keeping the Turks out of Europe.

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