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It never ceases to amaze me how much the average investor seeks to complicate his or her investment unnecessarily. The rule of thumb seems to be “the more complicated the better.” It sounds almost unfeasible that a simple investment in raw land could be more profitable then multi-layered industrial and commercial investments or refurbishing or renovation of an existing property. Indeed, all of those opportunities are quite valid and can yield significant returns but often not nearly as much as would a more simple investment in raw land. I prefer to listen to the age-old words of wisdom “keep it simple stupid” also known as the “KISS rule.” The name of the game in Romanian land investment is to buy the right land at the right price at the right time and then to sell it at the right price and the right time. This is where an experienced investment management team in the local market becomes invaluable. There are a number of ways to add value to property in Romania i.e., subdividing it for new developments, re-zoning agricultural land for residential or commercial purpose, compacting land from various owners, so on and so forth. (Of course the best is simply giving it a little bit of time.) The trick is in knowing which way(s) suits your investment property best and which direction is most worth your while in the overall larger picture of your investment strategy. To highlight this concept, an example; a colleague bought several hectares of land at 14 euro per square meter (about $17) outside of Bucharest that was zoned agricultural. Having it re-zoned for development purposes cost him another 1.5 euro per square meter. The surrounding property was selling at the time for 20 euro a square meter, meaning he had an immediate profit potential of 4.5 euro per square meter. He waited six months when the land was selling at 30 euro a square meter. He then sold his land at a profit of 14.5 euro per square meter, more then the original amount he paid per meter when he bought it. An investment company bought the land and surrounding land and subdivided it for construction purposes and sold it to a construction firm at a substantial profit. At every level investors are making money with land. Investors at virtually any entry-level can find similar cash cows today. The planting
and harvesting time in Romania is NOW. Many people have already harvested
substantial returns on investments made just a short time ago, whether
it be six months or six years ago, when they originally planted their investment
in land. How many times have I heard stories of people who have watched
their property go up as much as or more than a hundred percent in an incredibly
short period of time. It seems like these types of stories, rather then
being the exception are becoming the rule. Sew.... and so shall you reap.
Think about it....even if your investment doesn’t show as high returns, if it is even half as good, it isn’t half bad! Romania will become a European superstate. It is predicted to become the ninth largest country in the European Union and offers Europe and world tourists the mountains, sea, city and village life all at once. Foreign Direct Investment (FDI) is already higher in Romania then any of it's neighbors, including Hungary, in second place, which receives a whopping one billion less in FDI a year. Savvy investors are clearly seeing what the future holds and are wasting no time in staking their claim in Romania’s fertile soil. Whether a long-term investor or a short-term investor, whether investing at a higher or lower level, profit grows here at a faster rate than does corn. This will continue for a while as Romania joins the EU and for a limited time period after, but obviously cannot last forever. Just ask the people who missed investment opportunities in the Czech Republic and Hungary. The dilly-dallier and the slow-poke stand no chance and will have to keep hoping to find somewhere, a magical cash-producing tree. Yes, there are other investment opportunities in Romania that should be considered by some. Many wise type of investments will pay-off and some of those quite royally. Yet, the simple fact remains that most investors should put at least initial focus in purchasing the right land. It is the least risky (project constructions can cease before termination and leasing companies have went under at an alarming rate) the most accessible and often most profitable investment opportunity out there. Getting started
is easy. For ownership protection rights one should form a Romanian corporation.
This is a relatively easy and inexpensive procedure. The only alternative
to this, is to invest through a previously established Romanian entity
in conjunction with partners, which can also hold significant benefits.
Such opportunities readily exist.
I have personally reviewed each presentation with local real estate experts to select the most attractive and promising offers on the market. Land prices in some parts of Romania may seem high, especially to the American investor, but remain undervalued and will continue to experience high growth in value. The fact of the matter is, that you are investing in valuable cash-producing soil, that has a track record of yielding much more then it costs to acquire. This simple investment mechanism, lacking any confusing gadgets and gizmos, is Romania’s best profit-making machine, and it is currently available, limited time only, for the ready investor. Personally, I'd rather have this profit-making machine that a magical tree anyday. "Procrastination
is opportunity's assassin." ~Victor Kiam
For more information, contact the author kevinrs2004@yahoo.com For articles on Romania by Kevin Stillmock see below:
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Romania's
Road To Heaven - 
