Living in Slovakia
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Living in Slovakia
By Maryanne Vermeulen
April 2006

For about 7 years we have been searching the world for a place to live an easier, less constricted lifestyle, longing  to find a more basic and natural way of life than in our home country Holland. During those years we have visited other western countries like Australia, Canada, and the US only to find out that the rules for immigration are so restricting.  This is understandable from their economic point of view: wanting your labour or your money, but to us this would have meant less freedom instead of more.

In other EU countries like France, Spain, Italy the price of real estate has risen so much, bureaucracy has become so overbearing and getting a renovation done is so complicated.

Following the implementation of the Euro in our country, general life has become so much more expensive, that we felt even more we wanted to get out and find a place where you can still get a decent value for your money.
 
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Public transport is excellent, if you want to get away from the car culture. Every little village has public bus service connecting it with the outside world. The north- western part we did not like particularly, a bit gloomy and still too much a feel of the communist oppression for our taste.

The high Tatra Mountains although amazingly beautiful, were too cold in winter and have a too short summer season for us.

Most of economic life is still concentrated in the Bratislava area, followed by other main western Slovak cities. These areas are also likely to be of most interest to a property investor. 

The reasons are simple – solid economy, growing investments (foreign as well as domestic), excellent infrastructure, favorable business environment. Along with relatively low unemployment and higher prosperity of the population makes Trnava, Zilina, and to a lesser extent Trencin and Nitra into exceptional markets for those looking for untapped opportunities. Prices are low with little competition and there are potentially high returns. Trnava and Zilina are perhaps no longer a secret tip in Slovakia, but are still practically unknown abroad.

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Both of these historic cities have lots in common:

 - great infrastructure and accessibility (air, road, and rail)
 - fast growing economy
 - rich history, culture (as well as being main university towns).

After 3 weeks of traveling the country, feeling and trying to decide on what would be a good area for us, the southwest area around the town of: Levice - Nitra district (www.nitra.sk), a relaxed small sized town, situated in the midst of wine fields and to the north: mountains for skiing, walking, biking and general outdoor life. This area has a Mediterranean atmosphere, without the price tag. So you have the best of both worlds, with all-season holiday opportunities.

With a combination of shops like Tesco's and the wonderful display of rural products, great wines, vegetables that still have the original flavour from days long gone in our western overproduced society, we also felt good about the food issue. Can you remember tasting something simple like broccoli or potatoes so wonderful and rich, you do not want/need any sauce on it to make it taste like anything?

Everywhere there are these rural markets with people selling their own grown produce: fruits, vegetables, mushrooms and nuts.

In Slovakia it is not easy to be a vegetarian, people love their meat and again a simple piece of chicken is like with the vegetables, very rich in flavour.

Slovak people are very open and ready for a talk or inform you, even though the language is a barrier. But the younger generation is learning to speak English and is eager to communicate. This is one of the reasons we felt so welcome.

Remember this has been a communist country since the early 1950’s and only opened its borders since 1992. So meeting westerners is still sort of an experience to them, depending also of course on which part of Slovakia you are in.

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Slovakia has a rich history from before the communist days with beautiful architecture.

But what really won our hearts over are the Spas, a great way to stay and/or get well.

Spas are a naturally ingrained health tradition in Slovakia.

Doctors here are highly trained, actually so are most people we met, being engineers, chemists, doctors, since education was free for everybody in the communist days.

Their approach to solving health problems is a natural and more sustainable one. Instead of chemical medication, one goes to a Spa and spends a few days or weeks depending on your health problem. Every Spa has a specialty: like skin, heart or respiratory problems. Prices which include room, board and treatments are very affordable indeed.

What a great way to stay or get well again, this together with the clean air and beautiful surroundings of the locations of the Spa, the body and mind gets an enormous health boost. After spending a day in a Spa we felt this would be a great country to settle.

Slovakia will convert to the euro currency in 3 years, so prices are sure to go up.  Slovakia has the fastest economic growth in Europe, exceeding expectations, despite the general European slowdown. 

Slovakia suffers from a shortage of properties - there are 359 properties for every 1,000 inhabitants; which, after exclusion of cottages, vacation houses (i.e. properties not suitable for year round residency) and uninhabitable properties, means just 317 housing units for 1,000 inhabitants. 

The average number of properties in Europe is 400 per 1,000 inhabitants. Slovakia's long term plan is to achieve the European average.

However, with current new housing construction of 12-13,000 new properties a year, it would take more than 20 years to achieve this goal. At present there is a shortage of over 220,000 housing units and also number of existing properties (from the communist days) will become uninhabitable in the medium to long term.

The Slovak property market continues to offer some of Europe's best opportunities with low prices and healthy and solid growth (for the right type of property in the right area). And, of one thing you can be sure: as virtually all property sales are sold to locals, and 95% are owner occupiers in their (family) apartment or house, so you will always be able to sell your property on to a Slovak buyer, ensuring a safe exit.

In Slovakia real estate agents are a relative new phenomena, since people are used to selling and buying their property by themselves, which is also a factor that is making prices more than reasonable. But of course the language is a barrier.

So far finding an English speaking agent has been an exception, especially in area's that are not too touristy yet, like the mid south western part, near the Hungarian border.

However in Levice we ran into a perfectly English speaking real estate agent, not too eager, but very pleasant who had some houses that might be of interest to us.

We found a small white L-shaped farm with 5000 m2 land with a well, un interrupted view on forested mountains, including a piece of forest that caught our interest. However it had no modern heating or plumbing. But nothing beats the charm of an old farm house with stone walls 60 cm thick and old beams, situated in a small village of 100 people and on the Route Magistrala (an international hiking route that goes through Slovakia and with the prospect of a ski lift in the near future, we got even more interested.

It was situated 16 km from historic tourist places like Banska Stiavinica and in a UNESCO world heritage protected area, making it an very interesting property with investment potential well worthy of further investigate.

Of course we were unsure about the general condition of the house, but a contractor was happy to come with us the next day and made a very detailed quote and description of the labour and time involved. We were constantly pleasantly surprised by the "yes" attitude we encountered with everything and every question we had, even by civil servants our questions were immediately taken and dealt with seriously, an attitude so unlike we encountered in countries like France.

Most houses in Slovakia are in good shape and the cost of renovation is very do-able. The average labour cost is (still) very low compared to other EU-countries. Bureaucracy has been almost not existent so far. After the quote we got, we decided to buy and our offer was accepted.  We paid a small deposit, the same day we went to the notary, paid a small fee and signed all the papers with the real-estate agent. He took care of the paperwork with the Kadaster for a small fee (the seller pays all costs) and 2 weeks later we got the officially signed and stamped papers in our mail. The smoothest sale we could imagine.

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