White Hot Property Bargain number 2012/1
- Title: Avantgarden luxury 1 bed penthouse apartment
- Gross Rental yield: 7%
- Quick Sale Property Price: 59,500
- Realistic or previously advertised price on our site within weeks of this article 70,000e
- 2008 price: 95,000e, discount of 36,000e
- Investment required: 3,000e (for luxury furniture), total Buying costs max 2,000e
- Expected annual return :7%
- Key features: Brasov’s most popular rental choice, child safe family development, modern, newly build blocks, newly developed part of town, excellent road links, 2km from major supermarkets
- Suggested use: purchase for 59,000e, invest 4000e in luxury modern furniture & rent either as an office (350e per month) or as a high end executive apartment (300e per month)
Watch the video of the property here:
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Don’t wait around for someone else to bag a bargain & you find yourself wishing you’d acted. Request more information here today or organise a viewing.
I’m aiming to start 2012 by including what are in my opinion, first class, almost fail-safe investment opportunities. From time to time, complete bargains come up & previously, we have just kept them unannounced, assuming bargain hunters will trip-over them on our site. But that’s a little like standing on a baseball-field waiting for a ball to land in it. Unlikely going to happen by accident.
So, I’ve decided to publish genuine bargain property, ie, the ones I know to be absolute bargains & excellent investments, in a stand alone blog article.
To qualify for White Hot status, the property must have the following characteristics or meet the following criteria below. Now is the best time to invest in Romania as discussed on this blog last week. Main reason being, the market prices are at their lowest for many years, the buying market is stable, the rental market is very strong & increasing due to the lack of available home loans, & the general economy is showing signs of growth. Living in Brasov, one can see significant change of wealth at the start of 2012, through restaurant attendance, new cars registration, shopping trends, & bar & club occupancy, not to mention increased budgets for renting homes.
White Hot Criteria
1/ To be able to deliver at least 5% gross rental income per year. For the novice investor, this simply means, you will earn at least 5% of the alue of the property from rental income, before any expenses such as repairs, personal tax, & other running costs. It is directly comparable to putting money in the bank. So, if you have say 40k inested in a bank or in property, you would earn 2000e per year, if your return was 5%! Not bad at all in this climate. If it was say 7%, then your return would be 2,800e. It is very difficult to find a stable place to achieve anything above 3% at this time, making property investment particularly attractive.
2/ To have a high rental occupancy potential. By this I mean, a place likely to rent quicker than most, offering at least 10 months per year rental with minimal effort or discounts, whilst still delivering at least 5% return.
3/ To have good resale characterics. When you have finished with the investment, you don’t want to be stuck with something you have carried for years, only to discount it so much that you wipe out the gained income over those years. Ideally, at the very worst, you want your money back, so you have earned at least the yeild. Eg, you buy a place for 40k, spend 4k buying & selling it, & rent it for 2200e per year. As long as you sell it for 44k or more, you can say you have had a pure gross return of 5% & returned your investment with no losses. Any increase in value from 44k is a further bonus, but not essential given the solid rental yield of 5%.
4/ Significantly discounted property. One of the golden rules of a successful proeprty investment, or even a classic car investment, is to buy cheap & sell later at market, or just below market price. people mistakenly think, they need to sell high. Wrong!. You will wait years to sell high!. Buy cheap, sell at normal or below normal prices. Seek out bargain romanian property, or read this blog & I will do it for you!!
5/ Location, Location, Location. A bad area is always likely to be a bad area, except ont he off chance that an Olympic Village is built nearby in 40 years! Good areas generally only get better. Try to buy in an area that will either become a better area for sure, or is already a good area!
All of the examples in this White Hot section meet or exceed these critical characteristics & I personally would not think twice about investing in them, had I not already got a portfolio.
Damian Galvin, founder, White Mountain Property.
