[Transylvania Investment]

Hi Clive,

A few remarks on your comments and a few quotes from an Irish newspaper (the independent):
Tens of thousands of Irish and British homeowners may be facing financial meltdown as hugely hyped overseas property investments turn sour. Lured by unrealistic promises of extraordinary returns, Irish and British investors borrowed heavily to pick up cheap buy-to-let apartments abroad. But property prices in these so called "hotspots" have begun to plummet in recent months. Along with rising mortgage rates, the strong euro and dismal rental markets, the future doesn't look too bright.
About 150,000 Irish investors are thought to have bought properties in Spain. However, the oversupply of apartments in Spain's Costa del Sol has pushed the price of some properties down by as much as 20 per cent.
Similar slumps have been logged in areas from Gran Canaria to Girona and Cadiz. Estate agents are now advertising "price-reduced" homes in almost every region.
Bulgaria has been touted as a investment "hotspot" by Irish property promoters. But new figures from investor.bg, reveal that apartment prices in Sunny Beach fell by 4 per cent in July alone. Similar slumps have been experienced in Ahtopol, Prmorsko and SvetiVlass, as a massive oversupply of tourist apartments remains unsold. Prices in popular developments such as Sea Dreams Village or the Iglika 1 complex have been reduced by up to one third, according to Icon Properties advertisements. Bulgarian ski resorts such as the hugely hyped Bankso are suffering, with local reports suggesting that the 150 local estate agents have not sold a property there for four months. Yields at some holiday homes and residential developments have tumbled by nearly 40 per cent. Many Irish investors are trapped in Bulgaria, unable to sell properties and struggling to meet mortgage repayments as introductory "guaranteed rental" deals come to an end.
Other hugely popular eastern European or Baltic markets have skidded to a halt, with dramatic price-falls in some countries. Latvia's bubble has well and truly burst, with the Latio Investment agency revealing falls of almost 11 per cent since April.
Estonia and Lithuania have also experienced decreasing property prices. The central statistics office in Poland has also reported values slipping in the second quarter of the year. In Budapest, Hungary, some 3 per cent has been snipped off prices of new apartments, according to the Global Property Guide.
One Irish investor is facing losses of about €30,000 after buying a Budapest property for about €79,855 three years ago. The investor, who is now trying to sell his property, was advised that the best sale price he can secure now is €69,000. By the time he sells the apartment, he will have paid about €20,000 in fees, taxes and renovations.
The US housing market is also in freefall, fuelled by the sub-prime crisis. The Florida property boom, which lured thousands of Irish fly-to-let investors, has gone into reverse. Investment properties are being advertised with massive reductions all across the state. A property at the Barefoot Beach Resort in Indian Shores has just had $14,000 sliced off its asking price in the past month.
Irish buy-to-let owners of some British properties are also being hit with losses of up to 15 per cent. The over-supply of new apartments in parts of Liverpool, Manchester, Sunderland and Cornwall has made it impossible for some investors to sell off their properties or to rent them out.
The Mediterranean coast of Turkey is also labouring under the weight of unsold properties. Some apartments from Dalaman to Yaikavaa have had prices slashed by as much as 35 per cent.
Properties in Cyprus are also being advertised at "reduced prices", with a new build Coral Bay villa for sale at a massively discounted rate.
Dubai was also hugely popular with Irish buyers. Last week, some apartments in landmark Dubai developments, ranging from the Marina to the Media Zone towers, are on sale with prices reduced by as much as 10 per cent.

The main reason you should invest in Romania is: prices of properties in Romania are not yet affected by credit implications as credit market in Romania is still at the beginning and the public debt is still very low. The price per sq. m in Romania is still the smaller in the EU.