THE LETTINGS MARKET

In Romania there are no legal differences between buying a property to let and buying a property for personal use, but you will need to pay a tax of 16% on your profit. While this may be an attractive proposition to investors, the rentals market has yet to take off, being very immature and yielding roughly 6 – 7% per annum. This is further exacerbated by the fact that Romanian citizens prefer to own rather than rent homes.

While the tourist industry is rapidly expanding, it is still very limited, with most tourists coming from Eastern Europe and having very limited budgets, meaning you cannot expect a significant income from short-term lets. In the long term, the larger towns and cities are generating increasing levels of interest as more companies relocate to Romania, creating a demand from their employees.

If you are aiming to let short term, you may be better off looking to the cities or ski resorts, as the summer season is very limited and the latter locations can offer a year-round season.

The market is definitely strengthening, with yields growing over the last few years, but don’t expect to cover your costs or make a quick buck – the market needs to be given time to mature before you can start making a healthy profit. On average, you can expect to generate around £300 a week in Bucharest; outside the capital, you can probably generate this level of income in a month.

RENOVATING A PROPERTY

There are a number of properties that require renovation or are structurally unsound in Romania, meaning that if you are looking for a DIY project then you’re in the right country. However, while Romanian labour is cheap and their standards high, organising a renovation can be difficult, especially due to the language barrier you will undoubtedly encounter. You will also need to look at getting clearance from the local mayor’s office, which can be time consuming and tricky, requiring you to grease a few wheels along the way. If you are seeking to buy a historic property then ensure you check its classification, as foreigners are restricted from buying property which is of national value.

Finally, be aware that if you are buying to renovate, this should be a personal project as there is a very limited market for traditional renovated homes, especially in rural areas. Always get the right advice and support as renovating will be a tricky project.