INTRODUCTION

The first hurdle you’ll be faced with is deciding where to buy, and you should note that the old adage ‘location, location, location’ still rings true. The most important thing potential buyers should bear in mind is that these markets are still developing and may appear extremely alien to the western eye. Consequently, you should choose carefully and decide just how deeply you’re willing to immerse yourself in an unfamiliar culture – for example, if you move to Bulgaria you will have to learn that shaking your head means ‘yes’, and nodding means ‘no’!

To many, the thought of buying a home in the former communist bloc seems daunting, but in reality, the purchasing process in Eastern Europe is very similar to that in the UK. Yes, there are different problems to be faced, issues to be aware of and safeguards to take, but as long as you go into the process armed with the facts, things should run smoothly.

Nevertheless, there will be an element of pioneering involved. While the EU has embraced some Eastern European countries, others can still be comparatively naïve in terms of property legislation, with many lawyers and agents having never dealt with a foreign buyer. As a result, the purchasing process in rural Romania may well be fraught with frustration when compared to Turkey’s western coast, and you should consider this when choosing your final location.

GETTING TO KNOW EASTERN EUROPE

As disparate as they are similar, Eastern European countries are unknown to many. While you may be aware that the property market is blossoming, you may not know much about the countries themselves. However, it’s essential to get to know a country prior to purchasing there. With the borders between the various countries open, you can happily tour Eastern Europe by car and visit potential relocation sites armed with a pen and paper. Take notes and photos, and ensure you visit during both winter and summer. Most importantly, spend time with the locals, as opposed to the relative comfort of a clutch of expats. You must be aware of the realities of life in a country only in the early stages of westernisation, and you have to learn to mingle with the people who may well become your neighbours – and eventually your friends.

i) Geography

Ask most people to identify Poland or Romania on a map and they struggle. While the countries of Eastern Europe are increasingly easy to reach, geographically we remain ill informed. Eastern Europe can be loosely defined as the region lying between Central Europe and Russia. Generally encompassing countries that once made up the former Eastern Bloc, they also include many Balkan states and Central European countries, such as Poland, the Czech Republic, Slovakia, Hungary and Slovenia. Covering an area of approximately 19 million square km, with a population of roughly 348 million people, this vast region runs from the sun-drenched tip of Kaş on Turkey’s southwestern coast to the Estonian marshlands in the north. The majority of these countries are coastal, although Hungary, the Czech Republic and Slovakia are landlocked. You should be aware of this if you intend to let your new home, because the lack of a coastline may make it much harder to rent out your property. Some areas are mountainous, which can result in harsh and isolated winters. Alternatively, this can mean ski resorts and a healthy rental income. Essentially, you can choose your terrain and be lakeside in Slovakia, coastal in Bulgaria or among the mountains in Romania. Whatever you decide, you must consider your future intentions, with regard to letting or selling, as well as your own personal preferences.

ii) Climate

In a nutshell, what you need to ask yourself is whether you’re moving abroad in order to find better weather than in the UK – in many Eastern European countries the winters can be worse. If you are an out-and-out sun-seeker then you need to look to the south, where Turkey, Bulgaria’s southeastern coast and Croatia offer a hot Mediterranean climate. If you dislike the heat, look to the crisper, milder weather of the Baltic States or mountainous Slovakia. By deciding what kind of climate you seek, you are deciding whether to look to Eastern Europe’s north or south.

Generally speaking, the climate in the southernmost countries of Eastern Europe is Mediterranean, with hot, dry summers and mild winters, while the northern countries have cool and cloudy summers with wet, snowy winters. Whatever your choice, the temperate nature of many areas of Eastern Europe can be surprising.

The following chart compares the annual average temperature, rainfall and hours of sunlight you can expect.

iii) Politics, the EU and the economy

The cloud of communism that once hung over Eastern Europe is now gone, thanks to the accession of the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia to the EU on May 1st 2004 and Romania and Bulgaria on January 1st 2007. Currently, Turkey and Croatia are undertaking negotiations and introducing a number of reforms to smooth the way. Only Montenegro remains isolated from the EU although, following a national poll, Montenegro has split from Serbia, meaning her economic and political future is more certain. Nevertheless, some commentators believe she would have had a better chance of joining the EU had she remained unified with Serbia.

With most Eastern European countries governed by stable parliamentary democracies, the political outlook is relatively calm. As a result of this and EU accession, member states have seen a strengthening of their economy and an upturn in the demand for property, making these markets ideal for the investor. For example, in Slovakia, foreign investment into Bratislava attracted investors from overseas, who in turn drove up property prices and encouraged appreciation. Similarly, increased stability across Eastern Europe has seen many countries taking steps to open their markets to westerners. For instance, Turkey is currently introducing new property legislation.

However, while stability is apparent, economic prosperity is not. The gulf between east and west is still vast in many areas, although foreign investment is on the rise. It is expected that countries which enjoy a healthy, tourist-based economy will gain more from EU membership in terms of property appreciation, so if you are buying to invest, choose countries with a heavy economic reliance on tourism.

It is also important to look at the currency. Currently, the euro is in use by Montenegro (which previously used the Deutschmark) and Slovenia. Few Eastern European countries offer foreigners a local currency mortgage, so currency fluctuations should be closely monitored. In many cases, the most secure option is to pay for the property upfront. For more details on securing a mortgage, see page 42–3, and for currency information, see page 44.

iv) Language

Without question, you will be buying in a location where English is not spoken as widely – or as well – as it would be on the Costa del Sol or the Côte d’Azur. In an Eastern European country, be prepared for a communication barrier, especially if attempting to learn the language. Slavonic languages are notoriously difficult to grasp as they are based on the Cyrillic alphabet and employ unique nasal vowels. However, making the effort to grasp a few key phrases is worth it as it will allow you to become involved in local life, to avoid feelings of isolation and to communicate during the buying process or in an emergency.