Country Article / Postcards

Buy East

Date: 01/14/2005

International Living Postcards-- Saturday Edition

Saturday, January 15, 2005
Paris, France

Dear International Living Reader,

I briefly mentioned to you last week (see Seven People to Make You Wealthy) the large number of real estate markets throughout the world I'll be investigating during the next six months...but the emerging markets of Eastern Europe deserve your attention right now.

I've just returned from a scouting trip to Romania--I'm impressed.

This country is just starting to be rediscovered. It's been 15 years since the overthrow of the communist-driven Ceausescu regime and now Romania's economy is taking off. Romanians have more money, foreigners are coming to invest, and EU membership is scheduled for 2007. A recipe for abundant opportunity, not only in real estate, but in small business as well. Just the kind of market I look for.

Real estate prices in Bucharest have increased as much as 50% in the last six months. Still, they are so low by European standards that I expect them to increase by at least a further 100% by the time Romania enters the EU.

I'm investing in this market myself, in the process of negotiating for the purchase of an apartment in Bucharest. Asking price is a little high, but the location is good. I'll let you know how it goes.

The Mediterranean as it Once Was

Croatia, also with EU entry on the cards, has been dubbed "The Mediterranean as it once was" by the media.

This is an exciting time in this market. Many pieces of the puzzle are coming together--renewed and increasing tourism, a stable and growing local economy, improving infrastructure and access, and accession to the European Union on the horizon. Speculators positioned themselves a half-dozen years ago. I can't count myself among them. But it's not too late. You (and I) have time to act.

The potential in this re-emerging market is great in both the short and the long term for huge gains in property value, because it's seriously under-priced today. Parts of this country, I believe, could enjoy a doubling and tripling of property values in the coming three to five years. This is both a smart spot to buy an investment property, and a world-class locale to shop for a bargain coastal getaway.

I am working with International Living to plan a real estate investment tour of Eastern Europe, April 12-23, following a Living and Investing Conference in Croatia my Global Real Estate Investor group is sponsoring. The tour will start in Dubrovnik, following the three-day conference. The group will travel from there to Budapest, Prague, and, finally, Bucharest. You'll hear from and spend time with speakers in each city that you'd not have access to on your own. If Eastern Europe interests you (and I strongly suggest it should right now), this trip will be the best way I can imagine to get a bird's-eye view of the most interesting markets and the best opportunities on offer right now.

Lief Simon
Real Estate Editor, International Living