Real Estate Investment in Eastern Europe

Hi everyone, I am currently investing in France in real estate, and this is the last thing that keeps me in this country as my main plan to make money and be financially free.

But now I want to leave France for good, and go to the East within a few months, but I don’t want to waste all this knowledge.

Some investors have told me that investing in real estate in Eastern Europe is not as easy as in France, etc.

I would have liked to have a return of investors who are established there, is it really not very accessible ? (in terms of bank financing for example? of profitability, etc)

Any feedback is welcome!

Thanks in advance :slight_smile:

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I’ve bought an apartment in Russia two years ago. I doubt that French banks are financing any property in Russia. And interest rates in Russia are very high. So I paid cash. The deadlines are shorter.

There is a Russian peculiarity which is that the lawyer must check until the last moment that there are no other hidden owners, because in the days of communism the apartments were shared between people. The goal is to avoid that one day, after buying the flat, Igor arrives saying “This is my home” and I have to share the flat with him :sweat_smile:

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Hi Romain! Thank you very much for your details :smile:, how much did you pay for your property (if it is not too indiscreet)

In fact, I could go to the East and buy a cash property, to see if it’s interesting, in terms of taxation and profitability! :face_with_monocle:

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We discussed about real estate in this topic too:

I paid 15 million rubles (200k€) for 75m2 in the heart of the city of St. Petersburg. Taxes and charges are low. It’s an apartment for living. With my gains made in cryptos, I am thinking about buying others for renting.

Regarding profitability (I mean for seasonal renting), even if Russia wants to simplify access to tourism, the essential element will be a return or not to normal in terms of tourism in relation to the covid.

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Thank you very much for your answer!

The topic you sent me is very interesting, real estate doesn’t seem to be the way to go if I expatriate, (it’s still in a corner of my mind) I’ll focus on something else for my life in the East

Thank you!

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You can have some options to invest in real estate in Eastern Europe with an investment plan with a French bank. But with specificites where you can be in the “grey zone”…

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Hi Alma,

I am not investing in Eastern Europe, not yet at least. However, here is a bit of advice on how I intend to do it when the opportunity arises:

  • I will make sure to find some pros who will be able to provide wise council on how to avoid pitfalls and other dishonest tricks (lawyers mainly).
  • I will also make sure to find some renovation company that will be wholeheartedly recommended by someone who’s in the same game (the language barrier will be a problem; if you find someone who speaks English, it’s fine but that would be one of the hard parts I’m guessing).
  • I will try and join a community of RE investors active in the place I chose to invest in: there are plenty of active Facebook groups or subreddits for virtually any locations in Europe. Those are great places to get some sound advice.

Moreover, I would say that at the moment, not using banks’ money is not the best strategy in most cases. So, in order to get a loan from a french bank, as you are invested in RE in France, you might use the equity you built up until now in your past investments to convince your banker (or any banker you would contact for that matter): you could use this equity as collateral to borrow some money that you would use to officially buy a secondary residence (but you would really use it to buy, renovate and rent).

I know this strat is used by boomers to buy a house in Portugal, Spain and other southern countries attractive to boomer pensioners. I don’t know anyone who did this for eastern countries but I don’t see any reason why it would not work: as long as it’s in EU and the bank has some collateral…it’s worth the shot.

Or you could use a stack of euros you might have to buy cash. That would limit your exposure to risk for obvious reasons.

In any case, please don’t hesitate to share any info you might gather with the community: I’m sure it will bring value to a lot of us here.

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Thank you very much Mathieu, very good advices, I take note!

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Perfect I’m going to go find out about this thanks!

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