First, I want to apologize for the delay. I try to bring you quality content bi-monthly, but my schedule has been hectic to say the least. I have a lot of market analysis and other content on the way, its just a matter of putting it on paper. Our next deep dive will be in Asia and I am working on my own deal somewhere in Europe I hope to share soon.
Ok, with that out of the way lets get to the good stuff. In addition to our usual deep dives, I started to conduct email interviews with experts in various real estate markets abroad. Knowledge is power and getting it from folks on the ground is vital, especially given the nature of investing abroad.
For our first email interview, we have the pleasure to speak digitally with Damion Galvin founder and managing director of White Mountain Property in Bucharest, Romania. White Mountain Property is a respected full service property management firm operating in Brasov and Bucharest. And Damion is a seasoned property manager and expert in all things Romanian real estate. He is super helpful and has taught me a lot about investing in Romania. I will provide his contact info at end. If you haven’t read my deep dive on Romania definitely check it out.
Romania
Yes, the first country we are going to look at is Romania. When you first think of Romania you probably think of vampires, cabbage and castles, but rental yields? In this country highlight I will discuss the current real estate market, economy and investment potential for short-term and long-term rentals. In addition, I will discuss some my thoughts and…
Alright, grab your coffee or seat on the train and enjoy..
1. Tell us a little bit about yourself and how long you have been working in the Romanian real estate market?
In short, I had a 24 year career in automotive, starting as a mechanic, technician, and after 4 university degrees, worked in manufacturing, design, development & finance. At which point, I reset myself and opened a rental and property management company in Brasov, then 7 years later, Bucharest. I have operated in Romania since 2007 full time.
2. How is the current real estate market in Romania? Future expectations?Â
Challenging, lots of uncertainty, but still moving. Long way to go & grow, but in terms of prices, quality, and style of ownership
3. How many of your clients are not based in Romania? How often are they visiting to address issues with their properties?
Around 80% of the properties we manage are non resident owners, and over a 10 year period, it's unusual to see a client more than once after the initial meeting. Our aim is to remove the need for owners to be involved. You don't buy a guard dog and bark yourself.
4. What should foreign investors look for in a property manager? Red flags?Â
Build quality, seismic resistance, check authenticity of all paperwork including past rental contracts if using it to determine rental performance. Location, quality of interior and exterior. And of course, be sure you are working with a trusted broker.
5. What services does your firm offer for those looking to invest in rental properties in Romania?
Property management, maintenance, renovations, sales, rentals, property searches, valuations
6. Which areas in Bucharest have the highest yields for long term rentals? Which property types? Â
All areas give approx. 6% currently, for residential, and 8-10% for commercial property. The only examples of getting more than 6% are usually when the building has seismic risk, eg in the event of a major earthquake, you have a severely damaged or non existent asset. These tend to be cheap, and rent well in central locations. But for example currently, it is illegal to rent out, a risk 1 rated property. So you can expect to see a lot of Israelis selling up these assets, as they were the largest buyer group of such apartments in the past two decades.
7. What are common mistakes you see foreign investors make?Â
Using Facebook groups for professional advice, given by people who have often not invested. Avoiding to pay an agency 1-2% fee and going it alone. Putting the asset into a holding company to get around the land ownership issues for non EU residents. Equipping the apartment with unwanted junk or low cost furniture when offering for rent.
Contact Info
https://www.whitemountain.info/
 damian.galvin@whitemountain.ro