Buying a home abroad: Truth and Lies

18.09.2010 13:52
Real Estate Market Analysis | Buying a home abroad: Truth and Lies The idea of buying an apartment or home abroad is increasingly gaining the minds of Ukrainians.

Even in times of crisis citizens of Ukraine have not stopped buying foreign square meters, and in some countries the desire to live anywhere, but not in their country has become so evident to local Realtors that they already make up another series of anecdotes and legends.

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The growing interest of compatriots overseas property is supported by the active promotions that hold foreign property developers and real estate agencies. What is attracting foreign Ukrainians sellers of real estate.

Big Sale illiquid bank

For several months, the Spanish real estate firm conducting an advertising campaign for the sale of apartments, houses and other property from banks, which they received a legacy of bankrupt borrowers. Latitude offers amazing at first glance. Here and in new buildings, and luxury villas and apartments of economy class.

Prices of junk - terms of comfort. Apartment in the coastal town can be bought from 18 thousand euro. Buyers offering to buy the entire bank in illiquid mortgage with low interest and a small initial fee. The cost of the Spanish square meters in this case is lower real estate prices in Bulgaria.

Gold dust in the eyes

Numerous and varied promotions Bulgarian property developers who have excelled in the pre-crisis times, high rates of construction. Plying almost Soviet State Planning Committee, local developers have built many and cheap. Next to the panel houses erected luxury apartment complexes, with balustrades and columns.

It looks all weird, and buyers with serious money for the most part discouraged. Not surprisingly, even amid a sharp drop in prices of local builders continue to talk about the prospects of the Bulgarian property market, but realtors are hoping for an early rise in prices and hope to instill this unwary tourist from Russia.

And, as evidenced by the statistics of local authorities, the flow of Ukrainian buyers though weak, but steadily profitable traders square meters. Over the last three years, 150,000 Russian got home on the shores of the Black Sea resorts in Bulgaria.

Stifling rents

German law is very strictly related to the rights of tenants, and sometimes more stringent than the protection of property rights in respect of the rental business. As a result, the real estate market in Germany just a full offering of income apartments and houses. But the value of these objects are so low relative to the prices of housing in Russia, that Russian gladly buy them together with the tenants, without the knowledge or consent of that and the rent does not increase, and the repairs are not done. That such a conditional property.

In addition to the profitable real estate, the Germans were actively selling off housing in the eastern states, where high unemployment and low living standards is preserved since the unification of Germany. Apartments in Dresden and Leipzig offer of 15 thousand euros.

Sellers of real estate in Germany, are banking on low prices and stable market. Special revenue here does not really get it, but it does not matter to many buyers from Russia. Germany has always been a landmark for Soviet citizens, an indicator of prosperity and security. Buying a property in this country for many Russian akin to return to the good times of Soviet stagnation, with a touch of western lifestyle.


Turks and Egyptians are among the leaders in advertising real estate in the Ukrainian media. During those years, while the Ukrainians are actively fell in love with the beaches of Mediterranean and Red seas, local builders and realtors were hoping that pull to the sea make the Ukrainians to buy property in their country. Low prices, visa-free regime, and a warm climate should attract many buyers from Russia and Ukraine, but the lack of clear rules, Islamic practices, and weak protection of the rights of foreign owners still do not allow us to consider purchasing property in these countries as a reliable and long-term investment.

The Baltic Coast

With the advent of crisis, the Baltic States suffered more than any European country. Housing prices in Latvia, Lithuania and Estonia have decreased by 30-50%, and square meters are the most accessible of the EU. This fact and took advantage of local realtors, who largely did not offer the Russian real estate, and a simple way to get a blue passport. Neither nationalism nor eternal hysteria around the "Russian problem" is not prevented from Latvia to enter mode "guaranteed" to residency for property buyers.

Local businesses to meet all innovation, while politicians of all stripes and media continue to scream about infringement of national pride, Latvians and Eastern threat. However, Russian-oriented advertising campaign, had no until the desired effect, and all the talk that Russian immediately rushed to buy housing in Latvia - have not yet consistent. Official statistics do not even note the burst of activity Russian buyers. Apparently long-term and mutual information warfare clearly cemented in the minds of the majority of Russian hostility to the Baltic coast.
Content tags: Overseas property
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