Hi all,
it look like we are going to have a more precise delivery date in about 1/2 weeks. I have received an email from the developer saying that they are dealing with some finance difficulties but they are going to solve it in the near future. Approximate delivery date is May/June 2009 but they will provide a more precise date in about 1 or 2 weeks.
best regards,
Jose,
Sunday 15 February 2009
Sunday 25 January 2009
Rental management and furniture fitting.
Hi,
I have been in contact with Damian Galvin from White Montain Property. He is the Director of this Romanian company based in Brasov. He is english but is currently living in Brasov. He provides furnishing and rental property management plus other services to local and foreign investors buying properties in Romania. If you are interested, visit his website and you will find more details about the services his company provides www.whitemountainproperty.co.uk.
You can call him to his UK phone that you can find in the contact web page. I talked to him over the phone several times and he kindly gave me very good advices and also provided with references and videos of projects he has done in Romania.
Kind regards,
Jose,
I have been in contact with Damian Galvin from White Montain Property. He is the Director of this Romanian company based in Brasov. He is english but is currently living in Brasov. He provides furnishing and rental property management plus other services to local and foreign investors buying properties in Romania. If you are interested, visit his website and you will find more details about the services his company provides www.whitemountainproperty.co.uk.
You can call him to his UK phone that you can find in the contact web page. I talked to him over the phone several times and he kindly gave me very good advices and also provided with references and videos of projects he has done in Romania.
Kind regards,
Jose,
Wednesday 31 December 2008
Link to Bucharest Herald
Hi,
here it is a useful link where you can find lots of Real State news in Romania and Brasov.
http://www.bucharestherald.com
regards,
here it is a useful link where you can find lots of Real State news in Romania and Brasov.
http://www.bucharestherald.com
regards,
First contact.
Hi Aidan
It has been nice speaking to you today. I have found our chat very useful sharing our ideas and concerns about this project. Now I am bit busy but I´ll try to write down all our concerns and ideas and other stuff we have talked about in a document. Let´s speak again after Cristmas holidays.
best regards,
Jose,
It has been nice speaking to you today. I have found our chat very useful sharing our ideas and concerns about this project. Now I am bit busy but I´ll try to write down all our concerns and ideas and other stuff we have talked about in a document. Let´s speak again after Cristmas holidays.
best regards,
Jose,
Sunday 21 December 2008
VAT on properties has been reduced to 5%
Hi all,
this is good news for everyone. VAT has been reduced to 5% on properties purchases. I am still waiting for my lawyer's confirmation that this is affecting also to foreigner investors but reading the article I would expect this law affects to our adquisitions. One question I have is if we can claim the 19% VAT we have paid in our deposit. This will be my next question to my lawyer after they have confirm that we can pay the 5% VAT on our property.
Jose,
Post from PropertySecrets
Posted by Easy Credit.
-----------------------------------------------------------------------------------
Dear all,
Through Goverment Emergency Ordinance (OUG) 200/2008, the Romanian goverment has decided to modify some provisions in the Romanian fiscal legislation ("Codul Fiscal")
A goverment emergency ordinance acts as a temporary law.
According to the new (updated) provisions of the Romanian fiscal code throug Goverment Emergency Ordinance 200/2009, the VAT charged on property purchases including land, has been reduced to 5%
The new provisions come in force from the 15th of December 2008 and apply only to:
1 delivery/purchase of elderly homes
2 delivery/purchase of property/buildings for child care centers
3 delivery/purchase of property owned by a city council which is rented out to individuals
4 delivery/pruchase of a home/appartment by an individual/individuals which does not exceed a purchase price of 380.000 RON (+/- 100.000 EURO) excluding VAT
A dwelling (as mentioned under (4) ) can be subject to the 5% VAT provision according to the following conditions:
a) a maximum living surface of 120 m2, bought by any individual or family
b) finished properties (new dwellings still to be built are charged 19% VAT in the pre-contract stage, but 5% upon delivery)
(the goverment defines a finished property as one that you can move in right away)
c) the quota of land not surpassing 250 m2 (including any percentage of communal land held by the buyer)
d) an individual buyer who wants to benefit from the 5% VAT can only apply this ones on one property
e) a family (husband/wife) can only apply the 5% VAT ones (as a couple) on one property
This is a temporary law, which will be kept in force (as far as I can see) until the goverment decides to withdraw this ordinance.
Stefan
PS1 In case property is bought throug a Romanian company (SRL) the 19% VAT is still in force.
PS2 I am not a lawyer (al though very much interested in Romanian legislation) and I translated the contents of this ordinance myself. In case of 100% certainty about the legality of the provisions, please contact your designated lawyer.
Dear George,
Goverment Emergency Ordinance 200/2008 (in Romanian) can be found at:
http: / /www .dreptonline .ro /legislatie /oug _modificare _lege _codul _fiscal _200 _2008 .php
article 7
7. La articolul 140, dupa alineatul (2) se introduce un nou alineat, alineatul (21) cu urmatorul cuprins:
"(21) Cota redusa de 5% se aplica asupra bazei de impozitare pentru livrarea locuintelor ca parte a politicii sociale, inclusiv a terenului pe care sunt construite. Terenul pe care este construita locuinta include si amprenta la sol a locuintei. In sensul prezentului titlu, prin locuinta livrata ca parte a politicii sociale se intelege:
a) livrarea de cladiri, inclusiv a terenului pe care sunt construite, destinate a fi utilizate drept camine de batrani si de pensionari;
b) livrarea de cladiri, inclusiv a terenului pe care sunt construite, destinate a fi utilizate drept case de copii si centre de recuperare si reabilitare pentru minori cu handicap;
c) livrarea de locuinte care au o suprafata utila de maximum 120 m2, exclusiv anexele gospodaresti, a caror valoare, inclusiv a terenului pe care sunt construite, nu depaseste suma de 380.000 lei, exclusiv taxa pe valoarea adaugata, achizitionate de orice persoana necasatorita sau familie. Suprafata utila a locuintei este cea definita prin Legea locuintei nr. 114/1996, republicata, cu modificarile si completarile ulterioare. Anexele gospodaresti sunt cele definite prin Legea nr. 50/1991 privind autorizarea executarii lucrarilor de constructii, republicata, cu modificarile si completarile ulterioare. Cota redusa se aplica numai in cazul locuintelor care in momentul vanzarii pot fi locuite ca atare si daca terenul pe care este construita locuinta nu depaseste suprafata de 250 m2, inclusiv amprenta la sol a locuintei, in cazul caselor de locuit individuale. In cazul imobilelor care au mai mult de doua locuinte, cota indiviza a terenului aferent fiecarei locuinte nu poate depasi suprafata de 250 m2, inclusiv amprenta la sol aferenta fiecarei locuinte. Orice persoana necasatorita sau familie poate achizitiona o singura locuinta cu cota redusa de 5%, respectiv:
1. in cazul persoanelor necasatorite, sa nu fi detinut si sa nu detina nicio locuinta in proprietate pe care au achizitionat-o cu cota de 5%;
2. in cazul familiilor, sotul sau sotia sa nu fi detinut si sa nu detina, fiecare sau impreuna, nicio locuinta in proprietate pe care a/au achizitionat-o cu cota de 5%;
d) livrarea de cladiri, inclusiv a terenului pe care sunt construite, catre primarii in vederea atribuirii de catre acestea cu chirie subventionata unor persoane sau familii a caror situatie economica nu le permite
accesul la o locuinta in proprietate sau inchirierea unei locuinte in conditiile pietei."
Romanian Fiscal Code regarding equal treatment of Romanians & non-residents
http: / /www .contabilul .ro /a /2388 /Codul -fiscal - -Titlurile -I -II .html (article 3)
ART. 3
Impozitele si taxele reglementate de prezentul cod se bazeaza pe urmatoarele principii:
a) neutralitatea masurilor fiscale in raport cu diferitele categorii de investitori si capitaluri, cu forma de proprietate, asigurand conditii egale investitorilor, capitalului roman si strain;
In my personal opinion whenever a property is bought through a pre-sales or final sales agreement prior to this Goverment Emergency Ordinance, any invoice issued for the remaining balanced by a developer after the 15th of December 2008 should be according to the provisions of OUG 200/2008, whereas the balance of the sales agreement has a VAT percentage of 5% (the property purchase price excluding VAT and maximum surface area and land surface area , to be in accordance withe the Goverment Emergency Ordinance provisions!)
I do advice you to also contact your local representative to find out if the VAT percentage of 5% on the balance does really apply in this case when buying a property off-plan but still owing a balance towards the developer (as the the Government Ordinance is not completely clear on this)
this is good news for everyone. VAT has been reduced to 5% on properties purchases. I am still waiting for my lawyer's confirmation that this is affecting also to foreigner investors but reading the article I would expect this law affects to our adquisitions. One question I have is if we can claim the 19% VAT we have paid in our deposit. This will be my next question to my lawyer after they have confirm that we can pay the 5% VAT on our property.
Jose,
Post from PropertySecrets
Posted by Easy Credit.
-----------------------------------------------------------------------------------
Dear all,
Through Goverment Emergency Ordinance (OUG) 200/2008, the Romanian goverment has decided to modify some provisions in the Romanian fiscal legislation ("Codul Fiscal")
A goverment emergency ordinance acts as a temporary law.
According to the new (updated) provisions of the Romanian fiscal code throug Goverment Emergency Ordinance 200/2009, the VAT charged on property purchases including land, has been reduced to 5%
The new provisions come in force from the 15th of December 2008 and apply only to:
1 delivery/purchase of elderly homes
2 delivery/purchase of property/buildings for child care centers
3 delivery/purchase of property owned by a city council which is rented out to individuals
4 delivery/pruchase of a home/appartment by an individual/individuals which does not exceed a purchase price of 380.000 RON (+/- 100.000 EURO) excluding VAT
A dwelling (as mentioned under (4) ) can be subject to the 5% VAT provision according to the following conditions:
a) a maximum living surface of 120 m2, bought by any individual or family
b) finished properties (new dwellings still to be built are charged 19% VAT in the pre-contract stage, but 5% upon delivery)
(the goverment defines a finished property as one that you can move in right away)
c) the quota of land not surpassing 250 m2 (including any percentage of communal land held by the buyer)
d) an individual buyer who wants to benefit from the 5% VAT can only apply this ones on one property
e) a family (husband/wife) can only apply the 5% VAT ones (as a couple) on one property
This is a temporary law, which will be kept in force (as far as I can see) until the goverment decides to withdraw this ordinance.
Stefan
PS1 In case property is bought throug a Romanian company (SRL) the 19% VAT is still in force.
PS2 I am not a lawyer (al though very much interested in Romanian legislation) and I translated the contents of this ordinance myself. In case of 100% certainty about the legality of the provisions, please contact your designated lawyer.
Dear George,
Goverment Emergency Ordinance 200/2008 (in Romanian) can be found at:
http: / /www .dreptonline .ro /legislatie /oug _modificare _lege _codul _fiscal _200 _2008 .php
article 7
7. La articolul 140, dupa alineatul (2) se introduce un nou alineat, alineatul (21) cu urmatorul cuprins:
"(21) Cota redusa de 5% se aplica asupra bazei de impozitare pentru livrarea locuintelor ca parte a politicii sociale, inclusiv a terenului pe care sunt construite. Terenul pe care este construita locuinta include si amprenta la sol a locuintei. In sensul prezentului titlu, prin locuinta livrata ca parte a politicii sociale se intelege:
a) livrarea de cladiri, inclusiv a terenului pe care sunt construite, destinate a fi utilizate drept camine de batrani si de pensionari;
b) livrarea de cladiri, inclusiv a terenului pe care sunt construite, destinate a fi utilizate drept case de copii si centre de recuperare si reabilitare pentru minori cu handicap;
c) livrarea de locuinte care au o suprafata utila de maximum 120 m2, exclusiv anexele gospodaresti, a caror valoare, inclusiv a terenului pe care sunt construite, nu depaseste suma de 380.000 lei, exclusiv taxa pe valoarea adaugata, achizitionate de orice persoana necasatorita sau familie. Suprafata utila a locuintei este cea definita prin Legea locuintei nr. 114/1996, republicata, cu modificarile si completarile ulterioare. Anexele gospodaresti sunt cele definite prin Legea nr. 50/1991 privind autorizarea executarii lucrarilor de constructii, republicata, cu modificarile si completarile ulterioare. Cota redusa se aplica numai in cazul locuintelor care in momentul vanzarii pot fi locuite ca atare si daca terenul pe care este construita locuinta nu depaseste suprafata de 250 m2, inclusiv amprenta la sol a locuintei, in cazul caselor de locuit individuale. In cazul imobilelor care au mai mult de doua locuinte, cota indiviza a terenului aferent fiecarei locuinte nu poate depasi suprafata de 250 m2, inclusiv amprenta la sol aferenta fiecarei locuinte. Orice persoana necasatorita sau familie poate achizitiona o singura locuinta cu cota redusa de 5%, respectiv:
1. in cazul persoanelor necasatorite, sa nu fi detinut si sa nu detina nicio locuinta in proprietate pe care au achizitionat-o cu cota de 5%;
2. in cazul familiilor, sotul sau sotia sa nu fi detinut si sa nu detina, fiecare sau impreuna, nicio locuinta in proprietate pe care a/au achizitionat-o cu cota de 5%;
d) livrarea de cladiri, inclusiv a terenului pe care sunt construite, catre primarii in vederea atribuirii de catre acestea cu chirie subventionata unor persoane sau familii a caror situatie economica nu le permite
accesul la o locuinta in proprietate sau inchirierea unei locuinte in conditiile pietei."
Romanian Fiscal Code regarding equal treatment of Romanians & non-residents
http: / /www .contabilul .ro /a /2388 /Codul -fiscal - -Titlurile -I -II .html (article 3)
ART. 3
Impozitele si taxele reglementate de prezentul cod se bazeaza pe urmatoarele principii:
a) neutralitatea masurilor fiscale in raport cu diferitele categorii de investitori si capitaluri, cu forma de proprietate, asigurand conditii egale investitorilor, capitalului roman si strain;
In my personal opinion whenever a property is bought through a pre-sales or final sales agreement prior to this Goverment Emergency Ordinance, any invoice issued for the remaining balanced by a developer after the 15th of December 2008 should be according to the provisions of OUG 200/2008, whereas the balance of the sales agreement has a VAT percentage of 5% (the property purchase price excluding VAT and maximum surface area and land surface area , to be in accordance withe the Goverment Emergency Ordinance provisions!)
I do advice you to also contact your local representative to find out if the VAT percentage of 5% on the balance does really apply in this case when buying a property off-plan but still owing a balance towards the developer (as the the Government Ordinance is not completely clear on this)
latest pictures of the project
Hi,
I have just been informed that the project is going to be delayed for 2 months so the estimate delivery will be around June-July this year. These are the latest pictures that the developer has sent to me. If you want the original pictures feel free sending me an email and I´ll send them to you.
bye,
10% price-cut from owners after negotiations
Hi all, I am going to start this blog with an article that I found in internet regarding the price-cut in Romenian property. I have found this article very interesting. I am wondering what are the current prices for the flats we bought last year.
10% price-cut from owners after negotiations
The negotiation margin trading in residential real estate transactions reached about 10% in September, in most cities in the country, which indicates the continuation of a downwards trend of the real estate market, informs a release of the real estate network RE / MAX Romania. The negotiation margin represents the difference between the price initially asked by the owner (the list price of the property) and the price at which the transaction is concluded."Compared to June, the negotiation availability of both parties increased, thus transactions were recorded under the list prices, negotiations over 10% being seldom met today," said Mihaela Alexandroiu, Broker / Owner RE / MAX Bastion, Bucharest. She added that, also as compared to June, the list price dropped by 5-10% for the new apartments and by about 15% in the case of the old ones, while the trading price dropped by 10-20%, which means a cumulative price drop of 15-35%. "As particularly regards the capital, I estimate a decrease in prices of up to 25% in the case of new projects that have sold less than 50% of the units built," Mihaela Alexandroiu also said.
The situation is similar in other cities, too, the list prices continuing their downward trend. In Arad, both the list and the trading prices fell by 5% each, as compared to June, while in Brasov list prices have dropped by 10% for the old apartments and even by 20% for the new ones, while the negotiation margin reached 10%. The same 10% negotiation margin is also registered in Timişoara, Cluj-Napoca and Bacău. In Piteşti, the prices of old apartments have dropped by 15-25%, those of the new apartments remained at 950-1200 euros/sqm, and the trading margin is one of the highest, respectively 8 - 12%.
As regards the number of transactions, in Bucharest they have seen a slight increase in September, as against August, but the RE / MAX specialists say that this phenomenon occurs each year after the summer months. While a similar trend occurred in Braşov, where falling prices recorded this summer have slightly stimulated transactions in September, in other cities (Cluj-Napoca, Constanţa, Piteşti, Timişoara, etc.), the number of transactions has not increased after the first autumn month, against the backdrop of the global credit crisis and increased interests rates at national level".
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