Why should I invest in Romanian Real Estate?
Investing in Romanian property should be seen as part of an overall investment strategy. Not only does investment in property provide diversification from other asset classes such as equities it can also provide an attractive return. Romania property prices have tended to double every 2-years or so.
What is the minimum I can invest?
250,000 EURO
What is the maximum I can invest?
There is no maximum investment.
Can I add to my investment?
Certainly, you can add to your investment as many times as you require, but the minimum you can add each time is £100,000 ($185,000/€148,000). Each time you add to your funds, it is considered a new investment and subject to the minimum 2-year term.
What is the minimum term I can invest for?
2-years is the minimum term you can invest for. This starts from the date we advise you that we have committed your funds. Investing in property is not a short-term speculative venture and a minimum of 2-years is a reasonable time to allow your investment to mature.
What is the maximum term I can invest for?
There is no maximum period, however Vision Holding’s strategy is to have a exit point of 5 years.
How does Vision Holdings sell my investment?
Can I terminate my investment before the exit term?
No.
Can I lose my investment?
Past performance is not an indication of future returns. Prices can go down as well as up and you may not get back all that you invest. However, we minimize your risk and do this in a number of ways.
• When you invest with us we aggregate all funds and purchase a range of properties. These will be residential development projects, commercial/industrial properties and land on the inner ring road of Bucharest. This way we can minimize your exposure to any regional price movements.
• We only invest in quality property in prime locations which are most likely to rise in value.
As we invest for a minimum of 2-years and Romanian property prices have tended to rise over the last 15 years, we reduce your risk to price dips. We do not invest for short term gain, but for medium term growth. We get paid on performance so it is in our interest to see your investment grow.
Do you insure all properties?
Yes we insure all properties with major insurance companies for the full rebuild value of the property.
Where do you invest?
Mainly in Bucharest, but not exclusively in London and the South-East.
Do you invest outside the Romania?
No
What kind of properties do you invest in?
We typically invest in both freehold and leasehold properties priced between £200,000 and £500,000. We also invest in new built properties. All our investments are made with the future in mind and we procure properties that offer both price growth potential and liquidity.
What are the fees?
Introduction Fee - 2.0% + VAT.
Performance Fee - 10% + VAT.
Are there any other costs?
We deduct purchase costs (i.e. stamp duty, legal, surveyor and our costs etc) from the initial investment. As we maintain a prudent ship. All local taxes, service charges, water rates, utility bills etc are paid by us. Finally, we meet the costs of disposal from the sales proceeds. You have certainty in planning and peace of mind. Costs are very much self-financing.
What are the selling costs?
The disposal costs involve estate agency fees of about 1.5% + VAT and legal expenses of approximately 0.3% of the property value.
Do I need to convert my investment into local Romanian Currency and how much effect does the exchange rate gain / loss effect my investment?
What about tax?
We do not deduct tax, but it is your responsilibility to comply with the tax laws of your country of residence and/or nationality.
What if I die during the investment term?
As part of our initial contract, we do ask for details of a next of kin. You should ensure that you have an updated Will and advise your next of kin of your investment.
What is VAT?
VAT or "Value Added Tax" is payable on all fees at the UK rate of 17.5% on our fee. So for every £100 we charge, VAT is charged at £17.50 and paid over to the UK Government.
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