Today, more and more people understand the potential inherent in purchasing real estate abroad, all over the world, and choose to take the step and start checking the field. For those of you who are interested, we at Rstate recommend starting to invest in Eastern Europe in general and Slovakia in particular. The article attached here summarizes for you the variety of tips, moves and steps you must take in order to make a good real estate deal in Europe.
Why is buying real estate in Europe and in particular in Slovakia worthwhile?
There are two main reasons for this. First, it is a stable economy and real estate that is becoming more expensive in a stable manner. Just this year, real estate in Bratislava became more expensive by 19%, therefore buying real estate in Europe is almost always a safe investment. Second, Europe is a small and relatively close continent, so the property you buy will be close to you, a few hours flight away from anywhere else in Europe. For example, if we talk about Slovakia, it is a country located in a central location in Europe and bordering several countries: Poland, Hungary, the Czech Republic and Austria.
Returning to the example of Slovakia, the stability of the economy affects the stability of housing prices: real estate prices are constantly rising at a consistent rate. In recent years, Slovakia has been among the leaders of the European Union in terms of annual economic growth, with an annual growth rate of 1.5% to 2.4%, which made the country attractive for investment in real estate by foreign buyers, both the big investors and private individuals who wanted to purchase an apartment in Europe. At the beginning of 2022, it seems that real estate prices in Slovakia have risen greatly, but at the moment a certain decrease in demand is felt. This could be your opportunity to enter the market and buy real estate abroad.
The most significant price increase was, as is usually the case, in Bratislava, the capital. Especially small apartments became more expensive - studio and 2-room apartments.
As a capital city, Bratislava currently attracts many students from around the world, and branches of international companies such as Amazon, IBM, Booking.com and UBER are located here, making the Slovak capital a place visited by quite a few professionals from different countries who hire the apartments. So you won't have trouble renting an apartment if you want to buy it for investment. All these details can predict that the purchase of real estate in Europe is a profitable deal that will yield you a handsome financial profit.
What should be done when deciding to buy real estate in Europe?
Before making the deal, the first thing you'll need to do is do some in-depth research. This research should include examining the market around you extensively, for example, examining supply and demand, which are the recommended neighborhoods, apartment prices in the various areas, and more. The more you invest in this stage, the better you will know what you are going for.
There are two execution options for the study in question. One, you can do it by yourself if you have the necessary tools and understanding in the field, or alternatively, use an experienced company specializing in the subject, which has been dealing with the worlds of real estate for years. We at Rstate will be happy to assist you in making the information about purchasing real estate in Europe accessible. As part of our operations, we will present you with a legal opinion, as well as ways of economic conduct, and in addition, if necessary, we will find an architect or engineer for you who will accompany the project professionally and express their opinion.
If you feel inexperienced in the field, or if this is the first time you are investing outside the borders of your country of origin, please note that you must research and learn a lot about the complete process of purchasing real estate in Europe before making the transaction, even details that may seem trivial to you. For example: you must check Is a special visa required to purchase property if you are not a citizen of the country, how do you register property in another country legally and if there are consequences for you owning property abroad. It is also necessary to verify through whom the financial transactions are carried out, who are the banks involved in the process, and even how you will know that no one is deceiving you since you do not speak the language.
Following on from this, one of the critical things to remember before and during the purchase of a property is to document all the details on paper in an orderly manner, and not leave anything up in the air or verbally. Be sure to draw up a clear contract that will contain all the details required for both parties and get the help of the local language speaker if you need to. Read every document you receive regarding the property, go over it several times and make sure that there is nothing in it that you do not understand.
Financially, as part of thinking about entering into a certain transaction, you must take into account that for each purchase you will have to add tax at the purchase, sale or holding stage. This is a considerable amount that needs to be known, which will sometimes make you give up on a deal because it is not financially profitable enough.
Regarding mortgages, remember that the terms offered are different from what you are used to in your country, certainly if you are not citizens of the country. Therefore, it is better to consult an expert who knows the laws and the local language who can summarize for you the options available at the various banks and prioritize which bank you should take a mortgage at and for how long. We at Rstate will be happy to provide you with an accountant and a lawyer with experience in the worlds of real estate who will be happy to assist you.
What should you do after purchasing the property?
After buying the property, you have three options. One, leave it as it is. The second, to expand the existing and the third, to renovate it from the ground up. After you have decided what you want to do, you must check the implications for this in terms of costs, registration, professionals and more in order not to incur expenses that you did not think about.
Regarding the use of the property, you have several options. The first, to live in the property. In this case, you must find out if there are additional payments every month, such as property tax or a house committee. If you choose to rent the property you bought and not live in it, you must familiarize yourself with the laws and rights in that country that are designed to protect the tenant and the restrictions imposed on you as landlords. Don't be afraid to ask questions and delve deeper into the topic until you understand. Here too, we will be happy to provide you with the services of a lawyer specializing in the field of real estate abroad who can help you. We at Rstate wish you much success in making decisions - we are here for any question.
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