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MenuWhat do you think about real estate investments in Montenegro?
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Hello. I'm a real estate broker, investor, I've completed hundreds of real estate transactions and author of 5 books on investing. Based on my cumulative experience, I would never encourage investing in a region that an investor is unfamiliar. The common misconception is that real estate is easy when it is in fact a brutal business due to the use of leverage. Any miscalculation in your assumptions, will lead to losses. You have to understand the geography, the political climate, the neighborhood, understand where you are in the economic cycle, interest rates and determine if you are in the path of progress. I strongly suggest investing in your locality.
I've worked in this region before and like anywhere, it's about risk management. You need to review the quality, track record and credibility of the developer, local partners and any banks involved and consider your 'use' intention (ie. residence, long term let or short-stay 'Airbnb' style returns). Critically, will the capital value difference between investing 'off the plan' be so great, that it far surpasses the risk of buying an already completed apartment building. With excellent growth in some parts of CES, it's a case of higher risk, higher potential returns - hence risk manage!
There is so much more information anyone would need to be able to answer this question? Are you looking for properties to rent out, buy and flip, hold and sell? I am not able to give you an ROI estimate as a whole, but if you have a deal in mind, I would be happy to run it through our investment models to give you a reasonable ROI. Also it depends on how you are financing the properties, and what type of properties, will have a big impact on your returns.
Thanks to easy bureaucratic system in Montenegro, real estate transactions are operating very fast. The property transfer tax is only 3% and must be paid within 15 days of purchase. The tax value of the property to be purchased is determined by the local municipality. In Montenegro, some banks provide home loans to foreign investors. When buying real estate in Montenegro, you should check whether the title deed has one or more partners. Settlement in Montenegro will not be this easy in the future. There is only one requirement to take advantage of this law and that is to purchase a residential real estate. You can buy a house at any price and get a residence and work permit in Montenegro. Since Montenegro is a newly developing country, you can be sure that you will not be able to find residence and work permits with these terms anywhere in Europe. The steady 8% raise of house prices in Montenegro on a yearly basis ensures that the real estate you buy will soon gain value. The suburbs of Montenegro gain value almost every day due to the small number of available residential properties. 24% of real estate buyers are from Eastern European countries who usually buy residential units for housing needs, 45% are from Northern European countries and they mainly buy for both housing and renting, and another 25% are from various countries who buy real estate for investment purposes. There is a decrease in the m2 area of the residential units sold as the construction sector develops in Montenegro.
You can read more here: https://www.vitamontenegro.com/advantages-of-buying-real-estate-in-montenegro
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
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