I have been offered an opportunity to invest in real estate in Montenegro by buying a small apartment in one of the leading real estate projects there.
what do you think of the real estate climate there? Do you recommend investing? What about the ROI?
I have been researching since sometime and found many useful reports and information, the overall tone is positive but it's always good to ask people who might have better knowledge about the country and investment.
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.