Investors take advantage of Romanian mortgages

Prospective investors in Eastern Europe’s best kept secret - Romania - will find that obtaining a mortgage is a straightforward process, with a number of different mortgage options available through Obelisk Private Finance to residents and non-residents who buy property in Romania.

With price rises of between 15% and 25% expected in 2008 and impressive economic growth, Romania is powering ahead of other European markets. Its success is set to continue as Forbes magazine reports that the Romanian business environment is considered more attractive than that of Turkey and Croatia. Investors have begun to take notice of Romania and Obelisk’s regular client survey showed that the country is one of the top 2 favourite investment locations.

As mortgages are such an important factor in successful overseas property investment, Obelisk Private Finance has negotiated with the major lenders in Romania to allow both resident and non-resident investor clients to take advantage of mortgage facilities in order to finance their property investment in Romania.

Obelisk Private Finance is able to offer investors flexible financial solutions for a range of investment choices. Clients who wish to buy property or land, build their own property, remortgage a current property or take advantage of an equity release scheme will find that there is a mortgage product to suit their needs. Investors with proof of income can obtain mortgage funding of between 70% and 100% of the appraisal value of the property, subject to the bank’s lending criteria. The mortgage process usually takes around 6 weeks from start to finish and a mortgage offer - subject to valuation - will hold good for a period of 3 months.

In Romania, mortgage terms are usually up to 35 years or the maximum age of 70 and interest rates are impressively low. They are around 4% fixed and the variable rate is around 6.5%. Some lenders also offer investors the added bonus of a limited period of interest only payments. Around 70% of your income will be taken into account when calculating affordability and this compares favourably with many other European countries.

Obelisk’s Fontana Residence development, situated in the thriving city of Cluj-Napoca in north west Romania, is one of the first modern developments in an area which is benefiting from extensive foreign investment and where the population is set to double over the next 10 years. Investors in this development can take advantage of Obelisk’s mortgage products to allow them to leverage their property investment and maximise their capital gain while minimising their costs. Ken Thorkildsen, Director of Obelisk Private Finance is pleased to be able to offer such flexible financial solutions for clients’ investments in Romania.

Ken recommends leveraging to finance your investment. “Using a mortgage product means that your initial outlay costs stay low while the potential for capital gain is high.” With house prices predicted to rise by between 15% and 25% in 2008 alone, using a mortgage to leverage your purchase means that investment potential in Romania is very promising indeed.

For more information, visit obeliskfinance.eu