and talk to one of our consultants who will match your property or service to your needs


Feb 2021

Suppose you have 50,000 euros that you want to invest. You have the option to use only this amount, or to open yourself up to financing for an additional amount. If we put this 50,000 euro on a loan with a 25% down payment, it would mean that you could have a total amount available for investment of 200,000 euro.

Of course, if you choose the second option, you need to study whether you are eligible for a loan. To make it quicker, I recommend talking to a financial broker.

How do you invest if you only go for €50,000, without additional credit?
If you go with only 50.000 Euro without additional credit, it depends in which city and in which country you want to invest, but the options in Europe are not many.

If we are talking about Romania, in good locations in big cities you are unlikely to find quality options, so you will have to go to the outskirts of cities or to rural areas.

We recommend you to go for the big cities or their peri-urban areas, because looking on a long term horizon, economic growth and their ability to attract new population will increase the value of your property.

You can go for a double studio in a newly built project (which, although smaller in area than a 2-bedroom, is still perceived as a 2-bedroom apartment) or, if you find older but well-maintained properties, you can probably stretch to a normal 2-bedroom.

Once you sign the final contract, you will have two options to choose from:

You’ll have to furnish it first, so keep 10% of the amount for this purpose too. Returns differ depending on the area, but if you’re netting 5% a year, that’s fine for now.

  1. REPAY IT.
    Obviously, ideally you should do this after it has increased in value and to be sure, I recommend several options:

A. Buy in Pre-Sales
Buy at the start of construction and sales and resell on completion. As a rule, in a market with normal growth, the gain between the two moments is at least 10-15%.

B. Buy stressed properties
Buy from distressed owners of any kind (financial, family, etc.). If you come across such opportunities, the resale gain should be at least 20%.

C. Buy, renovate, resell.
These are properties that need repairs and for this reason owners sell them at a discount.

It involves more work on your part, because it involves running a small construction site. But you can make good money. To maximise, you can add an intermediate step of re-purposing. For example, if you find a studio or 2-bedroom flat on the ground floor of a block of flats, you can try to renovate it and turn it into commercial space, thus increasing its value.

How do you invest if you take out credit and have 200,000 euros?
For €200,000, with the €150,000 difference obtained by credit, it is relatively simple because you basically scale for all the above cases. You can buy pre-sale, you can choose to invest in distressed properties, or you can buy, renovate and resell. Only this time you’ll have more options to choose from: 2 bedroom, 3 bedroom, 4 bedroom, a mix of several apartments. But the principles are the same.

In both the 50,000 euro and 200,000 euro variants, you can also look at other types of properties. For example: land or commercial premises.

We recommend that when you do so, you look at locations that meet one or more of the following 3 criteria:

Have medium to long-term economic growth potential
Attract new population
It is close to an existing or potential major infrastructure project (metro, train, airport, motorway, etc.)
Write to us on social media if you want more information on how to make an investment mix if you apply for a loan. You can find us on Facebook, LinkedIn, Youtube, Instagram and, more recently, on Tik-Tok. We’ll be happy to respond.

See other articles

and get information from our experts in the field.

Get in touch with us

Please fill your name.
Please enter a valid phone number.
Please agree to the processing of personal data.
We are processing your message.

Everything is okay

Your message has been sent!