For those thinking of moving abroad

[milanbenes]

the sofia scenario is highly possible

you would be surprised gentlemen how many other western european based (this means, German, Austrian, Swedish, Italian, French, Dutch) investors (companies and individuals) are making a fortune in CEE in all kinds of investments.

In comparison, considering our financial might, British investors (companies and individuals) are not proportionally represented in CEE and in my opinion missing out on massive opportunities.

In general we British have been very shy in courting CEE investment opportunities.

Milan.

[Francko]

In general we British have been very shy in courting CEE investment opportunities.

Milan.

Anybody remember what happened to Poland and its house price crash a few years ago?

[milanbenes]

morning Franko,

do enlighten us

was it a typical crash driven by an unsustainable bubble with investors not doing proper research ?

Milan.

[Francko]

morning Franko,

do enlighten us

was it a typical crash driven by an unsustainable bubble with investors not doing proper research ?

Milan.

Yes it was an unstainable bubble and when the economy was hit by a recession in 2001-2 prices started to tumble. Now in 2007 they are picking up again finally. I would suspect the same may happen in many european countries soon after a period of long economical growth. Some of it is not real and prices are artificially high (i.e. any reason why a decent flat in Vilnius can cost 200k pounds when the average salary is about 5k pounds a year? It won't last. Period.). Besides after a long growth there is always a period of decline-adjustment as some of the growth is not due to real reasons, this is not a possibility but it's a pattern that will always happen - it's only a matter of when it will happen. Of course if you think to retire in the country and keep the house for 20-30 years then is less of a problem (but still I'd rather wait a while to buy it cheaper).

[woo]

you have to put things into perspective folks
.

so you bought one then?


If the guy who bought at 10k took his profits and ran he'd be ok. The trouble though is that most of them get carried away with it, keep borrowing and buying more and then end up losing their shirt.

[The Lone Gunman]

so you bought one then?


If the guy who bought at 10k took his profits and ran he'd be ok. The trouble though is that most of them get carried away with it, keep borrowing and buying more and then end up losing their shirt.

He still believes it is a good market. He is good at this.
[edit]A lot of this is prospecting on the holiday homes market, not the local market. It seems many people are looking for different holiday destinations. A lot of the flats are being purcahsed or rented by time share and similar businesses.

[milanbenes]

woo I've built a house in CZ for my family so I have some familiarity with the situation in the region

there have been two rises as I see it

the first wave of rises was the price corrections following communism

the second wave which we are in now is the combination of the locals being empowered with mortgage credit which they didn't have before in communism, AND foreign investors, the current rise as I see it however is driven in the largest percentage by locals and their mortgages

all the best, do your own research etc, investments can go up and down and yes you can lose your shirt and never borrow more than you can afford if at all

howzat ?

Milan.

[woo]

all that should push prices to 3-4 x salary instead of 0.50-1.00 x salary under communism, not 16 x salary.

3-4 x salary is the long term average in the western world, unless 16x is the new normal, I doubt it.

The foreign investors that have got carried away are holding up the market.

[milanbenes]

woo,

if you don't know what you are talking about it's better not to contribute

maybe there's a different thread where you can offer some value ?

Milan.

[Francko]

3-4 x salary is the long term average in the western world, unless 16x is the new normal, I doubt it.

Yep, that's the new normal. All the world will become rich thanks to house prices. We'll all be millionaires. Well, with the exception of AtW, obviously.