1. Your Home in Bucharest
About The Development Citadella Titan is a small, exclusive residential apartment development. Consisting of just two buildings over 15 floors in total only a limited number of apartments are available here. Citadella Titan is very much a people-orientated development. The developer has studied the needs of prospective residents at every stage – and created a convenient, comfortable and very distinctive living environment. Citadella’s apartments are designed to be large, light and bright – perfect for contemporary lifestyles. The extensive amenities, both onsite and nearby, offer easy modern living in a great suburban location. The apartments are aimed at the young family market, with a high proportion of two and three bedroomed properties. Affluent, upwardly mobile families are one of the fastest growing sectors of the Bucharest property market at the moment with high demand for this kind of home. Citadella Titan’s quality, amenities and location – together with very competitive pricing – combine to make this development one of the most exciting new opportunities in Bucharest this year.
Type: Residential (GF + 14 Floors) Additional Features
Interior Finishes The main entrance lobby and communal areas will be finished with artificial stone and decorative tiles. The floors will feature matt anti-slip china brownstone 30 x 30 cm and 20 x 20 cm tiling, while the walls will be finished with china brownstone tiles and painted with washable paints in contemporary colours. The apartments have open balconies, with steel handrails, security glass and tiled flooring. The entrance door of each apartment will be of high security design, reinforced, mounted on a metallic frame, with high quality locks and security eye. Why Is This A Great Location?  The Citadella Titan apartments are located at 88 Colonel Iosif Albu Str. in the Titan district (Sector 3) in the eastern part of Bucharest. Titan is an already established residential neighbourhood and one of the most populated areas of the capital. The development has a catchment area of an estimated 800,000 consumers (appx. 40% of Bucharest’s total population). This location has excellent transport links: The nearby Titan Metro station provides quick access to the popular Unirea Shopping Centre (3 stops) and Piata Victoriei (7 stops). New motorway links to Constanta and the Black Sea are just 3km away. The area offers every possible amenity for modern, suburban family living close at hand. The Auchan hypermarket is just a few minutes walk from the development while the Billa supermarket, Penny Market and Selgros are also nearby. About the Developer Trust is important when investing in any property project – and it is essential when investing in an emerging market like Romania. We are proud to be working with BRC Business Group Company on this project. BRC Business Group Company is a new, dynamic developer established in 2006 by a group of investors from the United Kingdom, Netherlands and Israel. Having a share capital of 100,000 RON, the BRC Business Group Company focuses on the construction of residential projects in Romania. The major associates in BRC Business Group Company bring together 40 years of experience in the real estate field. The group of investors currently operate different projects across the world in England, France, Germany, Canada and Israel. BRC Business Group works with leading foreign and Romanian planners and architects on its projects. The finance for this project is provided by BCR. Kindergardens, schools, a clinic, sports facilities, Lia Manoliu stadium, a swimming pool and the green spaces of the Prisaca Dornei Park are close at hand. Titan district is also a fast growing residential and commercial area with much regeneration and new development underway. The roads and tramways are being upgraded, while a new western-style shopping mall is planned near Alexandru Ioan Cuza Park. New office developments are also underway, enhancing employment opportunities. On a practical note the high level land provides the best protection against floods, and the seismic risk is extremely low. As well as offering the ultimate, convenient location for permanent residents Citadella Titan is perfectly positioned to cater for the rental market in booming Bucharest.  Floor Plans & Apartment Specifications These floor plans show some of the apartment types you can choose from. 
Apartment Types
 About Goodson & Red Goodson & Red and BucharestProperty.com is a fast growing international real estate agency dedicated to offering first class residential property services in two of Eastern Europe’s most promising investment locations – Romania and Estonia. We have been working in the Eastern European property market for over five years now. Over that time we have developed an enviable reputation for our in-depth market knowledge and expert, personal service. Unlike other companies, who offer every location around the world and claim to be experts in them all, we specialise in high growth potential property investments in Eastern Europe – in particular Romania and Estonia. Our philosophy is to study each market thoroughly, and provide a professional link between developers, investors, buyers, sellers and landlords through our comprehensive consultancy and property sourcing services. With an expanding network and offices actually on the ground in Bucharest, Romania and Tallinn, Estonia – as well as London, UK – our company can help make operating in these fast moving, emerging locations simple, secure and successful. Our team of directors have over 25 years combined experience in the UK and Eastern European property markets and are available to deal with developers and investors in person. Our services include a comprehensive property brokerage service for local buyers and sellers, long and short term lettings services and a comprehensive professional management service for landlords. We also offer a foreign buyers consultancy to help investors diversify their portfolio, together with a development consultancy service, providing effective marketing and branding for developers. Whatever your requirements in Eastern European property Goodson & Red is perfectly positioned to help you achieve your aims. Please download our company profile by clicking here 2. An Introduction to Investing in Emerging Markets  Opportunities and Potential Residential property continues to attract more small and new investors than ever before, with increasing numbers of people investing for profit – or perhaps a retirement nest egg. However, with uncertainty in the UK market, shrewd investors must increasingly look further afield for profitable opportunities. Eastern Europe offers an exciting opportunity for investors willing to take a little extra risk. These emerging locations can offer the opportunity to buy in at prices not seen in the UK since the 1980’s – and prospects for capital growth UK investors can only dream of. Of course, Eastern Europe is a very big place. Understandably, many investors are unsure about where, when and how to buy. At BucharestProperty.com we believe that Romania is the next big property boom in Eastern Europe. Our job is to research the market and present you with the very best investment opportunities. In this special report we are pleased to tell you a little more about a golden opportunity to invest in one of the most exciting new apartment developments right in the heart of Romania’s booming capital, Bucharest. Bucharest is a city of contradictions: The dreary tower blocks of the communist years contrast sharply with the impressive public buildings and sense of optimism in the city today. Amidst that backdrop the city is undergoing what we believe is the next big property boom in Eastern Europe. Everyone has an opinion on the potential for
capital appreciation here. But the demand for
good quality, modern accommodation is driving
prices fast – and new developments are often
sold out 12 months before completion. That’s
why BucharestProperty.com are delighted to be
able to offer you an advance opportunity to invest
in Bucharest’s latest residential development –
Citadella Titan. Why Invest In Romania?
With a population of around 23 million, Romania is the second largest country in Eastern Europe – and the seventh largest in the EU. Only Germany, France, the UK, Italy, Spain and Poland are larger markets. Romania’s economy has been growing fast for six years now. It was granted the much desired ‘functional market economy’ status by the EU in 2004 and now officially qualifies as a ‘Boom Economy’. Romania was the fastest growing economy in the EU in 2006 (other than the relatively small Baltic countries). Apart from these hard-cash benefits Romania has many other qualities which commend it as your investment location: Educated, ambitious people; a fast improving infrastructure and a rich culture. All these combine to give Romania an optimistic, ‘going-places’ feel – boding well for the prospects of its property market. Key Facts
Further Information For more specific information on Romania and the many good reasons for investing here we recommend you read How To Profit From The NEXT Biggest Property Boom In Eastern Europe, by Darren Goodson. This comprehensive and informative book is available for free at www.bucharestproperty.com. You can find an extensive selection of online maps of all areas of Bucharest on the About Romania website at www.aboutromania.com.  Why Invest in Bucharest? As many successful investors will agree, one of the key principles of successful property investment is to follow the money. While there are many places in Romania to invest, the vast majority of money is being invested in Bucharest. Bucharest, which likes to style itself ‘Paris of the East’, may not yet be one of Europe’s key capitals but it is the most affluent and developed city in the entire region. Romania’s economic boom means the city is currently undergoing a period of urban renewal. Many residential and commercial developments are underway, the historic centre is undergoing renovation and new roads and Metro lines are under construction. The city is also undergoing a consumer boom – very much like the 80’s consumer boom in the UK. Major foreign retailers, upmarket shops, restaurants, hotels and prestige car dealerships are expanding fast and conspicuous consumption is very much in vogue. In short, Bucharest is well on the way to becoming a smart, affluent European capital.
What Others Are Saying Bucharest is expected to produce the highest output growth we have ever measured in 2006- 10’ says property services company Jones Lang Lasalle, whose European Regional Economic Growth Index (E-REGI) steers investors to where demand is strongest. ‘Bucharest is probably the best market in Europe right now’ says Richard Hearrean, of Sterling Capital Group, which finances developers in the city. ‘Bucharest can expect three to five years strong appreciation, due to pent-up demand and rising incomes.’ ‘The Bucharest residential market is still imbalanced as last year’s completions have not lessened the significant gap between supply and demand, especially on the medium income segment. Demand for apartments on the upper-medium segment will remain strong as residential mortgages and increased purchasing power support the development of this market segment. Average sale prices for projects addressing medium income customers will have the highest increase, up to 20% compared to 2006. Prognosis For 2007 : Romania will remain one of the most sought after markets in Central and Eastern Europe, both for institutional and private investors.’ CB Richard Ellis, Market View Bucharest Property, Year-End 2006 3. Prospects for Capital Appreciation  While it is, of course, impossible to predict how much the value of your investment might rise we believe the prospects for profiting from your Bucharest property are very favourable. In the early 1990’s Romania found itself in the unfortunate position of having the worst standard of housing in Eastern Europe. Very few people had the money to buy property, and so much property was virtually valueless. Since the economic boom began, however, a buoyant housing market – centred substantially on Bucharest – has emerged. Many analysts and consultants report that prices generally have risen by around 15%-30% per year over the last 2-3 years depending in property type and location. Property consultants CB Richard Ellis say that the lower limit of price rises for Bucharest apartments was 20% in the second half of 2006. (CB Richard Ellis, Market View Bucharest Property, Year-End 2006). The general consensus of opinion amongst property professionals is that price rises could continue for at least five years and are likely to be in the order of 25%-30% annually on average across in the country – and even 30-40% in some areas of Bucharest. Channel 4’s ‘A Place In The Sun’ has forecast that prices could rise by 414% by 2015. What Your Apartment Could Be Worth If Bucharest Prices Rise 20% Annually For 10 Years. (Assumes Initial Purchase Price Of €70,000. Projection Only: Figures Not Guaranteed) Up to date information on the present state of the Bucharest residential market can be found from the independent estate agency, Colliers international – www.colliers.com/Markets/Bucharest/. 4. Rental Potential  Once your property is completed and handed over you may well wish to let it out, to earn a rental income. While it is impossible to predict future rents and yields we can offer some advice, based on recent experiences. The letting market in Bucharest is healthy. Hotels are frequently fully booked despite being expensive by western standards. One estimate claims that Bucharest lacks 1,000 executive-grade hotel rooms. Good quality, rented accommodation is sought after by Romanians moving to the capital, expatriates and the growing number of multinational companies relocating their personnel. Rents in Bucharest do not necessarily reflect the low capital values and some premium properties rent for similar prices to Paris or London. The central and northern districts tend to appeal to more affluent tenants, while the western districts are more budget locations. As with other cities, rental yields vary according to location, size, furnishing and style/quality of building. However, here are some sample monthly rents for modern apartments : 1 room: 250-300€/month without furniture 350- 500€/month with furniture. 2 rooms (1 bedroom): 400-450€/ month without furniture 500-800€/month with furniture. 3 rooms (2 bedrooms): 450-600€/ month without furniture 650-1,500€ /month with furniture. 4 rooms (3 bedrooms): 600-850€/ month without furniture 900-2,000€/ month with furniture. The general opinion of agents is that average yields are in the region of 5%-9%. They can reach 15% for the most desirable properties. Letting & Management BucharestProperty.com, in association with Goodson & Red, our real estate agency in Bucharest, can take care of the full management of your Citadella Titan property through our Professional Property Management Department. However, you are perfectly free to choose your own letting agent if you wish. Investor’s Tip: To maximise rents and minimise voids ensure your property is furnished to a high standard. Make your property stand out from the others. Make it look and feel like a hotel: Choose modern, contemporary wooden furniture and neutral, earthy colours that will age well. Made to measure designer curtains and wall paper. Wooden floors. Contemporary lighting. The kitchen should be fully fitted to a high standard, and include fitted appliances. We can arrange a furniture package and provide kitchen appliances if you wish. 5. Buying off Plan: What You Need To know  Buying off plan has proved to be a shrewd and effective way of investing in the booming Bucharest market. In 2006, eleven developments were launched in Bucharest’s six sectors. This delivered only 8,800 units for a population of over two million inhabitants – many of whom are living in substandard communist era tower blocks. The desire amongst affluent Romanians to move to new, upmarket developments – like Basarabia Boulevard – is partly responsible for fuelling spectacular capital growth over the last couple of years. In 2006, 50% of all Bucharest developments were sold off plan, with two completely sold out a full 12 months before completion! The locals have demonstrated a strong appetite for buying in early, and we believe that foreign investors are well advised to consider doing likewise. Disadvantages of Buying Older Property:
Advantages of Buying Off Plan:
As a valued client, you will receive our exclusive Goodson & Red Privilege Club card and enjoy discounts for your kitchen, furniture or home appliance needs. If you don’t have one yet, give us a call or email info@goodsonandred.com 6. More Helpful Information The Romanian Mortgage Market: What You Need To Know Mortgage finance has only become available to most Romanians in the last three years. In the past all purchases were in cash, which limited prices and capital appreciation. Today, access to easy, cheap finance is one of the factors that is really driving the market here. The mortgage industry in Romania is still quite immature. It represents only 2% of the country’s GDP, compared to around 50% in the UK. So there is considerable room for growth. There are currently now over 20 banks actively promoting mortgages here. Romanians may currently borrow 75% loan to contract, requiring a 25% deposit. However, as in other emerging markets we consider the mortgage market will quickly become more sophisticated and the range of mortgage products will increase – thus creating even better prospects for today’s investor. Your Exit Strategy: Some Suggestions With any investment it is, of course, sensible to have an exit strategy. In this section we will offer some suggestions for your consideration. Local demand among the emerging middle class is currently very high and a sale to local buyers could be an attractive exit route. Yet there is also a shortage of good rental accommodation in Bucharest so rental opportunities are good. There are three strategies for you to consider: Flipping your investment might involve selling your contract to another investor or purchaser before you are called to complete on the project. The demand from locals is so high that they will provide you with an exit strategy at an early stage if you wish to flip. This is typically done six months before completion and allows you to release any potential profit you may have gained from buying off plan. It is a riskier strategy than ‘2’ or ‘3’ and you should ideally have a mortgage in place in case you decide not to flip. Completing your investment means signing the contract, and taking possession of your investment property on completion. Most people will use the mortgage finance that is available at 80% loan to value (LTV) and will then hand the letting and management of the property over to Goodson & Red, our local estate agents in Bucharest. Rental yields are high in Bucharest (typically 8-10%) due to the limited supply of modern accommodation for rent in all sectors. (Rents levels can be comparable with central London.) Completing and releasing equity gives you an opportunity to complete on your investment, hold it for the medium term and also release any potential capital appreciation that has occurred during the construction period. For example, if prices have risen at a modest 20% over two years it could mean an investor would be able to release €24,000 on completion. Once you have benefited from capital growth in the construction period release equity and investing it in the next up and coming development in Bucharest could be a very sensible exit strategy indeed. Example
Who Can I Resell to? The Romanian property market is growing rapidly, thanks to increasing local affluence and easier access to mortgage finance. There is a growing middle class who are keen to ascend the property ladder as quickly as possible. Colliers International have operated in Bucharest for over 10 years now, and are considered experts on the residential market here. They say that the ‘middle income residential segment (of the Bucharest market) is entering its long expected boom’. The main characteristics of a Romanian buyer are:
Buying Through a Company: What You Need To Know At the moment, the constitution of Romania restricts ownership of real estate by foreign nationals. However, a Romanian company may own real estate in the country even if foreign owned. At the moment, the constitution of Romania restricts ownership of real estate by foreign nationals. However, a Romanian company may own real estate in the country even if foreign owned. Therefore, we suggest setting up a Romanian limited company through which to purchase your property. We have lawyers able to represent you and assist you in the formation of a company if required. Annual running costs of approx €800 are paid in two instalments. Your solicitor can also make your annual returns. Protecting Your Investment We understand the importance of protecting your investment. Therefore we have a strict checklist that must be satisfied before we proceed with a development:
These searches give you added security by fully protecting your investment. Risks & Returns: Some Points to Consider The Economy So far, every country that has joined the EU has benefited economically. There is, of course, a risk that Romania’s economy may falter as buyers look even further east to secure cheaper ‘non-EU’ prices for goods and services. In our opinion, this is a limited risk and will not negatively impact property prices. Indeed the largest real estate consultancy in the world – Jones Lang Lasalle – has forecast that Bucharest is expecting the highest output growth over the midterm ever registered in E-REGI history (European Regional Economic Growth Index). Price Risk Are you paying the right price? We believe the price for this development is excellent. Firstly, the specification and design of the building will actually enhance Sector III itself, while the village layout will create a unique selling point for this development. To be sure, we have engaged a respected independent Romanian real estate consultancy company to prepare a report for us, assessing the present value and the growth potential for this project over a two year time period.  Inward Investment Corporations such as General Electric, IKEA & Renault are already in the Romanian commercial property market and are confident that commercial and residential real estate are the places to be for long term growth. We are convinced that not, only are their predictions based on extensive research and analysis, but they are most likely backed by risk averse decision makers – who would be wary of investing if the market was not strong. Future Growth Risk There are. of course, no guarantees in any market in terms of future growth. But everything about this development points towards there being substantial capital growth potential. From our experience other Eastern European markets, and looking historically at how price per square metre values appreciate in emerging markets, we anticipate these investments will increase considerably. Exit Risk There is a possibility that investors looking to sell their investments may not find a buyer. This is always a risk in any market, emerging or otherwise and cannot be understated. Given that this is to be one of the first luxury modern developments in Sector III, we consider this risk is limited, as the growing Romanian middle classes aspire to this style of development. Financing The finance for this project is provided by BCR – Banco Comerciala Romana. BCR’s mission is to be the principal supporter of the real economy, by providing competitive banking products and services. Their vision is to strengthen their leading position within the domestic banking system by implementing a culture of excellence. BCR has 470 branches and agencies throughout Romania and 41 branches in capital cities around the world. Currency Exchange Services Small differences in exchange rates make a big difference to the end amount you pay, and specialist companies’ rates compare extremely favourably to the high street banks. We suggest using Interchange, London. Interchange offer international currency services and help you achieve the best exchange rates, making your money go further. They are regulated by HM Revenue & Customs. Log onto www.interchangefx.co.uk. Complete the online application. Email, fax or post a copy of a photo ID and recent utility bill. Your account is then opened. Book a transaction. Once a trading facility has been set up, a dealer will call you and discuss your individual requirements with you. Rates are booked with your dealer by phone. Transfer your funds – depending on the date you require your currency. Personal help as available when you need it. Legal Representation While we strongly advise you seek individual legal advice from your own lawyer the following section will provide you with some general guidance on the legal aspects of buying in Romania. We strongly recommend that you engage the services of an English speaking lawyer to act for you in your purchase. Do not rely on the notary to look after your interests. The notary is appointed by the state to record details of the transaction and not to represent the buyer or seller. BucharestProperty.com will appoint a lawyer to represent you, however, you are perfectly free to choose your own. We have already negotiated a very good price of £1,250 plus VAT which includes set-up of the company, Power of Attorney (if required), plus all checking of legal documentation. A full list of services are given below. The lawyers will send you an engagement letter as soon as you send in your reservation form. Legal Ownership Buying property in Romania should be as safe as buying in any European country. The Romanian Constitution guarantees the right of property ownership and property may be freely bought and sold. The registration of your ownership title with the Real Estate Registry (Cartea Funciara) guarantees your legal ownership of your property. Currently, foreign individuals are not permitted to own land (rather than property) directly. Under the terms of Romania’s EU accession this should soon be possible, probably from 2010. Lawyer Checklist
The Costs of Buying We recommend that you also obtain a written quotation of fees before instructing a lawyer. Romanian VAT at 19% is charged on new developments. Buyers who are VAT registered companies do not pay the VAT and we suggest this method of investing may be worth considering for those who intend to become regular investors. If you would like more information about setting up a company please contact us at sales@bucharestproperty.com. The Buying Procedure The buying procedure in Romania is similar to that in other European countries. Transactions for the purchase of real estate must be finalised in a written contract and confirmed by a notary – a legal official who is duty bound to check every detail and document. Prior to completion your own lawyers will undertake due diligence for you, much the same as if purchasing anywhere else. We recommend that you obtain English translations of important documents and satisfy yourself that they are in order. Once the transaction is ready to proceed the final legal transfer of ownership of your property is carried out on a predetermined date in front of the notary. A notary deed will be issued which is equivalent to a title deed and is an important and valuable document. Finally, in order for the buyer to be regarded as the legal owner of the property they should be registered as the owner with the Real Estate Registry. The Tax Implications When buying in Romania the tax rules are the same for locals and foreigners. As with all tax systems, the rules are complex and you are strongly advised to seek professional advice from a specialist. However, here is a handy guide: Property Transfer Tax The sale and purchase of real estate located in Romania are subject to stamp duty and notary fees. Stamp duty figure is 0.5% plus VAT. Notary fees are approximately 1%. Value Added Tax The transfer of immovable property in Romania is subject to VAT charged at the standard 19%. However, special VAT simplification measures apply to land and buildings, provided both the seller and the buyer are VAT registered in Romania. In this case, the seller and the buyer account for both input and output VAT without any VAT cash flow. Capital Gains Tax Non-resident legal entities are taxable in Romania at the standard profits tax rate of 16% for the capital gains realised from selling ownership rights over a local company. Profits derived from the direct sale of real estate in Romania are also subject to the standard 16% tax. However you can decrease the capital gains tax liability by deducting all costs involved in the purchase, maintenance and sale of the property. Dividend Tax Dividends paid abroad by a local company from its profits are subject to a 16% withholding tax in Romania. However, this tax may be reduced (even to zero) under the provisions of some of the double tax treaties signed between Romania and other countries. Local Taxes Owners of buildings are required to pay an annual building tax to the local authorities. For companies, building tax is 1-2% of the book value of the building. There is a local tax liability of 1.5% on the cost of your apartment when owned by a company. This liability can be credited back against CGT when you sell. 7. Why Buy Using BucharestProperty.com?  BucharestProperty.com’s fee includes everything you need to make a successful property investment in Romania. We don’t just sell you a property. We offer a full consultancy service, do thorough due diligence on every project, and provide personal service to ensure everything runs smoothly: Finding the Deal
Services Our team help you through your entire investing process, including:
Our fee for Citadella Titan Apartment is just £1,995 plus 18% VAT payable for each individual reservation made. Our Team
8. What To Do Next We hope you have found this information interesting and useful and that you will want to participate in this opportunity to invest in Bucharest property. While we recommend that you consider everything carefully before proceeding please be aware that these apartments are proving very popular and are already selling fast. To ensure that your preferred apartment or apartments are available at the listed prices we recommend that you contact us as soon as possible to make a reservation. Alternatively, if you have any further questions please do not hesitate to contact us. Contacting us with a question or query does not commit you to buying. To reserve an apartment or apartments – or make an enquiry – please contact us on 0871-271-5120 or email sales@bucharestproperty.com now. We look forward to hearing from you. Yours sincerely,  Summary: Investor’s Checklist
For all enquiries or to reserve an apartment, email sales@bucharestproperty.com Download PDF brochure
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For many years Romania was very much a closed
country, suffering from severe poverty and decline.
Today, most outsiders are not aware how much
Romania has changed – nor how rapid the county’s
progression towards becoming a modern European
economy is.
