New apartments in Sibiu are a smart investment. They are affordable, low-maintenance and can provide you with additional benefits such as tax benefits with reduced upgrade or maintenance costs and quicker access to letting your apartment to tenants. However, buying a new apartment is not quite the same as buying an apartment in old buildings. There are specific challenges to consider when investing in this type of real estate. This guide will help you understand everything you need to know about buying a new apartment in Sibiu.
Who can invest in a new apartment?
There is no restriction on who can invest in a new apartment. Anyone can afford it, including individuals or businesses. Just keep in mind that it is not difficult to invest in a new apartment compared to an apartment in an old building.
How to find the right apartment
As with the purchase of any other type of real estate, finding the right apartment is essential when investing in new apartments in Sibiu. Start by identifying your housing needs - how many people will live in the apartment, the destination and what features do you need? Are there children who need a playground nearby, do you need parking spaces, are there specific facilities you are looking for (easy access to the workplace, public transport, area with high development potential, etc. )?
Next, you need to identify the desired location. Look at the neighborhood and think about future development. What does the future of the neighborhood look like? Is the area increasing or decreasing? How long will it take to get to the city center? Note that the times to the city center from the outskirts of Sibiu are usually only 10-15 minutes, depending on the time of day. Be sure to consider who the developer of the real estate project is, what else they have built and what guarantees they offer.
How much can you spend on a new apartment?
You can invest in a new apartment in Sibiu with prices starting from 53,000 euros for an apartment with one bedroom and living room. The maximum price of a new apartment depends on the location and area. You can expect to pay between €53,000 and even over €100,000 for a two bedroom apartment in a great location, and for a three bedroom apartment most prices are from €80,000 and can even go up to over €150,000 depending of surface, area and finishes. In the Belvedere Residence complex, the western area of Sibiu, you can find 2-room apartments in Sibiu with prices from 52,950 euros, turnkey finishes and parking included in the price, and in the real estate project Corner Apartments, located in Șelimbăr, Nicolae Brana str. 2-room apartments in Şelimbăr with prices from 68,450 euros, semi-finished delivery stage and outdoor parking included in the price.
Note that it is more profitable, in terms of rental depreciation, to buy a 2-room apartment with an average floor area than to buy a 3-room apartment. If you are looking for an apartment to live with your family, then the purchase of a 3-room apartment is ideal.
What should you look for when investing in a new apartment?
Make sure that the apartment is in a newly built building, that the developer uses quality materials, who is the developer, what experience does the developer have, the construction company is an experienced one, the building is connected to all utilities or there is the possibility of being able to to be reported until handing over the apartment, is there a good infrastructure up to the building, easy access, what guarantees does the developer or the construction company carrying out the work offer, if they accept the purchase through bank loans/mortgage loans (if applicable), if they offer consultancy with a view to the purchase or after the purchase (help in obtaining the mortgage loan, intermediation for renting or even real estate management).
In a newly built apartment, everything is new. It has been designed and built to the highest standard, which can be expected for at least 20 years from now. Look at the quality of the materials used to build the apartment - concrete, bricks and steel. Make sure the apartment's delivery stage (semi-finished, advanced semi-finished or turnkey) and what each type of delivery contains. It is very important to check if the apartment is delivered with its own parking (included in the price or paid separately from the apartment), if there is the possibility to purchase another parking. Whether the parking is individually identified or not.
Tax benefits of investing in a new apartment
New apartments are eligible for a reduction in VAT from the standard 19% to a reduced VAT of 5%. Very important: the sale prices of new apartments include the reduced VAT of 5% (except for real estate that does not qualify for this reduced rate of VAT).
From January 1, 2023, this benefit is limited only to the purchase of a detached house with a reduced VAT of 5%, and individuals who benefited from the purchase of a property with a reduced VAT rate will have to pay the difference in VAT at the standard rate, i.e. + 14 % applied to the net price of the property.
There is also an exception for the purchase of new real estate with a reduced VAT rate of 5% (compared to the standard 19% VAT) if the pre-contract is made by the end of 2022. To qualify for this exception it is mandatory that the ownership transfer (contract of sale-purchase) to be made in 2023 and the pre-contract (promise of sale-purchase) to be made in 2022. Practically in 2023 (remember that it is only valid for 2023) all the fiscal rules for pre-contracts made before of January 1, 2023.
You can expect to see these savings reflected in the final price of the apartment. Also, new apartments can qualify for an accelerated depreciation benefit as they do not require major investment over a long period of time in order to maintain them.
Final words: investing in a new apartment is worth it
New apartments are an affordable option to invest in real estate in Sibiu. These are great for growing families as they come with more space and features. They can also be a great option for investors looking to amortize their investment from long or short term rentals, being more affordable than older apartments. When investing in a new apartment, be sure to go see the construction site and check that everything is built according to the standards set by the Romanian government.
If you need guidance, real estate advice or are looking for a property, whether for investment or personal residence, you can confidently call on the real estate agency Eurosib Imobiliare in Sibiu.
Eurosib Real Estate
Address: Sibiu, Calea Dumbrăvii, no. 135
Robert Iordache – Real estate agency manager
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