ARTICLE

Fly To Buy in Montenegro

Montenegro lies across the glittering Adriatic from the heel of Italy. It has 290km of beautiful coastline, four national parks, rugged mountains, canyons, clean air, pristine lakes, picturesque villages and the most southerly fjord in Europe. Nestled between Albania and Croatia, the country offers great value for money for those like Derwyn and Beverley Kennedy, our Fly To Buy couple, who chose this part of the former Yugoslavia to invest in.

Fly To Buy in Montenegro

Fly To Buy In Montenegro

Tips for buying

  • Negotiating the property market in Montenegro is not for the faint-hearted. It is essential to employ an experienced, independent conveyancing lawyer and have the title deeds of any property or plot of land searched before the initial contract to purchase is signed or before any money is handed over.
  • It is sensible to pay for a complete survey, although this is not common practice.
  • There is a formal land registry in Montenegro, but it is not a legal requirement for all property and land transactions to be logged, which can result in land disputes. There are also ongoing cases of families suing the government for real estate claimed by former dictator Tito which they want to take back. These issues add a layer of complexity for the potential buyer.
  • Certain plots of land and some properties are off limits to foreign buyers, usually due to the real estate being of national or historic importance. Detailed searches of local council documentation will be required to confirm the property’s status.
  • There is no national guideline for the value of property, land or real estate. This means agents and vendors can price a property at a rate they choose, which may have little to do with the true value of the property in question.
  • You will need to cover lawyer and public notary fees, survey costs and a property tax which is 2% of the Montenegrin Inland Revenue’s valuation of the property.
  • Bank charges are high in Montenegro - allow up to an additional 1% to cover these.

Why Montenegro?
The Balkan Conflect of the 1990s hit Montenegro's economy badly, but with that unstable period of history in its past, the country is now in the throes of significant change and economic growth, supported by generous EU funding which is helping to redevelop the ailing infrastructure. Membership of the EU also looks likely in the next four to five years. In June 2006, it was declared a fully independent state following a vote for independence from Serbia.

Tourism is on the up with visitors discovering the natural and historical gems that this little-known country has to offer.

The government is enthusiastic about foreign investment and has made things as easy as possible for potential homebuyers, ensuring that visas, residency, taxes and red tape are kept to a minimum. Montenegro is now proving a cheaper alternative to Croatia for those looking to invest in that part of Europe.

Where to buy:
At the moment there are very few off-plan and new-build properties on the market. The majority of properties being purchased are resale, renovation properties - ruins and old stone houses - which offer the greatest scope for profit and have the best potential for future letting to the tourism market.

Estate agents are promoting the Adriatic coast as the place to buy, the northern part being the most popular and consequently more expensive, but you can snap up a bargain in the unspoilt south.

The town of Budva and Budvanska rivijera, the surrounding coastal area, is the country's tourist hotspot, with a wealth of sandy beaches, beautiful Mediterranean architecture and a lively nightlife. Petrovac, a beautiful old fishing village surrounded by olive trees, pine forests and vineyards is a quieter, gentler alternative.

You may also like to consider the town of Kotor which dates from ancient Roman times. Set on a rugged coastline, the numerous beaches in the near vicinity make it an appealing prospect.

However, if close proximity to the sea is not what you want, up and coming ski resorts and rural locations are also worth considering.

Related sections: Fly To Buy

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