By Property Secrets' Investment Broker

I'm going to break a rule today.

I'm going to talk about a Property Secrets investment deal that I am putting the finishing touches to.

Why's this a rule?

Well, because what I want these Blogs to convey is a strategy for property investment in the central and Eastern European markets. Arguments for the choices I and my colleagues at PS make.

Strategy then, rather than sell.

But, look, at the end of the day, my job is to find strong and appealing property investment deals; so I don't see why I can't use one of these deals to illustrate a wider point about investment strategy.

That's my excuse anyway and I rest my case.

The point is that Property Secrets really does have a unique business approach and I want to make this plain.

Yes, we are saying: 'Invest in the deals we've negotiated'. Of course we are - that's our business.

But we're also saying, 'Don't buy based on some commission-hungry salesman who only shouts about the positives; buy only if you also buy into our arguments and our numbers.'

Can I be more honest than this? I don't think so.

Having got that of my chest, I want to talk about Brasov in Romania.

And not just Brasov, but a very special development indeed in Brasov.

Why I'm investing

From the outset, let me tell you that this is one deal I am certainly going to invest in.

Actually, that reminds me of a question I was asked the other day - if they're so good, why don't you invest in ALL the deals you source?

Fair question.

The answer is a very obvious one - If I could invest in every deal I source, I would. But, like most people, I only have a finite amount of investment cash.

So, I need to choose which deals I personally invest in carefully to check they fit the balance in my portfolio, my long-term strategy and so on. Because I've sourced the deal, I know it's good, but I need to look for 'fit' within my portfolio.

But this one, yes, I am investing in it. And I'll tell you why.

Because I believe every balanced portfolio should, ideally, contain one unique development; which, let's face it, usually means a development at the luxury end of the market. A gem. A one-off.

And I believe I have rarely seen such a clear-cut development at the upper (ish) end of the market as I have in Brasov.

It suits my portfolio because - and I'll be blunt here - to me it's a unique development at an excellent below market price that I believe cannot fail to make me a great profit.

And that's why I think it will also probably suit your portfolio too!

There are, I suppose, two elements to this deal.

• First, and overwhelmingly first, the development itself and its location
• Second, the deal's payment terms

But while these payment terms of 15 per cent down and 85 per cent on completion are fantastic for this market, they are only part of what makes this deal special.

What makes it truly special is the location.

Location instinct

I've been in property for 15 years and I believe I know it almost immediately when I see something truly special, something that will have iconic status - I call it 'location instinct.'

And Belleview Residence in Brasov will be an icon. That's why I'm investing.

This is a development on the main hill overlooking Brasov - as you turn into the main road into the centre of town, the hill is what you see, and on top will be this amazing development. 250 superb residential units, including nine penthouses in the first stage (six have already been sold to the developer's friends, contacts and family, even before the cranes are in place.)

This is a fantastic location with 360-degree views stretching 30 kms into the distance that can never be replicated and yet it's just a five-minute walk into the centre of the town.

It is simply a one off, that is why it is worth its luxury tag and that is why it holds so much attraction as an investment.

It's not because it's luxury - anyone can build more luxury. But no one will ever be able to compete with this location in Brasov.

It is THE prime spot

This development will represent a whole lifestyle - there will be top class restaurants, a spa and a hotel. For Romanians this will represent true aspiration. And I do believe that Romanians more than any other nationality in central and Eastern Europe are people who, like other Latin nations - and I'm thinking especially of Italy here - have a love of style and what pleases the eye.

They are people who want to consume and want to surround themselves with the trappings of the good life. They'll want to live in Belleview Residence, that's for sure!

This is the kind of development that Romanians will want to point at as they drive into town and mention that this is where they live.

There will be waiting lists to buy here - presale and on the secondary market.

I have no doubt whatsoever that anyone buying one of these units will be able to sell immediately to a Romanian and take a handsome profit.

The line of people wanting to buy into Belleview Residence will be long. And, without a shadow of a doubt, I'll be in that line.

Brasov - Romania's Krakow

A word then about Brasov. This is important because, let's face it, even the most superb location in a city that's going nowhere is not a great investment.

Luxury really does mean the setting has to be attractive - preferably very attractive.

Whether that attractiveness is the Georgian elegance of Bath, the sophisticated chic of Kensington or the eye-watering beauty of Florence doesn't really matter - the point is it's got to look good!

And Brasov, just two hours from Bucharest, is Romania's answer to Krakow. It's a beautiful old city.

And just like Warsaw's relationship with Krakow, so too with Bucharest and Brasov. Bucharest is generally where people need to live - Brasov is where they want to live.

Right now there is a lot of very conspicuous money in Brasov - it's where the more wealthy Romanians come to their weekend place - the streets are busy, the street cafes buzzing and up market cars and international brands are easy to spot.

But so far, in terms of property, there are few new builds at the luxury end of the market here, even though the demand is increasing fast.

The term luxury here, though, does need to be put into context. With Belleview we are not talking super rich, but we are talking luxury by Romanian standards - €1,600 psm for the units I've negotiated for PS clients, which start at around £100,000.

This is not super-rich, but it is aspirational rich.

Let me tell you something else about the price just to wet your investor's appetite even further.

Colliers have just been to revalue the land for the developer. They valued the flats at €2,500 euros / sqm.

We have them secured at €1,600.

Other developments I've looked at in Brasov fall into this luxury category and, quite frankly, they are not in the same universe as Belleview Residence. But they have all sold, many selling in the afternoon of a launch.

In Belleview's case, I know that the developer will put up prices by between five and 10 per cent when this development goes to market in May.

So, why has he agreed to such a low price and such great terms for PS clients? I always get asked this.

Here's how it works. The developer is not ready to go to market at the time I come along and tell him I want to cut a deal. But he can see the attraction of pre-selling a tranche of his units before he even takes them to market. This is because it's normal that each phase of a development will sell for more than the previous phase. So, when he goes to market with this development, he's already sold a chunk of units and is ready to put up prices straight away.

And they'll sell with ease, I have absolutely no doubt about this.

And rental? I think there is great opportunity here - for renting to people who want this lifestyle, but can't quite afford to buy and for seasonal rentals of perhaps six months.

So, what we have - and I'm very proud of this deal - is 15 per cent down and 85 per cent on completion spread over 18 months, during which time the capital growth will be astounding.

That's why I'm so excited about this deal. And that's why I'm buying. Will you?