Buying vs. selling properties

After the establishment of communists on power in Romania, I mean the period after 1952, there were many houses and lands for sale but not buyers. Why? There were several reasons. Many owners were afraid of a new wave of nationalization, others wanted to leave the country or just moving from one city to another and, last but not least, sometimes there were more than one heir, they wanted to sell and share the money, but was very difficult to sell any kind of property. Why?

The main reason is that after the currency stabilization in 1952, everybody was broke. People needed some time in order to save money and start buying properties. But who could save money? Those with a job, of course; and at that time, very few people could have a job.

Another reason for the lack of buyers is that many people were satisfied living in a nationalized house as tenants. They believed that building your own house (or just owning a house) put you in the impossibility of moving to another place because was very hard to sell a property.

Before 1989, when Romania was lead by Ceausescu regime, people had money (I mean a lot of money) but the law didn’t allow you to have more than one property, people couldn’t buy land (because you were not allowed) and construction authorizations were hard to be obtained. People had money, they wanted to buy houses but they couldn’t. Actually, people wanted to buy houses because they couldn’t buy anything else, if they could buy anything else then definitely they wouldn’t want to buy properties. It was the same after Romanian Revolution in 1989, it is the same now.

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