www.myfinances.co.uk

With cheap property prices, strong rental yields, and a booming housing market, buy-to-let investors are flocking to Eastern European countries.


And with the expansion of the European Union, and budget airlines meaning more Brits are taking city breaks to places like Prague and Budapest, property investors are broadening their horizons and considering countries that many could not find on a map ten years ago.

“Bratislava [Slovakia] and Budapest [Hungary] are real hotspots at the moment. Investors who target this market can secure high rental yields and strong capital gains growth. Bratislava also has one of the strongest economies in Eastern Europe so there is a lot of potential for the future, as with most other Eastern European cities,” said Valerie Power, director of Eastern European Properties.

Nick Clark, managing director of Homebuyer Events, added: “Ten years ago no one would consider investing in Eastern Europe, but now property in the Eastern Bloc is selling faster than ever.

“Holidays in countries that have recently joined the European Union are becoming increasingly popular so investors with a long term perspective will secure solid rental yields.”

A study by the Homebuyer Show looked into the property prices and rental yields in six of Eastern Europe's property hotspots.

It found that in Sofia, Bulgaria, property prices start at £25,000 with rental yields at seven to ten per cent a year; in Bratislava, Slovakia, prices begin at £25,000 again, with rental yields of eight to nine per cent; in Hungary's capital Budapest properties can be bought for £40,000 and rental yields stand at six to eight per cent; investors can get their hands on a place in the Czech Republic's capital Prague for £39,000 - with rental yields at five to seven per cent; while properties in Tallinn, Estonia, can be bought for £30,000 and yield eight to ten per cent of their value in rent; houses in Riga, Latvia, are cheaper still at £20,000, rental income there is around six to eight per cent, the Homebuyer Show found.



If anyone thinks they can make money at these yields, please see your doctor.