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Investment property in Bulgaria is consistantly being talked about as one of the top emerging markets for property investors in the World.

Why Bulgaria is an intelligent investment ?

* Early stage of development in Bulgaria, ideal time to invest
* Excellent property prices very low compared to most other European locations
* Strong bid for the 2014 winter Olympic games
* Strong possibility of inclusion in the European Union in 2007 backed by the UK
* Huge tourism growth potential. Increase of 50% between 2000 and 2004 (90% increase from EU visitors).
* Tourists expected to exceed 20 Million by 2010 making it one of the Worlds greatest emerging tourism markets
* Large amounts of foreign direct investment
* GDP growth expected to be highest in Eastern Europe by the Institute of International Finance at 6% for 2005 / 2006

Top 10 reminders how to do it smartly :

1. Learn as much as you can about the country, the economy, political system, geography, the law, the culture, the people - this should give you good understanding and reason why and how to invest in the country.
2. Try using independent and reliable sources of information not marketing products.
3. Have a clear strategy and plan how to accomplish it , set a budget and time limit and stick with them – many properties in Bulgaria look cheap and it is tempting to overstretch you budget.
4. Be aware of the total cost – fees, taxes, management cost, building works etc.
5. Have a realistic exit strategy – make a good market research and consult with professionals
6. If you are buying investment property remember this is business – leave this decision to your mind and logic not to your heart.
7. Deal with reputable agents who understand what you want and have in depth understanding of Bulgarian market – currently Real Estate Agent is a very popular profession and there are awfully a lot people that don’t understand what they are doing. Be careful!
8. During the viewing trip make a lot’s of pictures and take many notes on each property – at the end of the day they all look the same.
9. Do don’t rush into decision; take your time to think
10. There is no right price for the wrong property !


Learn before you invest : http://www.sash-solutions.com

Good luck with your search,

Galina

Yes but the indiginous population is decreasing significantly year by year as Bulgarians emigrate to find work and that will accelerate upon EU entry. That will have a dampener on house prices. Bulgaria has only a small middle class. Also Bulgaria's reputation has been tarnished by corruption and mafia - although the general population are not usually affected. Also the cost of commodities such as electricity is soaring. Bulgaria has already been overhyped and there is probably not much more money to be made. For example it is already oversaturated with appartments on the Black Sea

See: http://www.mybulgaria.info/bulgaria-property-forums.html

Bulgaria is a fab place for buying very cheap properties in the countryside but not so good for making loadsamoney.

Im a keen foreign property investor, but for me Bulgaria has issues:

1) Investors dont feel safe. There is too little in the way of state legal framework when things go wrong. Too many cowboys out to rip - you off, many of them British. There is also a perception the locals will rip you off, for example - "mister Im phoming from Bulgaria, your boiler has blown and the Man he say is £3000 to repairs".

2) Worries about the second hand market. People are saying its hard to sell - on.

3) Short tourist season. The Black sea for example. So better to buy in capital (12 month rent), but it has already boomed.

4) This really put me off, - you have to run your B2Ls as a company with company accounts. Im worried Bulgarian accountants would take advantage of me in terms of thier fees ("thats £1000 for the accounts and £2000 to translate them mister, oh and £1500 for the Mayor").


Im not saying you cant make money. I am saying there are safer destinations with probably better growth and yield prospects.

Hi ,

I appreciate your opinion just have couple of things to say in return to your posts :

1. Bulgaria should be seen as a medium to long term investment and whose that are seeking quick return on investment will be disappointed.
2. Bulgaria is an emerging market you invest in one developing economy this is for investors that see the opportunity and get excited from it.
3. To find a good deal see the specifications and make calculations on specific property - not at all properties at the area and always keep in mind your strategy. There is no right price for the wrong property and there are still great BMV deals in Bulgaria !
4. You can make money everywhere if you know how !
5. Be very careful who you deal with - I totaly agree on this point .
6. Questions about mafia, corruption , ripping off investors - What makes you think you haven't got them in UK ? I recently saw a BBC movie called Whistle blower - boy how they are ripping you off !!!!!!!

All the best with your investing !

If you at any point consider investing in Bulgaria , I would be happy to help you do it successfully ! I can be reached at : galina@sash-solutions.com

Have a great evening,

Galina

Good point - look whats happened in Poland

Bulgaria didn't even make the shortlist for the Winter Olympics.

The Government is making constant efforts to increase the population by offering many incentives to young families also many wealthy Bulgarians that used to live,study and work abroad are coming back to the country because they want to spend their money in their own country. I'm one of them ! Another point is that Bulgarians are becoming more wealthy and working abroad doesn't really attract them as much in case there are so many wonderful opportunities here and much better quality of life – affordable. So I personally don't think that joining the EU will affect that much the density of the population apart from the normal.

Bulgaria is probably the fastest developing country in Eastern Europe ( please read some history to see) with still one of the cheapest Real Estate prices in Europe ! Bulgaria came top in the Global Property Index (Knight Frank).Annual growth of 36% with a ROI of 136 with75% LTV mortgage @ 5.95.

Yes , Bulgaria didn't get the Olympics as well as Spain, France, Norway, Turkey , etc.!!!
There are many other projects that are on their way to boost the economy and tourist flow.

Happy investing !

Galina

I think this ADVERT should be removed immediately from this FORUM.

However i can explain you why Bulgaria is one of the worst places to invest at the moment.

1.Prices have reached the TOP
2.Supply exceeds DEMAND
3.Population of Bulgaria is shrinking
4.For each person in Bulgaria there are 2 flats/houses
5.Rental market is dead (you can get around 4% in the big cities (excluding maintenance) if you manage the property yourself. If you let someone else manage your property you might not get anything at all even you might end up in debt.
6.The interest rates in Bulgaria are about to go down. Currently at around 10%, will come down to normal European levels around 4-5% in the next year.
7.It will be cheaper to take mortgage than to rent (which will bring prices down).
8.There are many many vacant properties (simple there are more properties than people).
9.Bad infrastructure (in some places infrastructure is missing at all)
10.Poor building standards.
11.High risk that your property might be vandalised.
12.Extrmely hard to sell your property once bought.
13.Unclear situation around freehold/leasehold.
14. You don’t really want to buy a property in a country you know nothing about.

Totally agree with Baro

Coastal resorts - Absolutely overcrowded with poor apartments none existing rental yields - Dumping occuring.

Golf Resorts - Impossible market to determine as does not exist except on paper - Short season and will be impacted by coastal resort problems and Spain has the upper hand (but still oversupplied).

Ski Resorts - Only one decent resort Bansko - massive over supply, none existent rental yields.

Infrastucture as stated is very poor.

Many people investing are investing blind and the shake out will go on for years to come.

Perhaps would consider investing in the cities for rental potential combined with capital gains.

You would seriously have to know exactly what you were doing to make money in Bulgaria.

I think Bulgaria still has lots of potential despite the boom it has had over the last couple of years.

Opodo has just put Bulgaria top of its list of ‘Top 10’ up and coming travel destinations for 2007.

BA is now flying all year round to Varna on the Black Sea, and is now selling return flights for £59 inc taxes. With other budget airlines predicted to start flying to Bulgaria, there are likely to be more and more independent travellers which will improve rental returns.

EU membership is guaranteed which will continue to improve the infrastructure of the country.

And I think that golf does have lots of potential - there can easily be a 9 month golf season on the coast. Why are 3 professional golf courses being built around Balchik north of Varna?

Hello,

I would like to share with the rest of the audience here that in my other post in this forum Baro has replied to me in Bulgarian with inappropriate for this forum language. Shame on you Baro, I thought this is a genuine place where you can share ideas and opinions and I'm sure the modarators will take actions !

I would like to once again state to all investors here that Bulgaria should be seen as a long term investment strategy! Those that are looking to make quick cash will be disappointed! It is unrealistic to expect an emerging property market such as Bulgarian to act as mature one in terms of rental returns and resale opportunities. Not yet! Buy at emerging market and get profits when matures.

I have spoken to many investors in Bulgaria, it seems to me that most people have researched their purchase well before risking their hard earned capital and some of them are enjoying quite good rental returns already - I can provide samples for those that are interested.
I know that there are some who have thrown themselves into this unprepared and with unrealistic expectations and that’s why I’m trying to help future investors from being disappointed and loosing money because I’m investor myself.

I would say the prices in Bulgaria have gone up significantly in most common areas of investment- but believe me there are many undiscovered areas and this is where the opportunity is!

Baro I don't know from where you are getting the numbers for the mortgages but at present the interest rate is 5,9 % for overseas investors. I arrange mortgages for my clients on everyday basis!

About the building quality that's why clever investors research well and ask for building guaranties, happens everywhere from my experience! About the risk from vandalism,building problems - insurances !

It's clear that a good research, adequate preparation and understanding are important when investing in Bulgaria and in any other country. Just see what EU and cheap airlines will bring to Bulgaria!

Wish you all happy investing !

Galina





Thanks Smilie,
Good to see a positive note in here

Hello everyone,

It's pretty obvious what GALINA is doing, she is posting adverst of her company. IS THIS ALLOWED ON THIS WEB SITE ????
I woudn't mind if she gives her opinion about the Bulgarian marker, but she is openly advertising and i don't think this web site is the place for that !

About Bulgarian properties, don't get fooled by estate agents like GALINA they count on you to servive, she would tell you anything just to sell one more property. I have watched the Bulgarian house market closely in the last few years and i can tell you one way to lose money is to buy a property in Bulgaria.

1. The rental income from such property is around 3-4% (in a big city). In the resorts is close to 0. There are too many properties and too many hotels, people prefer hotels. But again GALINA will tell you "you can earn up to 10% in rent and we will manage your property". I have seen this advert so many times.
The truth is that properties stay vacant in the resorts.
2.Bulding standarts are really low, they build quick and cheep and want to make easy and quick money. (believe me i know this country well).
3.Infrastructure is in a really poor state. including airports motorways (wherever they exist) and railways.
4.Supply is exceeding demand, everyone in Bulgaria is in the property business (simply there is no other business in Bulgaria) everyone is looking for a naive foreigners to sell them something.
5.The economy of the country is going BAD, comunists have won the previous electons, curruption at it's highest levels.
6.Properties have reached the TOP. (3 years ago maybe might have been considered Investement).
7.The local population has the lowest income in Europe.
8.Local interest rates are around 10% what will happen next year if Bulgaria joins the EU, interest rates will have to come down to around 3-4%, at the moment many bulgarians are renting since it's expensive to get mortgage at 10%, but with lower interest rates they will buy their own property and the rental market will collapse.

GALIA i suggest you try and get a REAL job, instead of posting your cheep adverst on this web site and try and rip off the foreginers that don't know Bulgaria and the Bulgarian market well.

Reply allready posted at : http://www.housepricecrash.co.uk/forum/ind...pid=423261&

Galina, property investment is all about your exit strategy. Has anybody actually sold a new build in Bulgaria for what they bought it for? I doubt it very much.

Simply too much supply and too little long term demand.

I agree with the other posters- the country is too corrupt, too short seasons, a population that will desert upon joining the EU, and lacking in anything decent to draw in foreign tourists and investment.

Look at the alternative for your money in Europe- Slovakia, Poland, Checz Republic and possibly Hungary. Countries with a REAL economy and growth prospect. This is where the smart money is being invested in Europe.

Bulgaria is a joke of an investment. If you want high risk then Romania is the better bet.

Ehh...Is it because you are ramping on here? Is that why its so intelligent?

Not a replacement for the google bots that nearly killed the site, are you?
A subtler approach perchance?

Pardon me if i sound like i am stating the bleedin obvious but hasn't growth in the worldwide property market just topped out? how on earth could investing in a tin pot crime ridden boil on the ar$e of europe be a marvellous idea at anytime let alone now? anyone stupid or greedy enough to believe the hype surrounding bulgaria deserves to be fleeced, there is a chap i know of who is selling investment in bulgaria in a big way and he's a big time porridge served fraudster, enough said.

Well there is a series on C4 starting this Thursday about paying off your UK mortgage in a year by buying a European property and making a fast buck. One of the countries featured is Bulgaria which should make interesting watching

And around 6 million sheep will watch and beleive every bit of it, there is only one way the average man or woman can make money and that's to haul ar$e to work every morning and earn it instead of dreaming about making ridiculous amounts of cash for doing sweet FA.

Taking that logic a bit further:- So there are no property millionaires in Britain. House prices don't increase and anyone that thinks otherwise is living a pipe dream. Hmmm.

Actually 'hauling ar$e to work is far easier' than taking investment risks. I used to be just like you, stuck in a nice comfort zone. Work was hard but I didnt have to worry about the whole excercise of spotting opportunity and sinking hard earned cash into it. Looking back life was a lot less complex and worrying for me then.
Investing in property carries a mental cost and that for me is as hard as 'working' (btw I still work full time also).


There is always money to be made by those willing to take thier head out of the sand.

In the FT last week an article described how a group of investors bought a hotel chain last year for £170m and have just sold it for £240m HAVING DONT NO WORK. They recognised sentiment over hotels was about to change.

A piece of land I almost bought in 2002 in the Bahamas for $140000 is now selling at $800000.

What enables speculators like Warren Buffet to make such big gains is a willingness to take a risk on assets that others cant get thier heads around.

Thats why a few of us here have invested in Morocco. It works in our favour that most people currently cant get thier heads around it, but as Morocco becomes a mainstream tourist destination all that will change, bomb or no bomb.

Ive known property speculators go from zero to millionaire within 5 years. For them and I trudging to work 9 - 5 for someone else for 40 years is a mugs game.

Unfortunately, its now a mugs game in many respects.

Please note i said in my post the "average man or woman" of course there are many people around now who are newly monied thanks to property and speculation but these people posess qualities which have allowed them to become successfull, calculated risk taking, research, dynamism are all factors you need to be a success at anything along with a lot of hard work, a friend of mine owns quite a few multiple occupancy propertys in southampton and yes he's very wealthy on paper but gets zero time to enjoy it because he's too busy running his empire and stressed to the max so i know full well it's not easy money.

The point i was trying to make is how ridiculous it is to try to sell the myth en mass to joe public that there's a pot of gold out there for everyone as if it's easy and attainable no matter who you are and what your abilities are, that's just rubbish. I own my own small business removing car park dents from cars and i'm pretty darn good at it, i earn a fairly good living too but i know full well i'm no future property magnet just as richard branson would probably never be a brain surgeon.

The average man and woman have thought about owning a 2nd property, be it round the corner or abroad. Its just that the average man or woman don't want to make any effort or are put off by the amount of debt they will be getting themselves into. Think DogBox summed it up well when reflecting on his life before making his investments:- "Life was a lot less complex." That's the way most people want it and that's fine with me - it means that there are plenty of opportunities for those willing to do a little leg work and take the risks.

Bulgaria along with Romania were rural backwaters of the Ottoman Empire for most of the Middle Ages.

They missed out on the Renaissance and Enlightenment that characterized the West (Hungary and the Czech Republic have a firm tradition of Western liberal thought thanks to the Hapsburgs and Austro-Hungarian Empire. The Czechs were the fourth most industrialized nation before WWII. The Baltic states were heavily influenced by Hanseatic and Swedish culture and trade.
For the EU nations which joined in 2005 it was simply a return to "Europe".

Romania and Bulgaria are a totally different kettle of fish - they have a long way to go.

Poor infrastructure, dodgy legal system, organized crime, Balkan mentality, corruption, pollution from the Communist days, low educational standards, drugs transit route, female sex trade, and (in the case of Albania) a system of "Blood Revenge" where one family has the right to kill the alleged murder of a relative, meaning that whole families suffer under "popular" justice.

Sound like a nice place to invest?

Yes please. Where do I sign ?

I think I'll pass thanks. Much better to watch Soup Dragon's leg work and risk taking on this one.......

"Over 100,000 Flats at Bulgarian Black Sea Coast for Sale
A flat square meter in Sunny Beach costs less than a garage square meter in Sofia

Over 100,000 flats are for sale along Bulgarian Black Sea resorts. Their prices are sharply going down as the offering exceeds immensely the demand, real estate brokers maintain.
It is much better and advantageous to buy a flat in Sunny Beach than a garage in Sofia, brokers advise.
The number of the offered flats in Sunny Beach only is over 30,000. A square meter of built-up area in the western zone of the posh resort dropped down to 500 euro.
The prices in Sveti Vlas and Ravda are even lower. The offered estates there are about 20,000. Going north, the prices are a bit higher but they are also expected to go down.
More and more mortgaged realties appear at the real estate market, which are sold by banks, brokers explain. At the same time, a square meter of a garage in Sofia center hit the record-breaking 600 euro."


Intelligent Investment ? My ar*e!!!


http://standartnews.com/archive/2006/06/26/english/





"Bulgaria? Beware
British buyers on the Black Sea may have to face some hard facts, says Sarah Marks

It was, many thought, too good an opportunity to miss: a beachfront property on Bulgaria’s Black Sea coast for £30,000. Not just a holiday home, but a cast-iron investment opportunity. Rental income would cover the running costs and mortgage payments, while soaring property prices would guarantee a hefty profit when the flat was cashed in.
That, at least, is the prospect that has been dangled before thousands of British buyers by estate agents and developers during the past few years.



This summer, however, the consequences of Bulgaria’s property boom are beginning to sink in. The frenzy of development has delivered a glut of apartments in Sunny Beach, Golden Sands and a string of other Black Sea resorts and is threatening to do the same in the mountain resorts of Bansko, Pamporovo and Borevets."


Intelligent Investment? My ar*e!!


http://www.timesonline.co.uk/article/0,,2098-2267408.html

Sunny Beach etc is massively over developed. The Ski are going the same way (especially Bansko). Golf development are springing up everywhere (still early days). There is money to be made in Bulgaria but only if you know exactly what you're doing. The current average investors are feeling the pinch (very poor rental and declining prices combined with continued mass development).

Fair comment ( )given string is about Bulgaria. My comment was a general one, I have no interest in Bulgaria either.

Well I disagree... there is plenty of money to be made in Bulgaria still. You just need to have a strategy and know what you're doing. Too many people just seem to have a bit of cash to invest and think its as simple as buying anything and then sitting back and becoming rich.

Things to remember:

You make you profit as soon as you agree a purchase price. Be sure when you know what you want to buy you know what its worth. Have comparisions and play agents off against each other.

If you want to know if a guaranteed rental yeild is worth it ask to buy the apartment without the guarantee and see how much they knock off. This will show you if its a good deal or not. Don't be fooled into thinking a guaranteed rental yield is worth it if you're paying over the odds in the first place.

Just take your time.... Never rush, if you miss a deal don't worry there will be others. Better to put your money where you've researched properly.

If you want to play safe buy a place in the UK. yeilds are low, taxes are high but in the long term I think you'll be safe. If you're looking for long steady growth than you wont go far wrong. You wont get rich over night but with a ten year plan you'll be fine.

If you decide Bulgaria, be careful and have an exit strategey. Plan when to get in and when to get out.

The problem with Bulgaria is finding an exit strategy in some respects. Theres that much going up which I would say is 70% - 80% sold there will be a significant amount of competition for sales. Developers selling the last 20%-30% will do anything for the sale as the money has partially already been made.

trust me the developer has made a mint a long time before that even!!!

You're right though, an exit stratagey will be hard and not easy. Anyone looking for a quick buck and wanting to sell as soon as completed will damage there profit zone because no doubt 80% of the other owners in the same block will do the same. Option 2 would be rent it for a year or so then try to sell. This will have its problems only if you've predicted stupidly high rental yeilds....Many selling agents will tell you that you can achieve 10% and abouve rental yeilds. This I very much doubt, unless you got in there early and bought for a very good price. Expect around 6% yeild to be an average, anything over will be a bonus. I just hope people that bought dont have a huge mortgage on their apartments as the interest rate is towards 7% in Bulgaria.

If you can break even and let it pay for itself, then I suggest Bulgaria to be more of a long term investment now, not the in and out quick buck it has been over the years. Try to re-sale on the 4th to 5th year. By then the market will have leveled and you should be getting out at hust about the right time.

My Advice stay away, the crash has already started it will finish in the next 2 years, when the properties will hit the bottom.
Investment - absolutey not. Rental Income very low in some places you will lose money.
Big cities rent 4%
Restost rent from +2% to - 2%.

Happy Investing

Galinash how are you ?
Come on nelight us about the properties in Bulgaria.
There is an interesting article in SEGA today.
It says that the crash has already started and it warns British buyers to be vary carefull.

Oh you will be interested in Sarah Beeny's program next Wednesday on C4 about paying off your UK mortgage in a year by getting rich quick by buying European property. Next Wednesdays program tells you how to get filthy rich in no time by buying BULGARIAN property !!!

Well i watched it last night. It's not actually about buying property in Bulgaria.
It's about property development in Bulgaria. You buy a piece of land and you build it yourself.
I think you will make money that way just one thing i can not understand you can do this anywhere in the world if you do it in the UK you will make money too.
I think they don't do it in the UK because it requires a lot more CASH !!!

This has more to do with being building company than being property investor.

BARO or should I say mr negitive... you have some valid points... but you can't judge a whole market with one general answer. Even in the UK property booms in some areas and loses in others. There are many more factors than just the countries economic climate.

What is your background....have you property in the UK or over seas??