Bulgarian Investment Property

Bulgarian Investment Property - Varna leads Bulgarian property market

Varna leads Bulgarian property market price-wise
Dnevnik Daily, 2nd November 2005

"The value of homes in the coastal Varna area outpaced the residential market in the capital Sofia in Q2, according to data supp[lied by Bulgaria's National Statistical Institute.





The value of homes in the big cities has slowed versus the same period last year when it was rising at twice the current rate, forecasting a 15% increase in the price of luxe homes for 2006.
The agencies noted the increasing popularity of gated residential communities with at least 30 such developments currently under construction in the Sofia area. Upon completion, they are expected to place on the market some 5,000 apartments."

Varna is the place to be!



Bulgarian Investment Property

Bulgarian Investment Property - Eu to pump in billions.

Europe to Pump E 12,3 Billion into Bulgaria by 2013
Standart News, 18th Nov 2005

"Bulgaria may receive some E12,352 billion from European funds by 2013," Georgi Stoev from "Programming of the Regional Development" Directorate with the Bulgaria's Ministry of Regional Development and Public Works (MRDPW) informed at a conference on the project 'Balkans without Borders'.Bulgaria will add between 25% and 50% of its own financing to the negotiated sum. Thus, the money on the 8 EU programs will reach nearly E16 billion. The largest share of the resources will go on the development of rural regions - E5.286 billion. Over E3 billion have been envisaged for road network improvement under 2 programs of the MRDPW. Some E2.354 billion will be allocated on the environment protection.

The Bulgaria's national financing in this sector will be about 50%. The same amount of money has been envisaged for the improvement of transport. Bulgaria will get funds for 3 other programs - human resources (E 1.229 billion), administration capacity (E 148,64 million) and fishing (E 48 million). "It is expected that Bulgaria will manage to absorb over 75% of these 12 million," Georgi Stoev forecast."

Most of this money is for improving roads in rural areas by 2013. More great news for people purchasing properties away from the coast looking for a mid term investment. Better roads to your property means easier access. Easier access makes your property much more desiriable.

Bulgarian Investment Property

Bulgarian Investment Property - 'Bumper Year' article.

Bulgaria breaks property records with bumper year
Article by Irish Sun, 24th Nov 2005

"Bulgaria's growing property market has experienced yet another record breaking year of investment, with around 250,000 homes expected to be sold and finalised by the end of this year.

The figures mark the former Eastern bloc country out as one of the principal growth property markets in Europe. At a time when most countries are seeing the growth of the past few years ebbing away, Bulgaria expects this year to bring a 28 per cent increase on the number of homes sold last year – which had also been a bumper year with 196,000 properties sold.
Bulgaria was also singled out this week by leaders in the real estate market at a major international forum in Vienna. Although investors are set to see prices slightly down this year, properties are still set to raise 15 per cent more year-on-year, making it one of Europe's highest growth markets.

After years of economic struggles in the late 1990s after the country transformed itself into a market economy, Bulgaria has experienced a resurging economic profile. It joined the European Union last year along with nine other countries under strict targets set by the Union. In the past few years, it has seen the economy expand for the first time in years, unemployment fall from highs of nearly 20 per cent and inflation come under control.
Investors are now being encouraged to take advantage of property opportunities while supply is still strong. After an all-time low of property purchases back in 1998 when the number of deals was only 65,179, the market is soaring thanks to foreign investment and the return of the Bulgarian diaspora, who went abroad to seek work during more difficult times.

Bulgaria, together with Romania, holds significant potential in the commercial and holiday real estate sectors, where it is joined by Croatia. These will be the most prospective sectors for the next three years.

Analysts forecast that price growth in the residential sector will slow down and to around 15 per cent next year."

Slowing down to 15%!! Theres a lot of financial sectors could wish they could say the same. I also think that the slowdown will happen only in areas where it has risen sharply over the last year, like beach resorts, ski resorts and the capital.

When Bulgaria officially joins the EU next year and the new regulations come in making it really easy to purchase property and live in Bulgaria - "watch out" is all I'm going to say. I think the floodgates will open and every Tom, Dick and Harry in Europe will be making a beeline for Bulgaria.

I'll be really surprised if next years growth is only 15% outside the main areas.


Bulgarian Investment Properties.

Bulgarian Investment Property - Getting started.

I've been buying property in Bulgaria for the last two years now and have seen their value go up by 70%. There is still a lot of money to be made with investment properties in Bulgaria, especially with Bulgarias entry into the EU next year.

Everyone who is waiting for the property purchasing laws to become easier when Bulgaria join the EU (They're really not complicated now, as long as you know what you're doing) and then everyone is going to jump on the bandwagon.

Every Bulgarian property professional that I have spoken to believe property value to increase by 70 - 100% in 2007. I believe the same, but I think that the mid to long term property investment is the smart thing for the small investor to be doing now.

Look, if you got millions to play with, go and buy Bulgarian invesment properties in the capital (Sophia) and develope right on the beach and in the heart of the ski resorts. You will make a killing no doubt, but I don't have that sort of money (yet!) and I'm guessing you don't either.

My investments are for the mid to long term. Say three to fifteen years. Look at France and Spain. All the prime real estate was snapped up early on. The same with Bulgaria. Don't even think about spending less than $180,000 for a decent property in a decent location. The initial bargains in the prime spots are gone and don't let anyone tell you otherwise.

So what happened next in France and Spain. People started buying property further and further away from the coast. You now have to drive for three hours from the coast in France and Spain to get anything resembling a bargain. Not so in Bulgaria.

Property developers in Bulgaria are still firmly focused on the beach resorts, ski resorts and the capital. And they're right too, but as I've said before, you've missed the boat there unless you have a load of money to invest.

For ordinary property investors like you and me who don't want to risk everything, but still want to made a tidy profit after a couple of years, I believe the way to go is to buy property about one to two hours drive from the main coastal resort, in particular, Varna.

Why Varna? Well, it has the best beaches and facilities for a start, but more importantly, it has an International Airport which is being extended and will have direct flights from the big and low cost flight operators from all over the World within the next twelve months.

Easy access is the key. If you can get to your Bulgarian investment or holiday property within one or two hours of landing from anywhere in the World, you have a global potential market who will be interested in purchasing your house. It's that simple.

Look at what happened to the value of remote, previously ignored, French property when the low cost flight operators started flying to French regional airports. It went through the roof. Why? Because people could get to them easily now and so were desirable all of a sudden.

It's all about access. The only bargains to be found anywhere in the World are properties that take a plane, a boat, a car and a donkey ride to get to.

And here's the exciting bit for me. Bulgarian investment properties one to two hours from Varna are still dirt cheap. The same thing that happened in France and Spain and will happen here in Bulgaria, hasn't really started yet!


Bulgarian investment properties in this catchment area can be had for around the $15000 - $20000 mark at the time of writing this. But not for long I warn you now. The smaller property investors, like myself are moving in, shoved out of the beach resorts by high property values that are too rich for my blood. $100,000 for a newly developed box studio apartment! Not what I'm looking for.



So how do you do it? Let me tell you I have made a ton of costly mistakes along the way and my objective with this Blog is to help anyone thinking about buying an investment property in Bulgaria avoid these mistakes and provide you with great 'inside' information and generally point you in the right direction.

I have several great contacts in Bulgaria now which means you will benefit from local inside knowledge.

I have concentrated my property purchases around the Black Sea coast, particularly just inland around Varna, because, as I said earlier, this is where I believe the greatest gains are to be had in the mid and long term future.

So the Varna area will feature heavily in my posts as this is the area I know best, but I will provide a lot of general information that will be invaluable to purchasing investment property antwhere in Bulgaria.

Even if you are looking for a holiday home rather than an investment property in Bulgaria, you will find the is Blog very helpful in assisting you in your search.

I have dealt with a lot of Bulgarian Real Estate Agents and Bulgarian Solicitors and they are NOT all the same. The biggest problem you will face is the language barrier, which can result in huge misunderstandings.

Having people who speak really good English is essential when buying Bulgarian investment property. I will recommend professionals with who I have had dealings with and have had a good experience. I will also tell you who to avoid like the plague.

Anyway, thats enough to be getting on with.

Peter


Bulgarian Investment Property