21.3.06
Bulgarian Investment Property - My Latest Property Trip Report
Bulgarian Investment Property - My Latest Property Trip Report
I've just come back from another 'Property Tour' of Bulgaria and things are hotting up!
It's not even spring time yet, but the early birds are definitely out already trying to catch the worms.
The fact that EU membership is within sight for Bulgaria is attracting the otherwise cautious investor like moths to a lamp.
There are some new kids on the block.
For the first time in the years I have been going to Bulgaria, I have met primarily older couples who have been holding out until Bulgarian EU membership seemed secure. These careful investors don't want to leave it too late, but didn't want the risks associated with getting in too early.
Most of them were on a scouting mission checking out cheaper rural property inland for permanent residence. I went to one small village where there are 18 British families living there.
Now that might sound like a nightmare to some of you, but in my experience it is comforting to have that support in a new country where you may not speak the language. Safety in numbers I suppose.
I also find that all the people I have met who have the made the move to Bulgaria a permanent one are very similar in character. Got lots of get up and go! It took a lot of courage to have made the move in the first place!
There was a really friendly atmosphere and I was warmly invited in for drinks and ...well, more drinks actually. The kids were all off playing somewhere, but no one seemed concerned about where they were. It's one of those places that if Mrs Miggins cat goes missing, it makes the front page of the local paper. Know what I mean?
It reminded me of my childhood 35 years ago. Me and my mates would go and play in the surrounding fields all day and be back in time for tea. No one was concerned for our safety. Sure we would sometimes come home with athe odd cut or bruise, but that's just life. My Mum never worried I was going to be abducted by some weirdo!
There's a lot to be said for this slightly old fashioned environment. The downsides seem to be the usual things; missing friends and family, limited TV channels, the language, good fish and chip shops, marmite...etc
But they seemed to be totally eclipsed by the upsides. The cost of living being the biggest one. Everything from eating out, taxes, new cars, builders and of course property are a fraction of what they cost over here in the UK.
It may be ridiculously cheap to live here, but what are you all doing to make money I asked? Well, the majority of people I met in the village were simply living on the rental income from their UK homes and living very well indeed. It was like early retirement for them. Most people were about 30-40!!
They had released the equity in their UK homes and re-mortgaged it. Used the extra cash to buy a cheaper inland rural Bulgarian property OUTRIGHT (no mortgage there) and live there on the income generated by renting out their UK home. Brilliant!
What about the kids I enquired. What about their education? I knew they were having a great time with the local kids and other British children. I could see that for myself, but the Bulgarian language is hard.
Most home-teach, as they don't need a J.O.B (just over broke) to live their lives any more, so they have the time to spend it with their family and they love it. Who wouldn't? Having said that, the British children I met had only been out there less than a year and they were all talking Bulgarian. They do put us adults to shame. Some of them do go to the local school, but most are home taught as the parents are keeping to the UK National Curriculum so the kids can take GCSE exams.
I was well impressed with what I saw. I didn't see a lot of integration between the British and Bulgarian adults. Everyone's very friendly, don't get me wrong, lots of hellos and waving, but I noticed there wasn't any local Bulgarians at the party that night.
When I pointed this out to my host, she said that the locals were a little weary of them to start with, but thinks the language barrier is the biggest problem. Not many Bulgarians outside the tourist areas speak English and hardly anyone was seriously trying to learn Bulgarian. It's not our biggest strongpoint languages is it?
Of course, if you love the bright city lights and all it has to offer, then this lifestyle probably;y isn't for you. However, if you're looking for culture and antiquities Bulgaria is overflowing with them. The old buildings and monasteries are lovely. Most towns have beautiful old spas where you can go and have a hot soak and be pummelled into submission by a masseuse. All for the price of a cup of coffee over here. Lovely and relaxing. It's the first thing I always do when I arrive in Bulgaria.
I had a quick trip up to Bansko, as I haven't been there for a while. WOW, it's changed out of all recognition. It puts most French resorts to shame. Great new facilities. Very impressive. The slopes don't really have anything to offer serious expert skiers, but for everyone else, especially families, it's hard to beat. I wish I had more time to stay, but I had to go. Definitely going back there for longer next time.
The summer tourist season will soon be upon us and with more people coming to the Bulgarian beaches than ever, the property market is going to get interesting I think. People are starting to work out that if they wait until Bulgaria join the EU to buy property, they will has missed the boat somewhat. They already have if they want to buy on the coast of course, unless you're willing to pay top prices.
As more and more people come to Bulgaria and experience it's beauty and charms for themselves, so more people will want to live here or at least have a holiday home here. It's exactly the same as France or Spain many years ago. As soon as EU membership means buying and living here is much easier to do, the floodgates will open and I just hope you managed to get in early enough!
I personally always try to buy in the property sector that's currently undervalued and will rise in value over 2-5 years. For me, that's anywhere within 1-2 hours of the Black Sea coast and Varna International Airport that has a good road connection. Ski resort areas are good only if you are very close to the centre of the ski lift area. People are not willing to travel 1-2 hours to go skiing every day. There is also a much smaller market for ski properties than there is for properties near the sea.
Bulgarian Investment Property
