Welcome to Bulgarian Investment Property, where you will find all the latest news, videos, help and advice about buying property in Bulgaria.
18.11.07
LOVELY BULGARIAN COTTAGE FOR SALE NEAR TO COAST.
PROPERTY FOR SALE
A traditional 2-storey house with incredible views to the surrounding countryside. The airport and coast just one hours drive away and a beautiful lake only ten minutes walk from the village.
The house is located at the edge of the quiet village of Komunary, one hours drive from Varna International Airport with regular flights from London (Low cost flights from just £3.99 one-way!!!! with Whizz) and the popular seaside town of Varna (Located on the Black Sea coast and is the new summer location chosen by the major Tour Operators - Thomsons etc.) and forty five minutes away from the sea at the beach resort of Shkorpilovtsi.
The house currently has a living area of 120 sq.m. and a lovely huge garden of 1000 sq.m!! (Loads of room for a swimming pool and extending the house) The house is located close to the centre of the village along a well maintained tarmac road.
On the first floor there is an entrance into the kitchen and storage room. Attached to the house behind there is an additional buildings which consists of: a room, bathroom and small room which could be converted into the new bathroom.
External staircase leads to the second floor. There is a large terrace with incredible views to the whole surrounding area. There is a corridor and three good size bedrooms. In the rear side of the house there are two outbuildings which can be connected to the house. Electricity, main drainage system, running water (outside and inside the house) and telephone line are available.
The property requires modernisation to bring it up to Western standards. Build costs are half what you would pay in the UK, so budget £3000-£5000 to bring it up to scratch. Or if you are a handyman, go to the big DIY store in Varna and do it yourself for half that price.
Outside is a large 1000 sq m plot which can be turned into a formal garden with plenty of room for a swimming pool and extending the house if required. An asphalt road passes along the property (VERY important when buying property in Bulgaria). In the yard there is a garage which can double as a large sun terrace with great views.
The village is traditional and very friendly with local shops, bars and restaurants. The cost of living is very cheap (Beer-20p Meal for 2 including local wine-less than a fiver! Council tax-£100 per year!! New Renault Clio-£3000!!). There is a bus and railway station which connects the village to Varna and other big cities in Bulgaria.
This property has it all. Easy access to airport, sea and local lake, massive garden and a house with huge potential for expansion and development. Bulgaria has very cheap labour costs and a very cheap cost of living.
Channel 4’s “A Place in the Sun” voted Bulgaria as the 6th Best Place in the World to buy a holiday home or a permanent residence. Not surprising really when you consider the advantages; • Cheap property prices which are increasing in value at a rate of 40-60% per year (Most forecasters are predicting 100%+ when Bulgaria joins the EU next year) • Cheap living costs (Beer-20p Meal for 2 including local wine-less than a fiver! Council tax-£100 per year!! New Renault Clio-£3000!!) • Great Mediterranean style summer climate. • Great Ski-ing. Perfect for Xmas and New Year holidays as well.
Bulgaria is now in the EU and Bulgaria house prices are set to rise 10-15% over the next 12 months.
Grab yourself a REAL BARGAIN, A GREAT INVESTMENT AND A LOVELY HOLIDAY HOME. Black Sea coast properties are already out of most people’s reach and investors are now looking away from the coast. These low house prices won't last much longer, so don't miss out on this great opportunity.
Price - OFFERS ACCEPTED AROUND £7000
Interested or want more photos? Email me at peterskuse@googlemail.com to make an offer, ask questions or see more pictures of the property. Sorry, I don't have the time to take enquiries by phone as I'm normally travelling. All buyers of my properties however, will be given my private number and I will be available to them at all times.
Recent reports suggest that foreign property is increasingly being looked at by Britons as a method of boosting retirement income. Workers with an eye to the future are apparently snapping up properties abroad in the hope that either the rental payments received will boost their income streams when they are no longer working, or the property will have appreciated in value by the time they retire, allowing them to sell it and collect a lump sum.
In practice, many buy to let investors will enjoy both the benefit of rental income and the bonus of a tidy profit if they choose to sell at an opportune moment in future years.
The avenue of foreign property acquisition is one that has been opened up in recent years due to a number of factors. In part, the ever-increasing price of property back home has encouraged some people to look abroad for a property that may offer a better value investment that what could be procured by spending the same money back home.
Also, according to property brokers Principal International, "it is not only investors with portfolios that are looking to expand, but also the general public who are concerned over the ever-decreasing pension funds and are securing their future by looking further afield into overseas property".
Another key factor is the rise of the budget airline. Cheap air travel has served to open up foreign markets like never before. People are now able to purchase a property abroad that can serve as a holiday hone for long weekends throughout the year – and can also be used to generate income on the buy to let market. One report released at the end of last year by Savills Research, in partnership with Holiday-Rentals.co.uk, found that a property that is near a low-cost airline route will be on average just under 40 per cent more valuable than if that same property were located elsewhere - even if that 'elsewhere' should be an airport, but one that was not served by budget carriers.
Proximity to the airport was found to be a key factor. Although properties within ten miles of the airport were found to be around 40 per cent more valuable, when that radius was increased to 80 miles, the price benefits were fairly negligible, on average around the two per cent mark.
Jacqui Daly, of Savills Research says the statistics should be taken into consideration by buy-to-let investors, who will find a property near a budget air-route "generally easier to let and less likely to suffer from long void periods". Therefore it seems the, as with any property purchase, the oft-repeated maxim of ‘location, location, location' once again rings true.
British Interest In Bulgaria Investment Property Goes Up.
Over the period of one week, two British print media published articles saying that Bulgaria’s real estate sector was among the most attractive in Europe.
On February 7, the Guardian reported that Bulgaria, together with Poland, Estonia and Denmark, was among the European Union countries with a steady increase in property prices in 2006. The Guardian quoted a survey done by the Royal Institution of Chartered Surveyors, which analysed price growth in 26 European countries.
On February 5, the magazine A Place in the Sun reported that Bulgaria was the third most-popular country for investments in real estate in Europe. Bulgaria was outranked only by Spain and France. Well-established locations started to lose their market share at the expense of new destinations like Bulgaria, Dubai and Cape Verde. In such untrodden locations, prices for real estate were much lower, especially given the rising prices and interest rates in Great Britain, the magazine said. Turkey, Cyprus, Greece and Portugal were also among the top 10. However, as a result of the oversupply of real estate in some parts of Bulgaria, prices in this country would probably remain relatively low, the magazine said.
In view of this, two reports in the news about a 235 million euro British investment in Bulgaria did not come as a surprise. At the beginning of the month, Bulgarian Land Development (BLD), a London-listed Bulgarian property developer, said it would invest in five residential projects in Bulgaria, worth a total of 235 million euro. The developments are in the Black Sea resorts Albena and Sozopol, the winter resorts Pamporovo and Bansko, and Sofia, BLD managing director Hristo Iliev said.
The Harmony Hills apartment complex near Albena will include 202 apartments. Buyers have reserved 75 of the flats and signed preliminary contracts for the purchase of 53 flats, evidence of the interest shown by British clients. Construction on the Harmony Hills complex is expected to kick off in February and to be completed in 15 months. According to Iliev, all apartments in the Paradise View complex near Sozopol have been reserved. BLD developments in Sozopol, Pamporovo and Bansko feature a total of 149 apartments, as BDL bought the three projects in October 2006 for 6.8 mln euro ($8.8 mln euro).
The company’s fifth project, BLD Sofia Tower, is a luxury apartment building where flats are selling at 3000 euro a sq m.
BULGARIA TO REMOVE LIMITATIONS TO FOREIGNER PROPERTY PURCHASE
Fri 08 Dec 2006
The Parliament was considering a move from forbidding foreigners to own property in the country to some special regulations.
Changes feature in ownership regulations, discussed on first reading on December 7. Voting on the new laws would take place on December 8, Bulgarian National Radio reported.
Such changes were needed because of Bulgaria's upcoming EU entry. The country accepted EU requirements for the free movement of capital.
Foreigners will be allowed to purchase property in Bulgaria, following international contracts. This would guarantee the opening of Bulgaria's property market upon the country's EU entry, the national radio said.
Bulgaria is going to introduce a new term 'citizen of EU member state' to replace the term 'foreigner' used until present in ownership regulations, the report said.
The same regulations would apply to citizens of countries that are members of the European Economic Community and of Lichtenstein, Norway and Iceland.
Current regulations for the acquisition of a second home would remain valid for citizens of EU member countries, who reside permanently in Bulgaria, the report said.
Current regulations for the purchase of property by international organisations will remain unchanged.
Fancy a property on Black Sea coast! Look at East Europe
With the RBI announcing that resident individuals would be allowed to remit up to USD 50,000 per financial year (increased from USD 25,000) for any current or capital account transactions or a combination of both, a slew of overseas real estate destinations are playing on the investor's mind. Moneycontrol picks up Bulgaria, a quaint country, which is fast becoming a hotbed for real estate kind of acquisitions and the law of the land permits outsiders to buy property there albeit with some clauses.
Cities, particularly those in soon-to-be EU member states, are rapidly emerging as the safest bets. One such overseas real estate destination is Bulagaria. The country with a flourishing marketplace is being looked upon as a second-home destination by many.
Bulgaria's major draw is that it is slated to join the European Union in early 2007, following which property prices will zoom. As of today, the country is still offering low-cost real estate investment opportunities when compared to other European nation which joined the EU in 1994.
Located in South Eastern Europe, Bulgaria is bordered by Greece and Turkey to the South, Romania to the North and Macedonia and Serbia to the West. Its Eastern Border is formed by the Black Sea Coast. The Black Sea Coast is a major tourist destination and property prices are increasing rapidly with many overseas investors entering the market because of its high growth potential. Since the counrtry is not yet an EU member, it doesn't have the steep tax structure and production costs that make second homes cost prohibitive in EU countries.
Perhaps this explains the rise in demand for properties in Bulgaria. In June 2005, The Wall Street Journal reported that the prices of real estate in Bulgaria jumped 48% in 2004, a world record and the highest rise in prices registered in any country. In the same breadth, The International Herald Tribune said in March 2006 that residential prices in Sofia (Bulgarian capital city) still average only 600 euros per square metre, that is much less than the 750 euro average per square metre in Bratislava, Slovakia; 850 euros in Bucharest, Romania; and 1,500 euros in Prague.
According to an international real estate company, majority of demand for Bulgarian property currently originates from investors in overseas property from the UK and Ireland. When multinational companies look for cost-effective locations for headquarters or major distribution outlets, central and eastern European cities often catch their attention. For example, the Bulgarian capital city, Sofia, is the most popular among international companies, thus directly impacting the property market. Recent entrants include Microsoft, Deutsche Bank, and Google. Hewlett Packard too has recently outsourced its IT operations to Bulgaria. Other multinational companies investing include General Motors, Capital One and Ford, plus retail giants Marks and Spencer and Intersport.
As Bulgaria comes closer to European Union accession, financing a property purchase has become easier, and airlines are ramping up flights to Sofia and Varna. Acquiring property in Bulgaria, excluding land, is made easier by the new Foreign Investment Act (1997) which lifted the requirement to seek prior approval of the Ministry of Finance to conclude such purchases. Foreign judicial and physical persons can still acquire land via a Bulgarian registered company. The legislative intention is to provide this opportunity to foreign persons who intend to engage in commercial activity in Bulgaria. The currency (Lev) is pegged to the Euro, making it stable and less volatile. Most property can be bought and sold in Euros.
Bulgaria will join the European Union on Jan 1, 2007, and is on the verge of becoming the Riviera on the Balkans. The improved economic conditions, political and social stability in Bulgaria over the last 3 years have culminated in a real boom of the prices of property in Bulgaria.
Other important factor for the rising property market is the huge tourism potential in the country. Incredibly, Bulgaria is now the third most popular holiday destination after Spain and France for British holidaymakers.Together with the constantly rising prices, buying property in Bulgaria is one of the best investments that one can make these days with prices likely to increase with EU membership, as well as been a great retirement home. Moreover Bulgaria has one of the most liberal investment laws in the region.
Last year prices rose by about 35 per cent, and in the lead-up to EU accession in 2007 annual rises of 25 per cent are predicted. The increase in foreign investment is set to continue because of Bulgaria’s expected EU membership perspective and the constantly expanding tourist industry.
261 000 PROPERTY DEALS CONCLUDED IN BULGARIA IN 2006
By the end of the year 261 000 property deals would be concluded in Bulgaria, agents said during a Southeast European economic forum.
The number represented a 122 per cent increase compared to figures for 2001, Darik Radio reported.
Price increase tendencies would continue until the end of 2006. More dynamic developments were expected on the Bulgarian property market in the coming two years, agents said.
Property worth more than eight billion euro was sold in Bulgaria in 2005, Darik reported. Bulgarians living abroad invested nearly one billion euro in the local real estate market.
Traditional foreign buyers, like British, Irish and Russians, were looking for alternative investment opportunities in other countries. Newcomers to the Bulgarian property market came from Latvia, Lithuania, Denmark, Norway, Macedonia and Greece.
The number of Britons leaving for foreign climes could rise rapidly, according to study which claims a third of overseas homeowners plan to retire abroad.
Substantial numbers of Brits could opt for the expat lifestyle according to research released today by Natwest International, which says one in three current and potential overseas homeowners want to retire elsewhere.
Meanwhile, almost three-quarters of 30 to 50-year-old current and potential overseas homeowners said they would consider leaving the country permanently.
The study commissioned by the personal banking arm of Natwest International polled more than 2,600 UK adults, of whom one in eight said they did not enjoy the UK lifestyle.
Mike Freer, head of business development at Natwest International, said: 'It's evident from our research that many Brits intend to escape the hectic British lifestyle to enjoy a more relaxed standard of living overseas.
'As the days get shorter and temperatures drop, now is the time when many dream of a life abroad.
'Surprisingly however it's the 'middle ages' most keen to make the move, perhaps prompted by demanding jobs and continuous warnings to plan for the future.'
Overseas home ownership has become a major growth area over the past decade, with the rapid rise in house prices in the UK helping Britons to buy up cheaper properties abroad.
Despite the rush to hotspots such as Bulgaria, Turkey, Dubai, or the Cape Verde Islands, old favourites Spain and France remain the top choices for those looking to purchase a holiday home.
And while Spanish property market has seen substantial increases in prices over recent years, Natwest International, which offers Spanish Euro and pound mortgages, said holiday homes in Spain remain good value. It said only a fifth of Britons with Spanish boltholes paid more that £200,000 for their home, meanwhile 68% said they spent at least three months of the year there.
However, experts warn that potential overseas homeowners should not be seduced by attentive developers promising low prices, and must weigh up their purchase carefully.
Consumer group Which? said borrowers should avoid being tempted to bend the truth about their income to secure their property, and remember estate agents, lawyers and property management firms all have a vested interest in customers signing up for homes.
Which? said no matter how cheap an overseas property may first appear, it will almost certainly turn into a major financial commitment. It's overseas property pitfalls include overstretching finances, buying sight unseen, buying without a lawyer and failing to check credentials.
REAL ESTATE BOOM IN BULGARIA TO SPAWN CONSTRUCTION MATERIAL FACTORIES
The development of Bulgaria’s property market and the consequent boom in construction would lead to the construction of building materials plants, Bulgarian-language newspaper Kapital weekly said.
Most of the foreign building material companies that already had leading shares in the market, planned to extend their business in Bulgaria.
Building materials worth 50 million euro were sold in Bulgaria every year and these figures would increase. Building materials companies would prefer to open plants in Bulgaria because it was unprofitable to import the quantities needed to satisfy demand.
Cheap labour and low taxes were among other reasons for the building materials producers to decide to construct plants in Bulgaria.Companies like Ytong Xella Bulgaria and Austroterm already has building materials plants in Bulgaria.
Bulgarian investment property Bulgaria real estate
EU membership could "boost" Romanian and Bulgarian property market
EU membership could "boost" Romanian and Bulgarian property market
Bulgaria and Romania are poised and ready to host the next EU housing boom. Fly2let.co.uk has suggested the two countries in line to join the European Union will be the next big thing in property investment.
Current housing restrictions in Bulgaria make it difficult for foreign investors to own land there: a person must set up a Bulgarian company to purchase property.
Bulgaria Revealed property managers said: "We feel that the long awaited EU accession will allow Bulgaria to really compete with other European property markets."
The anticipated EU membership for Bulgaria has prompted major companies to plan expansion into the Black Sea areas.
PROPERTY INVESTORS INTERESTED IN BULGARIA'S SMALL TOWNS
PROPERTY INVESTORS INTERESTED IN BULGARIA'S SMALL TOWNS
The number of property investors interested in carrying out projects in Bulgaria's small towns is growing, according to Bulgarian-language daily 24 Chassa.
The newspaper said that major property contractors in Bulgaria had accumulated capital in recent years, and most had decided to re-invest it in smaller towns.
Still, the main share in the small-town property market was held by local contractors making their first investments.
The factors encouraging property investors to invest in residential property and complexes were economic stability and a high return on investment.
Investors were also taking into account population migration, the newspaper said.
The supply of property under construction increased in Veliko Turnovo, Blagoevgrad, Pazardzhik and Pleven. The price of one-bedroom apartments varied from 296 to 460 euro a sq m. Two-bedroom apartments went for from 291 to 459 euro a sq m, 24 Chassa said.
Investors expected that foreigners would be interested in three-bedroom apartments in Bulgaria’s smaller towns. The average price of such apartments was 350 euro a sq m.
2.25 million Britons over the age of 55 will be living abroad by 2012
Market fresh
By Murdo McHardy, head of product development at Scottish Widows
Keeping up to date with day-to-day local and legislative changes in the overseas sector is just as important as it is in the UK market
The rise in the number of people buying property abroad over recent years has been well documented. In its 2006 Social Trends report, the Office for National Statistics (ONS) reported that British families have invested more than £23bn in overseas property.
This is more than double the estimate in 1999 to 2000. Investment is highest in Europe, with Spain and France still the preferred locations for investment. In 2003 to 2004, 231,000 Britons had a second home abroad (see Location of second homes outside Great Britain, right). The bulk of this investment is recent with a 45% rise in the number of UK households that own second homes abroad between 2000 and 2004.
A great deal of this investment has been in the more developed countries such as Spain and France, and, while these locations still have scope for further growth, it is fair to say that the initial boom has passed as interest grows in their neighbouring eastern countries. The catalyst to interest in the Eastern bloc was the EU accession of several of these countries in 2004. Poland, the Czech Republic and Hungary, were joined by Latvia, Estonia, Slovakia, Slovenia, Lithuania, Cyprus and Malta to make up the 10-strong addition to the EU, with Bulgaria and Romania set to join next year.
The expected growth potential of many of the Eastern European countries is forecasted to follow the same patterns as the West. An example being Bulgaria, which has already made exceptional progress in attracting foreign investment in property with property prices set to climb higher following EU accession next year. The Czech Republic and Hungary shared the same success story in the run-up to and following their EU membership.
A growing market
The ONS reports that there has been growing public and media interest in obtaining reliable estimates of ownership of foreign property by UK households, as increased affordability and accessibility of foreign property markets have led to anecdotal reports of growing levels of ownership. But there is still difficulty in obtaining data, preventing most countries from producing reliable estimates of the real scale and location of this kind of second property investment.
The opportunity that the ever-expanding range of foreign investment opportunities spells for a mortgage broker are pretty obvious – leveraging the value from existing client relationships by arranging the holiday home mortgage as well as the mortgage on the family home. With lower loan-to-values available on foreign property purchases, it is often the case that the client will need to release some equity on their residential mortgage, so there is additional income to be gained from arranging a re-mortgage as well. Compared to the UK, markets abroad still have a small number of lenders competing for market share – resulting in more generous income streams for those brokers who participate in this area.
Despite these benefits, this growing phenomenon remains untapped by most. There are a limited number of specialist broker firms who have seized the opportunities that exist, while brokers whose main business is arranging mortgages in the UK market appear happy to pass business on to these brokers in return for an introduction fee.
There are of course, valid reasons why some brokers want to stay clear of advising clients about buying abroad. The main barrier seems to be knowledge of the markets. Each country is different, with its own economy and legal and tax system which, not forgetting the language barriers, can be just as daunting to someone who is in the role of adviser as it is to the client.
The time and effort required to gain the knowledge needed, for what may initially be an insignificant part of a broker's business, can seem more hassle than it is worth with many adopting an attitude of leaving it to those with appropriate expertise. Add to this the horror stories in the media which bring many of the risks to light, highlighting the plight of clients who have fallen prey to a legal or tax quirk they were not aware of.
There are several peculiarities in the foreign markets that brokers should be aware of. For example, there are foreign property ownership rules in Bulgaria which prevent foreigners from buying a property. The way round this is to set up a Bulgarian company. In Spain, any debts are owned on the property and not to the individual, so unless clients want a nasty surprise, they should make sure any outstanding debts have been paid before the property is legally theirs.
There are also more obvious risks to clients who invest in countries like Romania and Bulgaria. While these countries are moving quickly to establish themselves as a mainstream destination, the reality is that they are still emerging markets and as such do not have the proven rental yield and re-sale opportunity track record that countries like Spain and France have.
There are a growing number of people buying abroad with plans to retire there in future years. According to estimates, it is believed that one in eight Britons over the age of 55 will be living abroad in 2012, equating to around 2.25m people. When deciding where to buy, advisers may also feel better equipped if they understand the pension payment implication of the countries that their client is looking at.
With the choice of countries now so vast, it is understandable that advisers may be frightened off by the sheer amount of information that they need to know to help their clients.
For those brokers that want to get involved in these markets, the actual investment needed in monetary terms is relatively small, and with the number of people now switched on to owning overseas, finding customers should not be a problem. An existing client base is probably a good place to start. Key triggers for suitability include those clients who have considerable equity in their residential property or those who have high savings balances.
The motivations for buying abroad range from longer term retirement planning to those who want to invest money and have the risk appetite to do so. It would be fair to say buying abroad has now become commonplace enough to forget customer stereotypes. A typical customer could be anyone from a 30-year-old city trader to a couple approaching their 60s who are winding down for their retirement.
As mentioned earlier, a significant contributory factor to the British boom abroad has been the rise in those preparing for retirement in the sun. GLAMs – Greying, Leisured, Affluent and Married – tend to have a grown-up family who have flown the nest, made a good profit on their family home and have no plans to spend their pensioner years in rainy Britain. So the pull of warmer climates and good property investment is often too hard to resist.
While the idiosyncrasies in local property laws can seem like a minefield, if the time and effort is given to brushing up knowledge to an appropriate level, brokers will start to reap the benefits of going international. Often a bit of field research can help to get to know the areas clients might be looking at. Brokers should also consider doing a bit of networking with local estate agents, solicitors or any other suitable professionals in the local area. Not only is this beneficial to present and future clients, it helps to clock up those air miles. key points In 2002-2003, 231,000 Britons had a second property abroad, 27% in Spain and 20% in France.
Brokers need to identify the key triggers to measure suitability of clients wishing a property abroad.
It is estimated that about 2.25 million Britons over the age of 55 will be living abroad by 2012.
Bulgaria is a fast-growing ski destination with three major resorts in the shape of Bansko, Borovets and Pamporovo. The season is a lengthy one with almost-guaranteed consistent, heavy snowfall between December and April. Bulgaria is not only affordable in comparison to its European counterparts but also excellently placed to cater for both beginners and intermediate sportsmen.
Just one day on the slopes of Pamporovo, the sunniest of the Bulgarian mountain resorts, is enough to give you a golden tan. Set in the magnificent Rhodope Mountains at 1,650m above sea level, the highest point being Snejanka at 1,926m, ski facilities are excellent with the ski school is ranked one of the best in Europe.
During peak season 8,500 skiers per hour use the eight lifts to escort them to the peaks where most of the 17.5km of alpine tracks start, including ‘The Wall’ which tests even the most practiced skier. The little’uns are in safe hands with the instructors at the ski-kindergarten and snowboarding, ice-skating and skidoo (motorised sledging) are also available.
By night Pamporovo ticks all the entertainment boxes with plenty of nightclubs and bars as well as dozens of restaurants offering both Bulgarian cuisine and international dishes.
This forty minute video shows you the beauty that Bulgaria has to offer.
Bulgarian Investment Property
The new Spanish Costas for Britons?
by Clare Babbidge BBC News
After years of talks, Bulgaria and Romania will join the EU in January under strict conditions.
For Britons, among the many areas of life which will undoubtedly be changed by this, is the property market.
Thousands of Britons have already bought homes in these countries - but will many more now join them?
Bulgaria and Romania have "gone through a remarkable transformation", said European Commission President Jose Manuel Barroso announcing their EU accession.
The two countries, which were the poorest of the former Soviet satellite states of Central and Eastern Europe, made changes such as tackling organised crime and corruption, and introducing farming reforms.
And while this has been happening, British investors, property speculators and those just wanting a holiday home have been buying up houses.
Paul Owen, chief executive of the Association of International Property Professionals (AIPP), said of Bulgaria: "A lot of people have already brought there. For an emerging market, it's quite a well established emerging market."
Some of the buyers were agents, while others were individuals, he said.
Jain Goodall, who runs property magazine Quest Bulgaria with her husband Chris, estimated more than 3,000 Britons lived in Bulgaria, and at least five times that figure had holiday homes there.
'Taking a risk' The British couple, in their 40s, left the UK for France 10 years ago. They moved to Bulgaria's capital, Sofia, with their dog Peluche in 2004.
Mrs Goodall said they intend staying.
"Bulgarian people are generous and very kind," she said.
"It is like turning the clock back 50 years at least in England, to when you could leave the door open and the car unlocked. It's the quality of life."
She said many of those who had bought there had "taken a risk hoping for extremely high returns" on their investment.
Mrs Goodall said many of the magazine's readers lived in Ireland.
"The Irish market did extremely well out of joining Europe and people have learned from this," she said.
She believes the numerous reasons why Britons would seek a second home in Bulgaria include high UK property prices and worries over affording retirement.
"We have a large number of young readers, who may have no pension in place," she said.
"They might be in their 30s and 40s basically looking for places elsewhere and thinking of their retirement."
She added: "There's a certain freedom that the people have here, compared to Britain in particular, you don't feel like you are being controlled by a nanny state, saying when you can have a cigarette or a drink."
Pension worries Mr Owen said: "People may think my pension is not doing well, my savings are not very interesting and I think these factors come together.
"There's a lot of confidence in property - the concept that if you invest in property you can't go wrong, but of course you can go wrong because property prices can go up and down too."
He said there was also much more information out there, and "the Ryanair effect", accessible cheap flights, had "opened up places" all over the world.
As the countries take on the rights and obligations of EU membership, it is expected to boost the number of Britons.
Mrs Goodall said: "It means security. It means that some of the laws here will be the same as home and there's a lot of comfort in that."
She said her magazine received an average 70 new requests per month but on the day of Bulgaria's EU approval it was around that in one day.
"I think that speaks for itself," she said.
"People feel they can come here now. It was a risk before, but not now."
However, she said living in Bulgaria had not been without problems.
"In Sofia, the pavements are so bad you want to walk on the roads, and there's a lot of bureaucracy, which feels worse when you can't speak the language fluently."
But she added the infrastructure was improving, especially in the past two years.
'Greater confidence' Mr Owen said accession gave a "greater confidence" for the business and consumer world, but that it was just the next stage in a long development for both countries.
"In Bulgaria a lot still needs to happen in terms of the infrastructure, it is still a long way off from what Western people would be used to."
He said Romania was "significantly more advanced" in this area. Graham Robinson, a media consultant for Romanian Business Connection, said there had been "a lot of progress" in Romania as it had tackled its problems.
He said a motorway between Budapest and Bucharest looked set to be completed, providing a key link for business and tourism.
Mr Robinson, who has invested in spa development in Transylvania, said "more and more" Britons had bought property.
But complicated laws deterred buyers - foreign nationals needed to form a Romanian company to buy land and were not able to get mortgages.
"It's definitely on the up," he said.
"But up to now it has been mainly for the pioneers who have gone out there with ready cash."
Caution advised In March, the regulatory body the Federation of Overseas Property Developers, advised caution about buying in Romania, after it was portrayed as a "bargain" place to make money in the media.
It warned indications that properties were available for as little as £5,000 were misleading and advised people to seek professional advice.
Mr Robinson backed this call and said it was a difficult market to negotiate.
However, he felt that Romania's EU accession was a still great opportunity and would cause an "explosion" in property sales. He believes it will attract Britons, but develop in a different way than Spain or France.
He predicted Bucharest would be a "tourist hotspot" and Romania would develop as a winter sports destination and attract people who enjoyed the quiet life or watching wildlife.
"It is absolutely stunning. I was gobsmacked when I first went there," he added.
British families are buying houses and settling down in the picturesque region of Dryanovo in central Bulgaria as local inhabitants escape abroad in search of work. At the foot of the Balkan mountains that give their name to this part of south-eastern Europe, former army pilot Keith Davis and his wife Angela have made a traditional house in the village of Gostilitsa, near Dryanovo, their home.
Under Bulgarian law, only foreign enterprises, as opposed to individuals, can buy land so the Davises founded a company called Outdoor Adventure and they hope to set up an adventure sports school and have horses for hire." It is a beautiful country. We sought to live in a place that is more natural, more unspoiled, where people are not corrupted by Western values," Angela said as, surrounded by her three dogs, she went about restoring faded pictures on an old chest.
The couple will have to wait to use the diving pool they have built, however, as the old infrastructure more often than not fails to bring running water to their place." When we have running water, we do not have electricity and vice versa," Scottish gallery owner Joice McGlone added with a smile rather than a frown. She and her husband Peter believe they have found a home away from home in their house with a vast courtyard and a panoramic view high up in Gostilitsa.
But the spot reserved for the McGlones' pool is also waiting for better days and Peter has had to buy plastic containers to fetch water from a nearby spring for daily household use. Their Bulgarian neighbour, Desislava Dianova, is happy to be able to practise her English and make her young son learn the language. They are helping the McGlones renovate their house and keep an eye on the property while the Scottish couple is away. "Foreigners bought more than 70 houses here, mostly the British, but also Italians and one Belgian who runs a bio-diesel farm," according to village administration official Diana Stefanova.
A government report released on Thursday showed that 1,152 British nationals applied for long-term stay permits in 2005, half as many as the year before. "Interest in buying property in Bulgaria dates back to two or three years ago as a result of more competitive prices than in Spain, Portugal and Croatia," said Julian Georgiev, a co-owner of the Bulgarian-British company SimpliBulgaria, which is now building a complex of holiday houses outside the village of Gesha. The houses are built in a traditional Bulgarian Renaissance style but British owners can still feel at home with separate hot and cold water taps on sinks rather than the usual single tap.
"We are responding to a worldwide trend of growing interest in eco-tourism. Investment project analyses in Europe show that prices for this type of tourism are two times higher than for traditional seaside vacations," according to Georgiev.Some 200 workers are helping to build the complex and between 60 and 70 people will then work in it, which does not count for nothing in a region with 12% to 13% unemployment.
In the regional centre of Dryanovo, employment is suffering from lowered production capacity at the wagon manufacturing plant, formerly the town's main employer." Many people have sought work abroad ... but we are counting on tourism to reverse the trend," Mayor Daniel Dankov said. "One out of ten inhabitants is in Greece, Spain, Italy or the United States," according to Iliana, who also used to work in Greece as a caretaker for elderly people, but who has come back to care of her grandchildren.
And for Vassil, a plumber who spends half the year working in Italy, especially in the vineyards, going abroad has made a great difference."What I earn here is not enough to live on so I go with my wife and son, who has to skip school. In two years, the work abroad earned us enough to renovate our house and buy a car," he said. -- AFP
Bulgaria leads the charge in European property investment
27th July 2006
Bulgaria is fast becoming the hottest European property destination thanks to a raft of factors which are making it difficult for British investors to ignore this Eastern European gem. With a range of beautiful landscapes spanning the cultured capital of Sofia and the ever-popular ski resorts of Bansko and Bovorets, Bulgaria is tempting more and more Brits with its endless buy-to-let possibilities.
And it seems many investors would do well to enter into the Bulgarian property market before its planned entry into the EU membership occurs and prices are pushed higher. Mike Wellings, a British property developer based in the ancient city of Sofia, explained the benefits of entering the Bulgarian market sooner rather than later. He told the Independent: "If Bulgaria gets EU membership – widely tipped for sometime in the next three years – the city will become a viable option for firms to base their central European HQs.
That'll be a major benefit to the economy and demand for homes."And aside from the anticipated inclusion of Bulgaria into the EU, there are other plans afoot that will have shrewd investors running to line-up viewings in the area. Just last week, the Bulgarian government announced plans for a new road linking the Sofia city centre to the newly-built passenger terminal at the city's airport. With connections to the region experiencing such rapid development, many potential buy-to-let investors will be tempted by the ease with which travel to Bulgaria can be made.
There are also a number of useful tips for investors looking to develop a portfolio of properties in the region. Key areas for consideration are that investors looking to the region should ensure they are buying for the long-term rather than relying on the possibility of short-term gains - Bulgaria is also becoming an increasingly popular choice for development over more time-honoured options such as Spain and France.
Bulgarian ski regions such as Bovorets and Bansko are luring many Brits due to the great buy-to-let potential and quality European skiing facilities located around the 65km of Pirin Mountain. There is also scope for further development in these regions, particularly given the recent announcement that Bansko will install year-round skiing facilities, thus lengthening Bulgaria's season.
.Jeremy Casey, spokesman for property firm The Right Move Abroad, said that given the relatively short length of the Bulgarian ski season, the key for investors was to select properties which are "very closely situated to the ski gondola".And should investors hit the nail on the head in the Bulgarian market, there are serious returns to be made on buy-to-let properties – prices in the skiing area of Bansko alone have increased by 30 per cent in the last three years.
DEMAND FOR CONSTRUCTION PLOTS IN BULGARIA'S SEASIDE MAINTAINS HIGH LEVELS
DEMAND FOR CONSTRUCTION PLOTS IN BULGARIA'S SEASIDE MAINTAINS HIGH LEVELS
Thu 06 Jul 2006 The Sophia Echo
Intense hotel and complex construction will continue despite warnings that the Bulgarian coastal region already faced problems with construction density.
The demand and supply of construction plots in the coastal region maintained high levels, 24 Chassa reported.
Southern regions attracted more investment, 24 Chassa said. Property in resort towns near Bourgas sell three times better than estates in the Varna region.
Sunny Beach coastal resort ranks highest in the list of resorts attracting property investment. The complex offers over 40 construction plots at an average price of 132 euro a sq m. In comparison, prices in other coastal resorts like Primosrsko, Sozopol and St Vlas vary from 70 to 120 euro a sq m.
Prices depended on development opportunities and construction density in the region, 24 Chassa said. Investors preferred plots in smaller villages away from the densely constructed resorts. Nearly 50 per cent of the plots on sale in Varna region were in remote villages at average prices of 90 euro a sq m.
BULGARIA CONTINUES BEING PROPERTY INVESTMENT HOTSPOT
BULGARIA CONTINUES BEING PROPERTY INVESTMENT HOTSPOT
Mon 26 Jun 2006 The Sophia Echo
Property investment group Assetz reported Bulgaria confirms its standing as leading property investment hotspot.
For the second quarter of 2006 the return rate of Bulgarian property was 137 per cent, Assetz reported. In March the figure reached 116 per cent.
Decreasing mortgage rates in the country make borrowing cheaper. Deposits decreased as well, guaranteeing investors bigger returns.
All these developments confirmed Bulgarian property remains an attractive option for property seekers. The strentghening of the country's tourism sector and the availability of low-cost flights further increased the appeal of the local property market, Assetz said.
Assetz reported that the Greek and Polish property markets have also seen improvement in key indicators. Prices in Poland increased by nearly 25 per cent for the first six months of 2006. The Spanish market also maintains its growth.
Assetz representatives said the expansion of the EU provided more options for property seekers interested in destinations abroad. Emerging markets like Bulgaria and Poland offered excellend investment return opportunities.
Traditional destinations like France and Cyprus remained attractive for property seekers looking for stability and already established buying procedures.
This house caught my attention on my last visit - Really lovely!
This house caught my attention on my last visit - Really lovely!
This beautiful new build detached house really caught my attention during my recent trip to Varna. It's really well builtand in a perfect location only 19 km away Varna and just a 10 minutes drive from the lovely sandy beach at Kamchiya.
This is the sort of place you can have as a holiday home or even retire too. The standard is that good.
The house has about 180 sq.m. of living area. There are two bedrooms, two toilets and bathrooms, fireplace in the living room and fully equipped kitchen.
The house has central heating system, BBQ area a nice veranda (summer kitchen, which is multifunctional, you can use it as a storage in the winter) and stylish patios.
The house is brand new and was built in a typical Bulgarian style. It has stone construction, the walls inside are sealed, all the tiles are granite and beautifully finished.
There are inside and outside staircase tiled in granite. All the ceilings are wooden and the double glazed windows and doors are also solid hard wood.
There is a large covered area behind the house made of stone that could serve as a wine cellar or a storage room, or could be made into a good sized apartment.
The plot of land is 850 sq.m., there are a few fruit-trees and vines, the large lawn in front of the house is aclling out to be made into a swimming pool. I could easily imagine myself sipping a drink from the poolside before diving in.
On the second floor there is a nice terrace with an amazing view overlooking the mountain and the charming surronding village (see left).
The living room on the first floor has a wooden ceiling. Internal staircase leads to the second floor.
€ 127,495 USD: $ 164,193 GBP: £ 89,284
Now I'm not easily impressed, but at this price I had to go and check it out. I was very pleasantly suprised. Very well built and very desirable (i.e. easy to sell on!).
There's a nice profit to made here within the next 12 months that's for sure.
Probably won't be around for long, but I thought I'd put the details on here anyway to see if anyones interested. You'd be mad not to at this price, let's be honest.
If you want to buy, view or ask a question contact me at peter@bulgarian-investment-details.com quoting ref: mtvd80
Peter Skuse Bulgarian Investment Property
Note: The cost does not display the total purchase price. The cost includes the price of the property, property check fees and legal consultancy. The following fees and agent commissions must be added on top of the cost: Agency commission, Stamp duty, notary fees, Company registration fee (if you have no registered company in Bulgaria)
Bulgarian Investment Property - Bulgaria a hot property destination for Welsh
Bulgarian Investment Property - Bulgaria a hot property destination for Welsh
By Darren Devine
THE number of Welsh families buying property abroad is on course to double within the next seven years, with Bulgaria proving the hot destination.
Even first-time buyers priced out of the domestic market are turning to the former Soviet bloc nation to get a foothold on the property ladder, says Swansea-based Britannia Overseas Property.
Britannia - one of the UK's leading developers in Bulgaria - say impending EU membership and low property prices are helping money pour into the Black Sea resort nation.
Such is demand, Bulgaria last year recorded an average property price increase of 47.5 % with experts predicting values will more than double over the next 12 months. Britannia's Bulgarian ski and coastal development properties sell on average for £45,000.
Attracted by its long, hot summers and the Black Sea beaches' white sands the number of foreign tourists visiting Bulgaria has increased by almost 50%, with those from the EU growing by nearly 90%, over the past two years.
Andy Moore, former Wales rugby international and Britannia's joint managing director, told the Western Mail yesterday, "The majority of our local investors are buying properties on the coast or in mountain resorts for capital growth, rental income and a chance to visit for their own holidays.
"Many have previously owned property in Spain and the UK, but are moving their money to Bulgaria, as some see it as like Spain years ago, and Ireland before it joined the EU, offering the potential for similar returns."
Marc Davies and his wife Dawn bought a studio apartment in the Bulgarian ski resort of Bansko a month ago for £35,450 as an investment. The couple, from Mayals, Swansea, say they were put off buying an investment property here by inflated prices. Salesman Mr Davies said, "If you buy property here now the rental income will not even cover the mortgage. There are very few properties here now where you can completely re-do the house and then make money on it."
Mr Davies, 32, who has never visited Bulgaria, is hoping to rent out the property during the ski season between November and February's end. "They're building a golf course here now so there should be plenty of opportunities for a rental income," he said. "But even if I can only rent it out during the skiing season it should still make money for me."
But Melfyn Williams, a past president of the National Association of Estate Agents, whose company Williams & Goodwin has several office across North West Wales, said buying abroad also has its downsides.
He said, "The track record has shown that investment in bricks and mortar in almost any country is a sound one and at the moment some countries such as those coming into the EU are experiencing good capital growth.
"The downside is that if something goes wrong you cannot go round the corner to sort it out.
"With the poor returns on the stocks and shares market and the uncertainty surrounding pension funds, more and more ordinary people invest their hard-earned cash into bricks and mortar by buying a property abroad," he said.
Buying abroad soars. A study presented to the Association of British Travel Agents revealed that home ownership abroad will double over the next five to seven years. The World Trade Organisation forecasts that by 2010, Bulgaria will be visited annually by at least 20 million tourists, making it one of the world's most promising international tourist destinations.
The booming demand for homes in the sun has seen Britons' spending on second homes treble in two years. The UK is now spending £6bn per year on holiday homes abroad - compared to £2bn per year just two years ago.
In the next few months alone, an estimated 80,000 Britons are expected to buy a second home.
And while most will be used for holidays and short breaks, an increasing number will be bought as long-term investments and rented out to generate income.
Bulgarian Investment Property - Guide to Buying Property Abroad: Part 6 - Save Yourself £Thousands£
Bulgarian Investment Property - Guide to Buying Property Abroad: Part 6 - Save Yourself £Thousands£
TV Shows make buying and selling property at home or abroad look very, very easy and extremely profitable.
But you don't have a research team running around for you do you? Where's the best region or even country to invest in? Which local professionals can you trust? Who do you go to when things go wrong? ...and they will go wrong believe me.
It's just an accepted part of being a property developer. When you've been at it for quite a few years, you'll know what to do because the chances are, you've experienced something similar before.
If you're new to the game, it can seem the whole World is against you and you can stand to lose a lot of money.
It just may be that you don't have enough time to find exactly what you're looking for and when you do eventually get around to it, property prices have doubled!
The solution is simpler than you think. Use an experience property finder to do all the hard work for you. Let them use their experience, local contacts and specialist knowledge to find the property of your dreams.
And of course, they should save you money. Yes, save you money. Most people buy property in established property markets. Nothing wrong with that of course. But the real returns are to made by purchasing in a up and coming area, before the house values have started to skyrocket.
The rural area arond Varna, Bulgaria is a classic example of this. Currently undervalued and set to rise raspidly as the coast gets too expensive and developers turn their beady eyes inland, just as it happened in France and Spain. You have to drive for hours from the coast to get anything resembling a bargain in Spain today.
I hope you enjoyed this short guide to buying property abroad and it has been of some use. My overall advice to you is to research, research and more research (do your homework), figure out your buying strategy and stick to it and get into your chosen market as fast as possible to take advantage of capital growth as quickly as possible.
Peter Skuse
If you would like to take advantage of my FREE property finder service, please contact me at peter@bulgarian-investment-property.com You've got nothing to lose and everything to gain. No catch. No obligation to buy. I bet I can find exactly what you are looking for at a price you won't believe.
Bulgarian Investment Property - Guide To Buying Property: Part 5 - Have A Strategy And Stick To It!
Bulgarian Investment Property - Guide To Buying Property: Part 5 - Have A Strategy And Stick To It!
The questions in Part 4 are a great starting point. I don't remember any estate agent ever advising me on how I should be buying property or what I should be looking out for.
Naturally, that's because they want to sell whatever is on their books today and want to shift it! Estate agents abroad work on similar 'principles?'. Most Eastern European agents work for both the buyer and the seller. Can you imaging using the same set up for a court case? Of course not, therefore spending time doing research is absolutely crucial.
That said, try not to spend months on researching either, because while you're deliberating and congetating, the best bargains are being snapped up and property values are soaring relentlessly.
A recent customer of mine told me he loved the look of Bulgaria, knew he wanted to buy a property but didn't have the time to do the research. One year on, he came to me. The same property he was looking at 12 months ago had risen by 60%! He was gutted when he realised how much money he would have saved and made if he had acted at the time.
Fortunately he saved the money back again as I was able to find the property of his dreams at a price he, quite frankly, couldn't believe. Saved him thousands! I also introduced him to my handpicked team of recommended local professionals and the sale went through smoothly. In fact, he didn't even come out to Bulgaria to do it. Everything was done from the UK. Easy only if you know how.
But without the inside information I could provide for him and without the access to tried and trusted local estate agents and lawyers, deciding where to invest and purchase can be a time-consuming and very frustrating business. It can also be one of the most expensive mistakes you'll ever make in your life.
Bulgarian Investment Property - Guide To Buying Property Abroad: Part 4 - Making a Sound Investment.
Bulgarian Investment Property - Guide to Buying Property Abroad: Part 4 - Making a Sound Investment.
There are many, many variables when it comes to buying investment property, so first it's wise to work out what your desired outcome is by looking at what YOU really want.
Here are some questions you should be asking yourself:
[1] Am I looking for a home, a second home that I can rent out occasionally or do I want a pure investment opportunity?
[2] What sort of features should I be looking out for that best suits those requirements? For example, am I looking for a return on my investment within a short, medium or long term period and which markets or countries are best suited to this strategy?
[3] Am I simply looking for something beautiful in a stunning location that will always keep it's value?
[4] Where are the property hotspots and are the price increases sustainable?
[5] Am I willing to wait while a property is being built or do I want something I can move into immediately?
[6] Do I have enough capital to renovate or even build my own place?
[7] How much time am I willing to put into the property?
[8] Which countries are the most flexible if I want to dip in and out of the market, or release equity from my foreign purchases to create a portfolio?
[9] Which markets offer mortgages, and what's the maximum loan-to-value that would suit my current budget?
[10] Where is there a high and consistent demand for rented property?
[11] Where are the places that will hold their value regardless of market trends?
[12] Which country would be most tax-effective?
[13] Which places are the easiest to get to?
[14] How risk averse am I and which countries are safer bets?
Bulgarian Investment Property - Guide To Buying property Abroad - Part 3: Figure out what it is you actually want.
Bulgarian Investment Property - Guide To Buying Property Abroad - Part 3: Figure out what it is you actually want.
While it's good to learn from your mistakes, when buying property it can be a very expensive lesson when rectifying your gaffes and blunders.
On the whole, I have found the advice of agents when buying abroad pretty much as useless as they are in the UK. In fact, they can be worse, as the language barrier normally works to your disadvantage.
There are exceptions of course. With a lot of trial and error, I have found agents who are excellent in every country I have purchased in, including Bulgaria.
Their standard of service is extremely high with agents unusually tuned to their clients needs. But they're rare! I warn you now.
Generally, the property spec from emerging markets like Bulgaria offer a single picture and a setence or two. So make sure you ask all the right questions if you aren't using someone who knows what they're doing.
A good starting point is asking yourself exactly what you want from the property and where you want the property to be. If you already know that you want a villa in the hills that you can retire to or an apartment on the coast for holidays and renting, you are already two thirds through the theory behind making a successful purchase. You'll be surprised how many people don't even have this clear in their head.
But make sure you consider which areas are more desirable than others for when you want to sell on or rent out. This requires a good deal of time and effort, but it is well spent, especially if you don't want to be fobbed off with a property where the property is going down because of some, as yet unforeseen furture plan.
But what if you're not sure about what you want? Are you happy to sink your money into a flourishing, but immature property market such as Bulgaria where EU membership next year will bring it's own rewards or play safe with established markets such as France and Spain, but have smaller rewards in terms of growth.
Most locations in Europe offer better returns than the UK at the moment, but doing your homework or using an experienced Property Finder with local experience is essential.
So what questions should I be asking myself? We'll deal with that next in Part 4.
Bulgarian Investment Property - Guide To Buying Property Abroad - Part 2: Save Yourself THOUSANDS by Using An Expert
Bulgarian Investment Property - Guide To Buying Property Abroad - Part 2: Save Yourself THOUSANDS by Using An Expert
Just like a personal shopper can save you a whole day (or even an entire weekend if you're a fussy custome) looking for just the right pair of jeans, a property consultant can save you a bloody fortune in wasted time and money by finding the right property deal for you.
Obviously a pair of jeans doesn't usually offset the cost of employing a personal shopper (unless they're very good at their job), but hiring a property consultant can definately be justified and save you many thousands by giving you key local advice and insider information.
A landlord friend of mine is always on the look out for great property deals, but he's often so busy making his portfolio is constantly rented out, he doesn't always have time to find exactly what he wants on his next investment.
A year ago, he wanted to start a property portfolio in Bulgaria, but had no idea where to start looking, or even what kind of properties would give the best return and didn't have the time to spend hours researching on the internet and making dozens of calls. Even then, he wouldn't really know if he had bought a complete lemon or not
This is where he needed an experienced property consultant with local knowledge to go through his requirements and find him exactly what he wanted. So I did the research for him. I told him where the property hotspots were, potential returns, mortgages, solicitors, builders, utilities, taxation, travel details, bank account, company formation and general information just on living there.
He now has fourteen properties in Bulgarian and has seen a return of over 50% on all of them. A very happy man indeed.
Perhaps you have considered buying abroad, but decided the potential complications of navigating your way through the mine-field that is buying in a foreign country has put you off? Especially in a new emerging property market like Bulgaria.
A propert consultant can allow you to reap the rewards of being in on the property market early, before everyone jumps on the band wagon. They can provide you with a selection of the finest properties that is perfect for both your requirements and your pocket. But more importantly, they can stop you being scammed and ripped off! I'm sorry to say it happens everywhere. Even in the UK! But buying a property in a strange land with a different language can be fraught with problems.
A property consultant with experience and local knowledge of the market and it's procedures can be a real asset.
He can package the whole deal for you. You don't have to think about what comes next or shop around for the best mortgage rate or worry whether the property is in a good location. All you have to do is choose froma selection of property details which you know suit you, or you wouldn't even have been presented with them for your perusal.
Why take a risk dealing with an interested party? The estate agent, the property broker all have a vested interest in you buying what they want you to buy, NOT neccesarily what YOU want to buy.
Most of the time, an estate agent will still leave you to do all the donkey work or just palm you off with someone they always work with to make their life easier. This can mean the deal lacks transparency or even avoids highlighten negative points that may have influenced your decision to buy.
Bulgarian Investment Property - Guide to Buying Property Abroad : Part 1 - Don't Rely on the Estate Agents.
Bulgarian Investment Property - Guide to Buying Property Abroad: Part 1 - Don't Rely on the Estate Agents.
I love finding property. Especially overseas. I've been doing it since 1996.
But most people I know, despite their passion for property investing, don't share quite the same amount of enthausiam when it comes to actually finding it.
And it's easy to understand why.
Firstly, theirs the frustration of using an estate agent. I don't know how many times I've wondered what it is exactly they are doing for their commission fee. (Apologies in advance to all those estate agents I know and used. You know I love you really). But you know what I mean.
Then theres the hassle of putting all the pieces of the buying process together - a decent solicitor or a savvy mortgage advisor or even a tax advisor! Plus there could be builders, plumbers, electricians, plasterers. It seems like the whole world and his wife are involved if renovation work is required.
And if someone has already been in and done a quick revamp, then look out! You never know what proverbial cracks have been covered up.
One would assume that the finding and purchasing process is where the expertise of the Estate Agent should come into it's own. But the system in the UK and abroad, mainly doesn't work like that.
In the earlt days, I used to believe that when an Estate Agent asked you how they could help you, they actually meant it! How wrong I was. As we all know, it's just a very polite way of luring in then selling you something they simply want to get shot of and make their fee as fast as possible.
I can recall plenty of conversations with agents whose idea of matching my property requirements left a lot to be desired. A older style 2 bedroom flat in a coastal location would fall on deaf ears and I would be shown 4 bedroom off plan detached properties fifty miles from the coast or a 1 bedroom hole overlooking the local sewerage works!
And after you explain how inappropriate their suggestions are, that will be the last you hear of them. It beggars belief. Considering how established the property market is, I'm always amazed at the poor levels of service.
Buying property is probably the biggest purchase we are ever going to make in our lives, yet the buying systems in operation in most of the World obligates us to trust the information and price negotiations from someone who is being paid by the other side - and that's if they even turn up for the viewing! (Don't get me started on that)
That said, it's not entirely fair to blame the estate agents for a (potentially) frustrating finding and buying experience. They are not being paid by us, and lets face it, even if we were paying them, we'd never want the prosecution to act as our defence now would we?
We spend at least four times longer looking for the right pair of jeans than we do buying property, yet we spend hundreds of thousands more. For that reason alone, I will never let an agent rush me through a property, and I'm certainly not afraid to visit it or 'try it on for size' a good few times. Remember, an agent isn't about to point out the damp, faulty wiring, leaking taps, broken radiators ..........
Would you like me to find your dream property in Bulgaria for you for free? I will use my local knowledge and contacts to find the right property, in the right location and at the right price. And at no charge to you.
Interested? Email me at peter@bulgarian-investment-property.com with your requirements. I'll have several perfect properties for you to look at within two weeks.
Bulgarian Investment Property - Predictions for Bulgaria’s real estate market
Bulgarian Investment Property - Predictions for Bulgaria’s real estate market
An interview with Strahil Ivanov
The real estate market will this year see a further upswing in the office, industrial land and agricultural land segments, according to Strahil Ivanov, head of the Yavlena real estate agency.
He said that the constitutional ban on foreigners owning land had no dampening effect on the property market, which had been rising at an increasing pace in recent years, because foreigners found ways to purchase property in spite of the ban.
“As a real estate company, we want the ban to be ended as soon as possible, with the only remaining limitations being those in the interests of national security.” Ivanov said that the increase in the availability of credit with which to buy property had a psychological effect that boosted the market.
“Clients feel more secure about buying property, even if they do not draw on the full amount of credit available.”
Bulgarian Investment Property
Asked in an interview with The Sofia Echo what a real estate company had to do to secure the leading edge in a market that had become very competitive, Ivanov said that a company had to be focused not only on making a profit, but also on achieving a good name for itself.
This meant doing business in a way that was honest and ethical, and there being “full transparency” in a deal, Ivanov said.
A company should be able to offer a full range of services, by being qualified to deal with all sectors of the market, including individual residential ownership and industrial property.
Since 1993, Yavlena has been licensed by the Privatisation Agency to evaluate properties, and currently the company has contracts with 14 banks to evaluate property on their behalf.
“This is one of our strongest sides, to be able to evaluate not only real estate but also companies, in every aspect,” Ivanov said.
Bulgarian Investment Property
He said that his company worked with others in a system of cross-referrals when a client needed a specialist service.
Asked about the risk to the market of being discredited by fly-by-night companies that do not do business in an ethical and honest way, he likened Bulgaria’s real estate market currently to “a river big enough to carry everything with it, not only the clean water”.
He said that, in the long term, those in the market that were not doing business in a professional manner would drop out of it.
Bulgaria’s property market was virtually unregulated, he said, which was “bad and good”. It was good because it enabled the market to develop rapidly, but bad because it meant that there was very little protection for the customer from unscrupulous operators.
Bulgarian Investment Property
In addition, landlords were vulnerable from defaulting tenants because the court system did not function as it should.
“If you own a property and some tenants are occupying your property without the right to do so and without paying, it can take several years to get them out because neither the police nor the prosecutors are able to do so.”
The “rapid” court process to redress the problem was easily slowed down on technical grounds, he said.
Asked about the profile of property purchasers currently, he said that 50 per cent of Yavlena’s clients were people who were, to use the industry term, “exchanging” property, meaning that they had property but wanted something newer or bigger.
More than 60 per cent of property buyers were people aged 25 to 50, a significant change from the 1994 to 1997 period when they tended to be people in their 40s and older who were spending money earned through the restitution process or by other means, Ivanov said.
Bulgarian Investment Property - Property investors driving Bulgaria's economy
Bulgarian Investment Property - Property investors driving Bulgaria's economy
Investment in Bulgaria is becoming an increasingly attractive prospect for property enthusiasts from the UK and EU accession in the next couple of years is likely to boost this still further
Property prices have been rising steadily for a number of years now as Bulgaria widens its appeal to a broader cross-section of the investment community. With the ski resorts including Bansko and Borovets improving annually and the Black Sea resorts also building up an impressive tourist industry, there is certainly a lot to look forward to in Bulgaria.
The Sofia Echo has today referred to reports in both the Dnevnik newspaper and the Wall Street Journal, both of which point to a significant rise in demand for properties in Bulgaria and in central and eastern Europe in general.
Bulgarian Investment Property
Bulgaria, the Czech Republic, Poland, Romania, Russia and Slovakia collectively brought in €5.8 billion through property deals last year, according to the report. This is thought to have represented a 38 per cent increase on the investment figure for 2004.
Writing for the Independent recently, journalist Robert Nurden remarked that thousands of Britons had now "seen beyond the cliches" associated with Bulgaria and were investing their money in the property market.
Mr Nurden went on to describe the sheer variety of investment opportunities in the country, with the capital city of Sofia one of the most notable. He suggests that the property boom has now reached the centre of Sofia, with locals also actively contributing to the market.
Bulgarian Investment Property
Bansko was also mentioned in his article, with the gondola from the town to the pistes rated as "second to none".Bulgaria, largely on the basis of the potential that many see in its real estate market, is often referred to as the new Spain.
It is a comparison that will be tested when Bulgaria gains EU accession, as this progression proved vital for Spain as property prices began to soar. According to Mr Nurden, the parallel can apply specifically to Sunny Beach, which he suggests could feasibly become the new Costa del Sol.
While Bulgaria has a long way to go before this could be considered an accurate description, the potential for growth has certainly encouraged many and the extent of the investment around the Black Sea regions is testament to this. Property is generally extremely cheap in Bulgaria which is of course one of the key reasons that investors have taken such a keen interest.
Bulgarian Investment Property
Referring to data from imoti.net, however, the Sofia Echo has indicated that a number of key areas have already risen considerably in price. Sofia's Ivan Vazov district is thought to be leading the way, with apartments in the area now more than €1,000 per square metre.
The article points to the vicinity of medical and education centres as a key contributory factor, while Darik radio is reported as saying that the nearby Southern Park is also having an effect.
Experts suggest that property investment will continue to have a significant impact on Bulgaria's development in the next few years, but EU accession will clearly be central to the extent of the progress. With a diverse range of properties available, investors considering Bulgaria as an option are advised to seek expert advice before committing.
Bulgarian Investment Property - Bulgaria voted best overseas property investment market
Bulgarian Investment Property - Bulgaria voted best overseas property investment market
Bulgaria has just been judged the best overseas property investment market in the Assetz March Property Investment Tracker index.
The Property Investment Tracker rates the return on investment, weighed against a variety of issues in countries relevant to UK property investors, recently expanding its remit to include South Africa, Portugal, Poland, Turkey, Italy and Greece.
With a minimal deposit of only 30 per cent, along with excellent yields of 12 per cent, Bulgaria offers significant returns of 116 per cent on a small initial outlay. According to the property investment company, the average two-bedroom apartment in Bulgaria now costs about £80,000.
Cyprus is not far behind says Assetz, with prices in southern Cyprus rising by about 15 per cent in 2005, and expected to rise further ahead of the islands accession to the euro in 2007/2008.
Rental yields remain at a confident eight per cent with a year-round rental market in some parts of the island, accumulating a total 84 per cent return on investment. Turkey, a new addition to the Tracker, will present a new overseas opportunity for investors who are awaiting a change in legislation to allow mortgages for foreign investors, expected later this year, say Assetz.
Stuart Law, Assetz: "Overseas markets are still offering excellent opportunities for investors, with Bulgaria and Cyprus now overtaking some of the more established destinations."
Although gains are still strong, with 27 per cent capital growth and 8 per cent yield, the change of rules concerning borrowing will have a dramatic effect on the housing market, potentially pushing up prices in key areas as much as 50 per cent in one year, the group added.
Growth in South Africa has slowed from 24.6 per cent to 15.8 per cent and is likely to continue falling. Mortgage rates, already 8.5 per cent are rising, prompting serious concern over the stability of the market. Yields have fallen from 10 per cent to as low as 5 per cent in 2005, so rental income will fail to make a profit for many investors.
Stuart Law, managing director of Assetz, said: "Overseas markets are still offering excellent opportunities for investors, with Bulgaria and Cyprus now overtaking some of the more established destinations in terms of total return on cash invested.
"Cheap Bulgarian ski destinations are certainly in as much demand as quality resorts in the France Alps.
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