Property in Bulgaria - A Good investment?

Scouse_Mick

I've just bought an apartment in Bulgaria so got a bit depressed reading this thread as most people seem to be against it - with logical, sensible argument I might add.

But had a bit of a think about it and I still feel I've made a good choice. To answer some of the points raised.

1) Bulgaria is grotty (so implying its not much of a tourist destination). I've never been there so can't answer this but I think even if it is give it a chance - it was in the communist bloc just a few years ago. I've got vague childhood memories of a trip to Spain in 1976 and stepping over open sewers on the way down to the beach. Something you wouldn't dream of nowadays. The point being that all the investment and development taking place should 'spruce it up' a bit.

2) There's too much development going on. Yes and for a few years it will be a bit spoilt by this but this is a necessary evil to get the infrastructure in place. Development = investment.

3) The season is too short. A good point and one I've not overcome yet. However on my investment of £28k I don't need too many weeks of occupancy to cover the mortgage.

4) Mystictrev made an, I assume, sarcastic remark about Bulgarian craftsmen. My apartment is being built by a reputable Swiss firm.

5) Packages are as cheap as budget flights. Possibly true at the minute but likely to change as prices in Bulgarian go up which as per scheming gypsy's comment is bound to happen. Also you need to remember that the key tourist market will not be British but Germans, Swiss, Austrians and eventually Bulgarians and Romanians. Many of these people will drive to the coast and will not be booking packages. The tourist industry in Bulgaria is predicted to grow 6.1% per year for the next 10 years. A nice healthy growth that will lead to a good demand for accommodation.

6) There are too many properties being built meaning that the market will be flooded. I think that this is the most serious worry. However, you've got to remember that until recently Bulgarians were unable to get mortgages. Can you imagine the property market in the UK if everyone had to pay cash for their houses? The Bulgarian economy is growing at twice the EU average so there's a long way for demand for property to go up before it starts to level off. EU membership will either be in 2007 or 2008 and if you followed what happened in Czech republic and Hungary when they joined that should provide an instant uplift as well.

7) This is a bubble waiting to burst - possibly but the property market is under-pinned by strong economic growth and strong growth in tourism so I really can't see my investment falling below the price I paid for it. Also if everyone starts piling into Morocco doesn't the same apply there too?

All in all I think that I will see a decent return on my £28,000. Perhaps not as much as the developers might imply but still good profits. When I made the decision to buy I thought the worst case would be that nobody wanted to buy or rent my property. This means I would end up owning a two-bedroom apartment in a luxury holiday village with bars, pools, restaurants, tennis courts and a casino and its 30 seconds walk from the beach. This is hardly the end of the world and represents the worst case scenario. Its not what I want but I can survive it if it happens.

The last word from Tass is also encouraging as the only person who seems to have actually been to Bulgaria. Has anybody been to Morocco? I did a few years ago and I'd rate it as the worst place in the world I've been to. You can't walk down the street 5 yards without being hassled. Tourism statistics show that it is the country in the world with the lowest number of repeat visitors. Once is enough for anyone there.

Anyway I'm sure investment in Morocco is a good choice and will show a big profit. Likewise I hope my investment in Bulgaria will give me a decent return. Where is better to invest is impossible to answer without a crystal ball. Sometimes you just have to bite the bullet and make a decision.

missile

I can't believe this. You bought an appartment in Bulgaria without first visiting the country?

karlgriffiths

Hi, I am dissapointed to read the ill thought out and rude replies by some people on this site. (moderator??)
Why don't you visit https://www.mybulgaria.info and research the chat forum there. Sure the advice will be more useful and informed.
Consider the ski resorts as well as the coast. https://www.talkbansko.com is also a good site. You will probably get a longer rental period in the ski resorts as the season is longer-and also popular for summer walking and biking.
There is still some money to be made in Bulgaria in my opinion. Would have been better to invest over 12 months ago, but it's still good value. Please visit the websites- sure they'll be more helpful.
Good Luck!

meanmachine_2

Moderator?! What is this communist Bulgaria?!

Heaven forbid that people should take an anti view and think that pricing locals out of their own property should be frowned upon.
:rolleyes:

I wonder how we'd feel if a million Bulgarians started eyeing up our housing market, hoping to price Brits out of their homes.

Sheesh.

Scouse_Mick

missile wrote:

I can't believe this. You bought an appartment in Bulgaria without first visiting the country?

Yes. It was a bit of a hasty decision - hence my worry when reading some of the comments on here! I spend more time buying yoghurt in tesco's than deciding on major investments sometimes.

Still I think it'll work out ok. I don't think you'll learn all that much from visiting anyway. Its only a field next to the beach at the minute. The place will be totally different when its finished. The reasons behind the decision to buy - growing economy, joining EU (whenever it happens), growing tourism industry, and the fact that Bulgarians have newly acquired access to mortgages - are the key drivers behind the investment.

missile

I wish you every success, seems like a risky investment but if you can hold out for long enough and the government remains stable I guess it may work out

Leftynick

Seems to be what i've opened - but a good one i would add! Now feeling slightly more positive about the idea having read a few of the more recent posts. I'm not from London so wasnt aware of the"push" happening down there however take the point... However i also take the points made FOR Bulgaria so i'm now in a dilema...Have considered a ski resort like Bankso rather than Sunny Beach thanks to a tip from another member (thanks Lara).

Suppose what i'm looking for is the first step on the investment ladder, currently reading rich dad, poor dad and is real food for thought. My first job wil be to work out the best way to get the capital and then the best way to invest it, a nice place for the family to go on holiday each year would be an added bonus.... Dont think i could be as daring as the poster who bought out in Bulgaria without first visiting - would definitely need to visit. I suppose its all relative though and if for him its not such a big deal if the property doesnt sell/rent then thats ok - starting at a significantly lower level in terms of what i can afford to lose i would want to be as certain as possible...... even if that still leaves an element of risk as all investments do...

Conrad

In reply to a post above I have no 'angle' in terms of Morocco, I just like to pass on my experience. I was originally a Landlord of UK property but sold to invest abroad.

I can categorically tell you the capital gain from Morocco will far exceed that of Bulgaria over 3 - 5 years.

You say the places you saw were £100k. Thats true of the site Im buying on but there are plenty of much cheaper ones such as 'Paradise Beach & Golf'.

I spoke to my agent 'Superior worldwide' earlier. They deal with 14 nations including Bulgaria (they pioneered Bulgaria) and now tell me Morocco is by far the destination generating most interest. Mile after mile of unspoiled beach, ski resots (1 hour from beach), only 3 hours away yet 'exotic', a year round season, Ryanair announced 20 routes from UK, and THE KEY FACTOR: The worlds largest developer are building 6 resorts and a host of other BIG names are developing.

Its hard to get across just what a good investment this is, opportunities like this are rare.

If you go for a large secure development security is not an issue. Afterall, Barbados can be rough outside the developments!

Conrad

In reply to a post above I have no 'angle' in terms of Morocco, I just like to pass on my experience. I was originally a Landlord of UK property but sold to invest abroad.

I can categorically tell you the capital gain from Morocco will far exceed that of Bulgaria over 3 - 5 years.

You say the places you saw were £100k. Thats true of the site Im buying on but there are plenty of much cheaper ones such as 'Paradise Beach & Golf'.

I spoke to my agent 'Superior worldwide' earlier. They deal with 14 nations including Bulgaria (they pioneered Bulgaria) and now tell me Morocco is by far the destination generating most interest. Mile after mile of unspoiled beach, ski resots (1 hour from beach), only 3 hours away yet 'exotic', a year round season, Ryanair announced 20 routes from UK, and THE KEY FACTOR: The worlds largest developer are building 6 resorts and a host of other BIG names are developing.

Its hard to get across just what a good investment this is, opportunities like this are rare.

If you go for a large secure development security is not an issue. Afterall, Barbados can be rough outside the developments!

dizzyhead_2

We have an apartment in Crete, have never had any problems with it yet and it does rent most of the season.
But (always a but) it hasn't really gone up in price at the moment so if were to sell it wouldn't make anything on it. They said Greece was gonna be a good place to invest but it hasn't proved to be yet. Wouldn't be without our apartment, it didn't cost much, we and family have had great holidays there and made some fabulous friends but not a lot of money off it.
Look into declaring the tax from renting as well before buying.