Buying a Property in Bulgaria (PLEASE HELP!)

Greg_Jones_2

Hi Martin / All members

Can you give me any information / help on the following,

Ok, here goes…

Been toying with the idea now for a while about buying a property in Bulgaria but just cannot make my mind up as it is a BIG decision for me. The place I am looking at is in St Vlas (on the Black Sea coast). It is an up and coming resort, meant to be Bulgaria’s answer to Marbella. The particular apartment complex I am thinking about buying into is right on the beachfront and the Bulgarian government have just passed plans to build a 250 yacht marina right in front of this complex.

I am solely buying this property for investment purposes, as opposed to a long-term holiday home.

Property prices are set to rise 120% in Bulgaria over the next 3 years for the following reasons: (so they say)

1 = Bulgaria is set to join the EU in 2007
2 = They are a member of NATO
3 = As of this summer, ALL the major UK holiday companies are offering holidays to Bulgaria (only 3 hours flight time)
4 = The currency is stable and linked to the Euro

I know these factors strongly imply that there is sound investment opportunity, however I want to find out if there are any negative aspects I should be aware of. As I said earlier, this is a big decision for me, as I will have to remortgage my home in the UK in order to raise the funds needed for the apartment in Bulgaria

I have a place on hold till Thursday; I need to have made a decision by then.

Thanks for your time, any information / sites will be greatly appreciated or even your views.

If you are to busy with your site at the minute, Thanks anyway.

If you need any more information just drop me a line

Regards

Greg

Reaper

Many say Bulgaria is a good opportunity, but since you asked for thoughts on the downside here goes:

The first thought that springs to mind is that if you are not going to use it as a home who is going to live there? Will it lie empty (not generally a good idea) or will you rent it, in which case have you checked if demand is sufficient to rent it throughout the year?

I heard that Bulgaria has a declining population because so many are leaving. That must push prices down locally and property prices can not be sustained solely by foreigners buying for long.

Here are a couple of pages for you to read suggesting the market might be getting carried away. Here and here.

I'm not saying buying is a bad idea, many think it is a good place to buy, I'm just playing devils advocate as I'm sure companies wanting you to buy have only been feeding you the upside. Weigh up the arguements and come to your own decision.

payless

Is there not an issue with Russian Mafia in Bulgaria?

Walletwatch

Many say Bulgaria is a good opportunity, but since you asked for thoughts on the downside here goes:

The first thought that springs to mind is that if you are not going to use it as a home who is going to live there? Will it lie empty (not generally a good idea) or will you rent it, in which case have you checked if demand is sufficient to rent it throughout the year?

I heard that Bulgaria has a declining population because so many are leaving. That must push prices down locally and property prices can not be sustained solely by foreigners buying for long.

Here are a couple of pages for you to read suggesting the market might be getting carried away. Here and here.

I'm not saying buying is a bad idea, many think it is a good place to buy, I'm just playing devils advocate as I'm sure companies wanting you to buy have only been feeding you the upside. Weigh up the arguements and come to your own decision.

Also, if you plan to let out the place, may be a good idea to familiarise yourself with the tenancy rules of the country. I've heard of a lot of places where these rules are stacked in favour of the tenant, more than the landlord. You don't want to be stuck with a tenant having the right to stay there for life, along with restrictions on the amount by which you can increase rent... just portraying a worst case scenario...

Best of luck

cheerfulcat

You might like to have a look at this post on Motley Fool, as well -

http://boards.fool.co.uk/Message.asp?mid=9024570

HTH

Cheerfulcat

greytroot

well i am actually about to take the plunge in bulgaria as well. I plan to retire there within the next year and buy some other properties and rent out in the summer months. There are quite a lot of sites available that give you plenty of information. The a place in the sun magazine is quite helpfull too. Bulgaria has been featured in the last two issues.

There are a few things to watch - how the buildings are made - and what standard.

A few brits are "out there" and selling at "cheap UK"
prices but dealing direct with bulgarians will ultimately get the best deals around.

Watch that there are not any plans to put anything unpleasant near your property. Check out the property developer - thoroughly. I nearly took the plunge with someone who talked a good deal and when i checked them out they were not what they seemed.

Zizi

payless wrote:

Is there not an issue with Russian Mafia in Bulgaria?

I also heard things about the Mafia in places close to the border with Russia.

dunstonh

and don't assume the currency is stable. Remember that Sterling used to be linked to the Euro and we all know now how costly that was.

p3gg

Zizi wrote:

I also heard things about the Mafia in places close to the border with Russia.

YOU WOT?

No disrespect Zizi, but maybe you should consider investing in an atlas.

Zizi

p3gg wrote:

YOU WOT?

No disrespect Zizi, but maybe you should consider investing in an atlas.

sorry... i meant romanian