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Bulgarian Property Investments - The Pros And Cons Explained
By Damian Qualter BA MBA, Fri Dec 9th
Bulgarian Property Investment - The Pros & Cons
With residential property in the UK having reached a peak forthe current future, investors have been desperately lookingaround for alternative locations with investment potential, andBulgaria is tops on everyone’s list. Many investors have alreadynoticed that Bulgaria offers very good value for any money thatis spent and it also has letting potential as a holidaydestination.
The best investment opportunities in Bulgaria right now includethe ski resort of Bansko and the Black Sea resorts of Varna andBourgas. The capital Sofia is developing rapidly as a commercialMecca as well, signalling that capital appreciation and rentalyields should be very strong in the foreseeable future. Bulgariasaw property price increases of 35% in 2004 however the averageyields on rental properties are still 8% to 12% thanks to thefact that most investors are buying in the Black Sea coastalresorts and 15% in ski areas. Some of them are investing in newdevelopments instead.
For example, studio apartments in the Black Sea resort of SunnyBeach can cost the investor as little as £16,850. There are goodopportunities out there for both city-centre buy-to-letproperties and vacation homes that are also offering lettingpotential. Let it be known though, that despite promisingreturns, investors have to be wise to the risks that arepotentially involved in buying in an emerging economy like thisone.
Low prices attract the buyers who are looking for a quick-fixsolution to pension problems, but as many agents as you can findwill admit there is no guaranteed resale market in Bulgaria (oranywhere else for that matter) and little existing benchmark formeasuring price increases other than more and more investorspaying higher prices on a monthly basis. That is why long-terminvestment is recommended over instant returns.
There is, however a genuine demand for quality rental propertiesbut written contracts with holiday companies are absolutelyneeded as a means of ensuring the buyer a guaranteed yield.Travel agents and tour agents who
are no longer enjoying bigmark-ups in Spain are looking for higher profit margins inBulgaria and this does cause problems in the long-term future.High street travel agents and tour operators do have an amazingnumber of sun and ski holidays available in Bulgaria today andthey are selling well, which goes well for future returns forquality locations and developments.
If you are really wondering what the benefits are to investingin Bulgarian Property; it is definitely the cost. The cons ofcourse is that nothing in property investment is completely failsafe and therefore you need a regent in Bulgaria to act on yourbehalf and help you find a piece of property that will doexactly what you need it to.
About the author:Learn the Tips, Tricks & Secrets of Profitable PropertyInvesting by Damian Qualter Managing Director ofBuyProperty4Less - FREE Guide Click Here Now! Bulgarian Off PlanProperty
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