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Need Advice for Investing in Bulgaria?

Discussion in 'Bulgaria Property' started by bennett, Sep 4, 2006.

  1. bennett

    bennett New Member

    Hi all,
    Just wondering what your views are on buying property in Bulgaria in the hope they will be a good investment when they join the EU? Our local Estate Agents have some properties in Bulgaria from 5,000. Would these be a good investment (they are in rural villages) or is it just properties in the main resorts by the sea that would make money?
    Keep in touch
    Bennett
     
  2. brandon

    brandon New Member

    Hi Bennett,
    To be honest I don't know that much about Bulgaria, but I have heard how difficult it can be to sell out there. Most people seem to be buying because 'it's going up in value', but do the figures add up? Does the rent cover the mortgage?

    To me it sounds like a bubble, but it might have a fair way to go before popping.
    Good luck
    Brandon
     
  3. gsash

    gsash New Member

    Hi,

    As in any other country you are investing in a throughout research is a must. There are four investment areas in Bulgaria- city, seaside resorts,ski resorts and rural properties to suit different investment needs. The first thing to do is to create your investment strategy by asking yourself simple questions like what you want to achieve with this investment , over what time period and with what budget in mind. Then to match this strategy with the most suitable area and properties in Bulgaria. Success can be achieved as there is a lots of undiscovered potential and opportunities in this country - excluding the heavily marketed areas.

    Top 10 Reminders to Intelligently Invest in Bulgaria

    1.Learn as much as you can about the country, the economy, political system, geography, the law, the culture, the people - this should give you good understanding and reason why and how to invest in the country.
    2.Try using independent and reliable sources of information not marketing products.
    3.Have a clear strategy and plan how to accomplish it , set a budget and time limit and stick with them – many properties in Bulgaria look cheap and it is tempting to overstretch you budget.
    4.Be aware of the total cost – fees, taxes, management cost, building works etc.
    5.Have a realistic exit strategy – make a good market research and consult with professionals
    6.If you are buying investment property remember this is business – leave this decision to your mind and logic not to your heart.
    7.Deal with reputable agents who understand what you want and have in depth understanding of Bulgarian market – currently Real Estate Agent is a very popular profession and there are awfully a lot people that don’t understand what they are doing. Be careful!
    8.During the viewing trip make a lot’s of pictures and take many notes on each property – at the end of the day they all look the same.
    9.Do don’t rush into decision; take your time to think
    10.There is no right price for the wrong property !

    If you have any questions or need advice please PM me .

    Good luck.
     
  4. Ruzha

    Ruzha New Member

    Investing in Bulgaria

    Hello!
    I do understand your hesitation when it comes to investing in property in Bulgaria. However, I would suggest to you to have a look at our development - Neviastata - Residental Resort Complex. It is a residential holiday property in Pamporovo, in close proximity of a huge ski and summer sports centre, which is under construction. It is the newest and most modern initiative in Europe, for which 255 million euroes will be invested over the next couple of years. This is going to be a very profitable investment, so hurry up - with Bulgaria already in the EU, it sells quickly!
     
  5. DanTamplin

    DanTamplin New Member

    Hi

    Hi my name is dan tamplin and I work for a developer/master agent currently offering some of the most exclusive ski and spa apartments to be built in Bulgaria, I can understand your concern with purchasing property in bulgaria, which is why you should allways use a British agent and soliciter, all of which we provide.

    The most recent of our developments are two five star ski and spa centres:-

    Saint John Hill Properties

    Semiramida Garden - Home

    due to high demand we only have a small number now available so please take the time to view the sites and take advantage of the oppurtunity to own a part of one of Bulgarias finest developments.

    thankyou for taking the time to read this, good luck!!

    take care

    Dan Tamplin
     
  6. Dudley2468

    Dudley2468 New Member

    Hi Bennett

    First let me say that I am no expert but I was in Bulgaria just two months ago to visit a friend who is also a Bulgarian Lawyer.
    She introduced to a Bulgarian property developer who is building a new apartment block in sunny Beach just a few minuets walking distance from the beach.
    The block contains various size apartments from 20 metres up to 60 metres and he is selling direct for 700 euro per metre.
    For example 30 square metre apartment = 21,000 euros, plus plus legal fees and taxes.
    A work colleague of mine is buying two of the smaller ones and I think there is still a couple left.
    This was the best deal I saw while I was there.
    To be honest the rural properties I saw left me feeling quite depressed but some Brits do like them and buy them.
    I would buy some of these apartments in Sunny Beach myself but I am presently selling my House in Gran Canaria.
    My Bulgarian contact speaks good English and I would be happy to pass on her details to you if you are interested?
     
  7. redhead

    redhead Guest

    redhead

    Hi Bennet, the price of the property depends on what you want to do with it. if you dont want to renovate and just want to invest on a property with land to leave standing for years then yes it will go up in value. if you want to invest in a property to renovate the cheaper properties do need a lot of work. probably new roofs and a whole refurb. Best invest for something over 20,000 euros. i bought a place in Tamarino for 6,500euros in a village with lots of land .im still renovating which has cost me £10,000 up to yet. the village properties are a good investment as people who are buying in villages wish to rent village accomadation and there are not enough to go round. they rent from £250 to £450 a week. if you are looking to invest i have a site you could browse. good luck
    Tracy


    BGproperty Assist | BGproperty Assist can assist you with your property purchase in Bulgaria
     
  8. investor27

    investor27 New Member

    Hi, From where in standing, or should i say sitting Bulgaria has already seen plenty of growth, investors are now re-selling & taking their money with them & investing in other countries, the main country being Morocco, prices are still low comparied to other emerging countries & i strongly feel investors cant go wrong, deposits in recent months have also come down to 20%, more info on developments in the Morocco can be found on www.moroccanpropertyconsultants.com

    For gaining a good ROI i personally think you need to invest in an emerging market, Morocco meets this. If you want any info e-mail sales@moroccanpropertyconsultants.com
     
  9. mike123

    mike123 New Member

    Hi benett,
    I think the best is to invest in off plan properties close to the resorts,
    Albena, Golden sands and the new Lighthouse golf look good to me.
    I bought one apartment in the Lighthouse and so far the price is gone up with 10,000E by the builder! PM me for more info!
     
  10. eyeC

    eyeC Senior Member

    sounds good to me

    what you gonna do with this 5000 euro property...and the answer is nothing no one will rent it and you wont be there to rent it and dont tell me its a holiday home it will be a waste disposal bin.... anyway so it wont generate cash for you what will it do you might ask ..i tell you it will take cash from you becouse you need to pay taxes...so you will be paying 5000 and after that yearly tax charges for the rest of your life
    sounds a good deal to me what do you think?cheerz
    wake up ppl dont throw your hard earned cash that easily

    cheerz
     
  11. eyeC

    eyeC Senior Member

    forgot

    you might find a fool to buy it from you for 7000 and he will find again another fool to buy it for 9000 and it will be the biggest fool game possible
    cheerz
     
  12. redhead

    redhead Guest

    Actually alot of my friends and customers are currently renting out and have had a good return on it.People are constantly renting their properties and for long periods at a time, inparticular people who are renovating and purchasing in BG.
     
  13. nickO

    nickO New Member

    If you are looking for a holliday home look at vermers.com
     
  14. Svetka

    Svetka New Member

    Dear Bennett,

    If you are looking for good investment, my advice is to put your money in holiday complex at the seaside or ski resort, which have contract with tour-operator. Look at this site:
    Bulgarian Real Estate Agency STIL21 - Property in Bulgaria.
    Hope you will find something good for you.
    Regards
     
  15. thetravelbug

    thetravelbug Banned

    I would avoid the over hyped places like the coast and ski resorts - way over priced, little resale market and fierce rental competition. Rural properties do offer very good valuea dn with a little marketing can be rented out. I own 8, soon to be nine, plus buying land for investment and development. But be aware that renovation costs are expensive. You cannot expect to buy a rural property for 5000E and do it up for under 20,000E.

    Rachel
     
    Last edited by a moderator: Apr 18, 2007
  16. McVelvet

    McVelvet New Member

    Hello everyone

    I was wondering if anyone out there has much to say about Pamporovo? I have been speaking to a master agent who is selling apartments on the highest development on piste in Pamporovo. The prices seem about what I was expecting but they also offered me a 5 year payment scheme. The good bit is that the building completes next year so they say I can rent it out from then and it will pay for itself.

    I have done some research on the area and it looks brilliant - close to greece, mediterranean climate so all year round rental returns, limits on the amount of development allowed which avoids the overdevelopment problems that happened in other areas, beaches an hour away, and a project funded by the EU which seems well underway to create 217 km of ski runs, a local airpost, golf course, blah blah blah.

    My only issue is I usually invest in areas I have visited...and I have never been there and don't have the time to go. I don't want to miss out on this so any feedback greatfully accepted
     
  17. Jain and Chris

    Jain and Chris Senior Member

    Pamporovo is often preferred by the Bulgarians themselves for a weekend or week away skiing, so you have a good local market for rentals. Other than that I have only been there a couple of times and found it delightful myself - but that is not to say that what would please me would please others.

    Word of warning on your potential purchase : check your preliminary contract for real completion date (Act 16 in Bulgaria) and penalties for non-completion. Verify use of facilities. Also check rental situation and if you can, get a deal with a major tour operator if the developer has not done so.

    At Pamporovo "The Wall" is challenging yet fun and the ski instructors are good. Great snowboarding too. Food and drink is very reasonable and there are some good restaurants (although not the best cooking in Bulgaria as in any resort). The TV Tower has a resto and a great view of the whole of Pamporovo. The Old House restaurant is good. The White Hart and Daks are great for music and atmosphere. Everyone who has tried the snowboarding at the Snow Shack says they have had the time of their life. Not the most developed of ski resorts (but there is still building going on) but I do know of people who have been back four times so it can't be all bad. The actual "resort" itself could be considered almost 'non existent' by western European or American standards as it is so small - but the pine forests in which it is set are beyond anything you will find anywhere. Good place for a group of mixed intermediates and beginners.

    Will certainly be sold to skiiers and those looking for a summer vacation as a "value for money" destination right now.
     
  18. mickthepropertyguru

    mickthepropertyguru New Member

    Ok, here is an investment perspective.
    I haven't been there. But i have worked in the industry and know Bansko and the Black sea coast very well. I mean, if you want a holiday home because you enjoy skiing, great! If you are looking for investment, you are in the wrong country and you will regret it like the thousands of others. Terrible rental, Terrible appreciation and forget about selling it.
    You say you have done some research ? well, you are looking in all the wrong places.
    If a developer is offering a five year payment scheme, you are asking for trouble getting involved.
    Pamporova had all the hype that Bansko had 5 years ago, extra 200km of piste, airport, golf course and the rest of the bull that goes with the pitch.
    Why don't you ask people instead of what they though of Pamporova, would they buy for investment ? big difference.
    You need to talk to investors who are renting at the moment, who have owned for a few years and who know what they are talking about, not people who have been there and think its great....................but wouldn't buy there.
    In Bansko which is arguably more popular with internationals, you would be lucky to get 5 weeks rent.
    And who ever tells you that you get what you put into rentals in terms of work and websites...they have an agenda of their own that they wont admit.
    It wont pay for itself...........
    Tour operators.......... I don't even know the development, but i guarantee it has no agreement with any tour operator. If it had, you would have been pitched it 100 times already.
    Thats my opinion anyway :) Good luck ;)
    By the way, there is no such thing in Bulgaria as limits on developments, you will find that there is no law to support that. Its a PITCH.
    Portugal is the only true country that has a law that is upheld in terms of building height and density and probably the south of France.
    Have a look at Bansko.............., disaster.
     
  19. sheenbg

    sheenbg New Member

    TO INVEST OR NOT TO INVEST IN BULGARIA?
    well happy new year to all and to all the people who are considering to invest Bulgaria or who were considering and not made a move yet you have done the rigth thing especially if you were to buy apartments, villas or anything with concrete mortar and stones......
    Why well I have been here 4 years and have seen it all when people have bougt from 1200euros and up but now it is all down to 600Euros
    I will put it simple the cost of construction in Bulgaria is around 400 to 500Euros while the land price and every other thing works to be another 100 to 150 max and the developer should not be that greedy to make 100%+ profit which was the case as always before.
    The bottom line is if you look around today a number of resales are taking place at half the value.
    I know a lot of properties around the famous resorts which are going for less so if anyone wants to invest today he/she will make a healthy profit in the next 5 years if bought at the right price today.
    The price to pay is nothing more then 800Euros on the beach as well as the ski resorts and nothing more then 1000Euros in the main 5 cities and i mean the very heart of the first or second line of the beach and same applies to the ski lifts.
    Look hard and don't rush is what I have always advised.
    On the other hand land has been a good investment and still is especially agricultural land which has always seen a rise in the value but no one wants to see just land they want to feel the concrete on it so if you are the many who want a house or a home everywhere the value of this things will not make you more then the land.
    Never and it is proved by top investors that land is the best assest to have and will fetch more money in a long run then any bricks and mortar as the investment is low while the returns are high.
    So best of luck to all of you and hope to see you all in this forum
    Sheenbg.
     
  20. web2dude

    web2dude New Member

    As many people here have noted, great idea initially when property 'goes up in value' but if you can't realise any profit by making a sale or renting it out, then what's the point?!
     
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