|Real Estate Information|
Why Not To Invest In Bulgarian Property
According to research carried out by the Thomson Group, owning a property abroad is now the ambition of over 50% of the British population. Not surprisingly Spain and Cyprus remain the most popular destinations for second home buyers while countries like France, Italy and Portugal continue to grab their fair share of the property investment gold rush!
While the usual suspects will always attract the more cautious, risk aversive investor, the most recent generation of property investors can't seem to get enough of what our Eastern European neighbours have to offer. Eye-popping prices in the former communist states draw thousands of us to the shores of countries practically unheard of before they popped the for sale sign into the national soil. None, more so than Bulgaria and let's face it, people knew that a property in Bulgaria could be picked up for Ł5000 long before they could point to Bulgaria on the map.
So what's the big attraction? Well, unless you've been hiding under a rock for the past twelve months you'll know that cheap property prices, the promise of high capital growth, pending EU membership and spectacular scenery are just a few of the treasures attracting investor cash to the country and some might ask what else could an investor ask for?
But is Bulgaria really as good a deal as it's made out to be? Sure, you can buy a beachfront apartment in a sunny resort for Ł35,000 but step outside the apartment and what have you got? Resorts like Sunny Beach, the largest of the Black Sea tourist hotspots are devoid of character and charm, much like the rest of the country. The 8kms of beach that makes up the resort is spattered with concrete blocks built ad hoc along the coastline with the sole aim of attracting foreign cash. Move away from the resorts into the towns and cities and the influence of the communist era is vividly apparent in the bland former communist blocks that define much of the local architecture. Many consider Sofia, the country's capital, a run-down dilapidated city and one most definitely not famous for its sites and culture. Not surprisingly, the tourist industry hasn't developed as it has done in some of Eastern Europe's more attractive cities and so Sofia remains one of the cheapest capital cities in Europe in which to buy property.
While the situation is improving and efforts are being made to regenerate the city, it's not happening quickly enough. One tenth of the population live in Sofia and young Bulgarian's are fleeing the country in thousands. It is estimated that more than one million Bulgarians live abroad, forced to seek better opportunities in more developed economies. In a country with a population of only 8 million, this is a significant figure. The implications are quite apparent too. If Bulgarians are leaving the country and foreigners continue to stimulate development by buying cheap properties in places like Sofia, supply will greatly exceed demand. If developers continue to build at existing rates and Bulgarians continue to leave at existing rates, some predict many thousands of empty apartments in five years time.
Another measure of a healthy property hotspot is the number of individuals and families relocating. Every year, hundreds of thousands of people relocate to Dubai, another popular emerging market. Families stay away from Bulgaria. An extremely underdeveloped educations system, run-down schools and the language are obvious put-offs for expats considering a new life abroad and these are issue not likely to change in the near future. Educational facilities are quite often low priority on the government agenda in growing economies. Despite Ireland's miracle success over recent years, many of its rural schools are still in need of renovation and this remains a contentious grass roots political issue in many of the rural communities.
While pending EU membership is contributing to major reforms in Bulgaria, weeding out corruption and improving economic and bureaucratic structures, that fact remains that EU membership is not necessarily the magic wand that will turn Bulgaria into the new Ireland or Spain. Bulgaria has worked hard to meet the deamnds of Brussels so far fulfilling 26 of the 30 requirements for EU membership and like many of the new EU states aspires to be the next Ireland. Unlike Ireland prior to receiving EU funds, Bulgaria does not have a fully developed commercial/financial base. Bulgarians have until this year been unable to access mortgages. Ireland also had a relatively small population that helped spread the benefits of direct foreign investment. It managed its EU aid well, pushing funds in projects of lasting value. The property boom was created on the back of a well-managed economy that rapidly increased growth in income per head. Unlike many of the new EU members, Ireland did not rely on the property market to boost and stimulate the initial stages of economic development. The only country that has succeeded in doing this to date is Dubai and many agree that this speculator driven market is in danger of overheating leading to a much feared burst bubble!
Leaving these macro issues aside, Bulgarian property investment poses problems at the micro level too. While buying a new build might be straightforward enough, buying older homes not only raises issues with the need to create a company with which to buy the land but also raises concerns about title. It is not unusual for older Bulgarian properties to have multiple owners. All owners must agree before a sale can be agreed and ensuring that the title is legally and rightfully transferred can be a tricky process. The last thing you want is to move into your new mountain home, painfully restored to find Mr. X knocking on your door six months later claiming he still has part ownership of your new home.
For those who do wish to invest in Bulgaria, the safest option is to buy properties on the ski slopes or properties on the Black Sea coast where rental income is tourism driven and high capital appreciation is more likely. The tourist season is longer in the ski resorts and so slope properties offer better rental yields. Bear in mind when buying older homes that the resale market in Bulgaria has not yet developed. With so many developers offering new and off-plan property, single houses sell far less quickly and those interested in second hand homes are usually bargain hunting at the lower end of the market.
What I have tried to do in this article is combat the blind optimism that many investors seem to develop when they find what they believe is a bargain property hotspot. Sure property in Bulgaria is extremely cheap but a bargain is defined by value for money rather than low cost and there is still a great amount of uncertainty about Bulgaria's future. All going well, the country will find the path to success and develop into a strong and competitive economy. My word of caution is that it may not shine as brightly or as quickly as investors anticipate.
Tracey Meagher is a property advisor and journalist. She owns and maintains Property Newsdesk, an information website that reports property news from around the world. Email any property related questions to email@example.com
The Pipeline: Commercial real estate roundup for 5.29.20 RichmondBizSense
Here's why some believe COVID-19 could be boost to rural real estate markets Record Searchlight
Real estate thought leader reflects on how Covid-19 has changed the industry - Charlotte Business Journal
Real estate thought leader reflects on how Covid-19 has changed the industry Charlotte Business Journal
Rebuilding America: Ohio real estate market recovery likely will take months, experts say - The Newark Advocate
Rebuilding America: Ohio real estate market recovery likely will take months, experts say The Newark Advocate
Hamilton County real estate transactions, May 21-27, 2020 Chattanooga Times Free Press
Triangle's commercial real estate market could recover faster than other cities post pandemic, experts say - WTVD-TV
Triangle's commercial real estate market could recover faster than other cities post pandemic, experts say WTVD-TV
Back to the drawing board: Reimaging commercial real estate development projects in Miami - South Florida Business Journal
Back to the drawing board: Reimaging commercial real estate development projects in Miami South Florida Business Journal
Nashville Commercial Real Estate Wrap-Up â€“ May 2020 Commercial Property Executive
Miami County Real Estate Transactions Troy Daily News
Real Estate Transactions: May 29, 2020 The Recorder
Low interest rates and remote touring help real estate agents regain footing during pandemic - SouthCoastToday.com
Low interest rates and remote touring help real estate agents regain footing during pandemic SouthCoastToday.com
How to Underwrite Real Estate Acquisitions During Volatile Markets Commercial Property Executive
Portland real estate predictions: A summer spike in homes for sale, desire for a built-in hygiene station - OregonLive
Portland real estate predictions: A summer spike in homes for sale, desire for a built-in hygiene station OregonLive
Real estate market hasn't slowed, looks bright as Montana reopens Great Falls Tribune
Amid real estate turbulence, Adirondack brokers see upswing | News, Sports, Jobs - The Adirondack Daily Enterprise
Amid real estate turbulence, Adirondack brokers see upswing | News, Sports, Jobs The Adirondack Daily Enterprise
Rebuilding America: Local real estate agents say homes are still selling despite coronavirus - Lansing State Journal
Rebuilding America: Local real estate agents say homes are still selling despite coronavirus Lansing State Journal
Real estate tax hike withdrawn; Pa. covers school shortfall KYW Newsradio 1060
Public Record: Muskingum County real estate transfers Zanesville Times Recorder
Clayco development arm hires Chicago real estate veteran Jack Higgins Crain's Chicago Business
The real estate market is hot, even despite the Pandemic FOX21News.com
Real estate market to open up with increased interest from NYC buyers Poughkeepsie Journal
Rebuilding America: Palm Beach real estate agents expect busy summer by all indications - Palm Beach Daily News
Rebuilding America: Palm Beach real estate agents expect busy summer by all indications Palm Beach Daily News
Genelle Deist Earns Prestigious CRS Designation for Real Estate - The Audubon County Advocate Journal
Genelle Deist Earns Prestigious CRS Designation for Real Estate The Audubon County Advocate Journal
Inside Real Estate Launches CORE Video, Giving kvCORE Users Powerful New Video Messaging Tools Powered by BombBomb - RisMedia.com
Inside Real Estate Launches CORE Video, Giving kvCORE Users Powerful New Video Messaging Tools Powered by BombBomb RisMedia.com
Real estate commissions: Who pays whom? Washington Post
BVK puts $324 million to European real estate debt fund Pensions & Investments
NY releases guidelines for offices, retail shops, real estate and other phase 2 businesses - syracuse.com
NY releases guidelines for offices, retail shops, real estate and other phase 2 businesses syracuse.com
Recent Commercial Real Estate Transactions The New York Times
Real-estate transactions: May 29, 2020 - News Peoria Journal Star
Post-pandemic real estate market sees thinner housing stock, more buyers and more rules for showing - The Gardner News
Post-pandemic real estate market sees thinner housing stock, more buyers and more rules for showing The Gardner News
Berkshire region real estate sales May 10-16, 2020 â€“ The Berkshire Edge theberkshireedge.com
Low inventory drives high demand in Vermont's real estate market during coronavirus pandemic - Burlington Free Press
Low inventory drives high demand in Vermont's real estate market during coronavirus pandemic Burlington Free Press
How the pandemic has changed the real estate market in Calhoun County Battle Creek Enquirer
Real estate market bouncing back from COVID-19 The Daily Telegram
Wichita businessman with $100M in real estate transactions joins J.P. Weigand & Sons - Wichita Business Journal
Wichita businessman with $100M in real estate transactions joins J.P. Weigand & Sons Wichita Business Journal
REAL ESTATE Hometown Focus
LandSearch Launches Real Estate Platform with over 400,000 Properties to Modernize Land Marketing - MarTech Series
LandSearch Launches Real Estate Platform with over 400,000 Properties to Modernize Land Marketing MarTech Series
Real Estate Transfers For May 21-27 The Chattanoogan
Low inventory, high demand. How long will real estate opportunity last?: Rebuilding America - The News Leader
Low inventory, high demand. How long will real estate opportunity last?: Rebuilding America The News Leader
[Webinar] McDermott Fundamentals Webinar Real Estate Fund - Roles Of The Actors In The (Real Estate) Fund Business - June 10th, 10:00 am - 11:00 am CEST - JD Supra
[Webinar] McDermott Fundamentals Webinar Real Estate Fund - Roles Of The Actors In The (Real Estate) Fund Business - June 10th, 10:00 am - 11:00 am CEST JD Supra
With mortgage rates low and safety measures in place, Athens real estate industry adjusts to pandemic - Online Athens
With mortgage rates low and safety measures in place, Athens real estate industry adjusts to pandemic Online Athens
Rebuilding America: San Angelo real estate continues to thrive, despite COVID-19 concerns - Standard-Times
Rebuilding America: San Angelo real estate continues to thrive, despite COVID-19 concerns Standard-Times
Alabamians refinancing, holding on to homes in tight real estate market Montgomery Advertiser
Ask a real estate pro: Now that weâ€™re divorcing, what can I do to force the sale of our home? - South Florida - Sun Sentinel
Ask a real estate pro: Now that weâ€™re divorcing, what can I do to force the sale of our home? - South Florida Sun Sentinel
An Overview Of Jersey's Commercial Real Estate Market During The Current Crisis â€“ A Virtual Discussion - Real Estate and Construction - Jersey - Mondaq News Alerts
An Overview Of Jersey's Commercial Real Estate Market During The Current Crisis â€“ A Virtual Discussion - Real Estate and Construction - Jersey Mondaq News Alerts
How COVID-19 has affected the local real estate market East Idaho News
How millennial real estate investors have shifted their strategy in response to the coronavirus pandemic - CNBC
How millennial real estate investors have shifted their strategy in response to the coronavirus pandemic CNBC
Tilman Fertitta warns of real estate bust on CNBC's 'Power Lunch' Houston Chronicle
Real estate sales going fast during coronavirus crisis Boston 25 News
How Unemployment - And Access to Credit - Are Impacting Real Estate Market: Northpointe's Levesque - GoLocalProv
How Unemployment - And Access to Credit - Are Impacting Real Estate Market: Northpointe's Levesque GoLocalProv
How will Covid-19 impact commercial real estate pricing in Charlotte? Here's what local pros say - Charlotte Business Journal
How will Covid-19 impact commercial real estate pricing in Charlotte? Here's what local pros say Charlotte Business Journal
Despite unemployment, Metro Detroit real estate market booming WDIV ClickOnDetroit
Real estate: The coming crash in commercial property Tahoe Daily Tribune
COVID-19 and its side effects have kept rural Pa. real estate agents busy - The Philadelphia Inquirer
COVID-19 and its side effects have kept rural Pa. real estate agents busy The Philadelphia Inquirer
New owner for Lewiston's Pamco Mill, new real estate office opens in Auburn Lewiston Sun Journal
News Analysis: Egypt's real-estate sector resilient though impacted by COVID-19 - Xinhua | English.news.cn - Xinhua
News Analysis: Egypt's real-estate sector resilient though impacted by COVID-19 - Xinhua | English.news.cn Xinhua
Bellingham man suspected of stalking, harassing ex-real estate agent Bellingham Herald
RioCan Real Estate Investment Trust Schedules Date of Second Quarter 2020 Earnings Release, Conference Call and Webcast - GlobeNewswire
RioCan Real Estate Investment Trust Schedules Date of Second Quarter 2020 Earnings Release, Conference Call and Webcast GlobeNewswire
Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties, May 24, 2020 - masslive.com
Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties, May 24, 2020 masslive.com
A $100,000+ Discount On Miami Condos
By this point and time, many people have heard about buying preconstruction condos and some of the amazing profits that have been generated by these investments. What many people don't understand is that there is another way to play the preconstruction investing game, especially for those investors with solid financial resources.
Purchase Online Tenancy Agreements
Buy an on-line Tenancy Agreement now. As a landlord and also as a tenant it is important that there is a comprehensive tenancy agreement in place to protect both parties.
First-time Home Buyers - 100% Home Loans
There is an increasing trend in South Africa that is seeing youths entering property market at a much earlier age. These youths are mostly first-time home buyers, applying for their first home loan, who have been renting for a short while and feel the need to invest in a property of their own.
Negotiating and Sales Skills Are Critical
When I first started getting active in creative real estate, my skill set at negotiating was very weak. I had done the telemarketing thing for American Express as a financial planner and had studied and learned a few techniques.
Real Estate Investing - The Dream House Effect
Several years ago I developed a philosophy in renovating houses which resulted in a finished product that I call a "Dream House" or "Doll House."How many houses on the market today look very ordinary and less than perfect? How many look "Plain Jane?" What is the difference between these "average" houses and the house on the block that is strikingly different at even the distance of a windshield view?The pronounced difference in the outstanding property offered for sale might be brilliant new lawn grass.
Investment Real Estate: An Inexpensive Way To Get Started
If you are considering getting involved in investment real estate, let me offer some of the amazing information available in my wealth-building system, Winning the Mortgage Game. In several parts of my system, I outline a strategy for getting started in investing in real estate, without being a landlord.
Investing In Commercial Property
Why commercial property?Compared to residential property investments, commercial property offers some key advantages:Long-term secure cashflow -- Commercial lets normally have long lease contracts, with periods of 10 years and more not being uncommon. In addition to this, commercial property tenants are less likely to default on payments and even if the tenant goes into liquidation, the liquidator may continue paying the rent in order to stop the lease being forfeited.
Researching Property for Real Estate Investing
Much is being said lately about investments. There are many investments that one could make: stocks, notes, gold, retirement plans, etc.
Join the Bulgarian Property Boom With Confidence
An Irish property investor in Sydney, Australia has created an investment kit that provides potential buyers with all of the relevant facts, figures and information to confidently buy Bulgarian property, which grew an average of 30% in 2004. "Bulgarian Property - The Overseas Buyers' Kit" contains a complete guide to the tax and ownership laws, calculators and various information-gathering templates.
Real Estate Financing - Ten Ways
Do you remember when real estate financing meant you saved up enough to put 20% down on a house, and then you got a mortgage loan for the other 80%? Well, you can still do that, but there are many more options now. Here are ten of them.
Should You Allow Buyer To Rent During Closing?
It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.You're a bad guy if you refuse and often in hot water of you agree.
Why Real Estate Investment?
Why should you invest in real estate? Well, investing in real estate for profit is one of the most popular approaches to generating additional income in the United States today. In fact, if you pay attention to recent press you will have seen numerous reports about the real estate investment craze that seems to be sweeping the Nation.
Cutting Edge Real Estate: Is There Anything New? Part 1
The world of real estate has pretty much stayed the same for decades. It's no different today than it was 50 years ago.
Rental Property Management - Ten Questions
Why hire rental property management? Because doing it all yourself is the surest way to make your real estate investment experience a bitter one. You also have more time to find the next deal when there is someone taking care of the details for you.
Selling by Owner = Saving by Owner?
According to the National Association of Realtors, For Sale By Owner (FSBO) home sellers comprised nearly 14% of all home sales in the United States in 2003. The Boston Globe reported that nearly 25% of homes sold in that area during that same time period were FSBOs.
European Second Home Prices Wilt in Drought
Spain and Portugal have suffered one of their worst droughts on record this summer, with consequences from empty swimming pools for the tourist to economic disaster for farmers losing their crops and livestock.Roger Munns, Managing Director of Tribune Properties, predicts that property prices in the two European countries could drop as much as fifteen per cent in some areas as more owners decide to put their villas and apartments on the market.
Tax Deferred Exchanges of Investment and Business Real Estate
The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034 exception is gone.
Flipping Fixers: Using Transformation Psychology for Top Dollar
Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of course, but your ultimate success depends on your ability to transform a fixer into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits.
Do You Want To Sell Your Rehabs Fast?
That's an obvious question - we all do! So what is the trick? So much time and money is spent on systems updates, roofs, and structural issues, that many times there's nothing left for what really makes the sale: what your potential buyers see. And more importantly, what they fall in love with.
Real Estate Investing in Rentals - the $10 Million Real Estate Investing Mistake
Renting to tenants is no longer "where the money is" for real estate investing. I became a multi-millionaire landlord in the 1980s by buying $10 million in rental houses.
|home | site map|
|© 2006 TIGER MEDIA|