When everywhere you look you are being told this is a great investment, that prices have risen by xxx% over the last few years, that 1000s of people have invested here and there are new English speaking companies to help – you’ve missed the boat. Be it in stocks, property, commodities – anything. When it’s all you hear about and the tabloids are talking about it, you’re a couple of years too late. Look somewhere else like Albania.
You did’nt say if it was for rental or for your own use. I expect in the long run it will have increased in value, however in the UK house prices are probably increasing at a greater rate.
I heard recently that house prices in my area are increasing at £400 per WEEK. which is unlikely in Bulgaria.
I would say that it is unlikely to lose money in the long-term, depending on demand for the type of property and its location. Bulgaria’s accession to the EU will definitely help increase its value.
However, you should never put all your funds into one investment. It is essential to diversify in order to minimise your exposure to risk. I guess you have bought the apartment to let out and make money. If so you are in trouble if there is flooding/vandalism/drop in interest.
I think in this case you should get away with it, but you are certainly taking a risk with your hard-earned savings.
It depends. If you get the best of the best in the best location, yes then it is. Since there is a law in most European cities that you can’t just demolish buildings and build new ones. This means that they need to keep the facade of the original building and gut it out if they ever want to do any major reconstruction. This is hell expensive to do.
By getting the best of the best the prices will stay locked even if the market should crash. And you can bet that it will. No economic boom outside of the USA has ever really lasted more than 8 or so years and if you take that into account, you can back calculate when the real estate boom in CIS nations will hit the rough spot.
I recommend buying the best since European cities can’t demolish old buildings by law, if you get the best, it’ll retain value since there will always be buyers looking into getting the best apartments. On the other hand if you get a crap hole, well you are crap outta luck since most Eastern Block nations’ real estate is overly inflated. Considering that most of these nations per capita income is less than 200 USD a month and the apartments cost 50, 60 grands for a tiny decrepit crap hole, you’re really looking at an speculated market.
So what’s the point of my answer?
1. Buy the best location. Yes it will cost you upwards of 500 grands and possibly into the millions but it’s worth it.
2. If you got a crap hole, well be prepared to load it off before the market bottoms out. Remember 7 to 8 years is the cycle.
Hope that helps.
don’t know much about your investment it self but Bulgaria represents a very good medium to long term investment overall.
With pending EU membership and more flights to and from there, the economy is growing and has a lot of investment coming to it. Now is the best time to invest there.
Make sure you have reputable property management renting it out for you to give you full value. Also it will potentially double in value in 2-3 years. Consider renting it out as it gives you income whilst being looked after.
Welldone on a shrewd peice of business.
September 20th, 2009 at 6:34 pm
When everywhere you look you are being told this is a great investment, that prices have risen by xxx% over the last few years, that 1000s of people have invested here and there are new English speaking companies to help – you’ve missed the boat. Be it in stocks, property, commodities – anything. When it’s all you hear about and the tabloids are talking about it, you’re a couple of years too late. Look somewhere else like Albania.
September 20th, 2009 at 7:00 pm
You did’nt say if it was for rental or for your own use. I expect in the long run it will have increased in value, however in the UK house prices are probably increasing at a greater rate.
I heard recently that house prices in my area are increasing at £400 per WEEK. which is unlikely in Bulgaria.
September 20th, 2009 at 7:46 pm
Be patient your investment will pay off.
Put all my pennies into Poland 2 years back and can only see a positive outcome.
September 20th, 2009 at 8:25 pm
Very it’s an up and coming country your property will more than double in the next year.
September 20th, 2009 at 8:27 pm
use to be hot recreational resort that is a good potential for renting never been there. you so it you be the judge. no worry
September 20th, 2009 at 9:05 pm
I would say that it is unlikely to lose money in the long-term, depending on demand for the type of property and its location. Bulgaria’s accession to the EU will definitely help increase its value.
However, you should never put all your funds into one investment. It is essential to diversify in order to minimise your exposure to risk. I guess you have bought the apartment to let out and make money. If so you are in trouble if there is flooding/vandalism/drop in interest.
I think in this case you should get away with it, but you are certainly taking a risk with your hard-earned savings.
September 20th, 2009 at 9:22 pm
It depends. If you get the best of the best in the best location, yes then it is. Since there is a law in most European cities that you can’t just demolish buildings and build new ones. This means that they need to keep the facade of the original building and gut it out if they ever want to do any major reconstruction. This is hell expensive to do.
By getting the best of the best the prices will stay locked even if the market should crash. And you can bet that it will. No economic boom outside of the USA has ever really lasted more than 8 or so years and if you take that into account, you can back calculate when the real estate boom in CIS nations will hit the rough spot.
I recommend buying the best since European cities can’t demolish old buildings by law, if you get the best, it’ll retain value since there will always be buyers looking into getting the best apartments. On the other hand if you get a crap hole, well you are crap outta luck since most Eastern Block nations’ real estate is overly inflated. Considering that most of these nations per capita income is less than 200 USD a month and the apartments cost 50, 60 grands for a tiny decrepit crap hole, you’re really looking at an speculated market.
So what’s the point of my answer?
1. Buy the best location. Yes it will cost you upwards of 500 grands and possibly into the millions but it’s worth it.
2. If you got a crap hole, well be prepared to load it off before the market bottoms out. Remember 7 to 8 years is the cycle.
Hope that helps.
September 20th, 2009 at 9:52 pm
don’t know much about your investment it self but Bulgaria represents a very good medium to long term investment overall.
With pending EU membership and more flights to and from there, the economy is growing and has a lot of investment coming to it. Now is the best time to invest there.
Make sure you have reputable property management renting it out for you to give you full value. Also it will potentially double in value in 2-3 years. Consider renting it out as it gives you income whilst being looked after.
Welldone on a shrewd peice of business.