Buying Property in Bulgaria : How to Avoid Making A Bad Investment

Where is it possible to buy a property on your credit card? Bulgaria, of course! With thousands of potential property buyers seduced by Bulgaria's bargain property prices, the temptation is to think that making a solid return is a no-brainer! Searching the Internet, dozens of articles and property websites boast about the 100% capital growth that can be achieved on Bulgarian property investments in the space of 12 months.

For first time investors with small budgets looking for a step onto the property ladder, this seems like an opportunity almost too good to be true! The result is that thousands of novice speculators and second homebuyers are flocking to Bulgaria to cash in on the investment opportunities it offers. But as the saying goes, if it's too good to be true, well then, it probably isn't.

Property prices are rising significantly but largely in the more established and more desirable tourist hotspots. Investing along the Black Sea coastline and areas within 10km of the two major ski resorts, Barovets and Pamporovo, is likely to yield a healthy 60-80% capital growth in one year. Buying a new apartment in these areas can cost as little as ?30,000 and is likely to be solid investment, since they can be easily let to the increasing number of tourists coming to experience the delights of Bulgaria.

A quick trawl through the Bulgarian real estate portals and you're likely to find 100's of properties under ?15,000. With prices like this, the temptation is to rush in and buy, sometimes without even seeing the property. It is wise not to be carried away by the prospect of a property at this price doubling its value in one year. The problem with many of these properties is that they tend to be located in Bulgaria's most isolated and rural areas. These areas are often weak on infrastructure and services and may lag behind the rest of Bulgaria for many years to come.

Investing in Bulgaria's more established locations, such as Varna, Sofia or Barovets, may seem more expensive for the budget investor. But when you consider the headaches and additional expenses that come with renovating an old property in rural Bulgaria, as well as the language difficulties, your budget buy could prove not to have been such a bargain after all! Also, these properties could very well be difficult to rent. Although Bulgaria is growing in popularity with eco-tourists, this tourist sector has not taken off to the same extent as the more traditional ski or sun holiday destinations.

Consequently, the likelihood of property prices rising as dramatically in isolated areas is very slim. Even if property prices take a huge leap upon Bulgaria's entry to the EU in 2007, the chances are that they will increase in rural areas by 15-30% at most.

The situation is similar in Spain and makes a good example. Though Spain saw property prices increase by over 100% on joining to the EU, it is still possible even now to find properties in the most isolated, inland areas for as little as ?35,000. These areas are only now gaining the interest of property buyers priced out of Spain's more desirable locations.

The situation will be similar in Bulgaria. Tourists will flock to the ski resorts, the Black Sea coast and the more popular mountainous regions. Consequently, developers will continue to invest in these areas. New developments will attract more buyers and more tourists and the areas will see continued capital appreciation on investments. Isolated areas, lacking amenities and services will be overlooked and property prices in these areas will remain significantly lower than the rest of Bulgaria.

For intrepid investors willing to take a long-term view on their investment and wait 15 to 20 years to see significant returns, then cheap isolated properties may be worth considering. But the certainty of a return and the ability to approximate what that return will be is far more likely with properties in the more established Bulgarian destinations.

Tracey Meagher runs and maintains PropertyAuthors, a website offering freely downloadable property investment ebooks and articles. She also maintains the Bulgarian Property Newsdesk weblog. Visit http://propertynewsdeskbulgaria.blogspot.com for further information and advice on buying property in Bulgaria. For free articles on investing in property visit http://www.proeprtyauthors.com

In The News:


Motherboard en_us

Will Hurricane Irma's near miss sink Miami real estate prices?
Miami Herald
After a nerve-racking week of waiting and watching, South Florida was spared the worst of Hurricane Irma's 185 mph winds. It's too soon to tell if Irma will have any substantial impact on South Florida real estate. Empirical evidence will take a few ...
Miami's Close Call with Irma May Make Climate-Blind Real-Estate Developers More RecklessMotherboard en_us

all 610 news articles »

Seeking Alpha

Aon To Acquire The Townsend Group For Real Estate Advisory
Seeking Alpha
Townsend provides real estate advisory and management services for pension funds from offices in the U.S., London and Hong Kong. Aon wants to add AUM and bolster its real estate asset class capabilities with the deal, which appears to be a smart move ...


MyPalmBeachPost

After Hurricane Irma: Will home real estate sales stay strong?
MyPalmBeachPost
Lenders have required re-inspections on all homes to ensure that properties backing mortgages are intact, said Alex Garcia, a senior agent for Redfin real estate brokerage. Many re-inspections had to wait until the power was restored at properties, he ...
After Hurricane Irma, real estate broker checks up on Palm Beach homesPalm Beach Daily News

all 4 news articles »

CoinTelegraph

Blockchain Laying Foundations for Real Estate Market: Experts
CoinTelegraph
An overview with experts opinion on how Blockchain has managed to improve real estate around the world.

and more »

CBS Miami

Scammers Stealing Down Payments By Hacking Real Estate Agents' Email Accounts
CBS Miami
“The timing was impeccable, actually,” said Kristina Soloviena, a real estate agent. Like most realtors, Soloviena emails clients all day long. However, a year ago, unknown to her, criminals hacked her Gmail account, monitored the correspondence ...

and more »

The Real Estate View For A Second Lost Decade
Seeking Alpha
The National Association of Realtors (NAR) reports today that sales of existing homes in the US were down 1.7% in August 2017 from July. At a seasonally-adjusted annual rate of 5.35 million, that's the lowest pace for resales since July 2016. It is yet ...

and more »

Forbes

Two Smart Long-Term Real Estate Options
Forbes
But if you think you're going to make it, now might be a good time to take a serious look at where you want to establish your business. Long-term business real estate planning means either direct ownership or long-term lease. I've covered the direct ...


CNBC

Trump lawyer: Moscow Trump Tower 'solely a real estate deal'
CNBC
The proposal to build a Trump Tower in Moscow during his presidential election was "solely a real estate deal and nothing more," says Pres. Trump's lawyer.

and more »

HousingWire

Former attorney gets 3+ years in prison for defrauding real estate investors
HousingWire
A former attorney from New York will spend more than three years in prison for defrauding real estate investors out of at least $1 million. According to the U.S. Attorney's Office for the Southern District of New York, Brandon Lisi received a sentence ...


Forbes

Unusually Large Loans Mask Decline In NYC Commercial Real ...
Forbes
Last quarter's biggest commercial real estate loans in NYC aren't just big, they're really, really big. The size of those loans appears to be masking what would ...

and more »
Google News

Buying Houses: Types of Bargains to Find

To make a good profit in real estate, you must... Read More

How To Buy Property in Spain Safely

Buying property abroad is not an undertaking one should embark... Read More

Not Everyone is Buying or Selling, Some are Doing Both

As if one real estate transaction is not hectic enough?... Read More

Selling Houses: Psychological Effects of Landscaping

Buyers think they care more about the inside of the... Read More

Flipping Fixers: Using Transformation Psychology for Top Dollar

Satisfying and lucrative real estate investment depends upon your correct... Read More

Home Buying: Things To Keep In Mind

So you've decided you want to own a home and... Read More

Branded Email in the Real Estate Industry

Branded Email in the Real Estate IndustryYou're in the real... Read More

Prepare Your Property Like A Pro And Boost Profits

The housing market is hot, and you've decided to list... Read More

Build Your Retirement By Investing In Real Estate

Most people buy one or two properties. One is their... Read More

Kings Bay Georgia Real Estate - Be Picky When You Choose your Realtor!

I have been a mortgage lender for many years and... Read More

What To Expect In Closing Costs On A Home Purchase

Many are taking advantage of this year's low mortgage rates... Read More

Russ Whitney and Real Estate Investing Gurus

There is curently a huge real Estate boom in America... Read More

The Real Estate Bubble Fallacy

There has been a lot of talk lately about the... Read More

Real Estate Internet Marketing Is The Way To Go

Real estate Internet marketing is a booming business, along with... Read More

What You Can Do To Sell Your Home Fast

Yes, you want to sell your home and you want... Read More

Purchase Your First Home with Confidence

If you are making the transition from renter to homeowner,... Read More

How Do You Profit From O.P.P.?

In a previous article we introduced you to the concept... Read More

Regarding Real Estate On Leased Land

1.Why are there so many properties on leased land?There are... Read More

The Professional Investors Plan

The art of using high-leveraged activities.Here I would like to... Read More

Real Estate Investing ? Finding Cheap Houses

Real estate investing expertise can certainly accommodate the luxury home... Read More

How to Build Your Free House

What if you could "place an order" for the construction... Read More

Property Investing Secrets 3

Property Investing Secrets: When you Make Property Easy to Buy... Read More

Time Is A Major Real Estate Wealth Growth Tool, So Use IT And Watch Your...

In Real Estate "Time" is a Wealth Development ToolsReal estate... Read More

Appraisal vs. Market Value: How to Avoid Pitfalls in the Sale of Your Home

When you sell your home, appraisers use comps (comparable market... Read More

Home Inspection Checklist - Home Inspectors

Although architectural details, wall and floor coverings, modern conveniences and... Read More