Let us create a 3d Digital eBook for you! DigyCat.com
|
||
|
||
|
Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
|
|
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 tracey@propertynewsdesk.com
MORE RESOURCES: Real Estate - Google News It's time to kick off the local real estate market - Half Moon Bay Review
Local real-estate developer shares his love of Mardi Gras - Houma Courier
Many Homeowners and Real Estate Agents Plead Guilty in $20 Million Mortgage ... - LoanSafe
Tossed® Hires Real Estate Veteran A. Michael Toroyan as Chief Development Officer - Sacramento Bee
Seacoast real estate sales off to a robust 2012 start - Seacoastonline.com
Irish Real Estate: This Could Be the Time - TheStreet.com
John Waggoner column: REITs might be good investment to land - Appleton Post Crescent
Real estate developer says he plans to make cash bid for Philadelphia's 2 ... - Washington Post
|
 |
|
|
RELATED ARTICLES
Rehab Foreclosed Houses the Right Way and Keep All the Profits! I've been teaching people how to buy foreclosure properties for a long time.And we all make the biggest profits on the deals that we rehab the right way. How to Show & Sell Your California Home Seller's Showing Instructions1. When the agent arrives with the potential buyers, have the window coverings open to let in as much sunlight as possible. 10 Frequently Asked Short Sale Questions 1. What happens to the seller's credit rating when they allow an investor to short sell their property?What typically happens is the loan will show up as "paid" on their credit report; however there will be a notation that says "settled for less than originally owed" or something along these lines. The Value of Building Home Equity There are numerous advantages to owning a home. One of the serious advantages is the equity that is built over time. Las Vegas Real Estate - Luxury Properties Las Vegas is known for it's over the top hotels and casinos, larger than life celebrities and jaw dropping shows.Over the past couple of years the Real Estate Market has taken center stage breaking national sales records in 2003 and 2004 with record appreciation rates as high as 52%. What is a Foreclosure? A foreclosure is an action taken against a property owner by seizure of his/her real property. It can be for many reasons. Seven Tips in Choosing Maui Income Properties Aloha! If you are interested in choosing a Maui incomeproperty, then there are some details that you should know.You might be a bit intimidated by the whole process ofbuying a home. How to Price Your Property? A house properly priced is half sold. But there are plenty of ways to price it improperly. Property Investing Secrets 4 Property Investing Secrets:How to Sell to 100% of the Market Place Using Lease OptionsWhen property investing, you will find if you make houses easy for people to buy, your properties will become easier to sell. Most people who are selling houses today are selling to the 80% of the population who have good enough credit to qualify for a bank loan. The Listing Contract: Its All in the Details Now that you've chosen a real estate professional to sell your home, you'll need to work together to complete a listing agreement. This legally binding contract authorizes a broker and his or her real estate professionals to find a buyer for your home, according to the conditions specified in the contract. Market Reaching its Peak I do not profess to "Know" what the real estate market will do in the next year or two, but I would like to share some information with you that might help you in making decisions regarding buying or selling property in today's market. The following information relates to the types of mortgages that are currently being taken out by those who are currently purchasing or refinancing homes. Inspecting Your New Home - 17 Areas You Must Inspect Before Taking Possession Congratulations! You've made your decision; you've chosen your new home and your builder. So what needs to happen next? Once you have a firm contract and you have selected the features that will go into your new home, it is time for the builder to turn your dream into reality. 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. Don't Just be a Real Estate Agent, be a Professional! Buyer Broker Agreement? What's that? Most agents don't ask their potential buyers to sign anything. It is too?well?you know?uncomfortable. Walnut Creek Real Estate Looking to relocate to a Californian suburb with a low crime rate, beautiful luxury homes and the convenience of being located just minutes from Oakland and San Francisco? Look no further than Walnut Creek. This city of just over 65,000 people is staying relatively stable in population, but new luxury homes are being constructed in this northern suburb all the time, and there are countless options. Sell Your Home Without Paying Any Commissions All of us know that real estate commissions can work out to quite a bit of money - anything from a few thousand dollars with discount brokers to 6% in commissions with full-service agents. That's a substantial sum of money to be paying for something you could very well do on your own. Making it affordable: Nine tips for first time home buyers It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. Cant Rent a Work Zone So you've picked up your first (or third, or tenth) income property, and it's a real fixer-upper. You've got a great team of contractors, and you know what they need to do and how much time and money it's going to cost to make it happen. How to Sell Your Home Without a Real Estate Agent Considering the rapid rise in home prices over the past several years, home sellers are taking a hard look at the commission they have to pay to a real estate brokerage to market and sell their home. Real estate commissions vary across the country; they average in the four to seven percent range. The Nose Knows If you plan on getting the most from the sale of your home you better be sure it can pass the "sniff" test. Let's face it your home should smell good.
|
|
Looking For Royalty Free Photos for your Website, Business or Advertising?
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2011 |
|
