Bulgaria Property Investment- The Three Keys To Maximum Profit

Property investment in Bulgaria can make you a whole lot of money if you do it right. Do it wrong and your money will be tied up in bricks and mortar that nobody wants. Here are the three major factors you must bear in mind to make yourself the maximum profit.

Location, location, location.

You have heard the phrase a million times before and it applies in Bulgaria the same as everywhere else. It is absolutely critical that you choose the right location for your investment to maximise your profit.

If you are buying on the coast, buy as near to the sea as you can. On a golf course, as near to the fairways as possible. In the mountains, on top of the ski lifts if possible. In the cities you need to be close to all transport links and in the ‘hottest’ districts.

Buy the best you can afford.

The whole point of property investment is to make a profit when you sell. The easier and quicker you can move the property on, the more profit you stand to make. For that reason you must stand in the shoes of the next buyer when you look at any property.

The properties with the best features and in the best condition nearly always sell first. Apartments with great onsite facilities like pools, gyms, restaurants, parking, stunning views and balconies always sell faster and for more, than those without. Country houses finished to Western standards and with all amenities perform much better than renovation projects.

Keep your costs to a minimum.

Buying anywhere abroad can be time consuming and frustrating. Be careful to buy through an established agent who will assist you in all aspects of the purchase.

The agent should not only find the ideal property for you but then deal with all communication with the developer or vendor. They will save you time and money by doing all the legwork for you and can even save you thousands on the currency exchange when it comes to actually paying.

Bulgaria is a surging market that is set to explode in 2007 when Bulgaria joins the EU. The profits to made in property are staggering as prices are going up by over 30% per year. You can maximise your returns by simply following the guidelines above.

Romania Is Not Like Bulgaria – Property Market Overview

Useless to say that Bulgaria is promoting itself as a great investment opportunity. I’m not assuming is not, I just claim that Romania is a better and safer investment and with bigger potential.

WHY?

Put yourself a few questions:

How often have you read or saw a commercial about investing in Bulgaria? I think quite a lot.
How often have you seen Romanian properties having commercial promotion in international media? Not that often!

This is not because developers in Romania don’t know anything about marketing. In fact they are big international developers with experience in markets like Spain and Israel. They don’t need to market outside Romania because they rely on local demand. This is a sign of very healthy market and fantastic potential. This is the sign that your investment will grow safe.

Bulgaria is promoting itself as the New Spain and for now it works. The investors are buying properties in hope to rent them to a growing number of tourists. Also they hope someday they will sell the house to someone who will pay twice the initial price.

Will the tourists arrive? Sure, but just because Bulgaria is cheap. Otherwise the tourists will go to Greece, Spain, Italy or France. And being cheap the Bulgarian investment won’t offer much of a rent.

Will it sale in big profit? This is really a difficult question. People would buy houses in Bulgaria mainly because it’s cheap. Yes, the country is nice, but is not as attractive as Spain, has no warm winter like Cyprus and is not seductive like Italy or France. So if the properties are too expensive they simply won’t sell. Doubled the actual prices and you will be able to buy a nice big house in fantastical landscape of Croatia or a flat in highly desirable Spain. This is why your profitable exit from Bulgarian property market is so questionable.

Romania is different. The property market is local demand orientated. The continuously increasing middle class provides a market for renting and selling properties with supply unable to satisfy demand for at least 15 years. This is your profitable exit.

CONCLUSION:

While Bulgaria real estate market growth depends mainly on foreign buyers, Romania property market is strongly pushed up by local demand coming from the new, very active and successful middle class. Amplified deal flow is expected for the next 10-15 years while the market supply and demand will likely to gain balance. Foreign investors will have a positive role but will not represent the main engine of this strong trend.

The Bulgarian Property Market-Fantastic Choices- Fantastic Returns

Bulgaria is currently the European property investment hotspot. Prices are rising steadily at 30% per annum and are expected to leap forward when the country becomes a full member of the EU in 2007.

Bulgaria is a truly remarkable country with a varied terrain. Not only can it offer city, coastal, mountain and rural properties but the vast amount of real estate that is available to buy, also comes with prices that will fit into everybody’s budget.

Coastal properties.

The waters of the Black Sea are actually warmer than those of the along the Spanish mainland throughout the summer months. Popular investment locations are Sunny Beach, Golden Sands and Varna. Up and coming destinations include Nessebar St. Vlas and Balchik.

The developments that are on offer are predominantly designed as seaside holiday apartments. However there is also now a fast-growing golfing market that is being catered for with new developments either in construction or planned. Prices can be from as low as £20,000 for a studio apartment to £100,000 for detached villas on the golf resorts. Instant equity and guaranteed rental are also available in certain complexes.

City apartments.

Sofia as the capital and Plovdiv as the second city, are the two main areas for growth. Real estate in Sofia is currently around 25% of the cost of other European capital cities. Plovdiv is even cheaper, with prices around EUR400 to EUR500 per square metre.

The cities offer an excellent investment choice, with good rental expected from companies relocating to Bulgaria. Corporate lettings can offer consistent guaranteed rental with minimum risk. Prices range from around £30,000 for an apartment on the outskirts of town to over £100,000 for a city centre apartment with excellent facilities. These prices are considerably cheaper than other properties for sale across Europe.

Rural investments.

The countryside really does offer the cheapest real estate. Bulgaria is a magnificently beautiful country. Roughly the same size as the UK, the country has a total population of less than 8,000,000. The infrastructure can pose a problem in more isolated areas, and price increases will probably take longer than the more popular destinations. Nonetheless, detached properties with acres of land are readily available for less than £10,000.

Mountain and skiing real estate.

Bulgaria has three main ski resorts. Borovetz, and Bansko and Pamporovo. The ski season is the longest in mainland Europe. From an investment point of view, the mountaini resorts probably offer the best opportunity for a huge capital gains. The mountains only offer a small, defined area for the development. Once all the available land is built upon, all the existing properties will attract the highest premiums.

Much more informal than other European ski destinations, the Bulgarian resorts offer real value for money. Skiers and snowboarders, appalled by the exorbitant prices charged, especially in France or Austria, will be pleasantly surprised by the ridiculously cheap prices, in all the Balkan resorts. A pint of beer is around 80p and a three- course dinner with a bottle of wine is under six pounds.

The properties available also echo the fantastic value for money, at 60-70% cheaper than other European equivalents. Studio apartments are readily available for less than £30,000 as are two-bedroom apartments in the £60-£80,000 region. The ski season for 2006/2007 is already 75% booked and for those owning property, rental income is virtually assured.

In conclusion, Bulgaria offers a viable investment alternative for everybody. Even with the meanest budget of under £10,000, a fast appreciating property can be bought. For those looking to build an expansive portfolio, all the regions offer fantastic value for money and will return considerable capital gains over the coming years.