Suzanne
27-02-06, 10:51 AM
Reasons to buy property as an investment in Bulgaria
Strong capital appreciation - gains of 20% plus in the last year Low cost of investment - average cost is 800 - 1100 Euros per square meter in a four star resort More for your money - a one bedroom apartment is large enough to house up to 3 people! Fastest growing tourist destination in Europe Beautiful countryside, historic towns and unchanged rural traditions Popular with the ageing population - UK pensioners spend 1,000 Euros a month in Bulgaria Bulgaria looks set to join EU in 2007and prices should rise significantly at this time Purchasing of Bulgarian property made easier for foreigners from last year.
We would recommend to any member to purchase a property that was not either front-line beach or situated close to the ski lift on a ski resort. We feel that to pay a little more for a property of this nature, on a four star resort (which currently is still only around €70,000!) you are more likely to achieve sustainable long- term growth and relatively higher rental returns. Ski resorts have the competitive edge over a lot of other investment at the present time, due to the fact that the cost of skiing is low in comparison to the rest of Europe and new hotels and apartments are springing up in the main resorts of Borovets, Bansko and Pamporovo to cater for the growing number of tourists.
Growth.
The cost of living in Bulgaria is another reason why visitors and buyers are on the increase.
Living costs are substantially lower than in other European countries and amongst the lowest world-wide.
Whatever your budget, Bulgaria offers considerably better value for money than other European destinations; however, things are changing fast! Growth has been particularly pronounced in the capital and big cities, the coasts and mountain resorts and since last year, prices have increased by 20% on average (which is a conservative estimate. Bulgaria is currently offering an excellent opportunity for investment, comparable to Spain 10 years ago as costs and land prices are amongst the lowest in Europe.
Given this, the best time to obtain bargain investments was yesterday, the next best time is to buy today!
Finance
Bulgarian mortgages do not follow the same pattern as UK mortgages secured on UK properties and currently you cannot obtain an interest only mortgage. To date, the loan is limited to 70% LTV and is strictly on a repayment basis. We understand that, due to prices being so low, most investors choose not to take out a mortgage at all! Most have decided on equity release in the UK as an easier option to fund the investment.
If you need further advice or guidance on finance to buy in Bulgaria then please contact us wwwbulgaria-or-bust.com
Expanding tourism
Bulgaria has only been discovered relatively recently but all the signs are that it is catching up for lost time and it's not difficult to see why - 350km of sandy coastline, snow-clad mountains, more natural mineral springs per kilometre than in any country in the world, warm Mediterranean climate and rich in archaeological and cultural remains to boot!
For the holiday maker, it is incredibly good value for money, for example, a beer in Bansko costs 50 pence compared to ?5 in certain parts of France! It is therefore not surprising that in 2004 Bulgaria entered into the top ten tourist destinations world-wide for the UK and in 2004, ABTA members reported bookings to Bulgaria up by 62% We anticipate that the budget airlines will commence flights to Bulgaria in 2007 which will further increase its appeal and increase the influx of tourists. Current flights start at around £250.
Climate
Bulgaria’s weather is just one of the reasons why the tourist figures have risen so sharply over the last two years. Bulgaria offers both a hot Mediterranean climate as well as skiing in the winter resorts. Generally, summers are longer than in the UK whilst the winters are shorter. From May to September, average temperatures are 30 degrees Celsius and often above in the peak summer period.
Where is it ?
Maps courtesy of www.theodora.com/maps used with permission.
Bulgaria is located in South Eastern Europe and borders the Black Sea between Romania and Turkey. In addition, it shares common borders with Greece, Macedonia, Serbia and Montenegro .As we have indicated above, the country is considered to be an investment hotspot.
With airports located in Sofia, Varna and Bourgas,and hopefully sliven airport will get the go ahead soon. Bulgaria is only a three hour flight away from the UK.
Prospects for joining the EU
Bulgaria joined NATO in 2004 and is striving towards proposed accession to the European Union in 2007. Between now and then, property prices are expected to substantially increase and continue when EU membership has been granted. The foreign ministers from Germany and France each said that the recent 'no' votes would not make a difference to Bulgaria’s membership. After a ten year transition from communism to a functioning market economy, the real estate market in Bulgaria is now approaching the conditions that already exist within more developed countries. Previously, the country's incompatibility with EU membership had meant that there were restrictions on foreign investment in land. This is now removed which has caused an increase in the liquidity of the property market. It is worth considering that any apparent risk in is largely offset by the current low prices, making any 'downside' to investing in this growing country minimal and what we thought a sound investment.
http://www.questbulgaria.com/
Strong capital appreciation - gains of 20% plus in the last year Low cost of investment - average cost is 800 - 1100 Euros per square meter in a four star resort More for your money - a one bedroom apartment is large enough to house up to 3 people! Fastest growing tourist destination in Europe Beautiful countryside, historic towns and unchanged rural traditions Popular with the ageing population - UK pensioners spend 1,000 Euros a month in Bulgaria Bulgaria looks set to join EU in 2007and prices should rise significantly at this time Purchasing of Bulgarian property made easier for foreigners from last year.
We would recommend to any member to purchase a property that was not either front-line beach or situated close to the ski lift on a ski resort. We feel that to pay a little more for a property of this nature, on a four star resort (which currently is still only around €70,000!) you are more likely to achieve sustainable long- term growth and relatively higher rental returns. Ski resorts have the competitive edge over a lot of other investment at the present time, due to the fact that the cost of skiing is low in comparison to the rest of Europe and new hotels and apartments are springing up in the main resorts of Borovets, Bansko and Pamporovo to cater for the growing number of tourists.
Growth.
The cost of living in Bulgaria is another reason why visitors and buyers are on the increase.
Living costs are substantially lower than in other European countries and amongst the lowest world-wide.
Whatever your budget, Bulgaria offers considerably better value for money than other European destinations; however, things are changing fast! Growth has been particularly pronounced in the capital and big cities, the coasts and mountain resorts and since last year, prices have increased by 20% on average (which is a conservative estimate. Bulgaria is currently offering an excellent opportunity for investment, comparable to Spain 10 years ago as costs and land prices are amongst the lowest in Europe.
Given this, the best time to obtain bargain investments was yesterday, the next best time is to buy today!
Finance
Bulgarian mortgages do not follow the same pattern as UK mortgages secured on UK properties and currently you cannot obtain an interest only mortgage. To date, the loan is limited to 70% LTV and is strictly on a repayment basis. We understand that, due to prices being so low, most investors choose not to take out a mortgage at all! Most have decided on equity release in the UK as an easier option to fund the investment.
If you need further advice or guidance on finance to buy in Bulgaria then please contact us wwwbulgaria-or-bust.com
Expanding tourism
Bulgaria has only been discovered relatively recently but all the signs are that it is catching up for lost time and it's not difficult to see why - 350km of sandy coastline, snow-clad mountains, more natural mineral springs per kilometre than in any country in the world, warm Mediterranean climate and rich in archaeological and cultural remains to boot!
For the holiday maker, it is incredibly good value for money, for example, a beer in Bansko costs 50 pence compared to ?5 in certain parts of France! It is therefore not surprising that in 2004 Bulgaria entered into the top ten tourist destinations world-wide for the UK and in 2004, ABTA members reported bookings to Bulgaria up by 62% We anticipate that the budget airlines will commence flights to Bulgaria in 2007 which will further increase its appeal and increase the influx of tourists. Current flights start at around £250.
Climate
Bulgaria’s weather is just one of the reasons why the tourist figures have risen so sharply over the last two years. Bulgaria offers both a hot Mediterranean climate as well as skiing in the winter resorts. Generally, summers are longer than in the UK whilst the winters are shorter. From May to September, average temperatures are 30 degrees Celsius and often above in the peak summer period.
Where is it ?
Maps courtesy of www.theodora.com/maps used with permission.
Bulgaria is located in South Eastern Europe and borders the Black Sea between Romania and Turkey. In addition, it shares common borders with Greece, Macedonia, Serbia and Montenegro .As we have indicated above, the country is considered to be an investment hotspot.
With airports located in Sofia, Varna and Bourgas,and hopefully sliven airport will get the go ahead soon. Bulgaria is only a three hour flight away from the UK.
Prospects for joining the EU
Bulgaria joined NATO in 2004 and is striving towards proposed accession to the European Union in 2007. Between now and then, property prices are expected to substantially increase and continue when EU membership has been granted. The foreign ministers from Germany and France each said that the recent 'no' votes would not make a difference to Bulgaria’s membership. After a ten year transition from communism to a functioning market economy, the real estate market in Bulgaria is now approaching the conditions that already exist within more developed countries. Previously, the country's incompatibility with EU membership had meant that there were restrictions on foreign investment in land. This is now removed which has caused an increase in the liquidity of the property market. It is worth considering that any apparent risk in is largely offset by the current low prices, making any 'downside' to investing in this growing country minimal and what we thought a sound investment.
http://www.questbulgaria.com/