Quote:
Originally Posted by yummymummy
Hi I have been looking at investing in Bulgaria over the last few months. Sofia as reported looks promising - I have not yet looked at Varna but after reading this will take a look.
I have also been toying with a ski resort - Bansko I have concerns about due to the mass amount of accomodation before infrastructure in place but I do think it is still a good investment.
I have recently looked at Borovets and this seems to be maybe a better place to buy, due to the fact that there will be a limit to the amount of building and the infrastructure is being built to match the number of people in the area. Also with the golf courses and everything else they are building in the are (as is Bansko I know) and its close proximity to Sofia I believe it will make it a good year round resort. What are any one elses thoughts on this?
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My advice:-
1. This is an investment so you must get a decent yield - minimum 6% gross yield I would say. Don't get seduced by "prices are going up 10% next month", it really is the olded trick in the book.
2. Find out what the tour operators want for the clients - speak to Balkan Holiday - find out who they are paying and what you will end up with after commissions. Be prudent on how many weeks you will get renting it out recognising the over supply. Speak to people who are succesfully renting out ( I don't know of any - maybe they exist).
2. Don't invest in anything you can't sell easily- most smart comment says that it is damn hard to resell property in Bulgaria (although there are exceptions such as central Sofia). I have heard it is close to impossible to resell in Bansko and Sunny Beach. Find out who is reselling and speak to them about it before committing.
3. Now this is personal opinion : I went ski-ing in Bansko and would never dream of staying in a self catering apartment. There are plenty of lovely hotels with creche, spa, pool, internet etc etc right next to the Gondola and if I can afford to get out there ,via Sofia, I certainly don't need to skimp on the accomodation.
4. There is plenty of commentary that queues to get up the slopes at Bansko to get up the mountain on 1.5 hours - this may not be a problem for Borovets but worthy of investigation.
5. There is a credit crunch on emerging market mortgages. Will you be able to get mortgage - don't believe the agent - get an agreement in principle from soemone suchas Piraeus bank. Get a valuation on the property from a RICS equivalent surveyor..
Summary : do you research - the market is stagnant and prices are not moving much ( question? : if at all). You could end up with something which is a drain on your pocket (high service charges especially if there are lots of facilities, mortgage) with negligible income. DO NOT go into this lightly.
Conclusion: if you really decide buy then find a desperate seller. There are thousands of them out there. Post ads on sites like this to cut out the agents ( who probably are not interested anyway as there is so much off plan to shift with 10% commissions). It will be much cheaper and you will know exactly what you are getting.
Cheers
Neil