Total novice to investing abroad needs help

gorbyyoung · #1 24-01-2008, 12:22 AM

Hello all ive just joined this forum so hello to you all,

I have been to bulgaria and spent 7 days there half in veliko an another half in a ski resort I have had mixed conversations with people about where to invest and where not to etc. I have been very careful and havent invested anything yet although have discussed a mortage etc and have met ex pats out there. I have been told that the hotspots for an investment property are the ski, golf, seaside an city resorts but ive also been told that they have become so heavily developed that rental income an property value is stretched to its limits an not a good investment an on the other spectrum ive been told that there are still good investments out there. I have £10,000 saved up almost an intend to borrow £40,000 and should be able to save a further £10 in 8 months if i work hard and would be very interested to speak to someone with good sound impartial advice before I go any further. I have fallen in love with bulgaria an the people there an eventually can see myself living there when I retire. but at the same time would like to earn rental income as a bonus but soley basing this on property values increasing an as I earn my money reinvesting it further.

As you can see I have many questions and if someone can point me in the right direction I would be most greatful

thanks

mike

thetravelbug · #2 13-02-2008, 09:59 AM

Hi Mike,

First congratulations on actually bothering to visit the country, travel around abit, speak to people already living here and having property here and for taking the time to research your best options and not just jump in.

You seem to be saying that your priority is to find a nice place for you, to have holidays in, maybe move out here and retire to, but secondly somewhere with good capital appreciation and maybe with the possibility of some rental.

I would therefore avoid over developed resorts like Bansko, Sunny Beach etc and over hyped regions around supposedly golf courses etc.

I would start to look in more rural areas. Find a nice house you can buy without needing to borrow money and your budget of around 13,000 to 14,000 Euros could get you a decent village property, although requiring renovations. Then renovate to your own requirements and as you can afford.

Rachel

C_B_H · #3 13-02-2008, 11:28 AM

HI,

I think that,you make a good choise to invest..Bulgaria is nice country with nice people..But before you buy a property think about your prefference...

1-If you want to buy a cheep property in a small village it is good only if you will live there..In the small Bulgarian villages you never will be rent your property .Maybe never will resale your house and if your agent is not corect you will have a house in a village without water and electricity all of the year.
Watch out...It is cheap, But the cheap things are not better.

2-If you buy a property in a holyday resort on the black sea coast.There is realy nice complex in the moment .The towns of sozopol,nesebar,sunny beach,golden sands and more,are realy beatiful an you will love him.But the investment there have s some special secrets.You can use the properties in the sea resorts only in the sommer..if you want a good rental there that is only luck.IF YOUR MANAGEMENT COMPANY IS GOOD YOU WILL HAVE A MAXIMUM 10% ANNYAL RENTAL RETURN ...in the winter your preperty will be cold becouse in the black sea resort the building companies do'nt projected a heating in the buildings.If you searching for a holiday home only for the sommer season that will be great for you , but that is not a good investment becouse you can't find a godd resale potencial to your property.

3-In the ski resorts like Bansko ,Borovets ,Pamporovo is one of the good investment in the moment.Therae will be invest in golf cruises and many infrastructure projects in the next 10 years.You can use this properties all of the year and you can receve a rental returns every winter.But you stll do'nt have a good resale potencial from this properties and your rental return will be good if you hav e a luck with your agent.If you want ti use a mortage there you need to have a 40% of the purshase price..But remamber that the prices in the good complexes with a good location and construction start from 1300 euro sq.m.If you thing to live there after some little bit time you have to Buy a minimum 2 med apartment .Its more then 70 sq.m. I recomendet borovets but only for the holyday property investment.You can't Live there good all of the year.

4-I thing that the best choise for investment of the British people in the moment is purshasing a property in the bigest city.. Sofia.There you can find a good rental potencial about 8% per year and it' guaranteed becous ein Sofia live more than 150 000 students. There is the bussines and polytikal center in Bulgaria and you have a best resale potencial in Bulgaria. Sofia is a capytal city and you can find there all year of good standart to live ...There is a mountain ski resort with good infrastructure..all of the year you will have a over 2000 meters up of the sea level mountain. In sofia are 2 of the best golf crouises in Bulgaria.You can use a mortage with 80% finance only there.Its becouse Sofia is the best resale city in Bulgaria.In the next years there will be maked 2 gondolas,many bussines parks and sofia will be one of the beautyfull European capytals.Now like all big cityes Sofia have a problems with the transport but in 2011 will be fully finished the Sofia metropoliten and the trafic will be realy normal.I recomendet Sofia,and you have to know that all bulgarian people buy a property there ....That is the city with the best standart in Bulgaria.You can find a mortage there and with £15000 you can buy a property that will cost you only £50 permonat if you have a good managemant maybe £0 .If you want to live in bulgaria after years You can sell this propery in a double price and buy a small house in coutry side..This houses always will be cheap.

if you need more help send me p.m. I will be happy to explane you how to invest in Bulgaria. Do'nt forget taht you have to understant the Bulgarian property market before you invest your money there. The best choise to do that is your Bulgarian friand or your personal BULGARIAN agent. The problem is that in Bulgaria the Real Estate agents winn money from the construction companies and they never will give you a real advice..In the next years that will be changed, but not now..Good luck to everyone!!

thetravelbug · #4 16-02-2008, 12:05 PM

Sorry but the above post is not at all true. I have a village house I successfully rented out last summer for quite a few weeks. Resale in a village much more likely and more or less guaranteed if not at silly prices, than in developed coastal areas or ski resorts. I am involved in rural property and know of no villages that have no electric and water all year except completely abandoned, inaccessible areas. And you would easily see this from viewing the property. There are some villages with poor water in summer. Areas like Sunny Beach, Nessebar are NOT pretty - complete concrete jungles and overhyped and over priced. Same goes for ski resorts.

And rental in Sofia is definitely not guaranteed. You cannot guarantee rental anywhere and with lower incomes, rental to locals and university students will not cover a mortgage.

Jain and Chris · #5 16-02-2008, 12:56 PM

Think it's a question of agreeing and disagreeing with you both, but as you are both in property sales this is only normal that you are pushing what you each do.

It all depends upon what the potential buyer wants really and what they want to achieve. Certainly ski and sea one can achieve rental returns, indeed in the capital also (perhaps even better), plus in some of the towns/villages.

The most important things as ever are location and being realistic about potential rental return, particularly if you take out a mortgage. Research, research, research and don't listen to just the agents as they will always push you into what they are selling.

thetravelbug · #6 16-02-2008, 01:01 PM

I am not pushing what I do or my properties. I have properties around the ski resorts and the coast as well. I am simply answering Mike's question. But as you say location is most important if this is for a retirement home but he needs to be careful with taking out a mortgage if rental required to mak repayments.

Jain and Chris · #7 16-02-2008, 01:14 PM

Hi Rachel

Actually I would say location is important when buying whether it be for retirement or investment or holiday....

Indeed, all buyers should be careful with taking out a mortgage which will be serviced by rental income.

I think the original poster said that he could see himself living there on retirement but would like rental as a bonus - basing his investment right now solely on increase in property values.

In that case there are many options open to Mike and the big cities are a good choice right now, particularly Sofia, Varna and Rousse, which I personally believe to be under-valued in global terms, both of which would provide rental 'as a bonus' and would increase in value. Additionally, the spa towns are offering good and cheap properties but I reckon you'll have to wait longer to see those returns in capital appreciation. Along with this are the museum towns and these again will provide excellent capital appreciation as they provide exceptional architecture (not so easy to come by in Bulgaria!)

Then there are all the other factors which influence investment... such as new airports opening (perhaps Plovdiv and Rousse, which are already being ear-marked for this and discussions in place), new roads, etc...

Very best thing is to research and keep asking to get a balanced and impartial perspective on what you can and cannot afford and what returns you are likely to achieve within your own personal timeframe.

All the best

thetravelbug · #8 16-02-2008, 01:28 PM

of course, agree totally, although not sure I would say Varna is under valued. Rousse I do not know much about - still on my places to visit list.

Jain and Chris · #9 16-02-2008, 01:34 PM

Completely off topic, but you'll love Rousse - fantastic architecture!

sans · #10 16-02-2008, 06:34 PM

Hi,
I've just been reading through your thread, we have just purchased in sunny beach a ground floor apartment new build at 61 sqm for 34000 euro
this I think is an amazing price it was 550 sqm now with 90% sold its up to610 sqm.
Its on the sunny day 5 resort which is 3 kilometres from the beach, as we are using this for ourselves and not rental this is perfect for us we have visited it and stood in what will be our apartment facing the pool.
I love bulgaria and have been going every year for the last 6 always wanted to buy looked every year but never took the plunge glad we did this time, we are so looking forward to it.
The only thing I would say is beware of who you use to furnish we paid spring blue £2.500 and they have run off with our money, does anyone know anything about them? Has anyone any companies they can recommend to us for furniture?
thanks sandra