Bulgarian ROI

Georges · #1 17-03-2008, 04:42 PM

Hi everyone,

I am trying to figure out what a typical investment return in Bulgaria may be. I have 50K euros to invest over 5 years. I m coming up with returns of 250% to 350% over that period. I know some markets (Sunny Beach...) are stagnant but some other are up (Sofia, Plovdiv...), so I am assuming an average 10% annual growth. Still the ROI seems pretty pretty good to me. Too good to be true?

Any feedback will be appreciated.

Thx.

thetravelbug · #2 18-03-2008, 09:52 AM

I think it is a little hard to generalise like that. In recent years rural property has seen around a 20 to 35% increase in value in some places, and other property around spa resorts, various cities etc increased alot also, but in other areas like Sunny Beach, as you say, prices have started to fall.

Much will depend on your actual plans - I mean do you intend to invest 10,000 E a year, all at once or what?

Rachel

Georges · #3 24-03-2008, 06:13 PM

I would invest 50000 euros as a down payment, and will finance the rest with a BG mortgage. The total price of the property is 130000 euros.

This article, I came across today, it's from a Bulgarian source so it shouldn't be taken as fully impartial

Bulgaria: ROI in Bulgaria Residential Property Hinges on Sale Price - Report

G.

(NOTE TO ALL : This post has been edited as it infringed copyright guidelines - for information on copyright see http://www.totallyproperty.com/bulga...ht-images.html Thanks!)

thetravelbug · #4 26-03-2008, 07:27 PM

So you have a particular property in mind? Personally if you want to invest in Bulgaria I would simply invest the 50,000 Euros, maybe in a couple of rural properties and not take out a mortgage and the possibility of over stretching yourself on one property. I presume you are looking at a new build villa or large apartment in a well known area - if so definitely avoid unless central Varna city, Plovdiv city, Sofia etc etc...

Cannot open link you gave sorry.

Rachel

Mikeyv · #5 31-03-2008, 02:32 PM

Hi there,

If you are investing 50k euros in cash then definitely spread your self over a few bulgarian properties, just try make sure you have real rental guarantees in place so there is no possibility of overstretching yourself