Buying property in Bulgaria

M

machree101

Guest
Approached by friend of my friends who claimed to be real & established builders in Bulgaria and I am interested in buying one apartment maybe. The price on square meter sound competitive at €590 however there is some percentage common space you need purchase with apartment together. The location is in capital Sofia or in Sunny beach. The one I am interested in is the capital Sofia, along with common square meter, worked out price at €900 per square meter. Anyone know the renting market in Sofia? how about capital appreciation? Any past catchers when buying oversea property in Bulgaria? Anyhow, I am buying for pure investment option expecting both rental income and capital appreciation instead of buying it as holiday home. Any thought?
 
You should read previous posts by using the Search facility (if it works) or by following the hints in this thread.

You may want to search for posts by auto320 (see the Members List) to see what he had to say on Bulgaria.


Caveat emptor.
 
Hi there

You should check out the website [broken link removed],

I am sure you will find all you need there
 
machree101 said:
I am buying for pure investment option expecting both rental income and capital appreciation instead of buying it as holiday home. Any thought?
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As a point of interest in general you dont get capital appreciation without rental income - the two are directly related. If you are not able to get a return on your property, it is not an attractive investment to other buyers
 
machree101 said:
I am buying for pure investment option expecting both rental income and capital appreciation instead of buying it as holiday home.
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I might give you some advice when I stop laughing.
 
GDE said:
As a point of interest in general you dont get capital appreciation without rental income - the two are directly related.
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Not always true. Supply and demand also drives prices/values up and down, irrespective of rental income. Witness either commercial property values in the UK between 2000-2006; or property prices in Dublin 2, 4, 6 property prices in the same period - there was no correlation to rental income.
 
I agree there are cases like you mention. I think it is a big factor in what has seen the prices drop recently however with investors not getting enough yield to pay their borrowing costs
 
Definitely rental return and capital appreciation are not always related. To give an example in my own city of Oradea in Romania rental rates are fairly static yet the price of apartments is going through the roof because there has been very little new building since the revolution and there is plenty of money around. The new builds which are in progress are in huge demand from the locals.

Would the OP not consider a commercial property since he/she says they are buying purely for rental & capital appreciation. In my own experience commercial properties are easier to let if bought correctly and yield better. Haven't tested the appreciation side yet as I've yet to sell one of mine.

Sofia has to be a better bet than Sunny Beach surely??
 
Understood your points. Want to know how easy or difficult to ask house agent look after renting apartment out for you? Also any trends for price going up or down? Any expert in Bulgaria property out there?
 
I go to Bulgaria 3 or 4 times a year and was in Sofia in December. Like any city, it has good and bad places to invest and the rental market it also tricky. The market is buoyant in Sofia at the moment though again you need to be careful. Sofia has been and remains very good to me from an investment standpoint (despite alot of the cynicism you get on the boards).

A few rules of engagement
- I would'nt touch the resorts (ski or beach) with a bargepole. In fact alot of the agents who were hard selling in the resorts have now retrenched top Sofia which means you need to have your spoofer radar tuned in.
- get a good lawyer. This is essential and the system itself has alot of checks and balances in it.
- The market is Sofia city centre continues to show strong capital growth and this is where its easiest to rent. So anywhere around Vitosha Blvd., Doctors Garden, Lozenets etc. These are mostly resale apartments and
- Alot of the new developments are in the Southern (more exclusive) parts of the city around Vitosha Mountain. The newbuilds I have visited there are to a high standard though the rental market is flaky. Alot of activity in the so-called Student area though I would not put money there myself.

The price you mentioned of €900- per sq/m could mean anything depending on location, fit-out, which floor its on, aspect, balcony etc etc

A few days on the ground there is essential before putting any money in. There is money to be made there... though there are lots of people happy to sell you a dummy ... don't believe the pr.
 
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