Re-investing / Best locations?

S

sandyfordMG

Guest
I understand from browsing some of the posts that Bulgaria is not the best location for investment. A little too late for me unfortunately. I bought in Sunny Beach 2 years ago during the big hype and fortunately am very happy with what I got. I would say though to potential buyers that the rental yields I have seen advertised and also mentioned at the local expos of 6% plus I dont believe is realistic, especially for this part of the coast. For my property I had a very good occupancy period during the summer last year and only achieved around 4%. I bought this property in cash at the time and is currently looking to re-finance and invest somewhere else. Can anyone recommend location that is low risk and will produce steady returns.
 
Poland looks good.

I would look at a good location in warsaw.
As a rule of thumb,good locations in capital cities is how I operate.
Therfore guaranteed yourrentyal income and can therfore live through any crashes too. That's just me though !!

You probably won't get the capital appreciatiion you may get in other polish cities such as ponzan - but the rental market in places like Ponzan is supposed to be non-existant. In which case ponzan would only be good if you plan to sell on upon completion.
Also more exposed to crashes - which admittedly seems unlikely in Poland at the moment.
 
I would agree Poland is at the minute a place to consider, I am involved in Poznan myself. The capital gains is definetly attractive and to date I have not had any issues with rental. There is a large number of colleges with international links to other colleges, a relatively low employment rate to other parts of Poland giving yeilds of 4.5 - 6% depending on location. This is my experience of 18 month old apartments boght off the plans. The prices have moved and the rents have incresed but not to the same rate. If it is a pure investment you are looking at then land is a much better option. Simalar to Ireland a nunber of years ago. There are local issues to consider but it is possible.
 

Dear SandyfordMG,

If you are planning to re-finance the property in Bulgaria to re-invest somewhere else you should take in consideration the fact that more than likely it is going to be a Bulgarian Bank. Your interest rate is going to be around 6.75%, therefore, depending on the amount of you are releasing for the purchase, there are going to be very few location in which you are going to have a postive cashflow situation. In relation to a new location- you should probably have a financial check done before anything.
 
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