Should I take the money and run - Bulgaria bought a front line apartment 2 years ago.

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asjmum

Guest
I bought a front line apartment 2 years ago in Sinemorets, Black Sea Coast. There were/are major delays and the title deeds are just about to be transferred - I paid my money in stage payments. Due to fault/delays on the developers side he has agreed to give back my money and terminate the preliminary contract if I wish.

Should I take this offer and run, I will lose about 3500 euro on legal fees and expenses. The apartment was 36000. There are so many horror stories about not being able to resell I am thinking of taking the loss and chalking it up to experience.

What are your thoughts/advise?
 
Re: Should I take the money and run - Bulgaria

I think it depends on the reasons you purchased. If it is a holiday home and you want it for personal use then there is no reason not to proceed given the fact that you have already spent money on it. If however it is for investment then take your money and run. The apartment was cheap at €36000 but it is only worth what somebody else is willing to pay which at the moment is €0. Prices and demand may well pick up over the coming years but it could take a long time. Just think of the 3500k already spent as the cost of a holiday- when its spent its spent and you don't have anything to show for it (apart from from a tan maybe?)
 
Re: Should I take the money and run - Bulgaria

Hi Asjmum,

E36,000 sounds very cheap for frontline property - as the previous poster said if it is for personal use and you can get the use from it - well and good. If you're buying to resell quickly I'd thread carefully. I bought a frontline in Nessebar 2004 which was completed in 2005 have rented it successfully in summer 2006 and summer and winter 2007 - trying to sell it now - good interest but am selling it for about E5,000 more than what it cost to purchase and furnish it in 2004 as am looking for a "quick Sale" - however long that takes as there are that many apartment for sale - I would hold out another couple of years and rent it out but need to release the equity now. The only other thing I would say to you is that Aer Lingus are now flying to Bourgas from June onwards if you were going to use it yourself. Rental was you really do have to be in a good location as there is so much competition. I know another couple who own an apartment in the same complex I purchased and they absolutely love Bulgaria and the people. It boils down to what you want if for, investment I'd say lose the E3500 - personal use hold on to it. Best of luck in your decision and let us know what you do.

Angela59
 
Re: Should I take the money and run - Bulgaria

asjmum - my first reaction would be to bite the hand off the developer but thinking about it, aren't you wondering why he is willing to allow you out of the contract. Without knowing the details (and I will admit to having no knowledge of the property market in Bulgaria either) it seems to me that your developer certainly sees some value in the property and can probably offload at a higher price.

It's probably not worth the hassle for you to determine what this value might be, and it certainly seems like an easy out option but you're doing the right thing by not making a snap decision all the same.

Good Luck.

extopia said:
Take it and run.
Click to expand...
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

Bite his hand off !. Take the money and put the loss down to experience. If the developer thinks it'd a good deal for him, fine; whatever plans he may have don't concern you. If you want to buy for personal use - buy a resale; thwere are thousands of desperate sellers out there.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

Tell the developer you will terminate the contract if he covers the legal fees you paid on it. He wouldnt be giving you the offer if he didnt have another buyer lined up...
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

I'm aware of the oversupply issues, etc., but is rental really that bad in this area that a 36,000 euro, front-line apartment cannot generate a reasonable return?
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

budapest said:
I'm aware of the oversupply issues, etc., but is rental really that bad in this area that a 36,000 euro, front-line apartment cannot generate a reasonable return?
Click to expand...

Budapest, I think there was someone on this forum before who could only get 2 weeks a year rental from his Bulgarian seafront property.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

Hi,

I've a frontline property in nessebar and we rent it out during the summer months - we've even had irish tour operators rent it from our agent and russian tour operators. We have a good agent in Bulgaria - the season is short though but we have rented it out for the winter.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

36'000 is the price as a fairly good family car.

If you borrowed it all at 5% interest, it's around €1800 a year interest.

It can't fall in value too much, inflation in the Eurozone is around 3%, in a few years 36'000 will be a lot less money than it is today.

Inflation may make it seem very cheap in the long term (providing you are borrowing in Euros)

It seems to me like a fairly good bet in the long term, it might fall a bit before it rises again, but the capital outlay is not huge (relatively speaking).
Even at current prices, 36'000 is an amount a lot of people can afford.

Of course, nobody on this newsgroup has seen your property, only you can determine if it's a good property or not
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

LouisCribben said:
36'000 is the price as a fairly good family car.

If you borrowed it all at 5% interest, it's around €1800 a year interest.

It can't fall in value too much, inflation in the Eurozone is around 3%, in a few years 36'000 will be a lot less money than it is today.

Inflation may make it seem very cheap in the long term (providing you are borrowing in Euros)

It seems to me like a fairly good bet in the long term, it might fall a bit before it rises again, but the capital outlay is not huge (relatively speaking).
Even at current prices, 36'000 is an amount a lot of people can afford.

Of course, nobody on this newsgroup has seen your property, only you can determine if it's a good property or not
Click to expand...

So if its cheap it has to be good value. :rolleyes: How come then that there is a stampede out of Bulgarian property at the moment? You seem to ignore the possibility that inflation (particularly in energy costs) might erode the attractiveness of peripheral tourist locations like Bulgaria.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

I tend to agree with LouisCribben. Its a relativly low outlay for a beach front apt. Even a season of three months with a reasonable occupancy would go a long way to covering the 36,000 on a yearly basis.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

Hi,

There may be a "stampede" out of Bulgarian property as you say by Irish investors and perhaps british investors that is because our economies are not doing so well and may be these investors are trying to draw in their horns so to speak but contrary to this russians are snapping up frontline properties as their economy is booming. But if you're worried about losing E3500 then perhaps the OP would be better not take a gamble in to the property market at all - look at the irish market if you had your house on the market at the moment you could lose a lot more than E3500 - property anywhere at the moment, Ireland, Spain, Bulgaria is a bit of a risk.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

I too agree with LouisCribben.It is the price of a family car.

If you spent that money on a car today it wont be worth a lot in 5 or 6 years.The property will hold or increase in value over time.

You can use it yourself anytime and also family and friends.
36000 euro is not a lot of money and im sure a lot of people would be interested in buying it at that price.

Hold onto it.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

Hi all,

Thanks for all the replies. I still have not made a decision but maybe holding onto it for the long term might be worth it.
Angela59 I would appreciate if you would give me your agents details so I could contact them re renting it out.
Thanks again and I will post my decision to let you know.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

Hi Asjum,

Have sent you a pm with details.

angela59
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

I don't understand the family car comparisons.

Nobody buys a car as an investment. Everyone knows the value of a car drops as soon as you drive it out of the garage. And it has nothing to do with the original price paid.

The OP didn't buy a car - he or she bought an investment property, with a view to profiting in the long term.
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

Take hand arm and shoulder off the developer. Especially if you think you may need this money in the medium term as Bulgaria will never be spain. Unlike others on here I think 36K is too much to gamble with.
Initially tell the developer you would be interested if he can put something towards your costs. How did you spend 3.5k expenses on a 36k apartment?? I thought solicitors out there cost 300€
 
Re: Should I take the money and run - Bulgaria bought a front line apartment 2 years

36k would just about buy you a new mobile home on a 4 star site in France.

It will depreciate over time and each year pitch fees have to be paid just as you have management charges in Bulgaria.

I say hold onto it front line at that money.

The developer I would say probably has Russian interest in the property or complex.

In 5 years time 36k will seem very small money and in the meantime you can make use of it
yourself and for family as well as generating some rental.

Legal fees do sound very high.
 
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