Sunny Beach Bulgaria

Re: Misleading

Quote
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"negative comments without the facts are pretty useless"
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In this case the negative comments are hard cold facts.

To suggest that the lev could be pegged forever from now to the euro is completely incorrect and somewhat disingenuous. I don't think Ireland or any of the other countries with members on the ECB will be bailing out Bulgaria UNTIL THEY JOIN FULLY.

Personally I will be singing in the bath like Norman Lamont if there is a serious run on the lev.

Bulgaria may be "up and coming" but it has had serious problems with corruption, pollution etc. and can not in one fell swoop turn from Todor Zhivkov's ex-Stalinist basket case into a steady, prosperous market economy.

If the other advise on Bulgaria is of a similar ilk to the lev pegging one then it is definitely a case of caveat emptor for any prospective client.

If I was looking to buy in somewhere like Bulgaria I would be getting my advise from impartial sources. I would be reading up on the country and I would be asking myself searching, self-critical questions about why I was investing so far from home in a country that very few people know much about, except a few people who already have a vested interest in painting an overly rosy picture.

For anyone interested the following looks like a good general source on Bulgaria:

www.novinite.com
 
Re: Sunny Beach Bulgaria -- Currency Board.

Guys

I wrote this long reply and somehow got wiped out. SO, here I go again.

1st -- I am not a registered tax expert. We are not allowed to give tax advice to clients. We try in all cases to direct clients to good tax advice. we have nothing to hide.

2nd -- the advice on the ''LV pegged to the Euro''. This is true and I stand by my comments of the other contributor giving misleading comments.
This time let me back it up with facts. We do have a vested interest in Bulgaria --sure we do. However, please don't paint all people with the same brush. My main purpose for being here is to ensure Bulgaria comment is reflected accurately and factually.
-- A very simple overview:
Following the hyperinflation of 1995- early 1997 in Bulgaria the IMf met with the then BG Government and a Currency Board was established to stem the inflation and near bankrupt country.
This required an Act of Parliament. There was much talk about whether to peg/link the Lev (local BG Currency) to the dollar or some European Currency. In the end it was decided to peg/link the LV to the then DM.
( Read a very good old IMF article on the subject : )
The currency board arrangement fixed the exchange rate at 1000 leva= 1 DM through end- 1998 and
1955.83 leva= 1 EURO since January 1 1999. On July 5, 1999 the lev was redenominated by removing
three zeroes. As a result, 1 lev= 1DM (=1.95583 EURO)

This is the current situation today.

Again, any check on the web will back up the facts.

Tom
www.buyinbulgaria.com
 
Re: Sunny Beach Bulgaria -- Currency Board.

We are not allowed to give tax advice to clients. We try in all cases to direct clients to good tax advice. we have nothing to hide.
Click to expand...
Hi Tom - Sounds good to me. The logical extension of this approach is that you would never quote any return/yield figures to potential clients, as taxation has a substantial impact on this. I've been concerned about the way many promotors of overseas properties bandy around inflated figures (cf radio advert heard this week for 10% rental yield in Dubai). I'm not aiming this jibe at you or your company, but certainly some parties in your industry do seem to be in a habit of a bit of exaggeration.
 
Re: Sunny Beach Bulgaria -- Currency Board.

Hi

Here is my take on rental return in BG and all our agents are given the same instruction for their clients. It is a message we have given for over a year. Just basic common sense:
1) If you have to depend on rental income to purchase overseas then don't buy. Exception here would be guaranteed ''long term lease backs''.
2) Despite what everyone says, the BG rental market is in it's infancy. The ''professional investor'' ( if I can use that phrase) buys into BG for the expected capital appreciation. These investors care nothing about the country or the people but the return ontheir investment. There is a substantial investment in BG right now from this type of client. they do not depend on rental income.
3) The beach resorts in BG are 95% hotel package holiday out of Ireland and UK. This is changing and we will see more apartment package holiday from 2006. This will lead to improved rental return
4) We know the type of prices coming down the line in new developments not yet released and we can see the proposed jump in per sq meter pricing.
5) The type of guaranteed rental return schemes that are common in other countries are just beginning in BG. We are always careful here to ensure your 5 yr guaranteed rental is not just added to your purchase price initially.

The market in BG is far from perfect. However, the large local developers with many developments in the pipeline over the next 5 years are clever enough to know they cannot afford to be associated with a bad development.

My advice to anyone buying in BG is to ask their agent some questions on the developer -- does he have track record and is he planning additional developments.
Obviously, does he have building permit is pretty important also. I certainly know of 1 development currently on sale where building permit is delayed.
Finally, if you pick us or another agent please try and pick a local Irish agent. Lots of UK companies coming in here for a high power sales weekend. Local agents should be in position to support you better.

I will be offline here until the 17th - I am not avoiding questions, just in BG to check out progress of ongoing developments; look at some new very interesting developments and get our office in Sunny Beach prepared for the Summer season from May.

I will try to get answer to the CGT question. Advice always is to consult tax expert before you invest in any country.

thanks

Tom
tfingleton@buyinbulgaria.com
 
Sorry to be jumping in on a thread that I don't know much about but I have a friend of mine that has just bought an apartment in Bulgaria off the plans and they have never even been to the country?

People, like my friend, seem all caught up in the property investment bug that is rampaging across Ireland at present. They seem to just want to be seen as buying a property abroad in order to "show off", but haven't put the effort/work/preparation in, in order to invest wisely. Could these people get "burned"?

I would like to invest in a small house in Italy, but I will see the area at least a few times before I buy - people buying in Bulgaria seem to be buying apartments just for the sake of it.

Just a couple of point on a person that purchases an apartment in Bulgaria:
1. How many times will the person be able to visit their apartment and use it during a year as the direct flight costs would be very,very expensive.
2. Flights in the winter time - are the readily available and cost effective with a family
3. It is your family holiday going to be there every year so? But as you have never been to the country and don't know what its like, is there not a risk that you won't like the place you have just bought?
4. If renting the apartment is the intention - how much would it cost for a family to rent the apartment while paying for flights direct. Surely it work out more expensive than a "package deal"?

Seems like madness to me to buy a property in a place that there isn't frequent flights to?

Am my points/concerns wrong?
 
WizzAir will be operating flights from Luton to Bourgas direct from May.
The prices are very reasonable.
Think the open air policy comes into affect in 2007, which may encourage other operators to run direct services from Ireland to bourgas or varna.
 
Ivers57 said:
WizzAir will be operating flights from Luton to Bourgas direct from May.
The prices are very reasonable.
Think the open air policy comes into affect in 2007, which may encourage other operators to run direct services from Ireland to bourgas or varna.
Click to expand...

But you still can't "easily and cheaply" get to use your new apartment.

Flight from Dublin to Luton
Luton to Bourgas
Travel from Bourgas to your apartment (e.g hire car/petrol costs)

Depending on flight times etc, that could be a day of travelling and a day back - with sterling rates etc, could be quite costly.

Maybe Im thinking of it in the wrong way i.e. from a living/using/renting scenario. But if I was looking to go to Bulgaria for 2 weeks, I would go and book a package deal, because I would get a direct flight to the country, get transfer by coach to the hotel and then enjoy the services of the hotel.
If I rent an apartment (from my friend), I will have to get 2 flights or one direct on a charter (therefore, the dates I can go are limited), I will have to get transport to the apartment and then I would have to maintain the apartment (beds/bathroom cleaning etc) for the time of my stay.....all this and I would have to pay the rental for the apartment.....

Price wise and convienence wise... it doesn't seem quite worth it.

Or maybe I missing something here?
 
Has anyone got net rental yield figures for residential investments in Bulgaria?, given the seasonal nature of the market is the income stream stacked during the summer? And why have people stopped buying in Spain where there’s a less seasonal market?

Questions, questions J
 
Regarding Rental Season in Bulgaria...

If you're on the coast the big months are July and August, however, over the last couple of years June and September have been gettting much busier but they would still be considered mid season. You're never going to get much rental outside of this for a coastal property unless you are close to one of the many golf course being built (3 golf courses on the northern coastline). When this opens up you will have potential for longer season rental, for example April, May and October and superb months for golfing. Reasonably warm (not beach weather) with lots of blue skies, perfect for golf.

There are so many 1 beds in Sunny Beach and it will be very difficult to get them rented. With new construction going on at a huge rate I can see that accommodation space will increase at a much faster pace than new tourists. Of course this doesn't mean to say that you can't negotiate a good rental agreement because lots of apartments will be rented, however, lots won't be either.

One of the most worrying things about Sunny Beach is the amount of unfurnished apartments there. Lots of investors buying and leaving the apartment idle
 
Duplex: Our apartment in Bulgaria will be finished in mid May. There is a rental agreement of 4.5% net. They will be sending me the details and contract over the next few weeks . I'll let you know then.
At present the season is from May-September. There are many golf courses being constructed at the moment that will increase the season a bit more.
 
hi guys frist time on. bought 2 bed in sunny beach at christmas for 45000 , furniture 5000. will use as holiday home for me and large extended family . would not be overly hopeful about rental returnes
 
Read somewhere that Bulgaria Air are going to fly direct in Summer
Dublin to the Black Sea Resorts of either Varna or Bourgas. If so accessability is improving to the Coast.
 
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