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