Overseas investment - Eastern Europe

Anyone invested in Bulgaria, Czech Republic etc. Lots of people talking about it? Views appreciated.

Is the market overpriced to foreigners already? Has the capital appreciation already happened?

My parents just bought a new build appartment in Bankso, a ski resort in Bulgaria. They got a five-star flat for £65,000, to give you a guide.

Certainly it appears cheap, I'll be on the look-out when I go over in January. Would be nice to see a couple of overseas places on this site too.

Julie,

Currently we are only focused on the UK but we will expand outside of the UK when the time is right.

In the meantime, we hope users continue to use the forum to discuss (and even trade)overseas property.

Julian

All,

I have heard a lot of horror stories about investing overseas. Personally, I would stay clear unless it is really with people you trust not just coming from a load of salesman. No-one has even come close to convincing me.

Bob

Bob,

OK...but where do you plan on getting your returns from?

Julie

I'm just sticking to what I know.....investing at 10-12% yield but with no expectation of capital appreciation. Less risky in my view. Eacj to their own though. Good luck to you.

Bob

I think everyone has made some good points here. All goes down to risk profile and also adveturous.

I have also heard lots of investors are skipping over EE and heading striaght to Asia. China is most popular (Shanghai and Beijing).

Anyone have any expeience. If so might be worth starting a new thread.

Julian

can anyone recommend any companies that can advise on properties in these countries?

please only give examples of decent sourcing companies not the rogues!

thanks,

tom

From the limited research I have now done in Eastern Europe I would like to give you all some feedback.

I have decided that I do not feel comfortable entering this market. No sourcing company that I have spoken to has given me any confidence.

Shame. Thanks for your comments.

John

Thanks for posting this John.

Interesting comments. There could be a lot of people getting there fingers burnt in this market.

Julian

This confirms what I thought.

Phil

Any information / experience in Kieve will be appreciated.

Regards, Malik

Dear All,

Eastern Europe is a huge area - many countries, all with a different history, culture, politics, and not surprisingly different property markets. To say that it is all good or all not good would be a very sweeping statement. Are ALL investments in the UK good?

Nowadays I have had to look long and hard before finding a good investment in the UK market, and the returns aren't as good as they have been in the past. I expect to look long and hard and really do my research before settling on ANY investment property - and it's true, you need to abroad too - but the opportunity for greater returns there can be much better at the moment.

Of course Eastern Europe presents its own set of challenges, including having to do your research and find good people to work with. But there are compelling reasons for looking there too:

- Because the markets have relatively recently had to shrug off their soviet past, the prices are still relatively low. This is still true of the most well known places to invest such as Prague, but is even truer of most other places. There is a lot of catching up with comparable investments throughout the rest of Europe, and this is certainly currently happening.

- Because a lot of these countries are now part of the EU there is a benchmark of economic and political stability that has brought about an influx of foreign investment, which has helped further to boost each economy. This will hold true for countries that still have to join the EU and also for those that will join the single currency.

The UK has had one huge property boom in the last decade (+), although things have been relatively flat over here for a while. Many of the countries in Eastern Europe are undergoing their own boom right now. It's still possible to find great investments in the UK, but you have to work much harder to find them now and if we're honest the effort that we put into them doesn't have the same kind of return as it did it a few years ago. In many parts of Eastern Europe it is possible to get the same kind of returns as you could a few years ago in the UK.

I'm currently working in Hungary and am also looking closely at Latvia. I personally wouldn't go near Bulgaria - but that's just my opinion. I don't just work within Eastern Europe, but I think I'd be missing out if I didn't include it in my portfolio with the great opportunities that DO exist there at the moment.

Paul

The Property Investment Shop 0800 019 8835 www.thepropertyinvestmentshop.com paul@thepropertyinvestmentshop.com

Agree with Paul on the Bulgaria issue. I wouldn't touch it now as it seems to have reached saturation and appears overcrowded. Theres far better prospects out there. I'm looking into the Polish market for 2006.

I'm looking at Poland also.

I have some friends over there who are involved in the property market and the vibes seem good.

Bulgaria is getting enormous amounts of publicity at the moment and it's tough to sniff out a genuine bargain. I'm quite happy for Poland to be overlooked as it will help keep the prices down until I finally put my money on the table.

In Warsaw and Krakow there are lots of new developments springing up with the general school of thought being that the old communist blocks can't stay standing for much longer so families will gravitate towards newer buildings.

Out of all the Eastern Europeans countries, Poland has the most number of budget flights from the UK & Ireland (I think).

Also, most English people think it is cold in Poland all year round but the reality is spring, summer and autumn are normally warmer than the UK (last summer temperatures hit 40 degrees).

I am meeting with several developers in Poland later this month and will have more of an idea of the market there when I return. If your interested I can post details on here upon my returm or you can email me for a full factfinding report on overseas@rjm-properties.com