General (main property discussion here) - Bulgaria

I am thinking of investing in an off plan development in Bulgaria. I intend to purchase more property abroad, are there many benefits or tax breaks, etc, of investing in the same country or is it better to spread my risk and to have investments in a few different countries?

I think Bulgaria offers a higher risk than some of the other European markets so I'd play it safe and spread my risk into other countries. Not saying not to invest in Bulgaria but for me it's a personal choice not to.

I think Bulgaria offers a higher risk than some of the other European markets so I'd play it safe and spread my risk into other countries. Not saying not to invest in Bulgaria but for me it's a personal choice not to.

That's very interesting Roger - I've heard similar views from others about Bulgaria being fairly high risk so I'm inclined to invest elsewhere as well. Any suggestions welcome!

What I've heard, but not actually confirmed is that there are only 800 Brit ex-pats actually living in Bulgaria, but there are a great many investors buying property and land. The way I look at is this... If the locals cannot afford to purchase property in a rising market where are you going to target your resales aftert the investors pull out. I'm investing in Cyprus at the moment as evertything is simplified there.. all contracts are based in English so you know exactly what you are getting. The market is still rising and expected to do so for at least another 3-5 years. Another market I'm looking at possibly next year isd Poland. That is purely because my wife speaks the language fluently and any awkward translations aren't confused by an interpreter. Looking at possibly Krakow, but I'll post more on my findings once I obtain more info.

Roger,

I hadnt thought about resale to locals. That's a very good point and quite a scary prospect, eh?!

Of course, if you're looking at it a income producing (with the odd cheeky family holiday thrown in of course) then by the time you sell 10 years down the line, the local salaries may be more in line with house prices.

Hi Owen, If its an income stream that you're after then that's fine but I always believe you have to have an 'exit' strategy, before you buy. This basically means if you need to sell you have to have a market to target. In a rising market when the investment crowd are following you'll always have a resale market, but in say 5-10 years time when investors have stopped buying because of escalating prices who can you then re-target? That can only be locals, so your target definitely becomes smaller. I'm sure there will be plenty of resale opportunities, but it means more indepth analysis and seeking the right property in the right area.

Hi Roger. Sorry - been away for a while so only just read your response to my last post. Really valuble information which absolutely makes sense, if the locals can't buy then there is surely a catch?! I've now decided against purchasing the off-plan development I was initially interested in. I've taken on board what you said about Cyprus - I'd previously thought of Bulgaria as a better investor market but am now reconsidering. Poland is definitely an interesting market which I've had my eye on for some time, I'm just not quite convinced enough to take the plunge. Good luck on finding any interesing info sources, I am also on the case!

Hi Henry. I disagree with your decision to reconsider purchasing in Bulgaria. I too had doubts initially and it took a lot of time and research to find the right area, agent, etc.

What initially put me off were the amount of agents and I felt I might get ripped off/had 'missed the boat'. However, I believe with the rapid expanse of tourism and lots of activity in the market place, values WILL increase but at a slower rate than previously.

Thanks for your response Howard. Interesting that you mentioned agents as I too have been rather daunted by the huge amount of them! Can I ask how you went about finding the right one?

The best advice I can offer is that you find an agent you trust in the UK who specialise in the area you are interested in.

As much as I am pro-Bulgaria, I think you are wise to consider spreading your risk and would recommend that you look into Cyprus in more detail.

I work at an FSA regulated independent financial consultancy based in London called Perfect Day. As part of our service we target, and perform due diligence on, property ideas overseas, as well as other investment ideas to help our clients build a balanced portfolio. I've been reading these posts with interest as a number of our clients have got involved in Bulgarian and other property through us, so if anyone would like to have a conversation on this do drop me an e-mail at roland.b@perfectday.tv with your number and I'll give you a call.