Bulgarian property a solid investment through times of UK economic woes
Times are getting tougher with the UK economy and property market
[UKPRwire, Thu Sep 18 2008] Times are getting tougher with the UK economy and property market and things aren’t set to recover for at least a couple of years. Forward thinking investors are putting capital in growing markets during this time of strife- are you doing the same?
In countries such as Bulgaria, the property market is growing and it recently topped Knight Frank’s global index for best countries to invest in. Bulgaria isn’t far from the UK, there are regular flights and the economy is growing at a solid 5.5% each year. All in all, it’s a solid country to invest in.
Not a ‘Global’ crisis
Brown and cronies were quick to credit themselves with the UK economic success over the last 10 years but when the belt tightens, they blame it on ‘global circumstances’. This isn’t true; do you see a mortgage bust in China or frozen economies in Eastern Europe? No and in fact, these markets are growing quickly.
Trouble ahead for the Pound
Problems don’t stop with falling house prices and inflation. The Pound has been depreciating against all major currencies for the last 8-10 months and this is set to continue. Whilst you may think you are well placed to ride out the economic problems because you have liquid funds in the bank, this might not be the case. You would be far better off holding your money in a Euro based asset which is gaining against the Pound.
How can I protect myself?
One of the safest ways of investing is by buying property. Invest in a country with strong economic growth and low taxes and you are unlikely to go wrong. Bulgarian property ticks all the boxes and prices start from only just 8000 Euros for freehold property. Of course, there are pitfalls and you must ensure you use a reputable agent and solicitor to ensure documents are in order but there are bargains to be had.
Where to buy?
There are many options in Bulgaria but it is advisable to purchase in the most popular as the ability to resell in future will be easier. The most popular locations for Bulgarian property are the capital city, the coastal resorts and the ski resorts. But out of these, which one to chose? Of course, if you have a preference for beaches or ski slopes, then it should be simple, but if you are only looking to invest, here are some suggestions.
Bulgaria’s leading ski property estate agency, Skipropertybg.com recommends the ski resorts. Elina Tacheva from the Samokov office near Borovets says “In the Borovets region, the government have started a resort expansion development called the ‘Super Borovets Project’. Up to 400 million Euros is going to spent on improving and increasing the current amenities at Borovets.”
“Although investors will have to wait until 2014 to see all the results, prices here are still low and it makes for an excellent medium term investment”.
However, if you want to ski facilities that are new and ready to use, then Bansko may be a resort to consider. Lina Lyubomirova from their Bansko office says “here in Bansko, there are some of the best ski facilities in Eastern Europe. News runs and lifts means you can enjoy the same quality of skiing as in the Alps but without the high prices. If you want to invest here, now is one of the best times. UK confidence is low and we have noticed ‘fire sales’ happening from panicked UK owners. Investors can easily pick up great value, finished apartments at much less than what the vendors paid originally”.
As an example, Lyubomirova presents BA288, a luxury studio that is just 100m from the gondola and the owner is so desperate to sell, they have halved the price and thrown in furniture. It’s the perfect buy; great location and ready to use/rent out now. Further details on BA288 can be seen here: http://www.skipropertybg.com/more_inform_941.html
Lyubomirova recommends that buyers have a look at the company website’s ‘resale listings’ or subscribe to the monthly newsletter (where distress sales are listed) if they want to see what is available. She also notes that in many cases offers can be put in which usually isn’t possible when you are trying to buy through a Bulgarian developer.