Well it was only a matter of time until we started getting stories such as this on printed in a UK Sunday paper. Its plainly obvious to anyone who has visited the Bulgaria coast that developers are creating a massive oversupply of apartments in terms of both rentals & sales. People are now getting caught in this having serious trouble letting their apartments, despite being promised 10% guranteed rental income per annum etc from various agents. For anyone looking to buy in Bulgaria you need to be clear on the reasons why you are buying:
a) Captial Appreciation
b) Rental Yields
c) Holiday Home
Or a bit of all 3, before you do purchase I strongly recommend you visit the area and take many things the agents tell you with a pinch of salt.
Here’s an outline of the story published yesterday in the Sunday Times:
Acquiring a property at Bulgaria’s seaside may turn out a foolish investment, Britain’s Sunday Times warns local buyers in an article titles “Bulgaria? Beware”.
Consequences of Bulgaria’s property boom are starting to show, and they aren’t pretty, the article alerts.
British buyers, who have purchased flats in Bulgaria hoping for a summer home and a solid investment in one, are disillusioned as the fervent building dwindles their chances of earning their money back. Those who had hoped to rent out their flats or cash in when their price boosts even more are now facing the harsh reality of the property boom and seeing their cash-cows slimming down.
At the rate construction is going in Bulgaria property prices are going down, and the expected increase seems to be just in the ads of real estate agents, the newspaper warns. Several Brits have already seen their dream holiday home turn into a strain on their pockets, and the expected profits are nowhere to be seen, the article says.
source: Novinite
I personally own a sea front property and some land near Borovets, I purchased my property 3 years ago and was very clear then of what was going to happen, I bought the property as a long term investment with a view I was only going to rent out to family & friends, and didn’t factor any rental incomes into my financial plans.
Anyone looking to buy in Bulgaria please feel free to post……..