Bulgaria property news and articles

If i was to walk up to you in any high street today and tell you, that you could make about 100,000 in five years, you would probably walk off, shaking your head in disbelief.

If you are not familiar yet with the amazing profit potential of the cheap bulgarian property market at present then i will, in this article give you a brief on just how you can make this sort of profit margin in such as short amount of time.

Bulgaria as a country has yet to be fully recognised as a strong European state which is good for you as a potential property investor. The economy is expanding at a present six percent a year with the unemployment rate falling fast which stands at twelve percent at the moment. The Bulgarian economy is gearing up for its entry into the European Union in January 2007. With this very important inclusion into the EU, foreign companies are setting up business in Bulgaria now which in turn will provide for Bulgaria, economic stability and continued growth financially for the countries future.

So how does that effect the price of property in Bulgaria?

Bulgaria at present is still a reasonably poor country, the entry into the EU will bring massive investment into the country, thousands more jobs will become available, the national wage is currently very low but will increase dramatically which in turn will have a serious upward effect on the price of property in Bulgaria especially around the more prosperous regions such as Varna, Sofia, Burgas,Sunny Beach and all along the black sea coast. With the ever increasing tourism market in bulgaria, many visitors are snapping up cheap bulgarian property which in turn is pushing the prices steadily upwards year on year.

Cheap Bulgarian Property is so affordable at the moment that any one visiting the country with a Credit card in their pocket can come home the owner of a Bulgarian Property. Cheap Bulgarian Property prices can start from as little as 4,000 for a modest sized house with 500sq M of land attached further inland from the coast needing renovation. My Maximum Bulgarian Property Investment My story is that i bought an off plan, two bedroom apartment with sea views and about five minutes walk from the beach for 19,000 in the coastal area of St.Konstantine in the Varna region of the country.

The benefits of buying off plan are that firstly you get the property extremely cheap than what it would fetch if finished on the open market. My property purchase has already only three months on been valued at over double what i paid for it. 19,000 invested and Three months later 20,000 profit already, what investment do you know yields that sort of profits? Obviously this profit is only on paper at the moment as my property will not be finished until May 2007.

If you do not have that kind of money in the bank like i did, then you do not have to come up with all the finance up front, many off plan construction companies like mine offer a three stage payment plan. Pay 30% in two months then the next 30% in the next four months and so on until the property is finished.

Bulgarian Property Rental Return

This is also another way of reaching that 100,000 profit on my apartment purchase, i will be renting my apartment all year round. The rental for sea view apartments near the beach yield great returns but only in the summer season. I prefer to have a guaranteed income all year round from an annual rental contract. This type of rental gives you 12% return a year on your purchase price so in eight years the property has paid for itself. I have been told that the style of apartment and its location will have no problems getting an annual rental contract year on year.

The predicted future of my investment:

The high season months from June to September usually displays apartment prices increase month on month. Whilst on my property buying holiday i noticed prices increasing from one week to the next,some apartments rose by 3,000 in just one week. Steadily increases are predicted for this type of property but in the peak summer months the prices appear to run wild. It has been predicted also by many property experts that once Bulgaria has entered the EU in January 2007, we will see property prices rise by a conservative figure of 100% plus and then begin to calm down in 2009.

Now that estimation is for all property in Bulgaria, not the more sort after apartments on the coast which will see even higher profits with still the peak summer months price boom. Many experts have predicted for the prosperous regions of bulgaria that property price rises will be in the region of 200% by the end of 2007.

Lets take a step back and look at the figures now, 19,000 invested, eight years of annual rental and the property has paid for itself. 20,000 made even before its been built, 200% price increase predicted by the end of 2007, making 60,000 profit already.

As i am keeping my property for atleast six years, on the estimated value of my apartment by the end of 2007 being 60,000, this means only an annual price increase of 7.5% required to make my goal of 100,000 profit.

For anyone in for the marathon rather then the sprint for profit, once again,look at the coastal regions of Spain as an example of what profit can be achieved, also if you were to hold onto your property for more than eight years then profit is added by the rental side of the income.

I hope you enjoyed reading this article on the amazing profit potential in buying cheap bulgarian property, remember you will have to get in quick before the prices go up and the profit margins reduce. Good Luck!

Submitted by: Andrew Herbert