Advice on resale market

[desmond]

I have just started researching property in Bulgaria and was looking at off plan developments in Bansko with a longer completion date. I was considering a short investment and selling on the property just before or at completion. However I've heard some comments about a lack of a resale market, and people not likely to get a buyer for their new apartment. Please let me know your thoughts on the matter, or if this would be more suited to another location.
Thanks
Desmond

 

[chris B]

Desmond,

Suggest you register with the buy association (search on Google) as there are a few good podcasts which feature Bansko. Personally I think it's over supplied at present so will effect resale price - if indeed you could resell !

Good luck!

 

[propertastic]

The reports coming back from Bansko are not at all good these days.

The Sofia Echo have had two reports featuring Bansko in the last few weeks. One says that the town has put a halt on any new building works because the infrastructure just can't cope with the amount of building work in development.

Another report says that many agents in Bansko are closing their offices there because of over-supply and lack of demand.

There's also a useful item in the news section called 'Increased Prices Not Affecting Demand' with some pointers as to what are new hotspots in Bulgaria.

 

[mike123]

It all depends on the location, bansko and sunny beach are not good locations.

 

[Audrey]

Hi Desmond
Would suggest other 'hotspot' areas in BG for your type of investment. The Bansko roll is set to continue with the inclusion of Razlog and Bania developments all competing for sales.
Good luck
Audrey

 

[phobia1]

According to the feedback that I have, from early buyers within Bansko and Sunny Beach. It seems that all wish to sell, but only a few have managed to find buyers.
The new hotspots are just outside Sunny Beach, Kosharita etc. And inland, say 40km around Veliko Turnovo where prices in some villages, Dragijevo (12km) have tripled over the last year. Rumour has it that the airport in Горна Оряховица will re-open to some jet flights during 2008/9. If that happens.... There is also much interest in property around the inland lakes. FJW

 

[yaj]

I have just started researching property in Bulgaria and was looking at off plan developments in Bansko with a longer completion date. I was considering a short investment and selling on the property just before or at completion. However I've heard some comments about a lack of a resale market, and people not likely to get a buyer for their new apartment. Please let me know your thoughts on the matter, or if this would be more suited to another location.
Thanks
Desmond

hey mate, i know the perfect investment company, with the perfect product in a prime location, because i have invested my self abroad.If you need any help out atall please give me a call on , 07950469867
kind regards
yaj

 

[Jain and Chris]

Hi Desmond

Bansko, Sunny Beach, etc... all have pros and cons. If you can purchase right next to the gondola in Bansko or right on the front line at Sunny Beach, you will be able to sell. Remember, location, location, location.... always sells

 

[JOHNNY]

Hi Desmond

Bansko, Sunny Beach, etc... all have pros and cons. If you can purchase right next to the gondola in Bansko or right on the front line at Sunny Beach, you will be able to sell. Remember, location, location, location.... always sells

Jain i was wondering i had bought in Perun Lodge Bansko and am feeling that i made a big mistake what is yours thoughts. Also I have paid 43% of the purchase price have you any advice on mortgage lenders etc.

 

[Jain and Chris]

Hi Johnny

Why do you think it's a big mistake? The development seems well sited, on track for completion and pretty good facilities.

For mortgages, there is only one company I know of which has good contacts with all the major Bulgarian banks who offer mortgages. They are called Bulgarian Home Loans and are UK based. The name of the MD there is Chris Downham and he is a lovely guy who I am sure will help you. His email is [email protected] if you'd like to contact him for advice.

Otherwise for mortgages you'll need to tackle either the UK banks who will lend on overseas property (or re-mortgage your UK property) or the Bulgarian banks themselves.

Hope this helps, get back to me if I can do anything more.

All the best

 

[overseas wills]

Re

Really depends what you want to get out of it. Bansko will provide you with an all year option of ski in the winter and hills in the summer. If you are looking at a coastal resort I would recommend St Vlas which is near sunny beach. A cracking new marina has just been developed which has allowed property prices to increase. In adition the buyers market seems to be from Bulgarians, Russians, Nordics and still some British.

 

[manicman]

Hi All, What Makes St.vlas So Attractive? And What Info Do You Have Access Too, To Show The Prices Have Increased.

 

[Investy]

Capital growth from off plan investing seems to pretty much be a thing of the past.
This has been caused by over supply of touristic property in most counrties.

Think about it; If you are prepared to part with say £50,000 today, why on Earth would someone be prepared to give you £80,000 in 2 years? In the past maybe, but now the next person in the queue would rather buy thier own off plan brand new place so yours will not appreciate in value.

THE WAY FORWARD:
After some years investing abroad I think the name of the game now is 'rental yield'. Even if you get no capital growth at least you can enjoy a worthwhile rental yield.

 

[Mark H]

Earlier in this thread Jayne & Chris had mentioned location being important which to be honest it really is. This may well be one reason why you might want to consider St Vlas.

If you are thinking of where to buy around Sunny Beach/Vlas I would personally choose Vlas and not Sunny Beach. Reasons why:

• Quieter and less busy than Sunny Beach
• Easy to get to Sunny Beach if required by bus - 40p each way
• Up market Marina and Restaurants
• Village centre with additional economically priced restaurants
• Good views of Nessebar
• Too much competition for rental from other apartments in SB

Now I'm not saying you are going to make a mint from rentals in Vlas (you could if you work hard at promoting your apartment) but it is my personal belief that a location like this is more likely to generate better returns than most and present you with a better resale opportunity in the future (not now).

I do know of some people who have made decent profits selling their 'Diamond' apartments privately to Russian buyers. So whilst there are many doom and gloom merchants out there there are also some savvy individuals cashing in.

Mark

 

[Jain and Chris]

Afternoon Mark (well, it is afternoon here in Bulgaria)

Yes, I think you are completely right about location being important.

St Vlas is definitely a good bet and your reasons for saying so are totally valid. I personally would prefer it to SB but then I myself prefer things a bit quieter.

I agree too regarding promoting your property for rent, I think lots of people wanting to rent apartments or houses forget that you have to work at marketing to get the business. There seems to be a strange idea that once you have bought your property, then the business will just arrive (and this is most certainly not limited to people buying in Bulgaria, but indeed all over the world). You need to check sources for advertising and promotion, plus find differentiators, reply to emails in the correct way, over-achieve on managing their expectations, etc.....

The Russians, as you say, are out in force - but it has to be said they are looking for really top notch stuff - location and quality of build combined. If you have that then you can do very well with them. Interestingly though, a lot of our readers have successfully sold to Brits and other Europeans.

It is interesting that holiday home construction in Bulgaria is not currently keeping up with demand, so I expect that all those doom and gloom merchants will be eating their hat soon. One of our key things we always say is that you always have to look forward in a property market and the doom n gloom guys ref Bulgaria are basing their opinion on what has happened rather than what is happening now and is to come.

Cheers

 

[Mark H]

I certainly prefer Vlas to SB as well due to being quieter but I am not averse to going down there and my kids indeed make me go three or four times every time we are in BG. They also drag me around Nessebar as well, which I do not mind really as I quite like visting the Snake Master to see what he has whittled up.

Rental properties are no different to any other business. If you hand them over to companies like Laguna then expect a low return but no hassle. Put in some effort and you may well be surprised.

I'm glad to see that someone else has some optimism about the future potential. I personally did not buy for the short term and had always intended to hold my property for between 5-10 years so just now I'm not too worried about the state of the resale market.

Mark

 

[Jain and Chris]

Hi MarkH

You are right and did the right thing - in for the medium to long term. The resale market is much better than most of the internet media would have you believe - as you said location is key, then the build, etc.

"Put in the effort on rentals" - spot on mate!!!

Cheers

 

[rabarbaro]

....I did it...I've bought an apartment in sozopol, the agent said ( and wrote ) that I could resell before completion, at the second stage of payment...
Up to now, 18 months later, nothing has been sold !
They say that the price has increased a lot, I "earned" 50 % ! Of nothing, as if you can't sell it it means you "lost" 100 %, not gained 50 % !
Furthermore I'm really disappointed with plenty of problems, misunderstandind, no replies and I could do a long list ! Be careful !

 

[sonia36]

I bought a studio apartment in Sunny Beach off plan 2 years ago and this has just been completed. I have been told that there is NO resale market by at least 3 companies that I have approached. I have also been told by various management/letting agents that the market is completely saturated and my chances of earning any rental this year is practically zero. I cant even persuade family/friends to stay in the apartment as they are all complaining that the flights in July & August are too expensive!! Personally I would not advise purchasing any property in the Sunny Beach region!

 

[elitehomes]

Hi, Desmond
I don't think that investment in Bansko is good right now.Bansko is overbuild.If you want to make an investment the best is to buy a apartment in one of the big cities like Varna, Sofia, Burgas.Just for an example I did bought 67m2 flat in Varna for 52000e in 2006 right now I can sell it for 80000e.This gonna be easy sell.I think 28000e is good profit for less than two years.
Don't hesitate to write me.