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Bulgarian mortgage and property market update
Written by Dave Moore
Bulgarian mortgage and property market update
2009 saw Bulgaria follow the rest of the world, albeit at a slightly slower, Bulgarian rate.
Mortgages
Mortgage lending was reduced from up to 13 banks providing foreigners with loans at the end of 2008, to 0 lenders providing credit for foreigners by the end of 2009.
However there appears to be good news on the horizon.
Local lending in Bulgaria is up by about 200% on the same time last year and is increasing on a monthly basis. Furthermore, I am in contact with several lenders in Bulgaria and the indication has been that at some point in the early to middle part of 2010, there should be a few mortgages available to some of these foreign clients who are drastically requiring finance to complete their off-plan purchase made in 2007. The early products bought out by banks are likely to have some, or all of the following limitiations;
Expensive interest rates and set up fees
Lower loan to value (perhaps 65% max.)
Stringent debt to income criteria
Slow processing of cases
Conservative property valuations
Although this doesn't paint a great picture, the foreign lending market has to start somewhere. Competition between lenders, a return to confidence in foreigners abilities to repay credit due to increased job security, and increasing access to well priced finance is likely to breach some of the limitations set out above, but patience is the key. It's probably going to be 20 years before bulgarian banks lend anything like the Uk high street lenders, but in the meantime, by 2011 we should see some well priced finance products available to the foreign market.
Property
Reliable indications about property market are hard to find. Whilst many reports suggest that Sofia has dropped about 25 - 30% from late 2007 prices, it seems the market might not have quite hit rock bottom. However as property and stock markets are largely driven by sentiment, if there is credit available to purchase properties, prices could go up tomorrow.
In my opinion, now is a very good time to buy if you can afford to do so with cash. There are many developers out there who need to sell stock quickly in order to repay their loans - all reasonable offer swill be considered. If you are interested in purchasing property in Sofia, please give me a call on 01142852958, 07738887555 or email me
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Whilst the rental market is not particularly strong at the moment due to a large supply, the strategy would be to buy now at a good price (a much cheaper price than people agreed to more than 2 years ago), rent for a few years, perhaps re-finance in Bulgaria when an attractive finance package is available, and sell in about 7 - 9 years at the top of the next property cycle.
The market in Plovdiv, Varna and other Bulgarian cities has mirrored that of Sofia somewhat, however Plovdiv has shown itself to be slightly more resilient to the down-turn with price drops not quite as extreme.
Reliable information about the tourist areas, both coastal and ski regions is also hard to come by, although it seems the main areas like Bansko and Sunny Beach are back to 2005 prices, and in some cases even lower. Those properties of dubious construction and location may not even fetch €500/ sqm at the moment, however those at the other end (ie luxury properties in good location) in some cases have even risen over the last year.
If you are looking for a holiday home, then now is definitely a great time to buy. Both new and resale properties are out there in their thousands with many people selling at huge losses to off-load and move on. If you are interested in buying your own little piece of Bulgaria, please give me a call on 01142852958, 07738887555 or email me
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If you are looking simply to invest in holiday property, in my opinion it would still be a massive risk. Whilst prices may not fall much further than they have already, they also may not rise for years to come - there are simply thousands of properties un-occupied or for sale and there still doesn't appear to be the overwhelming tourist demand we were all promised. If you're a gambling man, maybe take a punt, but if you are after a more solid investment, the cities look like a much better bet!
Dave Moore, Director of Balkan Legal & Finance ltd
1st February 2010
Insurance, Let's deal with the facts
Written by Dave Moore
Let’s deal with the facts;
- No-one knows when they’re going to die or get a critical illness.
- Everyone reading this thinks it will never happen to them.
- Statistically at least 1 person in 20 will die before retiring, and 1 in 8 will get a critical illness.
- If either parent died, your child would go through a terrible time emotionally.
- Most adults will earn more than £1.5 million over their lifetime, but they won’t earn anything when they’re dead.
- Most 30 year olds can get £100,000 level cover for less than £10/ month guaranteed until retirement age. (based on non-smoker, un-rated policies)
- Not insuring your life is one gamble your family can’t afford.
Many people reading this spend £50/ month on their Satellite or Cable television, £40/ month on car insurance, £10/ month on lottery tickets, £20 on pet insurance – not to mention take-aways, boozing and other personal luxuries, despite spending nothing on life and/or critical illness cover.
In the event of death or critical illness, your partner and children will go through a terrible time emotionally, this is something you can’t control, but you can control how they cope financially.
Please look in the mirror and ask yourself, Am I being a responsible parent by not having life insurance? What would be worse for my family than me dying or getting a critical illness and never being able to work again??? The answer should be, ‘dying and your family not being able to afford to live their lifestyle.’
You can change this, cheaply and easily – it only takes a little bit of time and a responsible attitude towards parenting and relationships.
Whilst many places sell life insurance, I can provide personalised financial advice. I choose from a range of leading insurers, provide free, no obligation advice on protection and can visit you at your home, at my home, or basically wherever you want to meet. I can also provide advice on Mortgages, Loans, Redundancy cover and Buildings and Contents ins.
Oh, and remember, if you are one of those that already has cover in place – that’s great. Still give me a call though because I can save about 90% of people money on their policies, and if I can’t, at least you know you’ve got the best deal out there.
I am a Mortgage & Insurance professional for Simplicity Financial Services Ltd is an appointed representative of Home of Choice Ltd which is authorised and regulated by the Financial Services Authority.’
Home of Choice Ltd is authorised and regulated by the Financial Services Authority (FSA).
Home of Choice Ltd is a Registered Company (Registration Number 03156922). The Registered Address is 25 Harley Street, London, W1G 9BR.
Call Dave Moore on 01142852958 or 07738887555 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it for your free, no obligation quote.
Bulgaria Ski Resorts Tempt Russian Property Buyers
Written by Dave Moore
Bulgaria Ski Resorts Tempt Russian Property Buyers
Properties | January 15, 2010, Friday
Bulgarian ski resorts are among European destinations that continue to attract property-buying
Russians, despite the economic crisis. Photo by BGNES
The demand for European property by Russians is steadily increasing despite the economic crisis, Russian media have reported.
According to official data, Russian people are currently the most active foreign buyers of property in Europe, especially in its eastern regions. The majority usually look for property near the famous ski resorts of Bulgaria, Montenegro, Turkey and other countries with a well-developed tourism sector.
Russians now account for almost half the buyers of real estate in Europe, despite the fact that compared with 2009, the number of transactions completed by them has decreased by 5%.
In contrast, the demand for foreign property among the citizens of the European Union and the US has significantly dropped since the beginning of the recession.
According to the Kvadroom Property Group, currently prices on real estate in Russia are so high that more and more Russians prefer to invest their money in buying property abroad.
The average cost of one square meter of housing in Moscow is now more than USD 5 000.
Whereas in the past many preferred to buy homes and apartments in Eastern Europe, Russian citizens are now also increasingly interested in Western European real estate.
Novinite News
** Article provided by Bulgaria Property Action Group 18th January 2010
Bulgaria – the Best Kept Tourism Secret
Written by Dave Moore
Wednesday, January 13, 2010
Bulgaria – the Best Kept Tourism Secret
The Bulgarian resorts have lately outshined the sights of Istanbul. The British tourists prefer sunbathing in Sunny Beach and Golden Sands, or skiing in Bansko and Pamporovo mountain resorts in Bulgaria to sightseeing in Istanbul. Bulgaria ranks fourth among the world tourist destinations, recommended by the “Scotsman”.
Only the city of Kyoto in Japan, Morocco and South Africa rank before Bulgaria in this chart. According to the edition, Bulgaria is one of the best-kept tourism secrets in Europe.
“Now that the country is a EU member, this gem comes to light. Skiing in Bulgaria is cheaper than in the Alps and the Black Sea coast offers resorts that are especially built for the purposes of summer tourism and traditional resorts, as well as one of the best sandy beaches in Europe,” the article reads.
“The East meets the West in this charming corner of the world,” the Scotsman writes.
Istanbul, Nepal, Salvador, Nicaragua, Suriname and Iceland rank after Bulgaria on the tourist map.
Standart News 13/01/10
Standart News
** Article provided by Bulgaria Property Action Group 18th January 2010
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