impact on the property market in Bulgaria.
As the country continues to embark upon its fledgling growth ahead of
accession to the European Union next year, the property market has
maintained its phenomenal surge and the statistics from the latest
study suggest that the property sector is contributing an increasing
amount to the overall economy.
According to figures published recently, the Bulgarian economy was
boosted by a massive �8 billion of investment in property over the
course of 2005. And further, the results show that of that investment,
between 15 and 20 per cent of it came from foreign nationals, as
property investors seek to get their hands on some potential bargains.
Recently, Assetz chief Stuart Law described Bulgaria as the "darling of
the property market" because of its huge potential for growth and the
fact that it has some of the most attractive resorts in the world,
particularly for skiers.
That assessment has clearly been heeded by many investors, both in the
UK and abroad, as investment in Bulgarian property exploded over the
last 12 months.
It is anticipated that such investment will continue to grow at a great
pace up until and immediately after the country's accession to the EU,
as the country will become more accessible to other European investors.
Earlier this month, the Bulgarian government also released statistics
revealing that the country witnessed a 22 per cent year-on-year growth
in the number of real estate deals occurring there during 2005. These
figures highlight the enormous potential that many investors see in the
country and the growth of the Bulgarian economy looks set to further
add to that income.
With accession to the EU on the horizon, the Bulgarian authorities have
been working hard to ensure that the country meets the Union's strict
guidelines on economic stability and other factors, which are required
before the state can become a member of the EU.
One of the consequences of this has been to provide investors with more
confidence in the Bulgarian economy and as such more people are willing
to take a chance on investing their money into property in the region,
feeling that the market is unlikely to suffer any crash and that the
political situation is also stable enough to bring good returns on
their investments over a long or short period of time.
Another area which has received attention ahead of EU membership is
that of the country's infrastructure, which is undergoing a major
overhaul. This means that Bulgaria is now more accessible and areas in
the mountains near ski resorts are becoming more attractive year-round
investments, as links to these remote areas improve.
Baby-boomers set to push UK property market
It has been claimed that the UK's property market is set to benefit
from an explosion in interest from baby-boomers.
According to new research carried out by Prudential and Datamonitor,
the post-war generation who were born and grew up in the aftermath of
the Second World War are about to start looking for the best retirement
packages, with second homes high on their list of priorities.
The study discovered that their homes are currently worth a combined
�543 billion across the UK and that figure is set to increase over the
next 15 years to �1,425 billion as the youngest of the baby-boomer
generation reach retirement age.
An increasing number of people are considering investing in property as
a way to supplement their income when they retire, with many believing
that a pension will be inadequate for their needs. And it appears that
the baby-boomer generation shares that sentiment, as many are
preparing, or have already, invested in property to provide them with a
regular income in their retirement.
"Property can form a great part of a retirement planning portfolio,"
commented Ali Crossley, director of lifetime mortgages at Prudential
UK.
"It may be too late for people approaching retirement to build up a
supplementary source of income using a pension, savings or investments.
However the equity tied up in their homes could be instrumental in
boosting their funds."
And it appears that a move to release that equity is exactly the move
that many baby-boomers are planning over the coming years.
With the arrival of A-Day coming ever closer and the number of people
who have invested in self invested personal pensions (Sipps) remaining
high despite the chancellor's announcement in the pre-Budget report at
the end of 2005, it appears that many people approaching retirement age
are about to free up the considerable amount of equity tied to their
homes.
The number of people investing in second homes, both in the UK or
investment hotspots across the globe such as Spain or Bulgaria, is
therefore likely to rise significantly over the months ahead.
Many baby-boomers are keen to get their hands on the equity in their
housing to fund the purchasing of second homes, which can provide them
with two benefits in their old age. This is because it will not only
act as a source of income through renting it out, but it also offers
the opportunity for cheap holidays in parts of the country or world
which they are attracted to.
With fewer commitments during retirement, this appears to be another
attractive reason for the baby-boomer generation to become owners of
second homes, or to even build up a portfolio of properties.
Bulgaria property
investment.
This article is free for republishing
Source: http://www.articlealley.com/article_40928_33.html
Source: http://www.articlealley.com/article_40928_33.html
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