by sas_stoyan07
Many people are not aware that there are three different kinds of investments. These are stocks, bonds and cash. As simple as it may sound, it is not so as each investment has many other sub-investments under its realm.
Bulgarian Houses
The stock market with all its pitfalls can be scary place for those investors who do not know too much about how a stock market functions. This should not scare you as the Internet is a good resource for information and based on the type of investor you are, you can get information. Investors are primarily of three types -- conservative, moderate and aggressive. Based on the kind of investor you are, you can invest either in high risk investments or low risk investments.
People who are conservative prefer to invest in cash form of investments. This means that they are the investors who will have interest bearing savings accounts, or they will invest their money into mutual funds, CDs or Treasury bills. These sorts of investments are safe and carry a low risk.
Moderate investors take chances with cash and bonds. Some might also try their luck in the stock market but they will usually opt for investments that have either low risk or moderate risk. It has been seen that many moderate investors prefer to invest in real estate that has low risk attached to it.
Online Auctions
Aggressive investors will usually opt for high risk stock market. They will invest their money in business ventures and high risk real estate. A good example of high risk real estate would be investing your money in an old apartment building; renovating the property with the expectation that you will be able to rent out the apartments for more than what they are currently worth.
It is imperative that you learn the different types of investments before you start investment. You should also know what to expect from an investment and the risks involved.
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Friday, July 25, 2008
Bulgarian Property Investment - Focus TopInvest.bg
by sas_stoyan07
Bulgarian Properties
To put it simply, 2007 could well be the year when Bulgaria stops emerging as a nation and it finally arrives as a top destination with strong real estate investment opportunity supported by a local society growing in affluence and backed up by a strong tourism market and fledgling international expatriate and retiree demand.
Prior to the very recent announcement that Bulgaria really would join the European Union in 2007, those who bought property in Bulgaria were seen as speculators banking on the nation being accepted as a fully paid up member. These investors naturally took a great deal of profit from the market when the announcement came through. Subsequently there have been many media reports that there is no more room for profits to be made - but that is an incredibly short sighted view to take! Sure, the speculators have been there, done that and derived double digit returns on investment each year to date - but going forward there are many fundamental factors underpinning the ongoing profitability of property in Bulgaria.
Top Invest
For example, with EU entry comes massive investment and the ability for companies and commercial operations from across Europe to set up operations in Bulgaria or to begin trading more intensely with Bulgaria. One of the main property market sectors set to expand significantly as a result is the retail sector - a company like Technopolis Bulgaria is perfect to demonstrate the direction many retailers are planning on taking in 2007. Technopolis Bulgaria is a company part German and part Bulgarian owned that is already dominant in its consumer electronics market sector and which already owns 11 mega stores across the country but which, in 2007, has plans to begin building hypermarkets. Not only this, they have further plans to expand across Bulgaria's borders and they are just one in an incredibly long line of retailers with plans in place to construct logistics and warehousing in Sofia as well in 2007.
Bulgarian Houses
Retailers' demand for land is going to go head to head with residential developers' demand for land in the main commercial centers and resorts and this will force land prices up which will inflate the prices of properties for sale...buyers need to get in ahead of this price push and 2007 is the year when they need to move quickly.
There are further factors that will inflate house prices in Bulgaria from 2007 onwards - with EU entry comes a requirement to adhere to EU rules and regulations and these rules and regulations don't come cheap! Constructors will need to upgrade materials used and also safety standards in place. Furthermore Bulgarian labour can now begin demanding equal rates of pay with their EU counterparts and on top of this, commodities such as electricity are set to increase in 2007. The National Construction Federation has estimated that in 2007 alone 5% will be added to the price of construction because of all of these factors.
This will affect those who come to the market late and anyone hoping to tap into a society growing in affluence and demanding more and better accommodation as well as a tourism market that is rapidly expanding need to move quickly in Bulgaria if they want to profit fully. It is estimated by many experts in the Bulgarian property market that there is a window of maximum opportunity currently that will last until 2010 after which point the Bulgarian property market will have met demand with supply, property prices will meet affordability and short term strong gains will be far less achievable.
Finally, changes to the Bulgarian constitution to allow straightforward foreign ownership of real estate have been made but not yet enacted and while this remains the case there will exist in many people's minds additional risk or unsatisfactory levels of administrative hassle associated with buying property in Bulgaria which one has to do via a limited company structure. This will keep prices competitive until the constitutional changes become law which is estimated to happen somewhere between 2010 and 2014. This means that those who commit now can buy in ahead of a potential boom in property transactions which will most likely occur when it becomes simple to buy and own land and property in Bulgaria.
работно облекло Courtesy of: Super Article Submitter
http://www.goarticles.com/cgi-bin/showa.cgi?C=937596
Bulgarian Properties
To put it simply, 2007 could well be the year when Bulgaria stops emerging as a nation and it finally arrives as a top destination with strong real estate investment opportunity supported by a local society growing in affluence and backed up by a strong tourism market and fledgling international expatriate and retiree demand.
Prior to the very recent announcement that Bulgaria really would join the European Union in 2007, those who bought property in Bulgaria were seen as speculators banking on the nation being accepted as a fully paid up member. These investors naturally took a great deal of profit from the market when the announcement came through. Subsequently there have been many media reports that there is no more room for profits to be made - but that is an incredibly short sighted view to take! Sure, the speculators have been there, done that and derived double digit returns on investment each year to date - but going forward there are many fundamental factors underpinning the ongoing profitability of property in Bulgaria.
Top Invest
For example, with EU entry comes massive investment and the ability for companies and commercial operations from across Europe to set up operations in Bulgaria or to begin trading more intensely with Bulgaria. One of the main property market sectors set to expand significantly as a result is the retail sector - a company like Technopolis Bulgaria is perfect to demonstrate the direction many retailers are planning on taking in 2007. Technopolis Bulgaria is a company part German and part Bulgarian owned that is already dominant in its consumer electronics market sector and which already owns 11 mega stores across the country but which, in 2007, has plans to begin building hypermarkets. Not only this, they have further plans to expand across Bulgaria's borders and they are just one in an incredibly long line of retailers with plans in place to construct logistics and warehousing in Sofia as well in 2007.
Bulgarian Houses
Retailers' demand for land is going to go head to head with residential developers' demand for land in the main commercial centers and resorts and this will force land prices up which will inflate the prices of properties for sale...buyers need to get in ahead of this price push and 2007 is the year when they need to move quickly.
There are further factors that will inflate house prices in Bulgaria from 2007 onwards - with EU entry comes a requirement to adhere to EU rules and regulations and these rules and regulations don't come cheap! Constructors will need to upgrade materials used and also safety standards in place. Furthermore Bulgarian labour can now begin demanding equal rates of pay with their EU counterparts and on top of this, commodities such as electricity are set to increase in 2007. The National Construction Federation has estimated that in 2007 alone 5% will be added to the price of construction because of all of these factors.
This will affect those who come to the market late and anyone hoping to tap into a society growing in affluence and demanding more and better accommodation as well as a tourism market that is rapidly expanding need to move quickly in Bulgaria if they want to profit fully. It is estimated by many experts in the Bulgarian property market that there is a window of maximum opportunity currently that will last until 2010 after which point the Bulgarian property market will have met demand with supply, property prices will meet affordability and short term strong gains will be far less achievable.
Finally, changes to the Bulgarian constitution to allow straightforward foreign ownership of real estate have been made but not yet enacted and while this remains the case there will exist in many people's minds additional risk or unsatisfactory levels of administrative hassle associated with buying property in Bulgaria which one has to do via a limited company structure. This will keep prices competitive until the constitutional changes become law which is estimated to happen somewhere between 2010 and 2014. This means that those who commit now can buy in ahead of a potential boom in property transactions which will most likely occur when it becomes simple to buy and own land and property in Bulgaria.
работно облекло Courtesy of: Super Article Submitter
http://www.goarticles.com/cgi-bin/showa.cgi?C=937596
Bulgarian Property Investment - Focus TopInvest.bg
by sas_stoyan07
Bulgarian Properties
To put it simply, 2007 could well be the year when Bulgaria stops emerging as a nation and it finally arrives as a top destination with strong real estate investment opportunity supported by a local society growing in affluence and backed up by a strong tourism market and fledgling international expatriate and retiree demand.
Prior to the very recent announcement that Bulgaria really would join the European Union in 2007, those who bought property in Bulgaria were seen as speculators banking on the nation being accepted as a fully paid up member. These investors naturally took a great deal of profit from the market when the announcement came through. Subsequently there have been many media reports that there is no more room for profits to be made - but that is an incredibly short sighted view to take! Sure, the speculators have been there, done that and derived double digit returns on investment each year to date - but going forward there are many fundamental factors underpinning the ongoing profitability of property in Bulgaria.
Top Invest
For example, with EU entry comes massive investment and the ability for companies and commercial operations from across Europe to set up operations in Bulgaria or to begin trading more intensely with Bulgaria. One of the main property market sectors set to expand significantly as a result is the retail sector - a company like Technopolis Bulgaria is perfect to demonstrate the direction many retailers are planning on taking in 2007. Technopolis Bulgaria is a company part German and part Bulgarian owned that is already dominant in its consumer electronics market sector and which already owns 11 mega stores across the country but which, in 2007, has plans to begin building hypermarkets. Not only this, they have further plans to expand across Bulgaria's borders and they are just one in an incredibly long line of retailers with plans in place to construct logistics and warehousing in Sofia as well in 2007.
Bulgarian Houses
Retailers' demand for land is going to go head to head with residential developers' demand for land in the main commercial centers and resorts and this will force land prices up which will inflate the prices of properties for sale...buyers need to get in ahead of this price push and 2007 is the year when they need to move quickly.
There are further factors that will inflate house prices in Bulgaria from 2007 onwards - with EU entry comes a requirement to adhere to EU rules and regulations and these rules and regulations don't come cheap! Constructors will need to upgrade materials used and also safety standards in place. Furthermore Bulgarian labour can now begin demanding equal rates of pay with their EU counterparts and on top of this, commodities such as electricity are set to increase in 2007. The National Construction Federation has estimated that in 2007 alone 5% will be added to the price of construction because of all of these factors.
This will affect those who come to the market late and anyone hoping to tap into a society growing in affluence and demanding more and better accommodation as well as a tourism market that is rapidly expanding need to move quickly in Bulgaria if they want to profit fully. It is estimated by many experts in the Bulgarian property market that there is a window of maximum opportunity currently that will last until 2010 after which point the Bulgarian property market will have met demand with supply, property prices will meet affordability and short term strong gains will be far less achievable.
Finally, changes to the Bulgarian constitution to allow straightforward foreign ownership of real estate have been made but not yet enacted and while this remains the case there will exist in many people's minds additional risk or unsatisfactory levels of administrative hassle associated with buying property in Bulgaria which one has to do via a limited company structure. This will keep prices competitive until the constitutional changes become law which is estimated to happen somewhere between 2010 and 2014. This means that those who commit now can buy in ahead of a potential boom in property transactions which will most likely occur when it becomes simple to buy and own land and property in Bulgaria.
работно облекло Courtesy of: Super Article Submitter
http://www.goarticles.com/cgi-bin/showa.cgi?C=937596
Bulgarian Properties
To put it simply, 2007 could well be the year when Bulgaria stops emerging as a nation and it finally arrives as a top destination with strong real estate investment opportunity supported by a local society growing in affluence and backed up by a strong tourism market and fledgling international expatriate and retiree demand.
Prior to the very recent announcement that Bulgaria really would join the European Union in 2007, those who bought property in Bulgaria were seen as speculators banking on the nation being accepted as a fully paid up member. These investors naturally took a great deal of profit from the market when the announcement came through. Subsequently there have been many media reports that there is no more room for profits to be made - but that is an incredibly short sighted view to take! Sure, the speculators have been there, done that and derived double digit returns on investment each year to date - but going forward there are many fundamental factors underpinning the ongoing profitability of property in Bulgaria.
Top Invest
For example, with EU entry comes massive investment and the ability for companies and commercial operations from across Europe to set up operations in Bulgaria or to begin trading more intensely with Bulgaria. One of the main property market sectors set to expand significantly as a result is the retail sector - a company like Technopolis Bulgaria is perfect to demonstrate the direction many retailers are planning on taking in 2007. Technopolis Bulgaria is a company part German and part Bulgarian owned that is already dominant in its consumer electronics market sector and which already owns 11 mega stores across the country but which, in 2007, has plans to begin building hypermarkets. Not only this, they have further plans to expand across Bulgaria's borders and they are just one in an incredibly long line of retailers with plans in place to construct logistics and warehousing in Sofia as well in 2007.
Bulgarian Houses
Retailers' demand for land is going to go head to head with residential developers' demand for land in the main commercial centers and resorts and this will force land prices up which will inflate the prices of properties for sale...buyers need to get in ahead of this price push and 2007 is the year when they need to move quickly.
There are further factors that will inflate house prices in Bulgaria from 2007 onwards - with EU entry comes a requirement to adhere to EU rules and regulations and these rules and regulations don't come cheap! Constructors will need to upgrade materials used and also safety standards in place. Furthermore Bulgarian labour can now begin demanding equal rates of pay with their EU counterparts and on top of this, commodities such as electricity are set to increase in 2007. The National Construction Federation has estimated that in 2007 alone 5% will be added to the price of construction because of all of these factors.
This will affect those who come to the market late and anyone hoping to tap into a society growing in affluence and demanding more and better accommodation as well as a tourism market that is rapidly expanding need to move quickly in Bulgaria if they want to profit fully. It is estimated by many experts in the Bulgarian property market that there is a window of maximum opportunity currently that will last until 2010 after which point the Bulgarian property market will have met demand with supply, property prices will meet affordability and short term strong gains will be far less achievable.
Finally, changes to the Bulgarian constitution to allow straightforward foreign ownership of real estate have been made but not yet enacted and while this remains the case there will exist in many people's minds additional risk or unsatisfactory levels of administrative hassle associated with buying property in Bulgaria which one has to do via a limited company structure. This will keep prices competitive until the constitutional changes become law which is estimated to happen somewhere between 2010 and 2014. This means that those who commit now can buy in ahead of a potential boom in property transactions which will most likely occur when it becomes simple to buy and own land and property in Bulgaria.
работно облекло Courtesy of: Super Article Submitter
http://www.goarticles.com/cgi-bin/showa.cgi?C=937596
Bulgarian Houses Bulgarian, Real Estate Your Top Investment
by sas_stoyan07
Quest Bulgaria takes a look at the reality of re-sales of property in Bulgaria and how much your property might be worth.
Bulgarian Properties
Knight Frank, one of the UK's most respected residential and commercial property consultancies, recently published a report stating that high increases in residential property prices placed Bulgaria in second place in a world table highlighting property price increases during the second quarter of 2007. The report stated prices increased by 27.1%, so does this mean my house is now worth around Ј44,000 more than it was when I put it on the market at the start of the year? Should I be increasing the price in line with market trends?
A report by another reputable company, real estate consultants, Colliers, reported similar trends in Bulgarian property but focussed more on the fact that it was the number of buildings constructed. The mountain resorts showed 50% increases and the Black Sea coast 39%. How easy it is to read this statement in relation to prices increasing rather than that of the rate of build and to neglect the part of Colliers report, which states that overall sales prices have "remained unchanged for the past half year as supply continues to outpace demand."
Bulgarian Houses
The reality of the situation is that most reports measure Bulgaria's property market success in terms of price increases or build rates and neglect the fact that in Bulgaria, the real estate market is unregulated and the seller puts the price tag on their property. The valuation process goes something like this, "Ivan across the road has advertised his house for sale at 20,000 euro, so my house must be worth 30,000 euro because it is bigger."
Another form of valuation has resulted from towns and in particular villages adopting unofficial rates. All it takes is a professional developer to move into the area and the price they charge for their properties, usually a cost per square metre, becomes the official standard.
Top Invest
The village of Rogachevo on the Northern Black Sea coast is a prime example. Bulgarian Land Development Plc, a newly incorporated company now listed on the AIM stock market, has started the construction of a six million euro apartment and villa complex just outside of the village. The price of the property in the development ranges from between 750 to 1,200 euro per sq.m. The conclusion amongst people wishing to resell properties in the village is, "my property is now worth at least 750 euros a square metre." The fact that property up for resale may not have the same scenic outlook, modern facilities or luxurious design is irrelevant to the sellers. Bulgarian sellers have little experience of the property market because until a few years ago there was little demand. Consequently, they are unused to working to the laws of supply and demand. Many British sellers, who hail from a mature property market are lost without the skills of a valuer and stamp a price on their resale based on the following equation:
original cost + renovation costs + local market rates +desired profit =resale price
Yet, as everyone who emigrated here on the lure of cheap property and a fast buck now knows, the resale market is slow and underdeveloped. Apartment blocks are shooting up at a rapid pace giving new buyers lots of choice in both price and design. Renovated houses are two a penny and who wants to buy a renovated traditional build in the middle of nowhere, when they have so many well-designed new builds to choose? At the moment, it is safe to say, that in Bulgaria, supply far exceeds demand in terms of land and property.
The picture is not one of doom and gloom, but of caution rather than crash. The market is far from a crash, if it was, you would not see UK currency speculator Joe Lewis, investing 70 million pounds in the Bulgarian property market. And he is not alone, Israeli construction and investment company BSR Europe recently bought around 80,000 sq.m of land in Bulgaria for 37 million euro. Gardens Group is investing 400 million euro in a 600,000 sq.m development Lozen, a village close to Sofia.
A source from Raiffeisen real estates said that most sales over the last 2 years are from re-sale clients. Most of theses people bought land or property, sat on it for at least three years and are now re-selling for profits between 20 and 50%. This is easy to achieve when looking at properties at the low end of the market; recently Raiffeisen sold a property, which the client bought for 10,000 euro and sold for 15,000, but the demand for rural renovation projects has declined. Land re-sales are lucrative if the location is good. Apparently, there is good demand for regulated land, close to the coast. Again, patience is the key. Raiffeisen have dealt with re-sellers who bought land in 2004 at 10 euro per sq.m and sold it in October 2007 for 25 euro per sq.m.
British buyers have a "rising property" mentality. They expect property to increase dramatically in value as it has done over the last seven years in the UK. In this sense, they are not in tune with the rest of Europe; most of mainland Europe look at their property as their home, whereas the British view their property as a way to make money. Their foray into the Bulgarian property market has left many disappointed, because lead on by media hype, they expected the market to earn them vast profits in a short space of time as had happened in the UK. The lack of regulation in the Bulgarian real estate market has meant that the seller is in charge of valuing their own property and often they choose an inflated sales figure rather than checking actual market rates for re-sales.
Property prices have increased in the last two years. Belinda Knowles (42), a trainee solicitor from Dulwich, bought her one-bedroom apartment in Golden Sands resort off-plan for 40,000 euro. It took two years to complete the project and she has just spent her first summer enjoying the fruits of her investment. A one bed roomed apartment in her block now costs 60,000 euro - a staggering growth of 50% - if she could sell her own. "I think the market is inflated by unscrupulous real estate agents. I'm certain that if I put my apartment up for sale at this price I would be left disappointed for two reasons. Why would someone buy my apartment when they can by a brand new one for the same price and if the demand is so great, why haven't all of the apartments been sold?" Fortunately, Belinda bought her apartment as a long-term investment. "I have two teenage children and package holidays abroad were becoming ridiculously expensive. The children are also getting to the age where they would prefer to come on holiday with their friends rather than with me. I wanted to save money in the long-term by having a place abroad that the whole family could use via the low cost airline network and I wanted to be sure that it would be a safe place for my children to stay alone with their friends. Golden Sands is ideal. We get cheap flights with Wizz and British Airways from Gatwick which means we can come over more regularly and the nightclubs here are not filled with drug-taking louts, so I have no qualms about letting my kids go out." She also knows that by the time they have out-grown Bulgaria, the apartment will yield a good return on her investment. "In ten years time, when my children have their own lives and means of support, they may not want to spend their leisure time here. I'm sure that with the rate of investment going into the country at the moment, my apartment will sell at a higher rate than I paid for it and I will have saved money in the long run by not having to fork out for package holiday fees."
About the Author
Online AuctionsVisit here for more info on Real Estate
http://www.goarticles.com/cgi-bin/showa.cgi?C=952674
Quest Bulgaria takes a look at the reality of re-sales of property in Bulgaria and how much your property might be worth.
Bulgarian Properties
Knight Frank, one of the UK's most respected residential and commercial property consultancies, recently published a report stating that high increases in residential property prices placed Bulgaria in second place in a world table highlighting property price increases during the second quarter of 2007. The report stated prices increased by 27.1%, so does this mean my house is now worth around Ј44,000 more than it was when I put it on the market at the start of the year? Should I be increasing the price in line with market trends?
A report by another reputable company, real estate consultants, Colliers, reported similar trends in Bulgarian property but focussed more on the fact that it was the number of buildings constructed. The mountain resorts showed 50% increases and the Black Sea coast 39%. How easy it is to read this statement in relation to prices increasing rather than that of the rate of build and to neglect the part of Colliers report, which states that overall sales prices have "remained unchanged for the past half year as supply continues to outpace demand."
Bulgarian Houses
The reality of the situation is that most reports measure Bulgaria's property market success in terms of price increases or build rates and neglect the fact that in Bulgaria, the real estate market is unregulated and the seller puts the price tag on their property. The valuation process goes something like this, "Ivan across the road has advertised his house for sale at 20,000 euro, so my house must be worth 30,000 euro because it is bigger."
Another form of valuation has resulted from towns and in particular villages adopting unofficial rates. All it takes is a professional developer to move into the area and the price they charge for their properties, usually a cost per square metre, becomes the official standard.
Top Invest
The village of Rogachevo on the Northern Black Sea coast is a prime example. Bulgarian Land Development Plc, a newly incorporated company now listed on the AIM stock market, has started the construction of a six million euro apartment and villa complex just outside of the village. The price of the property in the development ranges from between 750 to 1,200 euro per sq.m. The conclusion amongst people wishing to resell properties in the village is, "my property is now worth at least 750 euros a square metre." The fact that property up for resale may not have the same scenic outlook, modern facilities or luxurious design is irrelevant to the sellers. Bulgarian sellers have little experience of the property market because until a few years ago there was little demand. Consequently, they are unused to working to the laws of supply and demand. Many British sellers, who hail from a mature property market are lost without the skills of a valuer and stamp a price on their resale based on the following equation:
original cost + renovation costs + local market rates +desired profit =resale price
Yet, as everyone who emigrated here on the lure of cheap property and a fast buck now knows, the resale market is slow and underdeveloped. Apartment blocks are shooting up at a rapid pace giving new buyers lots of choice in both price and design. Renovated houses are two a penny and who wants to buy a renovated traditional build in the middle of nowhere, when they have so many well-designed new builds to choose? At the moment, it is safe to say, that in Bulgaria, supply far exceeds demand in terms of land and property.
The picture is not one of doom and gloom, but of caution rather than crash. The market is far from a crash, if it was, you would not see UK currency speculator Joe Lewis, investing 70 million pounds in the Bulgarian property market. And he is not alone, Israeli construction and investment company BSR Europe recently bought around 80,000 sq.m of land in Bulgaria for 37 million euro. Gardens Group is investing 400 million euro in a 600,000 sq.m development Lozen, a village close to Sofia.
A source from Raiffeisen real estates said that most sales over the last 2 years are from re-sale clients. Most of theses people bought land or property, sat on it for at least three years and are now re-selling for profits between 20 and 50%. This is easy to achieve when looking at properties at the low end of the market; recently Raiffeisen sold a property, which the client bought for 10,000 euro and sold for 15,000, but the demand for rural renovation projects has declined. Land re-sales are lucrative if the location is good. Apparently, there is good demand for regulated land, close to the coast. Again, patience is the key. Raiffeisen have dealt with re-sellers who bought land in 2004 at 10 euro per sq.m and sold it in October 2007 for 25 euro per sq.m.
British buyers have a "rising property" mentality. They expect property to increase dramatically in value as it has done over the last seven years in the UK. In this sense, they are not in tune with the rest of Europe; most of mainland Europe look at their property as their home, whereas the British view their property as a way to make money. Their foray into the Bulgarian property market has left many disappointed, because lead on by media hype, they expected the market to earn them vast profits in a short space of time as had happened in the UK. The lack of regulation in the Bulgarian real estate market has meant that the seller is in charge of valuing their own property and often they choose an inflated sales figure rather than checking actual market rates for re-sales.
Property prices have increased in the last two years. Belinda Knowles (42), a trainee solicitor from Dulwich, bought her one-bedroom apartment in Golden Sands resort off-plan for 40,000 euro. It took two years to complete the project and she has just spent her first summer enjoying the fruits of her investment. A one bed roomed apartment in her block now costs 60,000 euro - a staggering growth of 50% - if she could sell her own. "I think the market is inflated by unscrupulous real estate agents. I'm certain that if I put my apartment up for sale at this price I would be left disappointed for two reasons. Why would someone buy my apartment when they can by a brand new one for the same price and if the demand is so great, why haven't all of the apartments been sold?" Fortunately, Belinda bought her apartment as a long-term investment. "I have two teenage children and package holidays abroad were becoming ridiculously expensive. The children are also getting to the age where they would prefer to come on holiday with their friends rather than with me. I wanted to save money in the long-term by having a place abroad that the whole family could use via the low cost airline network and I wanted to be sure that it would be a safe place for my children to stay alone with their friends. Golden Sands is ideal. We get cheap flights with Wizz and British Airways from Gatwick which means we can come over more regularly and the nightclubs here are not filled with drug-taking louts, so I have no qualms about letting my kids go out." She also knows that by the time they have out-grown Bulgaria, the apartment will yield a good return on her investment. "In ten years time, when my children have their own lives and means of support, they may not want to spend their leisure time here. I'm sure that with the rate of investment going into the country at the moment, my apartment will sell at a higher rate than I paid for it and I will have saved money in the long run by not having to fork out for package holiday fees."
About the Author
Online AuctionsVisit here for more info on Real Estate
http://www.goarticles.com/cgi-bin/showa.cgi?C=952674
Developers stay optimistic about real estate prices in bulgaria
by Ivan Ivanov
http://www.goarticles.com/cgi-bin/showa.cgi?C=989272
Somewhat out of touch with global financial issues and foreign buyers’ chill, developers are still the active side on the first and second home markets. Some of them reckon that the strong market development will follow in the next 2-3 years, especially in the urban residential segment. “Supply in Sofia has grown by 40% compared to last year. While in 2003 we had only 2 000 apartments on the market and 5 000 in 2007, this year we expect this number to grow to 8000 units,” said Rosen Plevneliev, General Manager of Lindner Immobilien Management. The General Manager of Winslow Developments, Ivan Mekushin, agrees that the country has still a way to go before the residential market peaks. Besides problematic infrastructure, land price is also and issue that comes to the fore. All this makes projects more expensive some business plans inefficient. According to Liron Or, of Engel East Europe, a residential development company in Eastern Europe, the problem with high land values root into the fact that prices are formed on the basis of buildable square surface. Vendors boost prices to their maximum levels, which do not quite correspond to whether the market needs that much space. Restricted lending will probably reduce the number of projects of poor quality and riskier developments as there will be a wide scope of projects to select from. “The combination of more proper investors and more cautious financial institutions will bring prices back to normal levels,” Mr.Plevneliev said. Although foreign investors are active in the domestic residential market, they mostly influence the holiday homes one. After Some very successful years of investing in Bulgaria, UK buyers seem to show less interest since the beginning of 2007. A slow вЂ" down and oversupply are also observed. Russian buyers, however, are a flicker of hope for the recovery of the segment. The Executive Director of Bulgarian Land Development, Dimitar Savov, said Romanians and some Central European buyers also started to take interest in the holiday home market. Bulgarian investors, however, are still very few.
High land prices and poor infrastructure are some of the major problems on Bulgarian residential market, Mr. Liron or (Engel), Mr. Rosen Plevneliev (Lindner Immobilien Management), Mr. Ivan Mekushin (Windslow) and Pablo Losada (Martinsa вЂ" Fadesa) agreed.
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