Bulgaria Property Investments

Bulgaria is situated in the east-central portion of the Balkan Peninsula, bordering the
Black Sea. It covers an area of 42,823 square miles and is almost rectangular in shape.
Its position makes it a natural crossroads between Europe and Asia.

Bulgaria has been noted as the third most popular world destination for property investment and holiday homes after Spain and France.
So what benefits does buying properties in Bulgaria give you?

Aside from the scenic views, welcoming neighborhoods, sunny climate and wide sandy beaches, Bulgaria also boasts a low cost of living - so low that you can enjoy the same lifestyle as 30 years ago in the Mediterranean.

Bulgaria boasts an exceptionally diverse landscape with hundreds of kilometers of Black
Sea coastline and some of Europe's most promising ski resorts, now providing
competition to the more familiar locations in the Alps.

It is partly this remarkable diversity that has made Bulgaria such an attractive choice
to property investors in recent years, with commercial investment as lucrative in
winter as it is in the summer months.

Part of the appeal is the fact that it is an emerging market and this has always proved to
be an attractive factor for property investors looking for an exciting and potentially money-spinning challenge.

Another plus factor for Bulgaria property investments is the country's recent acceptance
into the EU.  This is significant because Bulgaria is launching Europe’s first US style
Real Estate Investment Trust (REIT).

These trusts are tax-friendly property funds that have to pay out most of their income to shareholders. The aim is to broaden and deepen the real estate market.

Bulgaria's finance ministry has opted to give up tax revenues in favor of persuading
investors to accept professional management of real estate assets. Its REIT legislation,
part of the financial market reforms launched by a liberal government, is based on similar
frameworks in the USA and France.

Bulgaria's fledgling REITs market is still too small to attract attention
from big international players. But none the less REITs have become
popular with Bulgarian pension and mutual funds, as well as increasing numbers of retail investors, according to local brokers.

National Statistical Institute or the NSI data published on October 21
showed that Bulgarian housing prices in the third quarter of 2005 rose
by 2.9 per cent compared to the previous quarter of 2005.

The average housing price rose to 751.50 leva per sq m between July and September, up
from 730.50 leva in the previous three-month period.  (The leva is the Bulgarian unit of
currency.  Its value is pegged to the Euro and it is expected to be replaced by the Euro
by 2012.)

Bulgarian property is extremely good value and foreign investors may stand to profit
substantially. In recent years, foreign capital has been a major component in the
Bulgarian real estate boom.  All in all there is a very promising future for Bulgaria
property investments.
                     
Although there are admittedly other factors causing the boom such as the low interest
rates, the continuous and intensifying flow of capital deserves the bulk of the credit.
Interest in properties in Bulgaria is steadily increasing following Bulgaria's acceptance
into the EU.

According to a Wall Street Journal report, Bulgaria registered the highest rise in its real
estate prices, more than in any other country, with a staggering jump of 48 percent.

Property developers believe that the peak is yet to come as there are still many
undiscovered places of beauty in Bulgaria as well as untouched property ready to
make its first entrance into the property market.

Certain constitutional restrictions on foreign investment in Bulgarian property
presented some impediments for inward investment. The Bulgarian Property Law was
amended in July 2000 and this removed such restrictions. The only requirement left was
the registration of the investor or investing company in Bulgaria.

Bulgaria is not only a very good place to live in but a very safe place to invest. 
It's a good idea to get in there QUICK while property prices are still low and rising!
Discover NOW how you can find an unmatched and continually updated selection of
Bulgarian property for sale!

If you are interested in looking further at buying property in Bulgaria, you have to decide
how you are going to finance it.  There are a number of mortgage companies in the UK
who deal with overseas property - fewer in the USA but there are some.  Many people who
go in for Bulgaria property investments use banks in Bulgaria itself.  This can be a lot
simpler and get rid of much of the red tape!  Another possibility is to refinance your
existing property.  Go to our lending page to find out how to do this.