With investment companies buying up distressed properties in places such as Bulgaria, to hold on to for long term capital gain and eventual profit, maybe smaller investors should be looking to follow the same path.
In a falling property market, can you still break even or maybe make a profit? With property prices right across Europe and further a field lower than they were a couple of years ago, does this mean that anyone needing to sell has to do so at a loss, or could you still break even or maybe manage a small profit from a sale, if you sell in today’s market. Much depends on the currency you bought in and intend to sell in.
A recent report suggested that prices for property in Bulgaria had now dropped to the same level as it was back in 2007. There are no official statistics for this and the noticeable drop is simply based on listed selling prices between 2006 and 2007 and the fact that sale transactions have fallen drastically towards the end of 2008 and in the first few months of 2009.
Many are seeing this as a sign that the Bulgarian real estate market has completely collapsed and there is little hope of recovery any time soon. However, is this really the case?
There has been much in the press and online lately about London – Sofia based agent, Bulgarian Dreams, who closed their London offices, blaming the economic climate, and disappearing out of the UK owing thousands to many British and Irish investors. I became involved with Bulgarian Dreams back in 2004 when I opted to purchase an off plan apartment in Bansko, Bulgaria. I was one of the lucky ones, although certainly did not feel that way at the time, as I managed to pull out of the purchase and recoop the money spent on the apartment.
