Surge in Brits selling overseas property assets, is it time to buck the trend?
Thursday, August 07, 2008 at 9:32 am
As more Brits start to feel the effects of economic woes at home they’re starting to ditch some of those little luxuries that no longer seem quite so affordable or desirable, topping the list of such luxuries is the second home abroad. The overseas holiday home or ‘property investment’ is often viewed as an easily expendable asset that will provide some much needed capital through a tricky period without having a dramatically negative affect on quality of life. But what happens when too many people all have the same idea at the same time? Is it time for the smart property investor to do the opposite?
Simon Walker manager of Knight Franks International Off Plan division reports that primary overseas investment and property in the sun hotspots such as Bulgaria are seeing a marked trend change from a British investment market to a British selling market as Brits hope to cash in on their overseas assets. He says “It’s not like a wholesale thing, but there is a definite sea-change. Because there is trouble at home, people are going: ‘What can we get rid of?’
Following the boom, boom, boom years in Bulgaria’s property market when the country was being heralded as the next big thing in terms of ski and sunshine resort property investment for jet-to-let returns, all has been quiet of late on the Bulgarian real estate landscape and so it is time to ask the question – ‘what’s happening in Bulgaria’s property market?’
In all the talk about Bulgarian property that has been ongoing for a good few years, the focus has generally always been on investment property and where to buy real estate in the nation to let to the tourism market or to buy off plan and flip for capital appreciation. Little consideration has been given to where to buy a family home in Bulgaria.
Just when all things European property related seemed to be nosediving or at least stagnating, (well, if you believe the media hype they are anyway), there’s some seriously positive information coming from the commercial property market in Bulgaria.
Bulgaria has matured to become an attractive nation in which to buy a long term property investment asset, a holiday home or a second home. Furthermore, certain parts of the nation are now attracting Britons and Europeans seeking a better quality of life which has significantly increased interest in the Bulgarian property market.
There is apparently no stopping the Bulgarian property market! Prior to EU entry the risk takers bought in, they were aware that prices would rise once EU entry was secured and how right they were. In 2007 when Bulgaria and Romania joined the EU folds prices did indeed rise and they are continuing to expand in line with demand particularly in the ever popular ski resorts such as Bansko.
Buying property in Bulgaria offered a lot of potential in 2007. With full European Union accession achieved in 2007 and the spotlight most certainly on Bulgarian property investment, this country’s market transformed from one that was often characterized as “emerging,” to one investors and real estate professionals now describe as “stable” and “mature.”
If buying property in Bulgaria to enjoy the mountains, beaches and beautiful, historic cities is on your mind and you want to pay cash, you’d better act fast! To discourage a seedier element from buying property in Bulgaria, the government is poised to change the rules on cash purchases. It’s even prepared to back the measure up with some teeth – in the form of “financial police” that will monitor large purchases within the country.
Bulgaria’s quaint ski resorts, Black Sea developments and unique cities are all calling to expatriates in a very big way. With very reasonable prices, a low cost of living and some of the most breathtaking landscapes in the world, buying property in Bulgaria is very hot among Brits. This goes doubly so for young Brits.