Bulgaria could offer mortgage-free living
Many wish to be free from the shackles of both the rental market or the monthly mortgage. It’s hard work watching around half your monthly salary get absorbed into your home. What if there was a way we could just live somewhere at a fraction of the cost, and enjoy the money we have, not the money we owe?
Bulgaria, an EU member since 2007, seems to be a place which could potentially offer this solution. You may be surprised to hear you can buy a house there with just your credit card, and many do, as EU citizens flock to the area to snap-up the hottest deals. This influx of people is beginning to inflate the prices in some of the most popular tourist sports. With the black sea, and both the popular ski resorts of Barovets and Pamporovo achieving potential yields of around 60-80% over a single year.
It’s easy to be swept up in the low prices, with many online sale sites offering property from as little as £10,000. Many feel that regardless of the location, prices are on the up and it would be foolish to miss out. Many of these houses are located in rural areas, yet to attain any real form of infrastructure. Bulgaria as a country still lags a long way behind its European partners, and this is best reflected in public services. What may have seemed a good purchase could actually prove very difficult to sell on.
The rental market remains low, as salaries in Bulgaria remain at the lowest end of the EU salary league table. This means any potential investor may have to look at the tourist market if they’re to achieve any kind of valuable return.
For those happy to wait for a good return, it is likely over the next 15 years’ prices will increase, as Bulgaria plays catch-up to the rest of Europe. My advice to those investors is to look at Europe’s other alternatives, Portugal offers good entry levels, and as a solid member of the EU it will remain stable despite a recent bail out by the Central Bank. If you still fancy Bulgaria, stick to the tourist hot spots, they will always attract the right people and remain the target of government investment.