Investments in Bulgaria. Good or Bad??

[abfc]

I am just writing to get a few more opinions than just my own. I really am struggling to see how the property I bought in Bulgaria is not just a waste of my money. Dont get me wrong i really enjoy my holidays out there as do my friends and family. With fees paid for up keep, taxes, cleaning etc I actually think it costs me money to own my property each year and I am lucky enough not to have a mortgage.

So already I am loosing out. When you look at the amount of building going on and I have to say it some of the property being far more eye catching than the communist block style building of fort noks will they ever sell or be popular. I honestly believe that there are not many people that wouldnt sell there property and cut losses if possible. Lets face it we only bought there because it was cheap and there was all the promise of joining the eu etc.

You have to ask why banks are not lending in the area, I can only think of one logical reason. The property is not worth the money that we paid. Will they ever start to lend again and if so how much will they do, I personally dont think they will ever be offering 70% mortgages again.

How will the euro affect things? I doubt it will increase the value of our property as we already bought in euros. Having thought long about this I now believe it will have a negative impact up on us. People from the uk tend to go to Bulgaria as it is cheap. The euro is only going to make holidaying in Bulgaria more expensive. Therefore why will people go if Spain is the same price and in my opinion better set up for the British holiday maker.

I do not wish to come across as negative just realistic. I think the sooner I accept I have made a mistake the better. I just hope that somebody may be able to shine a little glimmer of hope onto the situation eg mortgage lendings or even cheap flights to attract more people to the resort?? Also does anybody know of anyone who has been able to sell on or around the figure they purchased. If so could you give me some pointers please.

On the plus side I have now had 5 fantastic holidays there although they probably have cost me nearly ten thousand pounds each.

I look forward to your responses

[SpudHead]

here's a positive for you

have 10,000 holidays there and it'll only have cost you a five each time. (exc flights)

[greg]

i myself was naive enough to believe in the bulgarian dream, and that this was my chance set myself up for the future. I was told that my investment had already made money even though it was still a hole in the ground at the time, buying off plan in NFC.No mention of the main road.I bought a two bed and when completed i must say it looked great, and have had three holidays.
Every time i go to the complex i tell myself how good it is and that in years to come i will reap the benefits. But i have been kidding myself, like a lot of other owners i bet.
Having been lied to regarding restaurants and bars and many other things i know i have made a big mistake, take next door its seems no golf course.Maintenance cost and other bill slowly rising.
The building looks like a 1960,s comunist block building and will never resemble anything like a holiday resort. I dont think the locals are particulally friendly ,they are just after our money, The taxi drivers dont rip you off in spain. It seems to me that its all about getting as much of our money as they can, but what they dont understand is that it will be there down fall , and with thouasands of properties stood empty its a recipe for disaster.
I have been lucky enough to sell my apartment at a loss i must say , but will be glad to see the back of it.

[BWFC]

i bought my apartment as a holiday home not to let out to anybody. i thought long and hard how much money to invest in a place like bulgaria. i came to the conclusion the least money is the best policy. and i think iv been proved right. i bought a small studio apt on NFC for €23300. fortnoks have not fullfilled there obligations regarding 3 restuarants a bar a cafe vienna outside the complex its a disgrace there should be proper street lighting a zebra crossing. but fortnoks are not interested they think there responsibilities lie within the boundarys of NFC. thats why spain + portugal are a millions miles ahead of bulgaria i feel sorry for people who have bought apartments in NFC to let out. can u imagine if you were a family who had rented a apartment of someone at NFC its a shambles a disgrace but you only get a true picture when its dark. no lighting no pelican crossing just cars wassing past you at 80 mph. due to the fact iv paid not a lot for my apt im happy to keep going over to sunny beach because i enjoy it very much. but when they join the euro that will be the end of bulgaria. as a holiday destination. they think it will solve all there problems. the only reason people go to bulgaria is because it is cheap when it goes dear people will go back to spain greece and portugal.

[purkyuk]

Hi All,

I still think it’s a good investment! Ok not at the moment but in 10 to 15 years it will definitely be worth it. You’ve got to look at the bigger picture property prices have fallen all over the world, some unlucky people have paid over €200K for apts in Spain and now cannot even sell them for €120K.
Also look at the positives, Bulgaria is an emerging market and will take time, Sunny Beach is 5Km from Nessebar world UNESCO world heritage site with a lot of visitors per year, Bourgas airport is being expanded to increased tourism, low wages will encourage companies to invest in business there, also joining the EU will be more positive than negative as the infrastructure will be improved more quickly, plus crime will be reduced, joining the Euro won’t make any difference as the Lev is fixed to the Euro.
With respect to NFC it’s a great complex, having 3 restaurants would be too much anyway… yes I know we were promised! OK there is no argument for the road just hope it gets sorted soon. And for a holiday complex the 1960’s communist blocks are great! Or would you rather one big building and one swimming pool?
A lot of people have bought for the wrong reason… to make a quick buck, but there’s a saying that: if people are already doing it then it’s too late.
Finally you could have spent the money on things that depreciate i.e. car or caravan.

Hope I’ve not offended anyone, it was my intention to argue the positives.

[Marc]

Hi all,

I think that the prospects look good from here: Bulgaria is rapidly becoming accustomed to being a member of the EU and it's membership is proving to be good for the economy and society. Amalgamation with the Euro will come soon; historically this leads to an inflationary spur, and there is no reason to believe that this will not happen in Bulgaria: Coupled with this, domestic inflation in BG stands at around 6%. Also note that Bulgarian citizens are now buying coastal apartments and have an appetite for further investment. Inflation alone will increase property prices!

Then we have to compare the Bulgarian coast to other European resorts: There have been many positives and negatived discussed in previous posts; I'm very much on the positive side of the argument and believe that Bulgaria will hold it's own as a tourist destination in the foreseeable future.

I have been involved with Fort Noks since the very early days and consider them to be a thoroughly decent and reputable company (though I cannot vouch for some of the brokers selling their products). Build quality has been consistently high and design has been fit for purpose. Ultimately an investment in a desirable apartment of sound quality and location (and of course at the right price) should reap rewards.

Remember that all markets look worse at the bottom.......

Regards,

Marc

[Thomas]

HI,

I think if you have bought a property close to beach with swimming pools close to Bourgas Airport for example in a well run complex you will be fine you just have to wait. If you bought a property well away from beach or in Sunny Beach for example you may be in trouble. Sunny Beach is too built up bad planning some developments and developers with bad names. People will not touch some developments even a company like Appreciating Assets will not take them off your hands for half nothing.

[SpudHead]

thats because appreciating assets are a load of time wasters.

I have dealt with them and it was a total waste of time.

[messambria]

I agree with Thomas. When I bought 4 years ago I ensured that I bought on a decent complex (Messambria) that was frontline. For this reason I am not pressing the panic button. Whilst I realise I could not sell easily at the moment I am confident that long term I will be ok. Front line property in any country will always sell at a premium but not during a global recession. For those that have bought further from the beach I would imagine at best that they will have to sell at a big loss and that may be some time in the future.

Matthew

[abfc]

I have to say that reading some of the posts has made me a little more optimistic about the future. I cant really say too many bad things about Fortnoks and have always found them to be very helpful. Which is why i purposely bought from one of the biggest companies in Bulgaria. I do find the fees a little excessive but i suppose you pay for what you get??

The point about the euro and the lev being indexed linked is also a good one. The fear i have though is that the Bulgarians will just switch their prices from lev to euro without halving which would pretty much bring prices in line with the rest of europe. I suppose time will tell.

I do feel for NFC and HFGC owners. I actually spoke to a Director about this. I explained that i thought not building a full golf course was a really bad mistake. His response was understandable yet extremely mistaken. He said English people dont go on holiday to do things they just want to get drunk. So he said they decided to build a few holes and a "super" club house for the English to get drunk in (is it super?). They have missed out massively here as people would have flocked to a golf course.

I still think we over paid, after all you can still buy a four bed detached house in Bulgaria for less than ten grand. Surely it will be the people that invested in these kind of properties that will see the biggest rewards. Front line beach property does sell very well so I do hold some hope. My only fear is that it doesnt become a Blackpool. I fear that it has the potential although I am hoping it will be more like the Lytham St Annes side .

[purkyuk]

You are right about the over priced, a local bulgarian friend told me he could have had a 2 bedroom apt in Bourgas for the price i paid for my 1 bedroom, he then shrugged his shoulders and said " but this is sunny beach", meaning expect to pay it for the location.
I seen the small golf course last month and once the ground settles it will be OK, ok its not very big but great for families, lets look at it logically who's going to build a big golf course when they can make much more money from property.
I still think SB is a good investment front line or not... but its gonna take time.

[pip balfe]

here here

[ANDYJAC]

There has been a lot of negative comments regarding the golf course. As someone who has purchased an apartment on HFGC which is overlooking the site of the golf course we were getting concerned as to whether the golf course would go ahead. We contacted Teodor Minev, Legal solutions Director and this is the reply that we have received from him:

We had a problem with the landscape this season but for the next the golf course will be ready for use. 6 lanes and a driving range as stated in your contract

.

We hope that this will put other peoples minds at rest.

Andy & Jackie

[SpudHead]

it would be nice if fortnoks could keep us informed instead of us having to get this kind of information from other owners.

this is your forum fortnoks - maybe you should use it.


thanks andy and jackie


as for the "good investment / bad investment" debate. only time will tell and no-one really knows so there is no point in all this speculation.

Maybe one day you will sell for three times what you bought it for OR maybe you will swap your apartment for a sack of carrots.....only time will tell.

in the meantime - have some nice holidays there. enjoy

[BWFC]

i aint bothered about a golf course just get the basics right. proper street lighting down the main road and a pedestrian crossing with traffic lights. after the mugging this year outside NFC they have to realise this is a must be done job ASAP. not putting 5 of them useless complex lights up were the mugging took place.