An Introduction to properties for sale in Bulgaria

Holiday Destinations

These are mature markets for people looking for an overseas holiday home for personal use and also for buy-to-let investors who want to rent out their property when they are not using it.

The majority of Lighthouse’s clients are people who want to remain resident in the UK but buy a property abroad which they, their family and friends can visit a few times a year for holidays.

Such second-home hunters tend to invest in EU countries where the currency, legal and property-buying frameworks are protected by EU legislation, or in the US, particularly Florida, where there is a well-established market and user-friendly system for British holiday home buyers.

Investor Destinations

We also recognise, however, that there are growing numbers of people looking at property in emerging markets such as Croatia or Bulgaria, purely for investment.

Lighthouse has excellent contacts in these markets, including reputable overseas real estate agents and investment advisors, and we are happy to refer any clients to them.

The Uncertainty of Emerging Markets

We would clearly make a distinction, however, between mature markets versus emerging markets and highlight to buyers the potential risks involved in buying property in countries that do not yet have EU membership.

While the prospect of joining the EU enables these fledgling markets to see big rises in property values, it also adds an element of uncertainty for investors, who will be dealing with unfamiliar currencies and legal systems.

It may be difficult, or even impossible, for foreign buyers to get mortgages in these countries. This is unlikely to be something that will trouble a portfolio investor, but it is a hurdle for the more risk-averse who do not have a deep understanding of the cultural and financial situation of the country.

If you are relying on a current low budget airline route to your chosen destination, also consider the consequences if that budget airline pulls out.
Further afield, in Northern Cyprus for example, which is now opening up to overseas property investors, you may face problems with legal titles, given that the territory is not recognised by any country other than Turkey, which illegally seized the land in 1974. This is one of the reasons hindering Turkey’s membership of the EU. If refused full membership in favour of becoming a ‘privileged partner’ eventually, it which could affect the value of your investment in the country.

So before you chose your destination, think about whether you are an investor whose main concern is to make money, whatever the risk – or someone who wants a holiday home in the sun without the hassle.