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Bulgaria Property Buyers Win, Win, Win

With the economic turndown, the press talking everyone into an even bigger trough, the banks purportedly barely lending, can your Bulgarian property dream become reality? Quest Bulgaria shares information and advice on buying property in Bulgaria in the current economic climate. There are a surprisingly large number of buyers looking for property in Bulgaria who do not require high loan to value financing or have ready cash available.

These people now have the power and are taking advantage of the current situation. Now, whether these people are lifestyle buyers or investors they are in for a real treat when looking at Bulgarian property.

Nonetheless, agents and developers still have to survive. It will be the survival of the fittest, much like 'natural selection'. Agents are having to put forward the very best available on the market and are now much more selective about which homes for sale they will take on board and market to prospective buyers. Many are ignoring stuff which they find hard to sell and only want to deal with desirable properties. It is a straightforward decision for them as they need to go where the money is. For buyers, they will hardly believe their luck. Only the best properties are being shown to them and at such good prices too. One Brit couple who we spoke to felt for them the slowdown had come at just the right moment. They used a local agent in the Sliven area to find them a distressed sale which was up for grabs at an incredibly low price because the vendor didn't want it to be repossessed and needed to sell quickly. Both parties won in this instance: with the buyer getting a property they never imagined they could afford and with the vendor avoiding bankruptcy or credit issues.

Property developers are now coming up with all sorts of innovative schemes to induce buyers, even offering good financing deals. It seems, at last, that they are bending over backwards to help purchasers. Low initial deposits, long payment plans, free furniture packages, rent to buy and much more are on offer.

Buyers are still there and looking for Bulgarian property. Indeed, we have heard from a couple of agents in the last few weeks who tell us business is 'surprisingly brisk'. We believe that it is those agents with the best portfolios who are succeding, as purchasers are picking and choosing the very best products, looking for evidence of price reductions.

In general the best time to buy a Bulgarian property is when the market is right to do so and now would appear to be the moment. Buyers can be very selective in their choice and also save money. The best way to invest or buy property is when you can do this at a low price and then if you wish to sell, you do so when the market has turned upwards. In reality, buyers are making money now when they buy and not when they sell, as the current low prices mean they will make more money if they eventually come to sell.

Asking prices are fraught with difficulties. Some properties are on the market at very realistic prices, others still too high. It is difficult to assess what is the correct price. The agents seem to be experiencing offers on average about 10% below asking price. If you stop to think about this for a minute, then on a purchase price of 100,000 euros, this means you can save maybe 10,000, a very big upfront saving.

There are several home-owners with properties for sale who are offering incentives in order to find a buyer and sell. This may be owner financing and/or free legal costs. These are attractive offers and can be particularly god for first-time buyers who don't have a lot of spare cash to cover fees, loan applications and so on.

One of the main things which buyers often overlook is researching the local area. Each region and area of Bulgaria has its own pricing for property and there is a huge variation in what you would pay on the coast compared to rural properties inland. Some areas have seen a bigger decrease in prices than others and some particularly sought after properties have increased in price. Buyers should be aware of how much property really costs in the area they wish to buy in.

Numerous people with savings in banks have realised that they are obtaining next to no return on their money and that bricks and mortar will provide better long-term returns. Mortgage lending has certainly tightened but those with good credit history and not requiring high loan to value finance are able to obtain mortgages and at very low rates.

Those buyers sitting on the fence and undecided about whether now is the right time to buy should take a hard look and decide. Whilst one can definitely say that property prices have been escalating upwards so fast for the last few years, this correction was inevitable and long overdue. Even so, there is little further correction to come and those purchasers who put off buying a property in Bulgaria may lose the huge selection and excellent prices that are available today.



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