Banned Topic Bought an apartment in "Sunny Beach, Bulgaria" 5 years ago: cut my losses?

Discussion in 'Overseas property investment' started by kkmaan, Mar 14, 2008.

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  1. kkmaan

    kkmaan Frequent Poster

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    hello there,
    i bought an apartment in sunny beach bulgaria 5 years ago, its air conditioned, fully furnished 2 bed 62sq mtr and 100 yards from beach, probably in the best location in sunny beach. from reading posts here on aam i know there isnt a profit to be made on property in bulgaria. do you think i should just cut my losses and sell at or below cost? whats your opinion?
     
  2. budapest

    budapest Frequent Poster

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    Re: cut my losses?

    What rental return are you getting at the minute?
     
  3. kkman

    kkman Guest

    Re: cut my losses?

    Not much, about 2000 euro per annum
     
  4. Guest119

    Guest119 Guest

    Re: cut my losses?

    Never mind profit or loss, sell for whatever you can get - if you can find a buyer ! (I bet your service charge/local taxes/utility bills exceed 2000 euros p.a.)
     
  5. BudaRich

    BudaRich Frequent Poster

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    Re: cut my losses?

    KKman ...... time is the most valuable commodity ...... time where your money could be making far greater returns elsewhere.

    I suspect that you knew the answer before you asked the question.

    Nobody likes to hear they are potentially going to lose money on an investment. Take the hit and move on - always easier to say than do.

    People who say "wait .... sit on it - the investment will come right - you wont lose money long term" are SOOO annoying. OK so you may not lose money but you certainly will lose out on years of tasty growth - potentially worth more than the value of the investment.
     
  6. kkman

    kkman Guest

    Re: cut my losses?

    thanks for advice there lads, by the way what would be the best way to go about selling, and does anyone have any advice or experience about selling property in bulgaria? i rang a few estate agents in sunny beach but i got the feeling that they were not really interested and they were looking for up to 10% commission!
     
  7. GDE

    GDE Frequent Poster

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    Re: cut my losses?

    Selling will be a lot easier said then done. Some developers pay agents 15% commission to sell bulgaria, (because it is hard to sell). I would suggest you try and sell privately if you have a solitior that can help you. Try the angle - privately owned apartment, prime area of sunny beach, current rental agreement, no agents comission.
    MIght even be worth your while saying distressed seller looking for quick sale...
    I do pity the poor guy who buys it off you though!
     
  8. kkman

    kkman Guest

    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    good stuff. the thing is that it is actually a good apartment in the best location, but there are so many for sale that say the same thing ie great location even though they are sometimes a half mile from the beach!!
     
  9. jackfrench

    jackfrench Guest

    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    If it is in a good location ie frontline and you bought it five years ago perhaps things are not as bad as they seem, frontline will always hold its own,how does the price you paid five years ago compare with what is currently being marketed out there, sounds like most of them will be in lesser positions,there are still people who like sunny beach,and are not just into buying abroad for pure investment.
     
  10. Guest119

    Guest119 Guest

    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    kkman,

    On another forum I've come across a guy who is trying to sell an apartment in Bulgaria for £40k less than he paid 2 years ago, and he is not getting a sniff !. There is a steady trickle of 'investors' edging their way to the exits as they realise they were sold a pup, not a dream. Get out before that trickle turns into a stampede. Those people who jackfrench refers to are few & far between; why buy for your own use when you can rent for less than your annual running costs would be ?.

    We are going to see deserted, deteriorating resorts all around before long. In Turkey for example I've seen numerous unfinished developments abandoned, and completed ones with grass growing through the flags.

    Bulgaria was flavour of the month a few years ago; then, briefly Cape Verde; last couple of years Morroco; now, it's Egypt. do the numbers; where are the potential 'renters' for these tens of thousands of properties coming from ?. For example, why would you rent a property on the Red Sea when you can get a hotel package for virtually the same price as the airfare ?.

    If a Bulgarian agent wants 10%, as long as he can sell it, fine, as long as you get out. Even offer a 'sweetener' under the table.

    Good Luck.
     
  11. rmelly

    rmelly Guest

    Re: cut my losses?

    and hope he doesn't read this thread, at least until the contract has been signed.
     
  12. tippergore

    tippergore Registered User

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    24
    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    Have prices gone up in any part of Bulgaria over the last year? Other than what the agents have added to them through commissions? Is there any value to these properties at all? What about the ski resorts like Bansko and Pamporovo?
     
  13. Guest119

    Guest119 Guest

    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    I think you know the answer to that one. 'Local' prices may have risen in places like Sofia, but in the holiday resorts (beach & ski) I can find no evidence of resale at ANY price. In fact, many of my acquaintances say they wouldn't want one if it was free' if you want to go on holiday renting will cost far less than annual maintenance charges.
     
  14. tippergore

    tippergore Registered User

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    24
    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    I find it hard to believe that these properties are considered worthless. Bigrog would you at any point in the future consider investing in a ski or beach property in Bulgaria?

    Or is it just that prices are to high at present to consider it a good investment?

    Do properties in good locations, say close to the ski gondolas or close to the beach not have some potential for future gains?
     
  15. Martin77

    Martin77 Frequent Poster

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    172
    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    I don't know the up to date particulars of Bulgarian resorts, but I do have an example for you.

    I was in Kicking Horse resort British Columbia, Canada this Winter. see http://www.kickinghorseresort.com/ Absolutely fabulously amazing skiing, knee deep powder (voted number one powder resort in North America with 6.4 metres of snow so far this year), big mountain, trees, steeps, chutes, glades, beautiful well-finished accomodation literally twenty steps from the gondola, award winning restaurants, cheap, and a million zillion times better than anything in Bulgaria.

    Are there empty condo's in the resort and are they having trouble selling them? You bet!

    Why? Because it is three hours drive from Calgary, and for occasional use at the moment it is cheaper and easier just to rent someone elses condo than buy and service your own. And I was told this by quite a few Calgarians who go regularly and book last minute. They say they never have a problem with availability. After all, these people are your potential customers/ leasees, which is why I listened to them. Ski seasons are really short, and out of season rentals are apparently thin on the ground. I absolutely loved the place in B.C. and visited the resort realty office, but if the financial numbers don't stack up, don't go and buy there whatever you feel personally.....
     
  16. kkman

    kkman Guest

    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    some good advice there, thanks everyone. I advertised it recently and got some phone calls, no bids yet but fingers crossed! the selling price is at my break even point. sad really cos its a well built apartment just across the road from the beach ( less than 100 yards), just minutes walk outside the noisy central part and 5 mins from the historic nessebar area so it would be the best site in sunny beach, the other apartment complexes close by are simply not as good and in bad locations. its hard to believe that its a hard sell.....
     
  17. rory22

    rory22 Frequent Poster

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    229
    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    Hi kkman,

    I sold my apartment in Sunny Beach last year for a 20% profit, I also bought 5 years ago. I think you may be wasting your time with agents who sell to Ireland and the UK. If you can get a Bulgarian agent who sells to Russians and other nationalities you will have a much better chance. The commissions are high but the chance of selling is much higher. best of luck.
     
  18. Dub75

    Dub75 Registered User

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    32
    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    If you have a look at last weeks SBP there was a small add in the Property sect from an agent looking for front line property. I made contact with him and he told me the Russans will pay good money for front line property.
     
  19. galwegian44

    galwegian44 Frequent Poster

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    306
    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    There was an article in the Property section of the Sunday Times that stated Russians were buying up a lot of property in the Eastern European countries and specifically mentioned Bulgaria. My friend has a skiing property in Bansko and it made me think at the time that it was a great investment.

    It seems that it may not be that great but check out the Russian angle as they are now surpassing the UK and Irish as top purchasers of property in Europe and this is across the board from inexpensive investments right up to commercial.

    Don't jump too soon.

    Good Luck.

     
  20. Daddy

    Daddy Frequent Poster

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    701
    Re: bought an apartment in sunny beach bulgaria 5 years ago: cut my losses?

    Rory 22

    Glad to hear you made a profit in Sunny Beach.

    Was your property frontline and what nationality was the purchaser ?

    Did you use a Bulgarian agent to sell your property and if so could you tell me the name of the agent.

    Thanks
     
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