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  1. #1
    Join Date
    Jun 2005
    Nelson NZ

    Default Investing in Bulgaria

    Had a nice young couple who live in England visit me last week re buying in their home town of Nelson NZ.
    They have done this and also are planning on buying a rental in Bulgaria.
    They tell me that Bulgaria is about to come into the EU in three years and at the moment properties are very cheap there.

    You can buy a 5000m orchard with run down home on it very cheaply. After paying for tradesmen to refurbish the house the total cost is about NZ$50,000. Apparently the Russians like to holiday in Bulgaria and so it is possible to get about 25 weeks a year rental as a holiday home.
    Well this sure blew me over with a wet feather.
    Now I obviously know nothing about Bulgaria in fact I would need to consult an atlas to figure out just where it is.

    So fellow members what do you think.
    Is it a good idea to invest in places like BULGARIA or not.


  2. #2
    Join Date
    Dec 2004
    Sydney, Australia


    Hi Glenn

    I had a look at an investment opportunity last year in the Czech Republic. The main concern that you will have is the lack of knowledge on the market, the people , culture, likely tenants etc. Like any new area to invest in you will need to do a large amount of research into the the area, looking at the property market, economy, local culture (do people rent or mostly buy)etc. The other issue you will have is building your team of experts for the local area including, Bank, lawyers, accountants, property manager (as I imagine you will not be doing it yourself) and again this is going to take time.

    And not forgetting the biggest obstacle that you will have which is the language barrier. Countries in Europe differ dramatically with the use of English as either a first or second language, and you may find that English in some of the Eastern bloc countries is hardly spoken at all.That will make your dealings a lot more difficult than they are in NZ.

    So there will be a number of barriers to entry that you will need to overcome when looking at property markets like this. I am sure there are excellent opportunities however, and if you can overcome these barriers through research there is potential for some serious property gains.

    Personally I would rather invest in the markets I know and at the moment that is definitely New Zealand.



  3. #3
    Join Date
    Jan 2004


    I also discussed investing in the Czech Republic with someone last year in England. The main issue seemed to be that property sales were/are likely to be restricted to residents only although there was a way around this.

    It was enticing when I heard that you could purchase a 6 bedroom townhouse in the middle of a large city for less than $20k.

    Never looked into it any further though.

  4. #4


    The thing that would concern me most is the rule of law. The concept of the common law is (I understand) peculiar to english speaking nations. post communist societies have lost much experience in dealing with matters in a legal fashion, as the law itself was not trustworthy.

    Consequently, there is a potential to get skinned before you even realise it has happened - example: in a decidedly non-communist country in Asia, one buyer found his way around the restriction that non-locals couldn't buy real estate, by joint venturing with partners. Turned out the partners were dummies for the military, who sat back, waited 5 years (for a particular legal developement comparable to a lease expiry) then chucked him out and expropriated his property.

    Big danger signs, so watch that Mr Greed has a little consultation with Mr Fear before going in over your head.

  5. #5
    Join Date
    Oct 2004


    This might stir a few up but it sounds surprisingly close to the stories of Tokoroa investments being sold to Australians. I can never understand why investors from Australia thought that they knew more about the market potential than nearby residents??

    IMO if you are going to buy into something like this your first question should be 'why are they trying to sell to me (ie someone who knows little or nothing about the area)?'.

    There's likely to be a good reason.

    Not saying don't consider it though - if you do the research and weigh the risks up it may be worth the risk??


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