Has the Black Sea property crash hit the bottom?

[Georges]

Hi everyone

It's a hot summer day down here in Sunny Beach. And I am not only talking about the weather. It seems to me the prices on the Bulgarian Black Sea coast are getting hotter by the day.

Just when I got a couple of resales to chew on for 600 eu/sqm here comes something even lower. This time it's up in the Balchik Kavarna region. A foreign developer wants to get rid of the last unsold units and he is asking 400 eu per sqm. And I am not talking about a half baked stuff in the middle of nowhere. All apartments are finished, airconditionned and have occupancy permit.

Has the housing crisis hit the bottom on the Black Sea coast? Can anyone prove me wrong and show me even lower prices? What's next, 300 euros with a black Audi bonus? I'd take it second hand...

[DouglasHYIPdreamer]

Hello.
I was invited at Cherryshares, investment pool a month ago but didn't invest with them, because my friend Jay told me that there are programs that pay more.
Such as cashtanker, geniusfunds stoic-capital. What will be better can you advice? I don't want to get scammed.

[DouglasHYIPdreamer]

Hello.
I was invited at Cherryshares, investment pool a month ago but didn't invest with them, because my friend Jay told me that there are programs that pay more.
Such as cashtanker, geniusfunds stoic-capital. What will be better can you advice? I don't want to get scammed.

[Georges]

Originally Posted by DouglasHYIPdreamer

Hello.
I was invited at Cherryshares, investment pool a month ago but didn't invest with them, because my friend Jay told me that there are programs that pay more.
Such as cashtanker, geniusfunds stoic-capital. What will be better can you advice? I don't want to get scammed.

Hi there,

I am a little confused by your question. I don't do investment pools or REITs. Besides these are too complicated vehicles for Bulgaria. What I have is listed on my special BMV page but new stuff is coming every day. Not everything is worth writing home about...
Bulgaria investment property for discerning investors - Below Market Value
Feel free to email me with any questions.

Georges

[AlbertoBertorelli]

Originally Posted by Georges

Hi everyone

It's a hot summer day down here in Sunny Beach. And I am not only talking about the weather. It seems to me the prices on the Bulgarian Black Sea coast are getting hotter by the day.

Just when I got a couple of resales to chew on for 600 eu/sqm here comes something even lower. This time it's up in the Balchik Kavarna region. A foreign developer wants to get rid of the last unsold units and he is asking 400 eu per sqm. And I am not talking about a half baked stuff in the middle of nowhere. All apartments are finished, airconditionned and have occupancy permit.

Has the housing crisis hit the bottom on the Black Sea coast? Can anyone prove me wrong and show me even lower prices? What's next, 300 euros with a black Audi bonus? I'd take it second hand...

Guess it's sign of times the developers will drop prices probably to finish and get off developments, repay banks etc.

I guess not many projects being started now so when present properties are sold and economies worldwide improve there will be a shortage again and the whole boom and bust cycle will start again.

Thats life so maybe now is the time to invest.

Too many people have now lost big bucks buying offplan. Paying hefty deposits and getting no properties in return. Off plan will become a thing of the past, the scammers have won that battle. It will be a long time, if ever, before people part with tens of thousands of euros with no security in a foreign country.

I think if you buy now for about 500 euros sq.m you will make over the next 5 years but for that money you want the keys before you part with a euro!!!!!!

[Georges]

You're absolutely right Alberto. I don't know anyone buying off plan today, no one will tomorrow and for a long long time. Good article in the NYT here http://www.nytimes.com/2009/03/13/gr...tion.html?_r=1

Stick with the resales, they won't be as cheap this time next year.

Cheers
G.

[Lysos]

No - they'll be cheaper !.

[AlbertoBertorelli]

Originally Posted by Lysos

No - they'll be cheaper !.

Depend how cheap you are buying for now whether they are cheaper next year?

If you are paying 600 euros sq.m you could be right, if say you are only paying 100euro sq.m you could be wrong!

[Nikita999]

I have one developer from BG and he told that price of building without profit is just 500 evro.
If you see price low 500 evro-it is lie. It is interesting, where is truth?

[Georges]

Nikita,

your developer is taking you for a ride. Average building costs in Bulgaria are E350/m2, land not included. Because of the credit crunch you can get it even lower if you pay cash.

Many private resellers and some developers would go for that price on completed, and even furnished units, if someone shows them the money. That's called below market value. It happens once every 20 years... it's the nature of cyclical markets.

You want real life examples?
Last month I sold a fully furnished 1 bed in Sunny Beach, 300m to the beach front for E400/m2. Last week an unfurnished one bed in Kavarna, with a sea view for E420/m2.
I have three more for 390/m2. I started this thread to challenge those those of you who can tell better.

Once in a while there are some great deals out there. Once every 20 years.

Cheers
G.