Need advice

[dpj1973]

I have been an agent, investor, local, developer in varna Bulgaria for many years and im just about to leave, if you need honest , GENUINE advice about the the market, pitfalls, legal process, taxes........just ask! Pm me

[e.motion]

Originally Posted by dpj1973

I have been an agent, investor, local, developer in varna Bulgaria for many years and im just about to leave, if you need honest , GENUINE advice about the the market, pitfalls, legal process, taxes........just ask! Pm me

Why are you living? When? And are you offering your advices for free.

[dpj1973]

I am a Brit, living in varna at the moment, but will soon move to Berlin. I offer advice, that's it, its free. If you want to pay me youre welcome to, but its free. I see Brits falling into the pit-holes every day, i hear them in cafes, restaurants, estate agents........just free advise....... i own several properties here and can possibly help people....so why not

[e.motion]

Originally Posted by dpj1973

I am a Brit, living in varna at the moment, but will soon move to Berlin. I offer advice, that's it, its free. If you want to pay me youre welcome to, but its free. I see Brits falling into the pit-holes every day, i hear them in cafes, restaurants, estate agents........just free advise....... i own several properties here and can possibly help people....so why not

That's cool. You have the right intentions. Now I have a question for you. What is the normal mortgage rate in the UK, and do you think that the BANKS interest on the mortgage in Bulgaria is going to drop (a little). because 7.5 or 8 % I think is way over the top. And from what I heard in Spain there are mortgage rates of 3.4 %. (But this may be wrong.) And do you think that thats why people are buying less now.

[dpj1973]

O.k, normal mortage rate in the u.k, mmmmm. Depends on you, your lender, your credit status and type of mortgage. Sorry to sound vaige, but thats the case.

I re-mortaged last week on one of my u.k properties(not easy from bulgaria)......buy-to-let, average credit rating, im paying just over 7%, thats with a 30% LTV, but better deals are available for residential's with good credit history. Base rate is 5.75 i believe at the moment, so anything upto6.5% is very good.

Mortgages in Bulgaria? a big head-ache for non residents. I know only 2 people who have actually managed it and they are VERY wealthy. Better to re-mortgage in the u.k. The banks know its a risky market.

I couldnt advise on the mortgages in Spain as i've never been involved in Spanish property. Too expensive for my liking. Better deals in Germany and eastern europe..

The reason people are buying less.....Bulgaria or the U.K? The u.k becuase interest rates have risen. I still dont think thats an end to it though. Simple demand factor, immigrant workers have swollen the population and will continue to, housing will remain in demand unless the economy collapses and people start to leave. Small island, swelling population....not too hard to figure out.

Bulgaria? .......many reasons! Too much bad press, much of it deserved unfortunately, coupled with brits not willing to re-morgage when the u.k interest rates are rising. Oh and theres also the fact everyone bought here expecting post e.u acession to be very rosy and to make large capital gains.

The fact is prices havent really risen here that much, no matter what anyone says. 18 months ago i could buy in the centre of varna for 850 -1000 sq metre....thats with a good location, cheaper ones are available, but not in great areas. Now i can buy near the central square for 1000 a sq metre, off plan, i pay 50% up front and i can get 5% off, plus negotiations.....same price as late 2005. Too much supply!

The builders are still selling at the same prices becuase they still make money at those rates. So how can rates rise when you can still buy at 2005 prices....some have gone up, but not as everyone predicted.

Hope this helps and doesnt put you off if your considering buying, if you were, you can make good money here, you have to be astute though.....too much panic buying going on.

Originally Posted by e.motion

That's cool. You have the right intentions. Now I have a question for you. What is the normal mortgage rate in the UK, and do you think that the BANKS interest on the mortgage in Bulgaria is going to drop (a little). because 7.5 or 8 % I think is way over the top. And from what I heard in Spain there are mortgage rates of 3.4 %. (But this may be wrong.) And do you think that thats why people are buying less now.

[e.motion]

The whole idea was that i need 10K euros, I went to some of the banks and they said if you want 10k for 5 you will have to return to us 40-50 K something.

[dpj1973]

Im slightly confused, you need 10k for 5?

You mean you need to borrow 10,000 and you have 5,000 deposit. Personally i would throw the money at you, its over 30% LTV, if this is the case.

Or do you mean you need to borrow 10,000 over 5 years?

Either way you wouldnt be paying that much back, i cant work out the rate without knowing the repayment period, but its practically extortion, far too high, unless your borrowing over 60 years or something ridiculous. What is the rate and period of the loan?

Also check for 'fees'. Some companies can charge upto 1,500 set up fee in the u.k, i know, ive paid them (better rates though).

My advice would be a bank loan in the u.k. Are you from the u.k? Do you work? You should be-able to get a better deal. Do you need rental income to cover the loan?

I know people who have been registered bankrupt who have had better rates.
Shop around for a loan, definately.

[e.motion]

So I need 10000 euros mortgage on my 44000 euro apartment. For a time period of 5 years. The banks say that I will give them with my payments and everything arout 24000 euros. Is this normal, or is it bull****

[dpj1973]

Of course it is!

Just to confirm.........the apartment is 44,000, you're borrowing 10,000 over 5 years and finding the 34,000 yourself......right?

In that case your paying 14,000 extra on the 10,000.......over 5 years. That's nearly 3,000 per annum, practically 30% per year.

14,000 is what you would pay back on a mortgage, over 25 years,... NOT 5. The total you should be looking to repay is probably around 13,000 - 15,000 over 5 years. That would be normal. The shorter the period the less interest.....the less you pay!

Which bank is this?........

[thrisiakaye]

Originally Posted by dpj1973

I have been an agent, investor, local, developer in varna Bulgaria for many years and im just about to leave, if you need honest , GENUINE advice about the the market, pitfalls, legal process, taxes........just ask! Pm me

Do you have any tips on real estate investing?