What do you think about buying a property abroad for investment?

Question

Countries like Bulgaria, Hungary and Poland have just joined the EEC and are growing at a very fast rate...could buying a house there be the right thing to do?

Answer 1

it is safer and wiser to invest in property in this country first as property in another country is never a straightforward thing and should only really be considered if you have researched throughly

Answer 2

Could be, but be very careful! The risk is that the documentation of the property you buy isn't reliable. Also, what seems cheap to say an Irish person (like eur 100,000 for a 3 bed house), is a fortune for the locals.

Often, the only people driving up prices are other foreign investors, who are scrambling for a bargain. If there's a housing crash or recession, or sharp rise in interest rates in the Investor's countries (say UK or Euro zone), the housing market in those new countries is going to suffer.

It also depends on your investment horizon. If you are 40 now and want to retire at 60 in bulgaria, it could be a great investment.

Answer 3

Bulgaria could use the infusion of capital. You might be a little concerned at trying to renovate a house, they often work a little bit slowly and the cheap contractors use some seemingly primitive methods at times. Faster and better means more expensive, and yes they can do that too, for a price.

Crime is a really, really big problem in Bulgaria. I know someone whose car was stolen from the hotel parking lot. Since he brought a car in and didn't take a car out, the authorities wanted him to pay the tax on the car before they would let him leave the country. Some folks rent a student at some college to sleep in the car overnight to deter theives. You'd be surprised at how many little booths are outside some buildings, guard shacks for folks to watch for (but not confront) theives. So watch your inventory if you are doing some serious rennovation or new construction.

A friend was out of the country and his family at home when burglars broke in one night. They shut the doors to the children's bedrooms so as to not disturb the children as they emptied drawers elsewhere. The wife, a very lovely lady, was not molested. Bulgaria is a lot like parts of Mexico, stepping back in time several decades, but if I were offered plane tickets to the best places I've ever visited in Mexico, or one for Sofia, Bulgaria--I would take Bulgaria without a second's hesitation.

In Mexico, as another friend so well quipped "some of the biggest crooks carry a badge". But while most of the police in Bulgaria look and act rather sloppy, you can respect them. (Some still show some professionalism, watch yourself around them, not that you have to fear them--unless you don't follow their instructions--they aren't mean, just exacting, but fair). The bureaucacy can be infuriating, but they aren't criminal so don't go offering a few Lev on the side like Mexico and numerous places elsewhere. Bring a Bulgarian friend when dealing with officials. Bulgarians can look cold and distant to strangers, but warm up brightly to friends they make. Remember, it was a closed, communist country for a long time. The communist bosses gutted the country's industry before fleeing when communism ended. They often miss communism, but don't miss Russians. Some helpful observations before you go.

Answer 4

you should spend some time in the country first.

poland and hungary are prosperous countries although i've heard poland is now over priced.

i still like spain, there is still money to be made in places like Valencia, the Americas Cup is coming soon and the goverment is investing heavily. Go there and you will see the amount of building going on, always a good sign.

Answer 5

Tempting though it may be, there are many pitfalls when looking at your chosen areas.
The language barrier, the legal systems and property rights may all work against you if you have problems.
How do you resolve a dispute in the Bulgarian courts?
Even closer to home, you can run into problems.
What is the position re capital gains in these countries?
Often, a tax is imposed if you have only held the property for a short period.
I own a property in France, and the capital gain has been worthwhile, but only after 20 years.

Answer 6

I can help with info about investing in Poland http://www.polandholidayhomerental.com
I put my money into Poland two and a half years ago.
I am English but choose to live in Poland.
If you would like help with property prices etc you can Email me through the contact page on my website, Please mention Yahoo answers for my reference.
The above link will take you to the place i invested in two and a half years ago. As far as your question goes, Yes it could be the right thing to do.

Answer 7

as long as this is for investment, and not a trip homestead, then careful finding out to purchase will make you cash. Get a sturdy criminal expert interior the country in question, a community one that speaks your language too, no longer a community out of your very own u . s . a ., thats how errors and mis-interpretations take place. As somebody spoke of, capital valuable properties could be intense in some international places, specifically spain, although, this is basic to enhance right into a resident, that immediatly reduces the tax to in basic terms 20% of earnings, in case you re-make investments the quantity back into Spain, this is a hundred% freed from tax, In a majority of those circumstances, there are criminal loopholes in maximum international places to shrink tax on investment valuable properties. I somewhat have used the corporate decrease than for suggestion on countless occassions and located them maximum helpful.

Answer 8

The problem about some of those countries is that you may never sell to a native Bulgarian etc as your price range will be out of their league unfortunately. You must consider your market, who you would sell your property to if things did not go so well. Maybe a UK person, American or fellow European. Hope you found this useful.

Answer 9

Maybe, it would be better to consult a local real estate agent from that area.