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Investment Questions And Answers
Last Updated 18/06/2008
Question - "I have bought a one bed apartment in the fishing resort of Lakeside Park in Varna and would like to know what you think of the area as an investment? Also, who do you think I should aim at in terms of renting in out? Locals or holiday makers?
Ideally, I would like to rent it continuously throughout the year. Do you think locals would want to live there and most importantly be able to afford it? How much do you think I could ask for in terms of the monthly rent?
Furthermore, the property was due for completion in June last year
but is being delayed due to reason unknown to me. Is this something
I should be concerned about? The management firm advised me that the
delay is due to weather conditions. Do you think this is just an excuse
or the genuine reason? Below are a couple of links to the resort:
http://www.bgp.bg/Varna_region/_apartments_for_sale__Bulgaria/Lakeside_Park/ID28APT120/
http://dombulgaria.net/en/project.php?id=59069
Your feedback is much appreciated. "
Answer - Varna is a very popular area of Bulgaria to buy in. It is “popular” because it is considered to be the gem of the Bulgarian Black Sea and is situated at the end of Varna bay with a convenient and well preserved water area. The city combines ancient, medieval, renaissance and modern cultures and lies on the same latitude as Biarritz in France, on a peninsula.
During July and August there are about eleven hours of sunshine and the sea is very calm and free from dangerous tides. It is close to certain scenic spots which attract thousands of visitors every year.
It is an all year round holiday destination and great for investment purposes.
If you wish to rent it out to holiday makers you will only realistically achieve four months rental every year at about €450 a week.
If you were to rent it out to locals you could achieve a twelve monthly continuous rental at a slightly lower monthly rent since the local market does not usually sustain the same rental level.
As regards the delays in completion of your property, this is common in Bulgaria and you should refer back to your contract to see if there are any provisions for compensation etc. In your favour, payable by the builder. Building works must stop in Bulgaria from the end of September to the beginning of March, so this could be reason for the delay.
Stefano Lucatello
Senior Partner,
The International Property Law Centre LLP,
Tel: 0844 578 5005