Experts Recommend Buy to Let for Properties in Bulgaria
The credit insulation, Creditex, reported that the prices of the residential properties in Bulgaria are decreasing faster than the rents, based on information provided by agencies for real estates. So expert recommend buy to let.The Creditex experts announced that the co-relation between both prices is important reference point for the Bulgarian market for real estate. 4,5 % in the first half of 2009 is the average current residential properties profitability, while in the last six months of 2008 it was 4,1%.
The redeemability of such investment is measure through the so called "gross rental multiplier". It shows the number of month rents, by which the investment will be returned. The lower the index is, the better the redeemability is, and the faster the investment will be returned.
The index for the first six months of 2009 is 209,4 months - a decrease from 237,3 months in the second half of 2008.
The reasons for the increasing redeemability of residential properties are the lack of adequate financing from the financial institutions, which makes the prices go down, and the rise of the interest towards renting apartments, instead of buying them.
The increase of the current residential properties profitability since the beginning of 2009 shows that the most critical moment of the real estate crisis is may be passing, and the first signs of realties market recovery and stabilization are appearing, experts form Creditex commented.
Creditex is non-bank, financial institution, specialized in business mortgage crediting, which has been on the market five year now. It is part of the registered in Holland, TBI Financial Services B.V.
I first found this company on the internet and found the site really easy to understand and gave me alot of information! I arranged to go over for a viewing trip in November 2010 with a friend as my husband couldnt make it. We were pick up from sofia airport. over the next 5days we went from one end of Bulgaria to the other covering over 1600km (Bulgaria is Beautiful)Each night we stayed in a different hotel, which was checked every time to see if it was to our liking!They even took us to a chemist to get us something for our coughs!!! Dont think an English Estate agent would of done that!! We were looked after the WHOLE time and they answered all of my questions, some times over and over again!! They have helped with paperwork and accounts which have to be set up! NOTHING was tooo much trouble for these lovley,lovely people and im buying with confidence! I would gladly recomend this hardworking, trustworthy, friendly company! We not only met Estate Agents over there, we also made our first Bulgarian friends :)Thank you kiki and Hristo. Maxine Wood. N.E.Lincs. England
— Maxine Wood :), England