In the years of “real estate fever” to earn real estate investment in the short term it was relatively easy. The fact is that the world economy has been booming since 2000, which normally led to a dynamic investment environment and, accordingly, to increased demand. The real estate sector, as one of the most important parts of the economy, was also not overlooked by this development and, accordingly, reached a global “boom” in prices. Specifically for Bulgaria, at that time an average annual growth rate of about 20% was recorded for property prices, according to calculations of the experts of Excel Property.
This development brought substantial capital gains to property investors around the world, but unfortunately the price bubble burst in 2006 in America, and quite logically, following the “domino effect”, the collapse of the real estate market reached Bulgaria over 2009 year. The ensuing global economic crisis and financial recession, which has led to property devaluation in some cases by up to 50%, has put professional real estate investors ahead of great trials that have forced new rules to be written in this game.
In our role as consultants, we at Excel Property will try to help you with our advice to find the method and the most suitable real estate for investment.
First of all, budgeting is always the basis for future growth and profit generation. This is the key factor in which you must be realistic about your investment opportunities. Here we have to note that there is a risk for any investment, including real estate. These risks can be categorized in a variety of ways – such as your own risk, economic risks, and others. Every good real estate broker will tell you that the risks are not a scary thing, just a proper strategy selection is needed to minimize those risks and thus choose a profitable investment approach.
The next step is choosing a promising investment region, which in no way means the most expensive or cheapest. Here the location, land and construction indicators for its construction, demographic criteria, etc. are of key importance. The main factor determining the price of a real estate and the prospect of its development is the way of permanent use of the property, which is divided into three main categories – residential properties, holiday properties, offices and commercial areas.
Last but not least, there is the choice of the type of property to invest in, depending on the strategy you choose. This can be a house, a villa, an apartment, an office, a shop, a plot of land and more.
There are many other circumstances that play an important role in selecting a real estate for investment such as number of bedrooms, property status, garage, garden, pool, etc. All of these are considered individually, in the aspect of the particular transaction, related to the pre-selected investment strategy.
Undoubtedly Bulgaria as a country is quite interesting in terms of its geographic location. The real estate market remains one of the most preferred investment alternatives for Bulgarians and foreigners for a number of reasons.
There are many different ways of investing in real estate, such as buying, renting, repairing, collecting and dividing property, changing the purpose, etc. Identifying and choosing the right investment strategy is at the heart of success.
