Distressed sales. Whilst nobody wishes others bad fortune, this is the time to make the most of distressed property sales and foreclosures (repossessions) to bag a Bulgarian bargain. There is no doubt that the overseas property market, including Bulgaria, has taken a real hammering in the current crisis. Developers are finding it difficult to complete projects and many units remain unsold, those who bought property at the height of the market are finding it hard to service their mortgage and many properties have come onto the market as these owners seek to sell. This all adds up to create a great opportunity for potential buyers.

Already recently Bulgaria saw an Irish syndicate enter the marketplace searching for completed properties owned by investors on the Black Sea coast. The syndicate, Appreciating Assets, launched this buy-back scheme to capitalise on the number of owners needing to sell their Bulgarian property. It came as good news to those who were anxious to sell as it gave these owners a quick way out, albeit they may not have liked the price they were offered. New investors started arriving in the Bulgarian property market during the recession due to the falling prices and the scheme helps fulfill their interest. The company said that they are confident in the long term outlook for the region and are buying properties with the intention of holding them for five to ten years. This is an ideal syndicate for investors and they are only buying completed front line property as these tend to be in higher quality developments and the best location.

If you are seeking a bargain property in Bulgaria, the choice of home is now huge. Many expats who find they can no longer pay their mortgage from rental income are selling up. Prices being asked are 20% less than last year, with studios selling for 30,000 euros and even two bedroom apartments going for 55,000 euros.

Until recently, information about foreclosures and repossessions was hard to come by in Bulgaria. These details were only available at court offices and municipalities and the information usually only came to light a month before the property was due to be auctioned, leaving buyers little time to make decisions. Now, with one click, potential purchasers can find a list of cheap foreclosures on the internet at www.sales.bcpea.org

There are only a couple of hundred announcements at present but information is being updated and more added all the time. All properties on the list are auctioned and the initial price is generally 75% or less of the market value. Most of the listings are in the capital of Sofia with apartments starting from only 30,000 euros in the centre and less on the edges. In the Black Sea city of Varna a two bedroom can be had for 40,000 euros and there is even a villa at an incredible 50,000 euros!

read more...