Let's pay attention to the following - investment in property can be Short-term и Long term.
At Short-term investment the buyer has the following options:
1. Buy property on green and sold after the certificate of completion of the rough construction - ACT 14 or after commissioning - ACT 16. In this case the buyer is looking to make a good quick profit within 1,5 to 2,5 years. If he transfers the rights under the preliminary contract signed with the builder, he will not even owe notary transfer fees, local tax and profit tax. This is one of the most successful ways to make good profits.
The risks lie in the security and image of the construction company, as well as in the premature increase in material and labour prices. Many developers have included clauses for early indexation of the final price, which the buyer has to pay on the next instalment or at the closing.
In this case, the buyer should pay particular attention in researching the investor/builder, the documentation around the construction, its financing.
2. Buy a property in need of renovation. Once the repairs and improvements to the property are completed, the property is sold at a higher price for a profit.
The second type - long-term investment:
1. Rental income - renting the property long-term or on an overnight basis provides a monthly income.
2. Capital gain is the profit we make by buying something at a certain price and then selling it at a price higher than the price we bought it for. Even after a crisis in the property market, property prices always rise even more than previous levels. That is, even if there is a 10-15-25 percent price drop, you can hold on to the property by renting it out, which covers the monthly loan payment, and sell it for a profit when the market picks up again.
Crisis
Understandably, every property buyer is apprehensive about an impending crisis and a drop in market prices.
Some of the logical signals could be:
- High inflation
- Rising mortgage rates
- Decrease in the number of transactions over a certain period of time
As we have already mentioned, even if property prices fall, you can hold on to your purchase by waiting for the market to recover and sell your property again at a profit.
Our experienced professionals are ready to find you the investment you want and guide you through the entire transaction process from purchase to making a profit on both the rental and sale of the property.
You can learn more about our team of professionals here:
https://bulgaria-estate.com/agents/
