Eastern Europe Property Investing

5 Replies

Hi there @Martin Galabov ,

I have no experience whatsoever, although I've been doing my reading and following the BP forums and the podcast. I am also living in Bulgaria at the moment. I will be following this thread. Let me know if you'd like to get in touch and share some thoughts on the market here.

Kind regards,

Antonio

@André Rairan Zacchi Pereira I think there's a few major differences between the US and #Bulgaria. First, old property is not in as good condition as I guess is in the States. And in comparison with new construction, no one really wants to to choose old property even after rehab unless it's in the city center. So the 1% rule doesn't work like in the States. It's more of 0.5% rule of thumb. How does this compare to Germany and Italy?

Hi, @Martin Galabov I have never seen a 1% rule off- or on-market in Germany and Italy. In foreclosures auctions, you can find but then are the increased risks.

The numbers are really different around Europe. I guess because the interest taxes on mortgages are also lower. Why would someone pay 1% of rent when they can buy a primary house with 1.2% interest. Depending on the LTV (50% on my bank e.g.) it can go down to 0.7%

In Italy, as far as my experience goes, people are used to "old constructions". So they don't care much as far as the house/condo is renovated and with a good energy class. New constructions are not easy to find in the main cities anyway. If you want new constructions you have to go to the suburbs.