Buying off plan is the riskiest form of investment but
you can generate the best returns this way. It is entirely possible
to achieve returns in excess of 100% of your initial investment within
24 months. Or holding on to the property for a longer term means you
can benefit from the fastest growing property market in Europe (and
have a great holiday destination while your investment is appreciating).
Or you can sell your property before it is even built and expect a return,
which reflects a percentage increase in the overall price of your property
while you have only tied up a fraction of this original price, a sure
way to achieve maximum gains.
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The developer of a building project is always keen to
sell as many properties as early as possible to improve cash flow,
minimize development loans from banks and give the project some forward
momentum. In order to sell before construction has started, the developer
sells 'off plan' at extremely competitive prices because investors
only have plans, computer simulations and a plot to view at this stage.
Apart from the fact that the developer will be selling
at less than current market value to attract investors, the real key
when buying 'off plan' is that you usually only have to pay % of the
purchase price as a deposit. Thereafter, no further payments are required
until the project is completed, at which point it can be financed
with a mortgage or sold.
Bulgaria property investment - Disclaimer |
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