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Cheap Bulgarian Property Expected to Appreciate by 2010 - 16 November 2009

Investors wary about buying property in Bulgaria, where supply quickly overran demand this year, should fret no more.

The near end of the global recession has primed Bulgaria as a top real estate opportunity for overseas investors. With values of luxury homes declining more than 40 percent from the start of the economic downtown, property is still cheap across Bulgaria. However, by 2010, values are expected to rise according to real estate experts. Right now rental yields are good on luxury flats (approximately 120,000 Euros) and single family homes (500,000 Euros), and buyers are less interested in more populated areas like the capital Sofia and the Black Sea coastline, instead expressing interest in Bulgaria’s more traditional towns and mid-sized villas.

Another incentive to buy in this country is the exchange rate. Although Bulgaria is part of the European Union, it does not use the Euro yet, making it safe against the Euro’s increasing prices, while having the backing of the EU. The country’s cheaper cost of living has attracted British expats and retirees for years, most of which have bought property for less than half of what they’d pay at home.

The Bulgarian government is also currently working to pass a law to ensure less fraud, tax evasion and fees for buying property overseas. The amendment to the Notary Act, expected to be enacted by 2010, will mandate that all real estate transactions be conducted via bank transfers, banning all transactions made in cash. Also included will be a law making the state the official depository bank, in which it will not charge interest and will levy a certain fee on every deal.

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