Beginner Series: Buying Really Inexpensive Property

The Real Estate Espresso Podcast

Beginner Series: Buying Really Inexpensive Property

Spotify Google Podcast Apple Podcast Subscribe via RSS Leave a Review

Buying Really Inexpensive Property: A Look at Bulgaria

Welcome to another entry on the Real Estate Espresso blog. As your host, Victor Menasce, I will be navigating you through the peculiar phenomenon of extremely cheap real estate in some regions of the world, primarily focusing on Bulgaria.

Introduction to Cheap Real Estate in Bulgaria

Investing in real estate in regions with reducing population is an unorthodox choice, but Bulgaria shows us how it can become potentially beneficial. The story of Nadia, who was able to fulfill her travel dreams by purchasing a home in Bulgaria for as little as €8,000, offers a compelling example. Even with renovations, the total investment barely stretched over €20,000, leaving her enough to satisfy her wanderlust.

Prevalence and Potential

Cheap property in Bulgaria is not a rarity, with hundreds of properties under $30,000 including both land and detached homes. Although most of these are in rural areas, seaside cities like Varna also offer attractive deals. Understanding the local economy is important here as Bulgaria, a former communist country, still deals with low incomes, rural-urban property value disparity, and other growing pains of transitioning to a capitalist market.

Challenges and Considerations

It is important to note that buying cheap property in Bulgaria is not without its obstacles: there are complex land ownership laws, bureaucratic hurdles, and potential difficulties in selling the property. Also, immersing oneself in the local community can prove challenging for foreigners. Therefore, it is crucial to conduct thorough due diligence before purchasing, factoring in both the specifics of the property and the local infrastructure.

The Bulgarian Anomaly and Cheap Property Worldwide

The Bulgarian example highlights the trend of cheap properties in nations with declining populations. Places like Italy follow a similar pattern, even offering homes for as low as one euro in rural communities. The prospective buyer needs to timely submit and execute a renovation plan or risk losing the property. Therefore, the global property market can offer attractive deals beyond growing markets if approached correctly.

The Future of Real Estate Investment

Investment in growing markets has been a traditional strategy for many investors. With shrinking populations and shifting demographics in certain regions, this approach is becoming increasingly challenging. By focusing on nations like Japan, Italy, and Bulgaria, we can gain vital insights into the future of real estate investment.

Investment Checklist
Conduct thorough due diligence on potential properties
Understand local economy and the value of property
Consider the challenges of integrating into the local community
Be prepared for potential hurdles in reselling the property
Explore alternatives in other shrinking markets like Italy and Japan