Saturday, June 27th, 2009
Bulgaria Realtor
Hi there!
“Now is the Hour – Part 2″? What in the world do I mean by that? Well, think about it – if the first part talked about properties, this part has to be an update on financing, right?
Right!
What’s starting to happen is that the banks are starting to suffer from the lack of new funds and new sales – why? Restrictive to prohibitive terms for new mortgages. Remember what I did write in Now is the Hour – part 1?
“Bulgarian mortgage lenders have put the stops on the business with limits as to how much they will lend (typically 40% of the buying price, maximum), and also with really restrictive interest rates – 12-15% plus the Interbank rate plus signing fees, depending on the type and life of the mortgage.”
Well, there appear to be a few Bulgarian banks out there that are not satisified with their returns at those levels. What’s happening? They have dropped their interest rates by 50% or more, and are willing to go to 50-55% of the market value of the property (in extreme cases even 70%). This is still not like the glory days 2-3 years ago, but it will certainly help out the real estate market.
So, welcome to “Now is the Hour – Part 2″! :-D
It really IS the time to start choosing what you really want and start organising your purchase plans! For the names of the banks presently involved, see the Focus Information Agency article at http://www.focus-fen.net/index.php?id=n185477.
Ciao for now
Craig
for
Bulgaria Realtor
P.S. Remember, you read it FIRST on
Bulgaria Realtor!
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Wednesday, June 24th, 2009
Hi there!
I don’t expect that you remember the US radio program called “Now is the Hour”, and it’s not important that you do. What is important is that you read this and take note – it can be very important for you!
As you probably know, I’m in Bulgaria with Elena now, and we have discovered the following. The real estate market for the Bulgarian central Black Sea resort area is bottoming out. What does that mean for you? Well, here’s the way we see it.
Now is the time to start looking very seriously for the property you want to buy in our area – Nessebar-Sunny Beach-Sveti Vlas. Why? Because there are other people already looking – yes, looking for bargains, but also looking to find that one property that is exactly what they want at the best price they are likely to get – ever!
If you wait much longer, the desirable properties will be sold, and there won’t be any more for some time. And at today’s prices, maybe never! When the best existing properties are off the market, there will still be the ones that are not so great, and these will tend to put price pressure (= limits or brakes) on new construction. These effects will keep prices from rising rapidly again, but will also result (as we have said before) in the poorer properties potentially being torn down, rather than sold “at any price.”
The difficult part for the moment is the mortgage situation, if you need assistance with your financing. Bulgarian mortgage lenders have put the stops on the business with limits as to how much they will lend (typically 40% of the buying price, maximum), and also with really restrictive interest rates – 12-15% plus the Interbank rate plus signing fees, depending on the type and life of the mortgage. These practices are at odds with many other European countries, and are doing a good job of killing the new construction business here.
Bottom line? If you have the cash, wherever it comes from, now is the time to get your pick of the best properties at the best prices in our area. If you wait, the cream of the crop will be gone.
Ciao for now,
Craig
for
Bulgaria Realtor
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