A leading figure in the Bulgarian property industry has issued a warning to property buyers in his native country, and the warning actually applies to all those buying real estate abroad, no matter where in the world they are buying.
Nikolai Pehlivanov from Green Life, the Bulgarian Entrepreneurial Chamber’s Developer of the Year, has advised caution when it comes to those buying into seemingly cut price developments.
The warning he has issued to property buyers in Bulgaria is along the lines of: ‘if something appears to good to be true then it probably is!’ And in this article we will expand upon this sentiment in order to protect those going in search of property bargains overseas.
Nikolai Pehlivanov, in speaking directly about his nation’s real estate market, has sparked some fear through the international property buying community – he has explained that there are some developers with projects currently under construction in Bulgaria who are in financial difficulties. In order to reap some dividends from their projects Pehlivanov alleges that some may be willing to fraudulently sell units at very low prices and then disappear with the funds. He intimates that there are those out there willing to take such action who have no intention of ever completing the property units they are selling.
Pehlivanov suggests that would-be buyers are very cautious and sceptical of cut-price deals that appear almost too good to be true! He goes on to give further comment on the state of the Bulgarian property market and advises that some of the mega projects already under development will be frozen, that projects in the pipeline will be put on hold until they can be re-valued and an appraisal can be done of whether they are profitable or not, and that all in all anyone thinking about buying property in Bulgaria at the moment should really only put their faith in already completed projects.
Considering this advice comes from a developer it is well worth heeding in our opinion. What’s more, the advice applies in other markets where there have been large amounts of speculative construction taking place on the basis of everlasting and ongoing property consumer demand. From Spain to Romania, from Portugal to Brazil – the property markets in a large number of nations have been inflated by investors and holiday home buyers, and now that these buyers are in shorter supply, it is inevitable that developers will suffer. Some will go to the wall, some may indeed be forced into fraudulently fleecing customers and then running off with the money, and even the legitimate few will struggle to deliver all their promises.
So, if you’re keen to take advantage of the cut prices that some markets are offering would-be buyers nowadays, just ensure you tread carefully. There are legitimate bargains to be had, but remember that it is a case of buyer beware unfortunately.