If this seems like a strange analogy then allow me to explain. Two companies have recently announced the introduction of buy to let mortgages for Bulgarian property, both claiming to be the first to offer this 'exclusive' service. Although which of these companies' claims is actually true won't be important to you, what will be is that both Barrasford and Bird and Bulgarian Dreams are now offering purchasers a second mortgage option when purchasing property in Bulgaria, in addition to the country's existing mortgage scheme which was based entirely on annual income. "Previously, investment in the Bulgarian property market was limited to standard mortgage agreements, in other words those who could prove their financial status and worth to support their borrowing. The new buy to let mortgage that has just been released for Bulgaria allows purchasers to borrow against the projected rental income from their properties", said Robert Jenkin, the managing director of Bulgarian Dreams. "The result is that Bulgaria can now offer a true buy to let property investment. Everyone can now benefit from the excellent opportunities available in one of the world's leading emerging property markets. Bulgaria is an increasingly exciting country to be involved in and with rental yields and property prices rising steadily, the opportunity for sound investment is hugely strong", adds Jenkin.

Robin Barrasford, managing director of Barrasford and Bird, is equally enthusiastic over the impact Bulgaria's new mortgage product will have on the country.
"This is an exciting time for UK investors wanting to capitalise on the Bulgaria property market", he says. "We have secured a deal with a leading bank, and for the first time we are able to offer mortgages to investors who have previously not had the opportunity to get on to the overseas property ladder."

However, despite Bulgaria's rising property prices and the possibility of this new mortgage revolutionising the rental market in the country, some experts are still warning buyers to beware when purchasing property in the country with an eye firmly on investment. Stuart Law, Managing Director of investment specialists Assetz comments: "Investors should be cautious in Bulgaria's immature market. "Property prices are growing significantly in the more established areas such as the Black Sea coastline and the major ski resorts, but many of the apparently 'bargain' deals citing properties for under 30,000 euros will be located in the more rural areas and are unlikely to enjoy such high growth rates and certainly not high rental yields."

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For more information:
Bulgarian Dreams 
Barrasford & Bird
Assetz

Image courtesy of BulgarianTravel.org

Article first published in January 2006