Investing in a home has its risks, but has increasingly become a topic of conversation in recent years. In Bulgaria especially, since there was a bank collapse, cryptocurrencies are still not safe as an investment, and in the end, we Bulgarians, in many cases, fall back on the good old real estate investment. If you can apparatus, and if you can in Sofia. Or a cottage around Sofia, which you can currently sell for the price of a mansion in the South of France with a pool and 8 bedrooms. Yes, quite true – you can find lovely mansions with a few acres of yard, a cellar or barn and 8 bedrooms for the price of a villa in some villa area around Sofia.
Beyond the superficial bills – of course, investing in a property is always a good idea. Even if you’re not a professional investor and don’t have a seven-figure budget, investment property is a good way to start a new challenge.
Especially in Bulgaria, where the property bubble is said to burst soon and housing prices are rising and are predicted to rise even after the adoption of the euro.
But what should we consider before we think about buying an investment home?
The potential returns
One of the first things to consider is the potential return on this type of investment. This could include an increase in property value, rental income or a combination of these two factors. It is important to examine the location of the property and current market trends to determine if the investment can be profitable.
In general – all property investors say that location always comes first.
Second is the allocation.
And third already – you can add emotional value or as they say – ” buy the sunset” – view, etc.
Financial preparation
To invest in a home, you need to have the right financial preparation. This includes reviewing the funds available for the purchase of the property as well as the ability to cover all associated costs including mortgage payments, taxes, fees and general maintenance. Proper financial preparation will help you deal with any unexpected expenses and keep your home investment profitable.
The location of the property
The location of the property is key when buying a property. Consider what the location offers – proximity to public transportation, schools, and other factors that may attract tenants and/or prospective buyers.
One- or two-bedroom apartments near universities would be a great option for prospective students looking for long-term accommodation, for example.
The other thing is that it’s super to have a major train station or airport nearby, so you could realistically also take advantage of short-term rental platforms like AirBnb or Booking.
Risk and uncertainty
Like any investment, housing comes with its risks and downsides. A volatile property market and rising prices can affect the value of a property and the profitability of a purchase. It is important to be prepared to compromise and exercise flexibility when negotiating the terms of a purchase.
Just don’t compromise on location and the type of construction.
If, there is some non-stop noise nearby – too. One that has no option to stop anytime soon. Even if it seems pleasant at first reading- a passing tram, a descending plane or even the sound of a church bell.
Patience and support
Investing in real estate doesn’t always bring quick and big profits, and patience can be a key factor in success. The capital invested may not be returned immediately, but with the right course of action and thoughtful decisions, the return on funds increases. Regular maintenance and necessary renovations are also essential to preserve the value of the property and ensure it remains in perfect condition.
Buying a home for investment purposes can be extremely lucrative, but also risky. It is important to conduct thorough research, develop a proper financial plan and be prepared for the uncertainties of the real estate market.
Consulting with a professional real estate advisor or financial advisor can help you make an informed decision about a home investment.