Buying abroad and renting in Britain could well be the new trend for young property buyers living in the UK. This trend is being demonstrated by first time British buyers choosing Bulgarian property over the UK
Nearly one in four are now priced out of the UK property market altogether, so it’s no surprise that they are now considering alternatives that will give them that all-important first step without succumbing to the UK’s sky- high property prices. With talk of 100 percent mortgages, shared ownership schemes and 75-year loan terms, UK home buyers are looking to the Bulgarian property market to make their first home purchase.
The average UK house price is now in excess of £200,000 as quoted by the BBC and recent interest rate rises coupled with a bleak economic outlook have not aided the situation. The burden of a lifetime of mortgage payments is weighing heavily on young homebuyers’ minds. Added to this, a survey with National Savings and Investments showed that a massive 84% of 18-24 year olds believe that buying their first home abroad is more viable than buying it in the UK. The National Savings and Investments survey revealed that in London, 36% of first time buyers would consider buying abroad as an alternative to purchasing in London. .
Research from Quest Bulgaria Magazine indicated that the Bulgarian property market is still buoyant and looks set to grow even further. It seems there is no better time than now to invest in Balkan bricks and mortar. Despite this positive forecast, many first time buyers remain reluctant to actually put down roots in Bulgaria. This could be due to preconceptions about the country which include, fear of the language barrier, its reputation for being a haven for senior citizens and worries about employment prospects.
UK salaries are disproportionately low when compared to the rising house prices, so it is not unusual for British twenty somethings to opt for a life back home with Mum and Dad instead of venturing onto the property ladder. The high deposit and crippling mortgage of UK property ownership need not elude potential homeowners. A Bulgarian bolt-hole can provide a rental income and potentially build equity if the Balkan market performs according to expectation. The buy-to-let market is on the up in Bulgaria, which coupled with the country’s very low taxation of just 10% shows there is a huge financial incentive to make your first property purchase there.
Bulgarian property offers enormously good value for money and house prices are currently forecast to rise on average by 15% this year. If you’re banking on a quick return, look for up-and-coming areas in the process of regeneration. Similarly, improvements to transport links are usually a sure sign that an area is going up in the world. Low cost airlines tend to have a ripple effect on the surrounding areas of any airport they add to their ever-expanding routes.More and more people are making the most of long weekends and cheap flights for mini breaks overseas. Nowadays, it is normal for people to take frequent trips to second homes instead of traditional, single longer vacations. This broadens the scope for Bulgarian property investment with some regions enjoying both long summers and ski-friendly winter seasons.
Regions with the best transport links offer a compromise between buying for pure investment and full-scale relocation. It is financially possible to live and work between two countries. Working in London and then spending your weekends in Sofia or Varna is now perfectly possible. It’s worth bearing in mind that, under the UK’s flexible working legislation, parents with a child under the age of six and certain adult carers have a legal right to request flexible working hours. Even if you do not fall in this category, it might be worth asking your employer if you can work flexibly. An employer may only refuse a request from an eligible employee should there be recognised business grounds for doing so. With high-speed internet connections available in Bulgaria, employees can take the opportunity to work from their Balkan home.
The UK is awash with TV shows on property renovation, taking these elements and applying them to a Bulgarian home could pay dividends too. Many will agree that the UK property market is saturated with developers making renovation bargains thin on the ground. By comparison, Bulgaria is packed with potentially lucrative properties, from ready-made holiday apartments to serious building projects.
