Undervalued Real Estate.

zacb · Post by **zacb** » August 9th, 2012, 9:58 pm

In your opinion, what international country has the most undervalued real estate? My vote goes for Bulgaria.

Jester · Post by **Jester** » August 10th, 2012, 10:06 pm

Bulgaria... sounds interesting. What makes you say that?

Can you share links to some units for sale?

zacb · Post by **zacb** » August 11th, 2012, 8:37 pm

I don't have the link available, but I was looking at the Bourgas (I believe that is how you spell it), Sunny Beach to be exact. Anyways, I was kind of window shopping, and I saw a half dozen properties under 20k, pool, 1 bath, 1 room, view looking out at the Black Sea. In Varna, which is more popular a similar property was going for 40K+. Now obviously right now it won't go up, but eventually I think it will become an alternative to Varna, since it is inexpensive. there was this one that stuck out at 17k. Now lets say you invest cash you have from a passive income stream ans buy property to diversify. Since you have cash on hand, you might be able to get it for 14k or 15k. Although I don't know if there would be any problems with RICO or 10K limit on money transfer. But if you have an IBC in place, it might make sense.In addition, property in nearby FYROM near Lake Orchid (I believe that is the name) for instance is going for 70K+, and there unemployment is 25%+. Similar prices are found throughout the region. Just thinking. Probably be a few years from now.

gsjackson · Post by **gsjackson** » August 11th, 2012, 11:58 pm

Sunny Beach got way overbuilt with condos during the bubble, as the Brits in particular were scarfing them up. You can get great buys now on condos a little bit away from the beach, but you will be in a very competitive short-term rental market, with no guarantees of cash flow.

I haven't been there, but it looks like a great, international beach scene, with lots of night life going on. If the cash were on hand, I'd be tempted to buy one of the cheap units, and spend as much time as I could there during the summer, without necessarily expecting any cash flow.

zacb · Post by **zacb** » August 12th, 2012, 6:16 am

That is what I was thinking. If things stay the same for the next few years, and I am able to save up enough, I might just consider this. How bad do you think the paperwork process would be? And slightly off topic, since Bulgaria is an EU country, how hard do you think it would be to immigrate their?

momopi · Post by **momopi** » August 12th, 2012, 7:42 am

zacb wrote:I don't have the link available, but I was looking at the Bourgas (I believe that is how you spell it), Sunny Beach to be exact. Anyways, I was kind of window shopping, and I saw a half dozen properties under 20k, pool, 1 bath, 1 room, view looking out at the Black Sea. In Varna, which is more popular a similar property was going for 40K+. Now obviously right now it won't go up, but eventually I think it will become an alternative to Varna, since it is inexpensive. there was this one that stuck out at 17k. Now lets say you invest cash you have from a passive income stream ans buy property to diversify. Since you have cash on hand, you might be able to get it for 14k or 15k. Although I don't know if there would be any problems with RICO or 10K limit on money transfer. But if you have an IBC in place, it might make sense.In addition, property in nearby FYROM near Lake Orchid (I believe that is the name) for instance is going for 70K+, and there unemployment is 25%+. Similar prices are found throughout the region. Just thinking. Probably be a few years from now.

Why do you think there would be an issue with RICO Act?

OutWest · Post by **OutWest** » August 12th, 2012, 8:16 am

zacb wrote:I don't have the link available, but I was looking at the Bourgas (I believe that is how you spell it), Sunny Beach to be exact. Anyways, I was kind of window shopping, and I saw a half dozen properties under 20k, pool, 1 bath, 1 room, view looking out at the Black Sea. In Varna, which is more popular a similar property was going for 40K+. Now obviously right now it won't go up, but eventually I think it will become an alternative to Varna, since it is inexpensive. there was this one that stuck out at 17k. Now lets say you invest cash you have from a passive income stream ans buy property to diversify. Since you have cash on hand, you might be able to get it for 14k or 15k. Although I don't know if there would be any problems with RICO or 10K limit on money transfer. But if you have an IBC in place, it might make sense.In addition, property in nearby FYROM near Lake Orchid (I believe that is the name) for instance is going for 70K+, and there unemployment is 25%+. Similar prices are found throughout the region. Just thinking. Probably be a few years from now.

This is a commonly held bit of misinformation. There is no such limit on transferring money. There is however a limit on what money you can transfer before specific reporting requirements kick in. There are prohibitions on transferring money to countries like N. Korea, Cuba, and Iran, otherwise, you can for example, wire funds to purchase a house or fund a business wherever you wish. How do you think importers in the US pay for their goods from all over the world? Expatriates living within the USA often transfer large amounts of money back to wherever their homeland is, to purchase homes or businesses.

Outwest

polya · Post by **polya** » August 12th, 2012, 10:59 am

Don't buy unless you want to live in the house. Real Estate should be now be considered like a car - something that'll lose you money. It was a bubble with no reason to get so high priced. Thank God Real Estate prices have collapsed in many places.

zacb · Post by **zacb** » August 12th, 2012, 12:48 pm

Here is the thing. I get what you are saying. Basically, don't expect it to produce income, and don't expect capital gains on it. I get that. The thing is that I believe this is temporary. Will it last another 5-20 years? Probably. But you are discounting one thing. The power of the Federal Reserve to print. Intermediately I think passive money (bonds, dividends, etc.) will do good, since we got a lot of deleveraging to go. But you know what? The bankers will do it again. You know why? They make money from these bubbles. And you don't think they want to earn money? They are human. And so be fearful when others are greedy, and greedy when others are fearful. I am not trying to take a shot at you, and believe a home, car, and similar things should be considered liabilities, but I also think that they do provide inflation protection when the time comes. It is like buying insurance on an off category. You buy something when it is cheap.

zacb · Post by **zacb** » August 12th, 2012, 12:49 pm

Let me also say I think of this more as speculation, albeit informed speculation.