Bulgaria, Bulgarian real estate, real estate news, rental income returns (yields), square meter prices
In Uncategorized on October 13, 2008 at 4:53 pm
This information is taken from the site of the Global Property Guide. The nubers speak for themselves.
Rental yields FAQS
Comparing rental yields: Europe
If rental yields are high, does it mean that it is a good investment option and I should invest immediately?
Well… no. We present gross yields and not net yields. From the gross yields, you still have to deduct taxes, maintenance fees and other costs. You should also compare the gross yields with current bank interest rates, inflation rate and the risks you are taking in investing.
The rental returns on owning property in different countries varies greatly. For instance in Europe, in early 2007, the range was from around 14.13% in Moldova’s capital Chisinau, to 2.43% in Monaco. The trend had been for rental income returns to fall, because rents are not keeping pace with prices anywhere in Europe. As 2007 dawns, rental returns are lower in most locations than they have been for 20 or more years.
To some extent rental returns appear to correlate with risk. Most of Europe’s ‘high yielding’ countries are in the East. Apartments in four Eastern European capitals earn above 10% rental returns: Chisinau, Moldova (14.13%); Warsaw, Poland (13.28%); Sofia, Bulgaria (10.56%); and Bratislava, Slovakia (10.06%). The higher risks of the East may be a factor in these returns (high corruption, political risks).
How about places with seasonal rents?
In some markets such as the Caribbean and the Pacific, most rents are seasonal. When the developed world is experiencing harsh winters, its wealthier citizens escape to sandy white beaches in the tropics. This leads to unexceptionally high demand during peak seasons and virtually zero occupancy during lean seasons.
For these places, we are moving away entirely from using seasonal rentals, as we find the results unreliable. For this and other reasons, the countries for which we have price data don’t always overlap with rental income data countries.
Source: Global Property Guide
City Center Sofia, Mall Sofia
In Uncategorized on October 12, 2008 at 7:34 am
Mall Sofia has changed ownership Source:www.imoti.net
The German company “Degi Deutsche Gesellschaft fuer Immobilienfonds” is the new owner of the commercial complex type “mall” – “Mall of Sofia.
The Commission for Protection of Competition has approved the transaction, which is the second resale of Mall of Sofia.
The Germans also wanted to acquire the other large mall in the capital – “City Center Sofia”, but where not sucessfull.
For the “City Center Sofia”, with an achieved yield gained of 7.1 percent,a better offer was given by the American “Haytman”. For only 101 million USD in this lack of funds on the financial markets, they made a better offer and beat the Germans in the bid.
A look back to the short history of Sofia shopping malls shows that the initial investors included (IT) “International Theatres” – with half the investment and Israeli companies “Ocif” and “Aviv” – with a quarter of the capital.
In 2006 throught two transactions the property was acqired by the Irish investment fund “Quinlan Private” and “General Electric”.
And after just two years of ownership the ownership of the Sofia shopping malls went into the hands of new owners.
Source: imoti.net
Bulgarian stock, Financial crisis, Sofix
In Uncategorized on October 12, 2008 at 12:03 am
Source: imoti.net
Investors have withdrawn from U.S. mutual funds in September record 72 U.S. dollars billion, rputting them in bank deposits insured by the authorities in view of the deepening financial crisis, announced the agency Blumberg.
According to TrimTabs Investment Research, Investor withdrew 43.5 U.S. dollars billion from stock funds and 28.8 U.S. dollars billion of collective investment schemes to invest in bonds.
These are money funds, which invest in shares not only the U.S. but worldwide, including Bulgaria.
The withdrawal of funds continue during the second week of October. Until Oct. 3 of them 49.3 U.S. dollars billion was directed to banks.
Investors are also withdrawing from contractual and mixed funds 8.8 U.S. dollars billion and 4.1 U.S. dollars billion.
But TrimTabs calms that investors who continue to invest in Exchange-Traded Funds, which invest in U.S. companies. But these operations are 4 times less than a week ago – from 15.1 U.S. dollars billion to only $ 4 billion
According to Morningstar Inc., The five leading U.S. diversified funds, including Fidelity Investments and Vanguard Group Inc., For 9 months have reported losses of 28 percent.
Meanwhile, after a brief recovery indices of the Bulgarian Stock Exchange (BSE) is thrown down again last week session.
SOFIX lost 5.63 percent to 602.82 points. “Diary 20″ dropped by just over 5 percent to 78.69 points. All other indicators also are red.
The reason is another failure of the international stock markets, after the panic and mistrust among investors again took top in U.S. markets.
Source: imoti.net
