Where now for overseas property?

August 27, 2004
SPAIN, France and Italy are fast becoming old hat for overseas property buyers. Bulgaria, Croatia, Dubai, Australia and Poland are seen as the new investment hot-spots.

PSAIN, France and Italy are fast becoming old hat for overseas property buyers. Bulgaria, Croatia, Dubai, Australia and Poland are seen as the new investment hot-spots, offering low prices, plenty of choice and greater growth potential.

Gerard and Joanne Feeley are hoping to be at the forefront of the revolution. They have just bought a one-bedroom apartment on Bulgaria's booming Black Sea resort of Sunny Beach.

Gerard, 33, says: 'We have invested in several properties in Britain over the years and wanted to spread our portfolio into the overseas market.

'We chose Bulgaria because it is still relatively unexplored and has yet to see the spiralling prices of more traditional holiday home areas such as France, Spain and Greece.'

But the Feeleys, who have a newborn son, Tom, are convinced that Bulgarian property will follow suit.

Gerard, who works for a construction company in the West Midlands, says: 'There is massive growth in tourism to the Black Sea area.

'The other factor, Bulgaria's ultimate membership of the European Union, is likely to boost the country's economy dramatically as it did, for example, for Poland and Hungary.'


The couple from North Yorkshire, had a holiday on the Black Sea coast in April to learn more about the property market there.


After deciding on a small development that was due to be completed in July, they returned to Britain, carried out more research, then paid a 20% deposit on the £45,000 purchase price. The remainder of the money came from profits on other UK property.


The apartment is now completed and the couple are preparing to let it. Gerard says: 'We plan to offer it through a tour operator next year. Meantime, we will let it to other prospective property investors who want to learn more about the Bulgarian market.

'Buying there is a big step. We would not recommend staying with a resort developer as you can face a hard sell and miss out on better properties that you could find under your own steam.'

Interest in unusual overseas property is certainly booming. As well as homes in Bulgaria, exhibitors at the huge Property Investor Show at London's Excel Centre next month will offer information on residential investments as far afield as Slovakia, Shanghai, New Zealand, Dubai and Australia.

Simon Conn, managing director of overseas mortgage specialist Conti Financial Services at Hove, West Sussex, says: 'When I started in business 23 years ago, no one thought people would want to buy in places like France. Today, we get calls from people wanting to buy in countries that didn't even exist then.'

But while Conti is gradually increasing the number of countries where it can help with finance - it recently added Dubai and Poland to its list - Conn says people should invest abroad with caution. 'Those who rush into things can lose a lot,' he warns.