Reply To: Costa del Sol agents closing down

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Shakeel, you are quite right that not all property in these new markets is rubbish. What IS rubbish as both an investment and a home, though, is the property being flogged by the sorts of companies that Brits tend to deal with, and that was my point. Most buyers don’t get near the good stuff, as the companies they deal with are only interested in shifting volume at the highest commission, which usually involves mis-selling crap new developments to ignorant buyers. Let’s face it, how many Brits know the first thing about the property market in a place like Bulgaria when they buy, other than what they have been told by estate agents?

Buying property aboard is much riskier than most people realise due to the lack of professionalism in the sector. Many of the companies selling property abroad have come from nowhere other than timeshare, and have no scruples. In fact, the overseas property industry could be the biggest scam ever.

Maximus, the property market in Bulgaria et al lacks transparency, so I am grateful for the information relayed from your friends of friends of friends, as it’s about the best market intelligence we are likely to get. The lack of transparency of overseas property markets makes the scam so much easier. Buyers should always be cautious in markets that lack transparency, as they are operating in the dark. It amazes me how this age-old axiom of investing has been so ignored by overseas property buyers.

For what it is worth I am convinced that the Bulgarian property market where Brits have bought will melt down. It will make Spain look like a safe haven in comparison. Having said that, Spain isn’t going to be a smooth ride either.

And yes, isn’t it amazing how 90,000 Euros can be made to sound like small change just because it is property. Next it will be mud huts in the Congo ‘from only 50,000 Euros’. Not a bad idea, actually. Just think of the commission you could make….