Or anywhere in Bulgaria's ski resorts or coastal areas for that matter...

The smart investors who have listened to our advice over the years will know only to well the pitfalls of buying on the coast.

Those pitfalls have recently opened up into chasms for anyone still considering an investment in the likes of Bansko or Sunny Beach with this weeks' news that InvestBank, one of Bulgaria's major banks, are effectively pulling out of supplying mortgages on all properties in ski and coastal areas.

InvestBank will make it virtually impossible to invest in anything other than a modest beach hut, by placing a maximum valuation of €500 per square metre "on all properties in tourist resorts in ski and coastal areas".

Investbank add that of this €500, only 60-70% could be made available by mortgage. With prices now averaging €850 psm, few will be taking them up on this offer.

So why are Investbank doing this?

Well, according to their experience, they have seen "substantial decreases in property prices" on mountain and coastal resorts due to over supply and the effects of the credit crunch.

The bank has been slow to catch on...

Property Secrets saw this coming in 2005! The huge supply of new developments has indeed led to an oversupplied market. The boom could only last as long as enough foreigners were willing to buy, the locals were already satisfied.

So with such a huge supply of new properties in these areas there are virtually no buyers on the secondary market.

Then there is cashflow, how can payments on the mortgage be met if investors are unable to find tenants for their properties?

This has led to defaulting on mass as investors have struggled to keep up with mortgages without vital rental income. Tourist numbers are rising but most of them are on cheap package holidays and staying in hotels!

Another reason for the crisis on the coasts and mountains has been agents commissions. Prices paid included 20% VAT and large commissions to estate agents, hence the banks now know that the real value is likely to be far less than the purchase price paid by many unfortunate foreign buyers.

It's not all gloom and doom in Bulgaria...

As far as InvestBank are concerned they would prefer to receive mortgage applications for major cities like Sofia, Varna Bourgas and Plovdiv.

Conclusion - stay clear of the coast and look to the capital Sofia. Here you have all the right fundamentals for growth, shortage of supply, a ready made rental market, high employment with locals who can afford to buy.

The only people making money in the Bulgarian tourist resorts are the agents and developers. With this news even they will be feeling the squeeze.