Thanks Brett - this is quite right

Fortunately, for Bulgaria the Russians are currently the only group of people buying property on Bulgaria's coast this summer...

... but at least they are buying for the right reasons and in the right way

1. ) They actually want a holiday home on the black sea (childhood memories etc...)

2.) They buy with cash (and don't think of it as an investment)

Of course, this is the exact opposite of what most Brit and Irish 'investors' did - but at least it means that whilst these 'investors' feel the pain, at least Bulgaria should pull through.

Cheers
Neil

Brett,

Your comment:

"Therefore rental yields were so good, it was possible for a unit bought at Marina Mokotow to be cashflow positive".

What a load of hogwash!!!

Here are my current monthly figures for a one-bed in the Marina development.

Service charge (maintenance of the estate) 404 PLN
Accountancy through Rednet 183 PLN
Rednet management charge 144 PLN
PS PLS fees (approx) 100 PLN

Total costs 831 PLN per month

Mortgage 1500 PLN

Rent 2000 PLN

Shortfall 2000 - (1500 + 831) = 331 PLN per month.

These current figures are far better than the first year when the mortgage interest was 2% higher, the rent was only 1600 PLN, and the PS/Rednet costs were very much higher.

I challenge you to justify your comment with verifiable figures.

If you can't, please don't use this kind of misinformation just to promote your latest deal.

I couldn't agree more. Yield at Marina is actually struggling to hit 6% as the rents are well below those predicted by PS in the prospectus. Add to that the failure of Rednet to ensure rents are paid by the tenants and not a great picture.

However, paper profits on capital gains do look good but that wasn't the point you were making.
Huw

agreed.... the yield on my 1 bed Marina is about 6.5% gross this is almost exactly the same as the mortgage rate (after 2 years still waiting for this to be reduced by 1% after writing into mortgage register !). After costs I am down by 750 PLN a month.

Antony

Hi Mike

I did say the word "possible"

The only flexible factor in your figures is the mortgage. This depends to a large extent on individual circumstances.

Depending on the following:

the amount borrowed
the interest rate achieved
the term

With the right mortgage Marina Mokotow can be easily cashflow positive according to our calculations

Mortgage amount 213,444 70.00%
interest rate 4.50%
length of term 25

1186.391074 PLN

Cheers
Brett