Buying a property on the Bulgarian Black Sea coast during inflation can be a very good investment. And here’s why:
- Property Values Increase: In a period of inflation, money loses its value over time as compound interest accumulates. In short, the inflation announced on TV by the Bulgarian National Bank of approximately 12% has already accumulated from the previous 12 months or nearly 1% loss of your money per month. Therefore, by investing in property, you preserve the value of your funds and even have the opportunity to increase it. Properties are generally valued in real-time, and their value rises when inflation increases prices, even if this happens with some delay.
- Potential for Rental Income: Popular places along the Black Sea coast, such as Primorsko, attract many tourists during the summer season. Inflation usually leads to higher rental prices, which makes renting your property short-term (for example, during the summer season) a profitable investment. This can provide you with a stable income to offset the impact of inflation.
- Capital Protection: Properties provide capital protection during periods of inflation as they appreciate in real-time and most often increase in value. This means that when you sell your property after some time, you are likely to make a bigger profit than when you bought it.
- Portfolio Diversification: Investing in property is a form of diversifying your portfolio. This allows you to spread the risk and have an asset that is not so dependent on the fluctuations of the financial markets. As a result, your portfolio becomes more resistant to inflation.
- Pleasant and Comfortable Haven: When buying a property on the Black Sea coast, you are not only investing but also creating your own cosy haven. This property can be a place to spend quality time with family and friends and make memories over the years if you are not interested in passive income from letting to tourists or renters.
Therefore, buying property on the Bulgarian Black Sea coast during inflation is a wise investment that combines protection of your capital, potential for growth in value and opportunity to generate income. It’s important to do your research and consult real estate professionals before making a decision, but the potential for success is significant.