Wednesday, 5 December 2007

UK property investors finance Bulgarian spendfest

Bulgarians are having a great time at the expense of UK "property investors".

According to the latest Transition report from the European Bank for Reconstruction and Development (EBRD), a third of the Bulgarian current account deficit - the difference between Bulgaria's exports and imports - has been financed from the sale of property.

In other words, the Bulgarians have been selling their dilapidated communist-built shacks for overinflated prices and using the proceeds to buy imports.

The EBRD is worried whether ongoing sales of Bulgarian property can continue indefinitely. The answer to this question largely depends on the supply of naive and greedy UK property investors.

4 comments:

evilKitty said...

Well I suppose the "investors" at least get the land. If that's what they want. Which I doubt!

traderboy said...

Well put, this is definitely going on, with UK investors buying property over there. Hardly surprising, it's so unbelievably "cheap" compared to the insane UK market.

Can't wait for the triple-whammy effect of people's UK houses falling, their UK buy-to-let generating less than the mortgage and their foreign property going "no-bid". Ah it will be so sweet when we get there, and I think it will be sooner rather than later.

By the way, your "Older Posts" link is still in Albanian for some reason ;)

ukhousingbubble said...

I know that my older posts are still in Albanian. I tried to change it but nothing happened.

BTW, are you sure that it is Albanian. I have no clue what language is being used.

traderboy said...

try changing the language in the "Settings -> Formatting" section of blogger.

http://help.blogger.com/bin/answer.py?answer=41398&query=language&topic=&type=f

i typed the words into google and it returned albanian links. also i notice that the first option on the language setting above is indeed albanian so it's probably that.

hope that does it.