Brits snap up property in Bulgaria
Personal debt in the UK is shockingly high. The Government is taking drastic action via £6 billion in spending cuts and tax hikes to attack the £156 billion budget deficit. However, personal debt in the UK is much scarier. Including both secured and unsecured lending, as of the end of April 2010, total UK personal debt stood at £1,460 billion. However, with the Bank of England's base interest rate remaining at an all-time low of just 0.5% is no wonder why people aren't saving.
So if you want to make money from investments, where do you put your money? Stocks and shares are currently very volatile. With so much uncertainty in the markets surrounding everything from the UK's new government, the problems with the Euro and the oil crises in the Gulf of Mexico playing the stock market is very risky right now.
Your other option is to invest in property. However, results have been mixed for May. Nationwide said property prices were going up, and then a few days later Halifax rebounded and claimed the opposite. All we can deduce from this chaos is that house prices are just as volatile as stocks and shares and investing in British bricks and mortar is no longer as safe as houses.
There is another way. As people look for more affordable holidays overseas they are turning to self-catering villas in countries outside the Euro zone. This means that if you invest in property in Eastern Europe, you can start earning money from holiday rentals and in a few years' time you can sell the property for a profit as Eastern Europe catches up with the West.
Places like Sunny Beach in Bulgaria are ideal. The region is rapidly carving out a name for itself as a holiday destination, it is cheap and property prices can only go up.
However, you may think this a little crazy as you will be getting into more debt and taking on more risk in a place you know little about. And how can you afford it when you have your current UK mortgage to think about?
Make the most of the low interest rate in the UK and take out a loan. Use this loan to purchase a property overseas and then your rental income will pay off your debts and when you come to sell your return on your investment will make it all worthwhile.
Santander currently offer some of the best loans on the high street on their website, with a rate of 8.9% on loans of £7,500 to £14,950, more than enough for a deposit in Bulgaria.
