It is certainly appearing all over the place in the property forums. But it does need to be put into perspective. On the propertycommunity.com forum one poster puts forward the million dollar question relating to Bansko in Bulgaria – 'I know it is impossible to say and the answer will require a crystal ball, however does anyone think the property market in Bansko will ever recover? And if so could this happen within the next three years?
It should be noted that this particular property investor has bought in the troubled Bulgarian ski resort and has no urgent need to sell but would just like to think they might get their money back one day.
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Meanwhile they are hoping that when the development is complete that rentals will cover the cost of the mortgage. But another important issue emerges in this thread and that is that foreign property investors have in general paid more than locals.
Another 'dodgy' aspect, and this relates to many property markets not just Bulgaria, is that so called guaranteed rentals were probably not what they seemed. The cost was added onto to the overall price and once they expire and with rental yields dropping all the time, that is if you can get the rentals in the first place, the chance of them covering management costs, never mind mortgage costs, look slim.
The answer to the original question lies, unsurprisingly, in each individual's personal situation and how much was paid and how long they intend to keep the property. Bulgaria has been particularly badly hit by the global downturn but answers on the forum point out that is does have good economic prospects in the long term – that is 10 to 15 years and not the next couple of years.
This issue highlights another important one for property investors all over the world. That is that the days of speculating, flipping off-plan units and make a fast back are well and truly over. In Dubai, where speculation as all but ruined a once booming property market, you will be hard pressed to find anyone in the real estate industry who disagrees with this.
A second million dollar questions is put on the housepricecrash.co.uk forum – Does anyone know anyone buying abroad in 2009? The replies indicate that those that are buying are very selective and steering away from off-plan which is described as dead in the water.
It indicates that there are still lifestyle buyers and they are still keen on established and traditionally holiday home markets like France and Spain. There are also signs that if the exchange rates improve then that could stimulate more buying in Europe.
But those with properties in Spain that rent them out might want to take a look at a post on the eyeonspain.com forum where a number of property investors are having trouble with tenants. It would appear that Spanish law is not terribly helpful with this issue in terms of removing tenants that don't pay or in being able to pursue them for unpaid rent.
You also need to be cautious of rental agencies. One poster reports that a tenant was put in her apartment with a rental contract that she had never signed and arrived with eight cats despite no pets being allowed. The good news is that a new law to protect landlords should be in place in Spain soon.
Some opinions also show that emerging markets might not be a great buy at the moment. Places like Morocco and Tunisia look quite pricey when compared with the bargains that are being offered in Spain, for example.
But if you look beyond price then North Africa could become the next Middle East as according to an article on the skyscraperpage.com forum a $550 billion solar power project in the Sahara to supply European households will do for these countries what oil has down for the Gulf region.
Such massive investment would go beyond just the power issue as there would need to be a major injection of cash for infrastructure and housing for the people that will work in these plants when they are complete. Some may think it wishful thinking but then 20 years ago no one would have envisaged what is now Dubai.
For the long term property investor it is looking ahead to major developments that gives an insight into what will be the real estate hotspots in decades to come.
