Utilize Gearing

When Buying Bulgarian Investment Properties

When you use gearing to buy Bulgarian investment properties, you essentially use someone else’s money to finance a proportion of the purchase, but keep the capital gains yourself.

In the property market, this is achieved through taking a mortgage on a property. Essentially, you can convert a 5% capital growth on a property to a 33% capital growth on your investment (for example) – simply by taking out a larger mortgage on the property!

Want to see an example?

Example of the Effects of Gearing:
Property of say £100,000 is worth £105,000 after 1 year ...

- an increase in the capital value 5%.

However, you only need £15,000 deposit for buying Bulgarian investment properties – if you take out a mortgage. Assuming the costs of the mortgage are covered by the rent, then in 1 year your investment of £15,000 has become £20,000.

That’s a 33% return on your investment!

This is how you make money through property investment by using someone else’s money ...

in this particular case, the lending institutions.

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