Questions and Answers
Legal IssuesAbout Mekoa
About Rentals
Seagarden Resort
Finishing and Furnishing
About Construction
About Finance
The location
About rentals
How much rental income can be realistically earned?
The best way to get an estimate is to look at rental income from properties of the same type in a similar location, for example here. Mekoa will market the estate as a top class resort, to maximise rental prospects in both off peak and peak times.Who would rent?
The development is up market, therefore the top end of the tourist market would be targeted. There were 6 million foreign visitors to Bulgaria in 2007. Also the majority of the Bulgarian population travels on holiday to the Southern Black sea coast.But isn't Bulgaria a low cost destination?
True, there are many tourists looking for the lowest cost holiday possible. However there are many tourists that choose Bulgaria because their holiday budget will go a lot further. For the first time, they can afford a luxury holiday for the same price as a 'standard' holiday in Western Europe.What about news reports of unhappy apartment owners?
The rental prospects have been over hyped. The majority of accommodation is booked via tour operators. They prefer to deal with hotels, rather than individuals or letting agencies. So if your apartment is surrounded by large 500 room hotels, then it will be difficult to rent out. There are exceptions of course, many Bulgarians living in the seaside towns of Primorsko or Lozenets make more money from rental income in July and August, than from their regular job throughout the year! In these towns, there is a shortage of hotels, and the tour operators do rent out rooms in private houses.So I should buy a hotel?
Yes, hotels have provided the best return on investments, the payback time for some of the larger hotels can be amazingly short. Alternatively buy an apartment or house in Seagarden Resort, and let Mekoa rent it out. Being marketed as a top class hotel will make it easier to rent out.What about the independent tourist?
We should not forget the independent tourist who looks on the internet to book accommodation. However they are much smaller in number, and there are many apartments catering to this market.Isn't the season short in Bulgaria?
The season is from June, July and August, when the majority of Europeans take their foreign holiday. The weather is also good in May and September, but as far fewer people go on holiday then, it is more difficult to find customers.Wouldn't it be better to invest in a all year round location?
No, the majority of Europeans take their foreign holiday in June, July and August. Resorts which open all year still have the problem finding customers in the rest of the year.Do you offer a guaranteed rental return?
No, neither does anyone else. If you buy an apartment with this kind of guarantee, it doesn't mean that anyone will actually rent your apartment. All it means is that the developer will pay you some "income" for two years (or however long the guarantee period is), often via a letting agent or some other "third party". It is clever marketing, because it makes you think that your property has a high rental value. All it really is though is another way of offering a discount, he's paying you back from the money you gave him!>>> top