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Seven Lakes: Property Investment Potential

Seven Lakes represents everything that a project in Bulgaria should be Seven Lakes, a CarbonNeutral project in terms of investment potential, location and construction.

The project is being offered to clients at an average of 13% below current market value, providing an inherent profit from the moment of purchase.

The location within the natural paradise of the Rila Mountains and its seven lakes, neighbour to a prestigious golf course and spa centre, 15 minutes from the most popular ski resort in Eastern Europe, an international airport within one hour and only 45 minutes from Sofia, the largest communication hub of Bulgaria, highlights the strategic position of the Seven Lakes development.

The project will be built in accordance with the CarbonNeutral Protocol at its core to combat global warming by reducing carbon dioxide emissions throughout the entire development and construction process, creating a competitive advantage that not only translates into environmental benefits but also helps to develop a unique end product.

The quality of construction, the sustainable approach of a CarbonNeutral project and the unique placement of the properties draws attention to Seven Lakes as several steps ahead in the Bulgarian property market offering a global project similar, if not superior to those found in Spain or France.

As an example we have created 3 investment scenarios that you can see following the links below:

Short-Term Hold Scenario: buy now and sale on completion after 2 years without mortgaging

Mid-Term Hold Scenario: buy now and sale in 5 years, renting the property for 3 years without mortgaging

Mid-Term Hold Scenario with mortgage: buy now and sale in 5 years, renting the property for 3 years, mortgaging 70% of the investment

All Year Round Location

The World Tourism Organisation (UNWTO) describes Bulgaria as one of the most appealing 'new faces' in the tourism industry today, predicting annual tourism figures to be in excess of 20 million by 2010, presenting the country as one of the world's greatest and most exciting emerging markets. Particular growth has been noted in the 'tourist areas' such as coastal resorts and in particular ski resorts which have become a popular destination on the world arena and in turn have seen substantial increases in property values in and around ski resorts. Capital appreciation in these areas has been recorded to be as high as 36%. Regions such as Borovets offer a year round season; an established ski resort (the most famous resort in the Balkans) with snowfall from the end of December to mid-April and a popular summer weekend break destination for residents of Sofia as well as appealing to mountain walkers, climbers and nature enthusiast. Significant investment to the area via the Super Borovets Plan and the increase in year round activities that will accompany the opening of the new Nicklaus design golf course and a new spa centre to be located 200 meters from the Seven Lakes development on a plot of 10,000 square meters is likely to see a significant rise in visitor numbers to the area throughout the year. The repercussions for the investment market are substantial.

The Best Partners

Obelisk are partnering with three leading companies on the Seven Lakes project. The developer, Profile Group, is at the forefront of real estate design and development with widespread experience in the Dubai property market, home to their contemporary headquarters, as well as operating a strategic network of offices in London, Spain and Ireland with a team of 70 staff. The constructor, MARKAN Group, has become specialists in the delivery of quality construction projects, providing consultancy in construction services that adheres to the company's principle of adapting to the ever changing requirements of the construction market. Our legal partner, Manzanares International Lawyers, have over a decade of experience that ensures a reliable and safe environment in which to purchase property at a competitive price. The company is a leading international law firm with over 90 members of staff, who specialise in numerous fields in addition to property and construction, including conveyancing, litigation and accountancy. Manzanares has offices in Spain, UK, Ireland, Bulgaria, Morocco, Italy and Brazil.

The EU Boost

Bulgaria joined the EU, along with Romania at the start of 2007. More than €11 billion from EU cohesion and structural funds is due to be pumped into Bulgaria between 2007-2013 funds that will go towards modernising infrastructure. The country's economy has seen a significant benefit of the EU incorporation; unemployment figures reduced from just under 14% in 1999 to its current rate of 8% almost entirely due to the huge surge of growth in the private sector. Consumer spending is rising, not just from wage growth, but from the increased availability of credit. In November, 2006, personal bank loans were up 4.4% against the first quarter of the year and totalled €2.349 billion. One of Bulgaria's key attractions to business investors, however, remains its relatively low labour cost base, and from 2007, its business profits tax of 10%. Much of Bulgaria's economic dynamism is undoubtedly derived from its ability to successfully attract FDI. Net FDI rocketed by 53% year-on-year according to figures from the Bulgarian National Bank, to €3.2 billion in the period January to October, 2006.

An Emerging Mortgage Market

From the beginning of 1999, when mortgage borrowing was non-existent, loan rates in the local currency for domestic borrowers plunged from 16% in 2001 to 9% by May 2006, down to their lowest rate of around 6.5%-7% currently. Loan products are becoming increasingly flexible with interest-only periods and low start mortgages now available. Borrowers can also take out loans in the local currency, US dollars and euros. This competition is reflected in the latest data available from the European Mortgage Federation, which shows that in 2005 Bulgaria's mortgage lending growth rate was faster than any member of the EU with only Latvia on par. Obelisk has secured the possibility to use a mortgage against your Bulgarian property with very interesting conditions.

Good combination of exit strategies

The Seven Lakes project presents 2 different exit strategies; the first is a mid to long term buy-to-sell investment approach where an estimated ROI of 183% over 5 years (31.27% equivalent annual rate) can be expected, taking into consideration a conservative 7.23% rental yield. Selling at this stage would be targeted to a foreign buyer interested in the amenities of the area where we foresee an increasing demand from the Sofia local residents. The second strategy, a short term selling of the project with initial purchase at 13% discount to market value and expected capital growth ROI of 46% at the time of completion (20.85% equivalent annual rate).

Building Permit

The Seven Lakes project has all the necessary building permits in place. This will be supplied with the purchase contracts along with all the building due diligence.