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Buying an office in Bulgaria costs the same as leasing - Creditex

Tuesday, Sep 28, 2010

There is no difference between the expenses incurred in buying an office in Bulgaria using a mortgage and leasing an office, according to non-banking financial institution Creditex, part of the Bulgarian unit of Dutch-based TBI Financial Services.

The company anticipates a pick-up in the Bulgarian business property market due to changes in the ratio between selling prices and rents, it said.

About 16 percent of Creditex’s loan portfolio covers investment properties.

While lease prices are lower than in 2008 and loan interest rates are higher, the purchase of an office through a bank loan costs as much as renting one, according to the company.

"Coming out of the crisis would lead to a gradual increase in rents and selling prices of not just offices but also of manufacturing and warehousing space," according to Krasimir Gumnishki, business lending manager of Creditex.

"The companies that will have managed to purchase their own site by this time will save money from rents in the future and could make a capital profit, too," he said.

Source: thesofiaecho.com