Second homeowners are becoming more willing to rent it to regain some of their investment

Second homeowners are becoming more willing to rent it to regain some of their investment. In Bulgaria, investment property deals account for 25-30% of all sales, with the tendency for this share to increase.

The tendency for more and more owners of a second home to rent it is noticed not only in Bulgaria but also around the world. The proportion of buyers who have the motive for rental income over the luxury of having a second property for their own use grows. In 2000, 80% of the owners of more than one property never leased them. 18 years later, more than two-thirds of the second homes are rented for at least a certain period of the year to redeem the owners a portion of their costs. Many buyers are motivated by potential profits and the number of owners who keep their property as rental assets has risen sharply in recent years. At the beginning of the new century, only 14% of the second homes were bought only for rent, not for personal use. By the financial crisis in 2008, their level reached 19%, and now more than a third of all second homes are bought for rent only. For one third of the owners, however, rental income is sufficient to cover costs and another third manages to make a profit.

The average gross return amounts to 6.4%, and after deduction of costs (but excluding taxes) - 3.9%. When buying a second home, people with more limited financial choices choose an apartment, while buyers with a higher budget prefer homes that hold much higher prices.