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Master's Thesis from the year 2007 in the subject Business economics - Investment and Finance, Webster University Vienna (Studiengang Master of Business Administration), language: English, abstract: Inhaltsangabe:Abstract:
Many companies invest in Bulgaria due to various reasons. One reason is the tempting and overwhelming predictions. Although costs are low, investors will have a hard time increasing prices to yield return. Austria took about 25 years to develop itself to the condition it is now, although Austria is not a third world country. Bulgaria on the other hand is a developing country and the economical development will probably move slower due to their current government situation.
Due to the attractive forecasts, I believe that investors overestimate them. I believe they are true, but misleading and therefore investors take a huge risk by planning short-term goals within Bulgaria.
Investments are usually decided upon specific questions such as:
What is the scale of theinvestment? Can the company afford it?
How long will it take to pay back the investment?
How long will it take before the investment starts to yield returns?
What are the expected profits from the investment?
Could the money be used to yield higher returns elsewhere?
By answering such questions, companies also receive advices from experts and/or analysts to see if their answers to the above questions can be materialized within that country. This may depend on the growth rates, Gross Domestic Product (GDP) figures, future development plans, the predicted potential, the entry to the European Union, etc. Nevertheless, since investment in Bulgaria is increasing, one can assume that all believe that their investments will pay off.
But will they really? Why do so many companies invest into Bulgaria? The predictive indicators are attractive and tempting, but are they really as realistic as investors say? I believe that up to a certain degree, investment is profitable important, but oncethe line is stretched, capital losses will appear.
Currently, Bulgaria is swimming in foreign investment, and all investors believe that it will pay off. But it is impossible to assume that all investments will result profitably, especially not within a short period of time. I am afraid, that until the investments yields returns, the companies lost already. The reason --- the time range that are used to calculate the forecasts or predictions, are not realistic.
Property is today s most popular financial investment. The traditional Stock Market offers high returns but it proves to be a highly volatile market. It is interesting to note that 50% of all members of The Times Rich List made their fortunes through property investments. With adequate due diligence, property can be selected and used as a successful investment tool, whether this is in the form of a re-assignable contract option from an off-plan investment or a buy-to-let situation to generate reliable rental income. Whatever your strategy, property chosen in the right location can generate substantial capital appreciation.
Experience shows that property in good condition with the right location will show an increase in value each year; for example, a property worth just EUR 2,000 thirty years ago, today would be worth around EUR 112,500.
Bulgaria is an exciting emerging market and currently offers property at prices impossible in other areas of the world. With prices steadily rising and predicted to continue to do so for some time, wise property investment in Bulgaria seems to promise excellent returns on investment. Buyers are snapping up bargains now, with the perception to enjoy above average returns on investment in the near future; i.e. 2 years.
Inhaltsverzeichnis:Table of Contents:
I.TABLE OF CONTENTSI
II.ABSTRACTV
1.INTRODUCTION1
2.HYPOTHESIS AND STATEMENT OF PURPOS...
