Credit consultant Tihomir Toshev has warned that there is no need for Bulgarians to rush into investments solely because of the upcoming adoption of the euro. Speaking to the Bulgarian National Radio, Toshev emphasized that some of the current purchasing activity appears hasty and could pose problems for borrowers.

"Property should be bought when you are truly prepared and when it meets a genuine need. Rushing to make a deal at any cost can easily lead to mistakes," Toshev explained. He advised that no more than 30% of a person’s income should go toward repaying all loans, warning against long-term over-indebtedness.

Despite this caution, Toshev anticipates a particularly strong end to the year in lending. "October, November, and December are traditionally the peak months for mortgage activity in Bulgaria. The expected introduction of the euro is further motivating people to complete credit transactions before the year closes," he noted.

He also pointed out that a significant portion of previously unreported cash has likely already entered the financial system. "Many are wary of the statistics showing that in almost every country that adopted the euro, property prices rose afterward," Toshev said, suggesting that some of this concern is driving accelerated purchases.

Regarding interest rates, Toshev predicts they will remain stable. "We will continue to have some of the lowest rates in the European Union, comparable to those we have maintained for years," he said.

While Toshev has consistently expressed skepticism toward various investment trends, he stressed that every investment decision should follow careful risk assessment. "Regardless of market excitement, investments should be made only after evaluating the risks involved," he concluded.

Source: BNR interview