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RENTALS
Our agents offer GUARANTEED RENTALS in selected properties and a full
rental management service on all other new homes purchased through us
in Bulgaria
GUARANTEED RENTALS WITH FULL MAINTENANCE & RENTAL MANAGEMENT SERVICES
They can only build so many homes on or near beach fronts and ski
lift/slopes, thus those currently being sold should have continued
rental demand and renewals for many years rather than late comers to
the market with secondary positions.
The guaranteed rental is different depending on the type of apartment
from 14% - 5% plus possible annual capital appreciation for these best
locations of 25-30% yearly is not included.
The guarantee is available for 3 years at todays purchase price
(including VAT!) and then renewable
The Guaranteed return is clear from all operating expenses and is net
after management fees which include all fees like electricity, water
etc. except from property taxes and community charges, details below.
The owners are paid the money by bank transfer every three/four
months.
Own use of the property can be arranged in the rental management
contract.
RENTAL MANAGEMENT SERVICES
Our agents offer rental management services to all apartments bought
through our agents, either guaranteed or management and rental only.
The service is 'hands free' for the owner as they manage the rentals,
arrivals, airport transfers, etc.
In the rental management contract it is written down that the owner
receives all the income from the rent minus 20 % for the rental
management agency.
Please see below our FAQ (Frequently Asked Questions), and if in
doubt, ask
Is the 20% management fee taken from
the 10% guaranteed rental income?
No, deducted before, so you get net 10%
The 20 % management fee includes paying all fees like electricity,
water etc. except from property taxes.
How long is the rental guarantee for?
The period of the contract is 3 years and then renewable
I notice unlike other countries and
companies, you include VAT in your prices, is the guarantee also based
on VAT inclusive price?
Yes, the rental income, which the owner gets is including the VAT,
which with VAT at 20% in Bulgaria even further increases the guarantee
value when compared to other countries and companies
Do I have to pay any maintenance charges?
No, maintenance charges are covered by the rental management agency
prior to you receiving your net.
Are there any other fees I have to pay from
my 10% and what are they?
Community charges of around 5/6 euros per m2 per annum depending on
development
Annual property tax of 100-150 Euro
You should also insure your property and contents
What insurance do you recommend we take out
and how much?
Building Insurance which is 0,2% of the purchase price (for example
price 60000 = 120 Euro per year).
Internal Contents/furniture insurance is 2-4% of the purchase price.
(for example price 3000 = 90- 120 per year).
Do I have to come to Bulgaria to complete any
stage of the purchase or rental guarantee contract?
No, you can authorise the lawyer to sign contracts and deeds within
the legal fees quoted of approx 450
On what value is the 10% guaranteed rental
income based and will it rise or fall over the years?
It is a minimum figure, guaranteed for 3 years and is based on the
initial cost of the property and this figure will not rise/ decrease
in line with the value of the property.
For example: 65,000 at 10% ROI would give an annual rate of return
of 6,500 and as this is a minimum it is possible for a property to
make more than this.
Can I use the property myself?
Yes, and this can be arranged with rental management company,
obviously you would be responsible for pro-rata costs for the period
of usage and depending on amount used it could effect the guaranteed
return
Own use of the property can be arrange in the rental management
contract
What extra costs am I liable for?
None connected with annual rental apart from property tax & community
charges.
Naturally initial purchase costs are payable, i.e.,
Purchase price and any mortgage,
Legal fees of approx 450
Notary fees, document translation & Country Tax (the equivalent of the
Stamp Duty in the United Kingdom). This is a maximum of 2% of purchase
price
Can I have a mortgage on a guaranteed rental
property?
Yes, up to 70% of purchase price which we will help arrange for you
What does ROI stand for?
Return On Investment
How often do I receive the income?
The owners are paid the money by bank transfer every three/four
months.
Do the apartments come fully furnished? If
not, do you provide furnishing packages and if so, how much?
Some apartments are fully furnished and included within the price as
indicated
Furniture package prices depend on choice but we would recommend you
budgeted for 2000 to 4000 Euro.
What If I buy a property without Guaranteed
rental?
Our agents can offer rental and management services to all apartments
not only those with guaranteed rental.
The rental management company does the advertising. The client
receives 80% of the rental income
What if I want to sell the property Please
advise on the potential for selling a property in Bulgaria?
You are free to sell at any point
Property prices in Bulgaria rise 25-30% per year. So if you buy off
plan now the price with rise at least 30% when the complex is ready.
In three/five years the prices are expected to double in Bulgaria.
Where there exists a guaranteed rental offer
on a property I choose, do I have to rent the property?
No, the owners choose whether they want to sign rental management
contract after they buy the
Luxury property in Bulgaria.
The guaranteed rental does not come from the Developer but from the
rental management services and this contract is guaranteed for 3 years
although you can review terms for own usage periods etc.
For non guaranteed rentals:
Where we use your rental management services,
what is a rough cost, say per quarter for utilities i.e. gas, water
and electric?
The rough costs are 150-250 Euro per quarter but with guaranteed
rentals they are deducted before you get your 5-10% ROI
So where we quote 10% Guaranteed Annual Rental Income that is exactly
what you get
For non guaranteed rentals:
Can you assist with sending the bills through
to myself, or do the bills just get deducted
Our agents manage these costs and payments for you from the rental
income each month.
The bills can be deducted from the rental income. But they will
provided quarterly statements.
WHY BUY NOW
They can only build so many homes on or near beach fronts and ski
lift/slopes, thus those currently being sold should have continued
rental demand and renewals for many years rather than late comers to
the market with secondary positions.
Also property prices in Bulgaria are currently rising 25-30% per year.
So if you buy off plan now you could expect the price to rise at least
30% when the complex is ready. In three/five years the prices are
expected to double in Bulgaria especially with the planned entry into
EU European Union in 2007, being a candidate for 2014 Winter Olympics,
current availability of best locations and with numerous charter
airlines operating throughout the year to Bulgarian sun and ski
resorts the likelihood of low cost carriers like EasyJet and Ryan Air
beginning operations is high.
Ever wish you had bought in Spain 10 years ago |
