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Why should I invest in property Bulgaria ?
Simple one to answer - currently for capital appreciation and low cost of
entry. Also, secondary consideration has to be, the people and the
country. We have seen gains for our clients of 30-40% in the past 9
months without exception. Current average cost per square meter of
800-1000 Euro for key developments in Sunny Beach and Sofia will also
result in good gains over the next 12-24 months.
Where should I invest?
Hmm, more difficult to answer. My standard response to that question is
another question –what do you want it for –investment only or a mix of
holiday/investment? Sunny Beach remains the best beach holiday resort in
Bulgaria. In terms of ski, look to Bansko, Borovets and the upmarket
Pamporovo. Remember, it will be possible by end of 2005 to reach the
beach resorts in Northern Greece from Pamporovo. Sofia, as the capital,
is worth it from the investment point of view. Be very careful of the
areas you invest. If you pay less than 900 Euro/sq meter in Sofia then
you are in a developing/ distant area.
Stage payments
Yes, it is normal practice. Expect normal payment of 30% down with 3 X 20%
stage payments and 10% at title deed stage. Some developers ask for more
up front. We only deal with developers who accept wire transfers and
refuse to deal with cash payments.
Why Stage payments?
My answer comes down to the banks in Bulgaria. Bank loans are not
available to developers so, they use the stage payments to fund the
complex. Obviously, the larger developers are not totally dependent on
selling all the apartments prior to commencement of development.
Why so much emphasis on Sunny Beach & Varna Golden
Sands?
Easy one – it is the best beach resort in Bulgaria. 7 Km of the best bay
and sand you will see. Very well developed infrastructure. Close to
Burgas and Varna airports. In general, sympathetic developments and best
opportunity for renting your apartment.
What about ski resorts?
Bansko is the only one of the ski resorts not purpose built. It is a
lovely old town that attracts tourists in winter and summer. Sure, not
the best developed of the 3 resorts but, the one where most money will
be invested over the next 3 years. Only 2 hours from Sofia and a great
jazz festival during August every year –ok, I like jazz! Borovets is
starting to get the first apartment developments and Pamporovo is the
most exclusive of all the ski resorts and very beautiful.
Buying Bulgaria property –
Do I need to setup company? No, is the short answer. However, buying
houses or land and you will need to Set-up Company. Cost for company
setup is approx. 600 Euro with annual return every year not to exceed
200 Euro.
Property Tax?
Yes there is property tax and is paid annually based on 0.15% of the
property value.
VAT – I have heard horror stories –please explain?
Normally developers will declare the build price to be 30% or less, of the
purchase price. Entirely up to buyer to ‘’come clean’’ and pay the extra
VAT on the full amount. 99.99% of clients never do this. Some developers
will say that VAT is included in the price. I often wonder what that
means! Be aware that a person can own up to two properties in Bulgaria
and, as long as you keep them for longer than 5 years, there is no
Capital Gains Tax to pay.
What about country areas?
Bulgaria is a very large country with lowest level of new births in Europe
and mass exodus to the main cities. Probably the most beautiful
countryside in Europe with breathtaking landscapes. Buy in country areas
if you never want to rent. Houses can be very cheap but, please oh
please, check the area first. We specialise in area between
VelikoTarnovo and Sliven in the Balkan Mountains and are fortunate to be
in position to offer clients rental income for select houses. We never
advertise these on the website so, please contact us for details.
Should I wait until late 2006/2007 to invest?
Absolutely not ! The market will show gains in 2007-2009 for sure.
However, the large gains are to be made up to 2007. Remember, we sell
developments today off plans that will not be ready until July 2006.
With incomes of 200 Euro/mth how can locals buy
apartments?
Don’t believe all you read about salaries. The largest purchasers in Sofia
and Black Sea are locals.
Why should I purchase Bulgaria property from You?
Another question we are always asked. We try to be as impartial as
possible. We match the client to location and apartment complex. We
constantly follow up with clients and remain main point of focus
throughout the process. We are a total provider with furniture/ letting
and resales. Finally, knowledge of Bulgaria remains one of our key
strengths.
Why not villas, why all apartments?
We are starting to see villa developments for release. Check our website
frequently for latest offerings
I hope I have answered some of the basic questions in the above. At least
it should give you a better appreciation for the Bulgarian market.
As a team of professionals, our Bulgarian Property Consultants will do
everything possible to satisfy our clients needs and to provide the best
possible service. Our most important goal is to supply complete and
comprehensive service. In the process of doing so we present to you our
services:
- Property investment consulting
- Property management
- Research of the property you intend to purchase
- Registering a limited company for you
- Renovation, redecoration or construction services
- Interior and exterior solutions
- Help in the process of choosing and purchasing furniture and equipment
- Advertise and sell your property
We will assists you all the way; If you need an advice regarding your stay
in Bulgaria, how to get medical assistance, buy a car, arrange a holiday
or go out to a bar or restaurant - we will be there for you!
A little more about Bulgaria |
