Property in Bulgaria has caused so much activity amongst all involved in the overseas property industry that you can easily get dizzy from the amount of information and property available in the region. One thing is for sure Bulgaria as an emerging market that is set to change the former member of the Soviet Union forever
Bulgarian facts
Bulgaria officially the Republic of Bulgaria is a country in Southeastern Europe, It borders the Black Sea to the east, Greece and Turkey to the south, Serbia and the Republic of Macedonia to the west, and Romania to the north, mostly along the Danube.
Modern Bulgaria
Bulgaria opened its doors to tourism and foreign investment the early 1990s. Bulgaria's 8 million inhabitants live in an area as large as England and enjoy an attractive mix of landscapes which have made Bulgaria such a popular holiday destination. Its sunny Black sea coast attracts holiday makers in the summer. Its Ski resorts in Bansko, Barovets and mount Vitosha make it an affordable place to ski in the winter. The quiet Bulgarian villages, historic buildings and cosmopolitan cities make it ideal place to visit all year round. Investors tip the Capital Sofia as a sound place to invcest in property abroad.
Property in Sofia Bulgaria
Sofia is getting richer and is definitely on its way up both business and tourism help make the city an attractive place to invest. Businesses are setting up in Sofia and evidence around the city is clear with impressive modern buildings, multi national company offices, BMW and Porsche dealerships to name but a few. Tourists visit the city all year round, helped by low cost airlines flying into Sofia Airport. The impressive architecture makes Sofia a good place to wander around; churches such as the Aleksander Nevski Memorial Church will always attract those looking for a relaxing city break. Property investors buying property in Sofia do not need to rely on seasonal tenants to fill their investment properties. The combination of local and foreign employees and visitors to Sofia make the city an attractive place to invest.
Buying property in Bulgaria the process
Buying property in Bulgaria means in most cases that overseas property buyers will need to set up a limited company. The exception to this is when a buyer purchases a leasehold property such as an apartment. In this case you do not own the land and therefore foreign buyers can buy Bulgarian property without the need to set up a Bulgarian registered company. Entry to the EU in 2007 will hopefully see these rules change
Renovating a property is hard work and full of potential pitfalls, even in your home country. When you factor in a foreign workforce, a foreign language and a different set of professional standards, there are more than a few things that you should consider, before buying a derelict Bulgarian property in need of renovation.
One thing to be aware of is that even a property which is considered to be fully renovated in Bulgaria is unlikely to be up to the standard of a modern western property. So, make sure that you look carefully at any property, before you buy, so that you can get a real picture of what 'modern' and 'renovated' actually mean!
Price of property in need of renovation
A property of at least 3 to 4 bedrooms in need of full renovation can be bought for under ?10,000. However, bear in mind that this type of property is likely to be in need of considerable work and may not even have the basic infrastructure such as running water and sewerage.
There are quite a few properties available for under ?10,000 that do have the basic infrastructure, such as electricity and running water, although there may still be a lot of work involved in order to make the property habitable to Western standards.
Most of the cheaper properties that are in need of considerable renovation are rural properties that are located outside the main villages and towns. With this in mind, it is important that you consider issues such as the transport infrastructure and the tourist potential, to protect your rental yield down the line. Renovation costs may also spiral out of control if transport links are poor as it may make getting materials to your site difficult. Bear this in mind and cost EACH project, as you view your short listed properties. The cost of works will vary depending on location and availability of local tradesmen and materials. Take care, therefore, to cost each project accurately and do not assume that a quotation can be simply transferred to the next property.
Professional workmen
Managing a workforce can be difficult, at the best of times; in a foreign country, however, things can get even harder! There are many companies that now offer a full renovation service and will assist in sourcing architects, builders and decorators as well as overseeing ongoing works. This service of course, does not come cheap and is normally around 10 percent of the total cost of renovation.
Prices for renovation can vary dramatically, depending on the area and the type of work that is required. Experts do, however, suggest that renovation costs are somewhere between 25 and 33 percent of the equivalent costs that you would expect to pay in the UK.
Locating professional workmen can be a real headache and is something that is best achieved through word of mouth or through a pre-arranged agency. Although you may wish to save money by managing your own renovation project, this is a very risky strategy and often paying a local, English speaking professional manager will save you a lot of money (and hassle).
Most agencies that offer properties for renovation, also offer a renovation service that is well worth considering, although you should always obtain at least three quotations.
Finally, always make sure that you have a detailed written quotation that states clearly what is and what is not included. For example, will the property be furnished for you? Will the renovation be completed to Bulgarian or EU standards? This is vital, particularly before Bulgaria joins the EU, as the two standards will not always be the same. It is wise to insist that the renovation work is completed to EU standards as this is what you as a landlord will have to comply with, in years to come. Ideally, you should take a UK builder that you trust with you to Bulgaria on a visit so that they can inform you of any work that they would consider necessary to bring the property up to UK standards, not just up to Bulgarian standards! This is particularly important if you are aiming on letting the property to tourists who will expect EU standards to be met.
Speak to other locals and do your homework. Remember, the key is to believe that if it looks too good to be true, it probably is!
Both Nicholas Marr & Tem Pearson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Nicholas Marr has sinced written about articles on various topics from Real Estate, Property Investment and Home. Nicholas Marr is a lifetime property investor and CEO of Marr International Ltd a UK based property marketing company that is responsible for one of the worlds leading overseas property web sites at. Nicholas Marr's top article generates over 74000 views. to your Favourites.
Tem Pearson has sinced written about articles on various topics from Property Investment, Marketing and Parenting. Providing essential information on buying Bulgarian property, Tem Pearson is dedicated to offering all the necessary information for people looking to buy property in Bulgaria. Visit. Tem Pearson's top article generates over 22200 views. to your Favourites.