Frequently Asked Questions
Why Should I Invest In Bulgaria?
Simple one
to answer, capital appreciation and low cost of entry. Also, secondary
consideration has to be, the people and the country. We have seen gains
for clients of 30-40% in the past 9 months without exception, one good
reason to invest in Bulgaria
Current
average cost per square metre 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
and 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 in. If you pay less than 900 Euro sq metre
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
apartment
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 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 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.
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 assist 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!
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