FAQ

Bulgaria is turning into the hottest property market in Europe. It has been interesting to see the development and recognition of the market over the past eighteen months. However, the number of agents and developments has also increased dramatically. The choice of client is now wider than ever, both from development and the choice of agents. The most important questions are – do they know the market and are they agents for well established developers.

We tried to answer some of the most repeated questions we are asked on a daily basis:

1. Why should I invest in Bulgaria?
Firstly for capital appreciation and low cost of entry. 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, Bansko and Sofia will also result in good gains over the next 12-24 months.

2. Where should I invest?
Our standard response to that question is another question –what do you want it for –investment only or a mix of holiday/investment? We recommend developments in Sunny Beach and Sofia, in general, for investment and Bankso/Sunny Beach for mix holiday/investment.

3. Why stage payments
It is normal practice. The developers use the stage payments to fund the complex. 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. Some developers accept wire transfers other deal with cash payments.

4. Why so much emphasis on Sunny Beach?
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.

5. What about Sofia?
With 1.2m people and less than 3% unemployment, the capital of Bulgaria is developing very quickly. There have been amazing changes in the city over the past three years. Of, course, not perfect by any means with parking and general roads/pavements the main problems. As capital and with the number of office/business parks currently in construction we can only expect the rental market to expand rapidly.

6. Where in Sofia?
Lozenets and area around Hotel Kempinski is the main area on offer from most agents. Frankly, although central, it is becoming a very boring landscape with apartment block after apartment block under construction. Some general rules, for apartment purchase, would be to keep within the ring road around Sofia - keep away from anything close to airport and also, anything in North or east Sofia. Area down Bulgaria Blvd is developing into good area with great views down to Vitosha Mountain. Area close to new American Embassy, Lozenets (as mentioned above), Doctors Garden area (mostly older apartments). Remember, this is just our advice but, based on many years experience.

7. 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!
Pamporovo also offers some great developments with 8-15% rental income.

8. 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.

9. Property Tax?
Yes there is property tax and is paid annually based on 0.15% of the property value.

10. VAT –please explain?
Normally developers will declare the build price to be 30% or less, of the purchase price. It is 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. We often wonder what that means!

11. 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 check the area first. We can offer you rural houses all over Bulgaria, but we normally don’t advertise these on the website so, please contact us for details.

12. 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.

13. Why should I purchase from BGHouse?
We are always asked this question. 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 resale. Finally, knowledge of Bulgaria remains one of our key strengths.

14. What are your charges?
We charge a flat fee of 3% for most of the developments. Old houses/land/villas we charge 5% (min. 750 Euro) excluding any local charges. Searches for specific property or development/ investor opportunities are negotiated on case by case basis.

We hope we have answered some of the basic questions in the above. At least it should give you a better appreciation for the Bulgarian market.

If You still have any question please contact us.