Do I or don't I, Bulgarian property

[Byff]

Went out to Bulgaria last Feb and found a new apartment complex being built in an excellent ski resort. Reserved a little One bedroomed apartment with good views and came home.

Heard nothing from the building company until yesterday, we recieved an e-mail with the outlines of a contract in it.

It's been a while since we were there and now I'm asking myself if we're doing the right thing. I still have time to walk away but on the other hand, I don't want to miss out on a property boom.

So, is Bulgaria still a worthwhile investment opportunity?

BTW, were buying to rent out, not particularly bothered if we ever actually visit the place again as long as it provides a good rental income.

[john75]

I am thinking of getting a buy to let mortgage on a Bulgarian Property can anybody suggest UK based lenders.

[Eric Mc]

Just be careful. Bulgarian property laws are probably pretty undeveloped compared to the UK. After all, they've only had the concept of prvately owned property for just over a decade.

Have a read of the current news about the Liverpool soccer fan who has just received a fifteen year prison sentence for a crime someone else has confessed to for an example of the Bulgarian legal system at work.

[philthy]

John,the Piraeus bank offer mortgages to brits wanting to buy in Bulgaria. 75% at 7.9% if memory serves.
Byff, where about in Bulgaria? although I don't think it makes that much difference. If you're lucky enough to have picked Bansko, you'll very likely be onto a winner. Borovets, and Pamporovo, are still going to do well though. Where did you go back in Feb?

If you click my website link in my profile skidvd.co.uk, the link page on there will have some useful stuff for you to peruse. If you're buying in Bansko, I'd suggest contacting the owner of the Devonshire lodge.

Hope this helps
Phil

[pdaccus]

john75 said:

I am thinking of getting a buy to let mortgage on a Bulgarian Property can anybody suggest UK based lenders.

John

I am thinking of doing the same and have come across these guys www.citytradingpost.co.uk/ who seem very switched on

Paul

[Pies]

Eric Mc said:

Have a read of the current news about the Liverpool soccer fan who has just received a fifteen year prison sentence for a crime someone else has confessed to for an example of the Bulgarian legal system at work.

Slightly of topic but the confession hs not been signed. and im not certain it was put before rhe Bulgarian courte either

[Eric Mc]

I know there are some odd circumstances about this case.

The point I am making is that Bulgarian notions of law and justice may be slightly alien to UK citizens.

I always think that anyone contemplating buying property abroad MUST become fully conversant with ALL the legal and tax implications that surround the purchase, the taxation of regular income generated by the property (i.e rent) and taxation of profits from a possible future sale.

Bulgaria as an open, free market democracy, is a young country and many of its laws will be quite new and possibly untested in court. Just thread carefully.

[Byff]

philthy said:

Byff, where about in Bulgaria? although I don't think it makes that much difference. If you're lucky enough to have picked Bansko, you'll very likely be onto a winner. Borovets, and Pamporovo, are still going to do well though. Where did you go back in Feb?

I did pick Bansko as it happens. Nice development about 150m from the ski lift. We were staying in Borovets and I found the place too small and crammed together. We just hired a taxi to take us everywhere and found Bansko had the best feel but we didn't get to Pamporovo to see what that was like.

[trinitycall]

Byff said:

So, is Bulgaria still a worthwhile investment opportunity? BTW, were buying to rent out, not particularly bothered if we ever actually visit the place again as long as it provides a good rental income.

hmm... val d'isere, France or shits-ville, Bulgaria?

I think there are better ski-rents to be had elsewhere non?

[Byff]

I just haven't found an apartment of the same quality or size in France for £50k. To compare like for like, it would cost around £130k in France. My money goes a long way in Bulgaria and I don't want to miss being in at the start of an emerging market. My worries are that it wont emerge for 40 years and we're stuck with an apartment we can't sell.

[philthy]

Hmmmm £5 a drink and rubbing shoulders with the French, or buy an apartment for sub £30k

They have recently spent millions in Bansko Byff, and there are plans to spend more. Try having a look through some of the Bulgarian property sites, if you've not already done so. Pamporovo is more of a spreadout resort, and frankly they sussed the likelyhood of foreign buyers a while back, so prices reflect this. As you've seen Borovets is very small (one of the reasons we like it, not far to crawl home ), and once again the prices are high.
For what it's worth, Bansko was little heard of a couple of years ago, now Inghams are starting ski holidays there this coming season. It will be much busier very soon, bear in mind that people like wizzair are starting flights to Sofia for something like £65 return, it's going to make it much more attractive to those that like to organise their own holiday. It's likely we'll be in Bansko in Feb, it depends on how busy we are with the DVD's.
I'd recommend you chat with peeps that are out there/already done it, have a word with Glynis at theDevonshire lodge Tell her I sent you. Something else to be borne in mind, is Bulgarias impending membership of the EU. Prices will climb for certain.
We'll be looking to buy ourselves very shortly.
Bulgaria is a newly struggling from communism country, and is still lacking in many things, but I doubt you'll find yourself in a wine bar talking to a barrister called nicholas just yet.

Anything I've missed?


I have to ask trinitycall, which resort did you stay at? or have you not been?


Phil

[trinitycall]

Lets not forget the original posted reason for buying property question i.e. to-rent-it-out.

Just my opinion, but while Bulgaria may be soopa for a capital gain market as a buy-to-let market it sucks-the-big-root.

It all boils down to the percentage return on your cash and Bulgaria will yield a lot loss than say a good resort in France. The only upside is that the initial capital outlay will be less. However that is small comfort when the property is sitting empty for most of the year.