Guide to buying a Bulgarian property
Where to start?
Nowadays lots of people decide to purchase home in Bulgaria. Either as an investment opportunity or already being tired from paying the monthly rent. Whatever the reason is, such event is exciting and it's normal if you feel a little bit anxious. But before going to the various real estate agencies around, you need to know how much you could afford to spend. Acquiring property abroad shouldn't be so hard as you may think. The purpose of this article is to make the process easier for you:
Location
Most people look for quiet, suburb locations away from the city. Busy streets, noisy places or locations close to rail and air transport should not be preferred. Although at first you might get a slight discount, know that its later improvement will be extremely hard.
Your Budget
Let's say that you want to purchase a property in Varna. There's no point to look for a house near the Sea Garden if your own budget only suffices for a small house in the outskirts. So first find out how much you can borrow, add your savings and you will have a general idea of what the sum that you will be able to spend.
The moment you precisely know your funds start searching for a suitable house, land or villa. Keep an eye on properties in the local newspapers, visit the real estate agents and look in the websites.
Local Real Estate Agencies
You can try to register at a local realty agents who will inform you when an appropriate property comes on the market. The service is free and you only have to give them details on the house or the land you are looking for and your resources. Initially ask your friends or relatives to recommend you an experienced estate agent, the one that works in the market for at least three or four years.
Some agents will try to raise the offered price, but if you know that your budget is realistic, don't give up and stand up on your mind. If there is nothing to suit you in the particular area you may broaden your search.
Perform an inspection
This is the best way to will find out the real situation of the property that you are willing to buy. Don't be afraid to ask the representative various questions before the actual view. If there are certain things that would put you off, for example a lack of furniture or anything else, ask them first.
Acquire and review a blank copy of the contract
You will be more confident if you review the contract long before you are asked to sign in.
Next comes:
You may want to start with a modern green building that has minimal impact on the environment. Although it's a bit expensive there are plenty of benefits of having a such home. It reduces:
- the production of carbon dioxide and other greenhouse gas emissions
- your water, gas and electricity consumption
- the overall building waste by using alternative energy sources
On the other side the ordinary house prices vary up and down. Here is a short summary for the 2 and 3 bedroom flats around the Bulgarian cities:
Sofia – 550-3000Eu/sq.m.
Plovdiv - 360-1250EU/sq.m.
Burgas - 360-2110EU/sq.m.
Varna - 460-2420EU/sq.m.
2. Buy a property, use it on holidays, and gain money from it
A common way of investing you house is to use the services of a property_management company. This way both your home will be safe, and you'll benefit from the tourist rents. The so called seasonal renting in Varna has starting period from May and lasts till September. If you own property in Bansko or elsewhere near mountain the period lasts the whole winter.
What could you expect from such management?
The basic services include:
- paying the electricity, water, district heating, cable TV and service bills
- carrying out regular inspections of the estate as well as needed maintenance and repairs
- cleaning and reception of the owner
Extra services: 24-hour security surveillance, cleaning of the exterior and interior common areas of the buildings, rent collecting, insurance, representing you before the state institutions, accounting and personnel management.
* When combined with renting such service includes advertising and negotiations with potential foreign or local tenants and travel agencies.
Benefits: Even far away you'll know what happens to your estate.
Expenses: You'll only have to pay an annual fee depending on the size of the building.
3. Buy cheap house that needs a repair
It's hard but when done correctly in the end could pay you in times less than the actual cost of the building. Be sure that there are lots of local companies which will do all the renovation for you. And if you are keen enough you could always lend them a hand. In the end your patience could give you the estate that will fit your ultimate needs.
Having money problems? - use a bank credit for the rest of the sum. This way while still clearing the loan you can use the house for live or rent.
Next comes:
The process of buying a property to live in is truly personal experience. In order to make a good decision it's essential to stay focused and properly informed during the whole time. An relatively easy way to deal with such situation can be achieved by using the services of an agency website. Such websites are sometimes combined with print media advertising and also receive international awards. Here are the main characteristics of two of them: imoti.net and imot.bg.
There you can:
- publish real estate listings
- stay informed via articles and news
- participate in forums
- do advanced search
- alert for incorrect listings
Wondering how to publish your listing still avoiding the "fake agency calls"?
While the obvious action is to clearly declare that you don't work with agencies and save yourself the commission, a good alternative solution to the problem is to give your offers to an agency. And if you choose to be represented by a single agency, they'll be more focused on selling your own properties.
Pros: you'll save time and costs
Cons: the agent commission
Agricultural land trends
During 2007 125000 deals amounting in 1153000 decars of land have been made in Bulgaria. Most attractive to the customers was the North-central region outperforming the 2006's favorite North-east. Interesting fact is that the price per decare doubled the previous year and reached 300 Euro. When compared with 2006 the non-agricultural land contracts exceeded the agricultural ones by 79%. The obvious reason behind this was the changing availability of the land status. With more than half of the bargains made in Veliko Turnovo the investors revealed their preferences towards the soil variety and infrastructure.
Overview of Bougras and Varna estates
Lastly the increased number of tourists visiting Varna and Bourgas immediately impacted the popularity of these hot holiday destinations. Both towns are being constantly renovated and developed by the EU funds and foreign investments.
As a consequence, the Black Sea rural land price exceeded their inland counterparts by 50%, followed by 20% increase in the property price. The overall price in these regions is still being lower when compared with Spain, Italy or Portugal.
In summary at the end of 2007 a man could find an average three-bed property in Varna for about 65 000 Euro compared to the 37 000 Euros demanded in Bourgas.
The mystery of the property market
In a situation where foreign investors search for already built supermarkets, industrial areas, logistic centers or warehouse premises and lots of hotels are being sold attractively due to their credit debts, questions around the Bulgarian property market arise.
Due to the increased market demand the property prices in Bulgaria are getting higher. Statistics shows that 70% of the whole sales belong to Bulgarians even though that still lots of foreigners buy together or through locals.
With an average monthly salary of around 200EU and 120EU minimum wage for the natives it is unlikely to possess such amount of money. So what are the possible factors behind such increase in the demand - credit insanity resulting in already proved inflation or the gray economy?
It's a proven fact that despite the negative population growth in Bulgaria, renters still wish to possess a property so the prices are getting higher and higher.
Nowadays lots of people decide to purchase home in Bulgaria. Either as an investment opportunity or already being tired from paying the monthly rent. Whatever the reason is, such event is exciting and it's normal if you feel a little bit anxious. But before going to the various real estate agencies around, you need to know how much you could afford to spend. Acquiring property abroad shouldn't be so hard as you may think. The purpose of this article is to make the process easier for you:
Location
Most people look for quiet, suburb locations away from the city. Busy streets, noisy places or locations close to rail and air transport should not be preferred. Although at first you might get a slight discount, know that its later improvement will be extremely hard.
Your Budget
Let's say that you want to purchase a property in Varna. There's no point to look for a house near the Sea Garden if your own budget only suffices for a small house in the outskirts. So first find out how much you can borrow, add your savings and you will have a general idea of what the sum that you will be able to spend.
The moment you precisely know your funds start searching for a suitable house, land or villa. Keep an eye on properties in the local newspapers, visit the real estate agents and look in the websites.
Local Real Estate Agencies
You can try to register at a local realty agents who will inform you when an appropriate property comes on the market. The service is free and you only have to give them details on the house or the land you are looking for and your resources. Initially ask your friends or relatives to recommend you an experienced estate agent, the one that works in the market for at least three or four years.
Some agents will try to raise the offered price, but if you know that your budget is realistic, don't give up and stand up on your mind. If there is nothing to suit you in the particular area you may broaden your search.
Perform an inspection
This is the best way to will find out the real situation of the property that you are willing to buy. Don't be afraid to ask the representative various questions before the actual view. If there are certain things that would put you off, for example a lack of furniture or anything else, ask them first.
Acquire and review a blank copy of the contract
You will be more confident if you review the contract long before you are asked to sign in.
Next comes:
The 3 popular ways of Bulgarian property investment
1. Buy a property to sell for more money laterYou may want to start with a modern green building that has minimal impact on the environment. Although it's a bit expensive there are plenty of benefits of having a such home. It reduces:
- the production of carbon dioxide and other greenhouse gas emissions
- your water, gas and electricity consumption
- the overall building waste by using alternative energy sources
On the other side the ordinary house prices vary up and down. Here is a short summary for the 2 and 3 bedroom flats around the Bulgarian cities:
Sofia – 550-3000Eu/sq.m.
Plovdiv - 360-1250EU/sq.m.
Burgas - 360-2110EU/sq.m.
Varna - 460-2420EU/sq.m.
2. Buy a property, use it on holidays, and gain money from it
A common way of investing you house is to use the services of a property_management company. This way both your home will be safe, and you'll benefit from the tourist rents. The so called seasonal renting in Varna has starting period from May and lasts till September. If you own property in Bansko or elsewhere near mountain the period lasts the whole winter.
What could you expect from such management?
The basic services include:
- paying the electricity, water, district heating, cable TV and service bills
- carrying out regular inspections of the estate as well as needed maintenance and repairs
- cleaning and reception of the owner
Extra services: 24-hour security surveillance, cleaning of the exterior and interior common areas of the buildings, rent collecting, insurance, representing you before the state institutions, accounting and personnel management.
* When combined with renting such service includes advertising and negotiations with potential foreign or local tenants and travel agencies.
Benefits: Even far away you'll know what happens to your estate.
Expenses: You'll only have to pay an annual fee depending on the size of the building.
3. Buy cheap house that needs a repair
It's hard but when done correctly in the end could pay you in times less than the actual cost of the building. Be sure that there are lots of local companies which will do all the renovation for you. And if you are keen enough you could always lend them a hand. In the end your patience could give you the estate that will fit your ultimate needs.
Having money problems? - use a bank credit for the rest of the sum. This way while still clearing the loan you can use the house for live or rent.
Next comes:
Ways to explore the Bulgarian property marketplace
Agency websitesThe process of buying a property to live in is truly personal experience. In order to make a good decision it's essential to stay focused and properly informed during the whole time. An relatively easy way to deal with such situation can be achieved by using the services of an agency website. Such websites are sometimes combined with print media advertising and also receive international awards. Here are the main characteristics of two of them: imoti.net and imot.bg.
There you can:
- publish real estate listings
- stay informed via articles and news
- participate in forums
- do advanced search
- alert for incorrect listings
Wondering how to publish your listing still avoiding the "fake agency calls"?
While the obvious action is to clearly declare that you don't work with agencies and save yourself the commission, a good alternative solution to the problem is to give your offers to an agency. And if you choose to be represented by a single agency, they'll be more focused on selling your own properties.
Pros: you'll save time and costs
Cons: the agent commission
Agricultural land trends
During 2007 125000 deals amounting in 1153000 decars of land have been made in Bulgaria. Most attractive to the customers was the North-central region outperforming the 2006's favorite North-east. Interesting fact is that the price per decare doubled the previous year and reached 300 Euro. When compared with 2006 the non-agricultural land contracts exceeded the agricultural ones by 79%. The obvious reason behind this was the changing availability of the land status. With more than half of the bargains made in Veliko Turnovo the investors revealed their preferences towards the soil variety and infrastructure.
Overview of Bougras and Varna estates
Lastly the increased number of tourists visiting Varna and Bourgas immediately impacted the popularity of these hot holiday destinations. Both towns are being constantly renovated and developed by the EU funds and foreign investments.
As a consequence, the Black Sea rural land price exceeded their inland counterparts by 50%, followed by 20% increase in the property price. The overall price in these regions is still being lower when compared with Spain, Italy or Portugal.
In summary at the end of 2007 a man could find an average three-bed property in Varna for about 65 000 Euro compared to the 37 000 Euros demanded in Bourgas.
The mystery of the property market
In a situation where foreign investors search for already built supermarkets, industrial areas, logistic centers or warehouse premises and lots of hotels are being sold attractively due to their credit debts, questions around the Bulgarian property market arise.
Due to the increased market demand the property prices in Bulgaria are getting higher. Statistics shows that 70% of the whole sales belong to Bulgarians even though that still lots of foreigners buy together or through locals.
With an average monthly salary of around 200EU and 120EU minimum wage for the natives it is unlikely to possess such amount of money. So what are the possible factors behind such increase in the demand - credit insanity resulting in already proved inflation or the gray economy?
It's a proven fact that despite the negative population growth in Bulgaria, renters still wish to possess a property so the prices are getting higher and higher.
