Bulgaria Properties - Frequently asked questions

Frequently asked questions

Home > Frequently asked questions

• Who is Bulgaria Properties Ltd?
• Are you an estate agency?
• What kind of properties do you sell?
• Why are your prices lower than those of others?
• What about an inspection trip?
• Can I choose how my apartment will look?
• Why should I buy off-plan, rather than wait until the property is built?
• What is the payment schedule?
• How much is the reservation fee?
• When do I sign the contract?
• Can I get a mortgage?
• What extras shall I have to pay when purchasing?
• How much are the annual maintenance charges?
• How much rental income can I expect?
• Will you take care of my rentals for me?
• What do I do now?
• Contact

Who is

Bulgaria Properties Ltd is a British company, which specialises in the development of properties in Bulgaria only. It therefore has good knowledge and experience of working in that country. Because it is British, it is an easy point of contact, and the first recourse for UK buyers who have any queries or problems. Some buyers may prefer to deal with a British company, rather than with an unknown entity in a foreign land.

Are you an estate agency?

No. We are property developers. We own the buildings and the land they stand on. We do not sell properties belonging to anyone else.

What kind of properties do you sell?

Only apartments. Most of them have one bedroom. These are designed purposely to have unusually large living space, and have a floor area similar to that of apartments with two bedrooms found elsewhere. We prefer to give occupants that sense of freedom achieved when relaxing in spacious, light and airy surroundings. The wall of glass looking onto the terrace enhances this feeling. This type of property should, in our opinion, provide the greatest return on investment, leading up to Bulgaria's expected entry into the European Union in 2007.

Why are your prices lower than those of others?

In Bansko our prices are lower than the market rates, because we usually sell directly to the purchaser. In the villages around Borovets, it is difficult to compare, for we are setting the trend as the only company building such apartments in this area. After taking advice from a prominent local estate agency, we set our square metre price at 10% less than the upper figure they suggested. In cases when we do sell a property through an agency, we absorb the commission payment.

What about an inspection trip?

You can take as many inspection trips to Bulgaria as you wish, and we'll make the arrangements for you. If you prefer to make your own bookings, we're on hand to help and advise. If you wish to combine your inspection trip with a holiday, we'll assist you with your arrangements, and give you advice on where to go and what to see. If you buy one of our apartments, we'll refund your flight and lodging costs up to €400.

Can I choose how my apartment will look?

Yes, you can. If you purchase your apartment 'off-plan', that is, before it is built, you can specify the level of finish you want: Standard, Superior or Luxury. If you buy an apartment already built, it's most likely to be with the Standard finish. You can also choose from a selection of décor schemes and furniture packages. If you wish to customise your décor and furniture down to the last individual detail, you can even do that! (This facility is on our web site only.)

Why should I buy off-plan, rather than wait until the property is built?

There are common reasons cited by all property developers and agents alike:
1. You always get a discount. This is often around 10% cheaper than the current market value of a finished property. You really have to trust the opinions of the local estate agencies about values. It is often difficult to gauge, because you need to compare like with like, to get a true picture, and this is rarely possible unless you're there all the time, and have a constant feel for the market.
2. You will almost certainly make a capital gain, once the property is built, regardless of the initial discount. In the case of Bulgaria, this should be significant. Values in Bansko are expected to rise by about 25% during 2006. Add this to the initial discount, and you have a return on investment hard to match anywhere else. If the property-buying stampede hits Borovets this year, as we expect it to, the returns should be even greater, because prices are still cheaper here. Although the primary purpose of off-plan developments is not speculation, many people invest in them purely to make money, by selling the property at a higher value, before they need to make the final payment.
3. Bansko is a property hot spot, and Borovets is starting to follow suit. This means that, if you don't get in quickly, you may not get in at all, either because prices will have risen beyond your budget, or your desired development has simply sold out.
4. You can spread your payments. All off-plan sales have a payment schedule, enabling you to pay by instalments during the construction of the buildings. This eases the financial burden on the developer as well as the buyer, as your stage payments are used to offset the costs of financing the project. If you wait until the project is finished, you'll usually have to pay the whole (and higher) amount at once.
5. In the case of Bulgaria Properties Ltd's projects, you can have your apartment customised to your own specifications.

What is the payment schedule?

You have several choices, to suit your budget and cash flow. Broadly speaking, the larger your earlier instalments are, the greater will be your discount on the purchase price. Because the schemes change, and the discount reduces, with the progress of the project, the prevailing payment schedule options are offered to you at the time you pay your reservation fee.

How much is the reservation fee?

It is only a token amount of €1,000, or £700, if you prefer to pay in Sterling. Its purpose is to reserve the apartment of your choice. Understandably, it is not refundable. You should, therefore, be prepared to proceed to the contract stage, when you pay your reservation fee. Your first stage payment is, however, reduced by the amount of the reservation fee. You can pay the reservation fee by a cheque in the post, or on our web site by credit or debit card.

When do I sign the contract?

After the construction permit number has been issued by the local council, the contract must be signed and posted (recorded delivery) within 3 weeks of the payment of the reservation fee. Your first stage payment must be received by us within 1 week of signing the contract. You can, of course, send this payment together with the contract. In cases where we do not yet have the construction permit number, we shall send you the contract shortly before it is issued by the local council.

Can I get a mortgage?

Yes. A second mortgage, secured on a UK property, has been the only option until recently. UK interest rates are still more favourable than Bulgarian rates, but, if you want a loan secured on the property you buy in Bulgaria, Bulgaria Properties Ltd can help you arrange one.
E-mail: mortgages@bulgariaproperties.net, or phone or fax the numbers below.

What about furniture?

Apartments already have a complete bathroom and fitted kitchen cupboards. For your convenience, we offer furniture packages from which you can choose, to suit your personal taste and budget, or you can select individual items on our web site. Of course, you can buy furniture also in local shops.

What extras shall I have to pay when purchasing?

None. We take care of them all. The legal work, notary fees, taxes, etc., usually amount to several thousand Euros. Buyers generally prefer not to be bothered with the red tape, so we deal with all these matters for you, and pay all your buying costs. The apartment price you see is therefore the price you pay. At the present time, Bulgaria Properties Ltd is the only development company advertising inclusive prices. If you prefer someone else to do the legal work for you, you can make your own arrangements. We'd still pay the statutory taxes for you, but you would pay the professional fees directly to those doing the work.

How much are the annual maintenance charges?

For apartment complexes in Bulgaria, the annual maintenance charges vary according to the services and amenities provided. Generally, they range between €5 and €12 per sq.m. of your apartment, including the common areas and balconies. Some of our apartment buildings have only simple surroundings, and should be at or near the lower end of the scale, while those with the grandest facilities should be at the higher end, or even beyond.

How much rental income can I expect?

The general opinion is about 9% p.a., although it's more likely to be about 12% for our apartments, because they're cheaper than most. It's important to realise that the ski resorts have a 9-month season (4 in winter + 5 in summer), compared to only 5 months on the Black Sea coast, where everything shuts down during the winter freeze. From 2005 onwards, millions of Euros are being invested in Bansko and Borovets, not only to improve their winter facilities, but also to develop summer tourism. You can reasonably expect, then, that your rental income can only rise accordingly.

Will you take care of my rentals for me?

You can use us or anyone else you wish to handle all this for you. The going rate is 20% of the gross rental income. You don't need to lift a finger as regards bookings, cleaning, etc. We do not guarantee rental income. Companies which do take a huge risk, sell at inflated prices to cover it, or are unlikely to honour the commitment.

What do I do now?

Here are the steps to take:
1. Decide on the apartment you want, either in the brochure or on the web site. You can always get current availability on the web page of the particular project, or here -— Bansko -— Borovets. Alternatively, you can e-mail your request. If you cannot use the Internet, you can telephone for up-to-date information.
2. Telephone or e-mail the following details to Bulgaria Properties Ltd:-
   • Full name and address
   • Telephone numbers and e-mail addresses
   • Passport number
   • Issue date and issuing authority
   • Number and name of the project in which you wish to reserve
   • Number of the apartment you wish to reserve
3. We'll post or e-mail to you a reservation form, containing the details you've given us, along with the prevailing payment schedules and the terms and conditions.
4. Decide on the payment schedule suitable for you, if options are offered. Indicate your chosen payment schedule on the reservation form. Sign it, and post it to us with your cheque for the reservation fee. Alternatively, you can pay the reservation fee by credit or debit card on the web page of your chosen apartment.
5. We'll send you a receipt immediately, and the contract for signature, and confirmation of your payment schedule, at the appropriate time.

Contact

E-mail: sales@BulgariaProperties.net

Tel: 0871 226 2296