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Mortgages in Bulgaria

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Investing in Bulgarian property

It is good to understand that at this stage Bulgaria should not be seen as a quick return on investment destination, there are some exceptional offers that might provide you this but in general you invest in the opportunity, see it as a medium to long term investment. Here are some useful guidelines to follow :

1. Bulgarian infrastructure is not as developed as  Western Europe but this is where the opportunity is. Now with the EU accession there are number of infrastructural project and millions of EU money pouring into the country. Look beyond !

2.Learn as much as you can about the country, the economy, political system, geography, the law, the culture, the people - this should give you good understanding and reason why and how to invest in the country . Try to use independent and reputable sources of information not marketing products.

3.Have a clear strategy and plan how to accomplish it , set a budget and time limit and stick with them – many properties in Bulgaria look cheap and it is tempting to overstretch you budget.Be aware of the total cost – fees, taxes, management cost, building works etc.Have a realistic exit strategy – make a good market research and consult with professionals.

4. Bad title deeds- In 1992, it became apparent that the one of the biggest administrative barriers could be title registration. As a result of the neglected title registration system during 50 years of socialism, land records are often out of date. Some records are missing completely and this, combined with a mostly non-computerized system, can create a very confusing picture. Make sure you receive advice from the expert.

5. In Bulgaria there are such terms as "tax estimation price" and "purchase price". The "tax estimation price" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price. Most of the Bulgarian property owners wish that the "tax estimation price" is written in the title deed, and not the selling (asking) price which the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. You should know that having a Title Deed with lower price does not invalidate your deal. However, such a situation has its financial consequences, such as not having official documents for the money spent and higher taxes if you decide to sell the property afterwards on its real value. Please, consult with your agent on every aspect of the deal to avoid any misrepresentation and misunderstanding at a later stage.

6. Guaranteed rental income offers. There are some exceptional opportunities to obtain good returns on your investment in this way, but be sure to check that your guaranteed rental income is backed by a contract with a reputable tour operator, not simply an inflated purchase price to enable the developer to return "your own money" during the early years of your investment.

7. Building permissions for off-plan developments- make sure the developer has the necessary building permission and that the property specification is agreed in detail with the builder and that the property will be delivered to you complete with the necessary license to occupy it as a home. Ideally you should not pay the final instalment of the price until this is produced.

8. If you want to demolish an existing property and build a new one you need a planning permission, however it can be waived if you only intend to repair the property. Make sure before committing renovations projects to consult with a builder and get the idea of the costs.

Do don’t rush into decision; take your time to think – this is your money and your investment make the most out of it.

Article written by  
Galina Mihaylova
Managing Director
Sash Solutions
http://www.homesgofast.com/agent/Sash_Solutions/3559/1/


 

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