Buying Smart In Bulgaria
It is no secret by now that Bulgaria is a boom economy for real estate investment. But that doesn't mean you are going to go in and buy any chicken coop or tool shack in the country. Just as you have always been a good investor in the past, you will have to approach buying in Bulgaria with that same sense of caution and common sense. There are some key tips and questions to ask as you approach this new market so you make sure the money you put into your investment is money well used.
Why are you buying?
There are some basic reasons you might buy property in Bulgaria. You might be buying for your own enjoyment for a vacation home or a retirement villa. The way you look for the best property for that kind of purchase is a lot different from if you are buying on speculation purely to hold the property and then resell it when the market takes off.
In that case, location is a huge factor as prime real estate will be near the thing that will draw customers whether it's the great skiing in the mountains, the exciting nightlife in the city, the vast and clean beaches by the Black Sea or near one of the many golf courses of Bulgaria.
Finally if you are buying land to develop yourself perhaps to run your own small business in the country, that will influence your choices somewhat as well.
Know the ropes
The Bulgarian legal system is ancient and strange. You will need help to figure out how to set up a business entity to be used just for buying land in Bulgaria. But more than that, you need an agent who is both trustworthy and experienced in how to complete this kind of transaction in Bulgaria.
The last thing you need is to think you have completed the transaction only to discover the title is in question for your property. And because titles for property in Bulgaria go back sometimes for centuries, you should have the best and most knowledgeable agent you can find to make sure you can get clean ownership of the property. That agent can also make sure you jump through all of the taxation hoops and to help you navigate issues of communications and language. .
Costs and Prices
Containing your costs is critical to any deal whether it's buying land for a bungalow for your retirement or to build a resort for big profits. So again, your local representation can help you know if you are dealing with reasonable costs for the conduct of your purchase or if you are being gouged.
Similarly, there are factors that will drive prices up or down that you should be aware of so you can balance the costs of when you negotiate versus the value of waiting or negotiating longer. If the price of that beachfront property is going to drop like a stone in February, can you afford the costs of waiting for that adjustment. That's an economic evaluation only you can make.
How much can you get?
The one factor that will remain and overriding principle of buying property in Bulgaria is that right now the prices are as low as they are going to be. Or to look at it in a "glass half full" way, what you pay now will result in huge profits in a year or two or three because of massive economic expansion going on in the country.
So buy as much as you can for the money you have to invest. That means if you can get two acres right now, buy it even if you only need one acre. That extra property will appreciate and give you a good return on your investment when you are ready to sell it.