Why Buy a property in Bulgaria?

You may want to spend more time in Bulgaria, or you may have heard that prices are very low and are certain to rise nowthe country has joined the EU.The reasons for buying property in Bulgaria vary but there are two common ones: to spend time in the country, and to invest and make a profit in order to buy and reinvest elsewhere. Often buyers fall across both categories. For example, someone might want to buy an old farmhouse and renovate it with a view to using it now and perhaps selling it on at a profit later; or the purchasers of a ski apartment may want to use it for several winter seasons, let it during vacant periods, and eventually sell for a profit. It may be their first rung on the property ladder, or part of a buy-to-let portfolio that includes property in the UK.
Let’s look at some of these reasons first. First, the simple fact is that Bulgarian property is much cheaper than nearly all parts of Britain. Average house prices in Britain (according to Rightmove, 2007) are now £240,000, rising to £300,000 in greater London.This is considerably more expensive than in Bulgaria, where an old run-down farmhouse can still be picked up for the equivalent of £5,000 and a new apartment in the ski resorts can be bought for £30,000. House-hunters in Sofia, though, can expect to pay more than £80,000 for a decent-sized apartment. House prices in Bulgaria have risen considerably over the past few years and are still rising. EU membership has provided an added boost and purchasing a property here is likely to be a good investment; you are unlikely to lose money and you’ll probably gain considerably over time.

sunny beach bulgaria
Take care when you decide whetheryou wish to buy for investment, living or a mix of both. If purely for investment, the normal rules apply – buy in the best area you can and select a well-built property giving capital gains and maximum rental potential. Sofia and hotspots like Bankso and Varna or other Black Sea locations (see Profiles of the Regions) are among the best towns in which to buy property for investment only.
The cost of living in Bulgaria is about five times cheaper than in the UK. Many people retiring here will find not only that house prices are considerably lower than in the UK but their pension will go much further.
It is noticeable that the British are by far the largest group of property-buyers, despite there being more German than British tourists. The British (followed closely by the Irish) are turning up in droves to buy property.The reasons for this are partly economic-Britain has seen an almost threefold increase in property prices over the pastioyears.This provides Brits with an unshakeable faith that property is a sound investment, but, perhaps more importantly, it has provided large amounts of equity to use on investment elsewhere. Germany in contrast has seen property prices remain stagnant over the same period, hence the the Germans’ reluctance to invest abroad. But there is a second psychological factor – the British have a pioneering spirit; nowhere is considered out of bounds for the British to go, and gotheydo,in increasing numbers. A report bythe Institute of Public Policy Research published in December 2006 estimated that 10 per cent of British citizens now reside abroad. They are moving not only to the USA, Australia and Spain, but to less traditional areas such as Turkey, Thailand and Bulgaria.
The rise in UK house prices has fuelled two more groups of British buyers -those buying abroad to get onto their first rung on the property ladder, and the ‘Jet to Let’ brigade, buying up property in prime rental areas such as Sofia and the Black Sea coast. Many of them already have several UK properties and are seeking to diversify by adding a few overseas properties to their portfolio.
There is another set of reasons for buying in Bulgaria, less logical and far less financially driven. Many people find the rural nature of Bulgaria reminiscent of idyllic childhood summer holidays; others want to move from the UK and imagine a new life away from the stresses of a crowded and expensive Britain. Many seek opportunities to set up their own business, often in a tourism-related industry such as the hotel, bar or restaurant trade. Some people wish to buy now while prices are low, with a view to retiring later. Others will retain a UK base and spend a major part of their time in Bulgaria once their working days are over. Many people go to Bulgaria with a view to spending six months a year there and end up living in the country almost full time!
Deciding where to buy is an important choice. Ultimately,your choice of location will depend on your circumstances,your finances and whether you wish to live and work, own a holiday home or simply invest in a property for capital gain and rental income. Those companies with the biggest advertising budgets will tell you that this or that development is the best investment – but it is worth iooking around at several locations and considering both the international and domestic property markets.

Properties for sale in Bulgaria

One Response to “Why Buy a property in Bulgaria?”

  1. Bulgaria Property…

    Thank you for your help! Nice post with some well thought out points….

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