Why Invest in Property in Bulgaria Through Assetz

Why Assetz?

When you purchase property abroad you want to know you are dealing with a reputable organisation, one that offers experience and sells property in a careful and ethical way, and one that is there with an after-sales service to hold your hand when questions arise along the buying process and in the future.

Assetz Bulgaria is part of Assetz International Ltd, one of the most established and reputable overseas property investment advisers in the marketplace today. Assetz International is a sister company of Assetz plc and as a group has arranged property transactions of over £100m for our clients. Our news service is used by Google and we are quoted daily in many newspapers and other journals with our property investment expertise and opinions. Our property investment tracker is unique in the world and used by many journals to show the relative performance of different countries for an investor in the prior 12 months.

Assetz International has won International Estate Agent Awards in 2005 and 2006 for its longer established French property division and the same level of skill and care is applied to our Bulgarian division.

Buy with confidence through Assetz.

Why Bulgaria?

Bulgaria is a very popular market for property investors in Europe. It has been interesting to see the development and recognition of the market over the past few years along with the number of agents and developments increasing dramatically. With all the hype, it can be confusing for investors to obtain the information that they require to make an objective decision whether to invest or not in this location. Given this, we have provided some information about investing in Bulgaria which we trust will be of use and interest.

Why off-plan?

Assetz Bulgaria specifically deals with off-plan Bulgarian property. As a purchaser, there are many good reasons why you should look at buying off-plan property as opposed to property that is already built. If you purchase off-plan, your property will rise in value as a result of being purchased below its true market value.

The Bulgarian property market has experienced significant capital growth over recent years, including 36% in 2005. Annual property values are anticipated to grow by around 9% in 2006 and perhaps up to 10% in 2007, possibly more. The developers will typically look to sell at least 30% of the development to fund the remaining build. This means that when this 30% quota is achieved, the developers will periodically increase the cost of the property to reflect an advanced stage of building and to regenerate income from the discounted properties sold in the earlier phases. If you purchase at an early stage of build, you stand to gain more in terms of capital growth and you should be able to see your property rapidly increase in value.

As an off-plan buyer, you can either choose to “assign the purchase contract” which means you opt to sell the property before completion in order to benefit by any pre-scheduled price increases and any additional capital growth. Alternatively, you could complete your purchase and see potentially even greater gains over a two year period which would be due to the development's ‘mature’ status and desirability. Of course, you may simply want to use the property for your own personal use and enjoyment without pursuing any active investment strategy. If this is the case, then it will be an added bonus to see such healthy increases in the price of your property over the years.

How the development process works

We specialise in identifying the very best developments in Bulgaria and have strict vetting criteria which we apply to developers and developments alike. The following guidelines indicate what we expect of the developers we work with;

• The developers are expected to undertake their own due diligence on the land and provide evidence that they have checked for encumbrances which, if left undiscovered, would adversely affect the build and therefore the clients’ investment.

• The developers need to show evidence that the project is fully conceived and approval to build has been granted by the relevant authorities.

• The developers need to show that they have agreed a certain level of finance with the banks before the build commences.

• The developers need to show that contractual arrangements for the execution of the projects are secure.

What we offer to the client

Our expertise in finding the very best off-plan opportunities in Bulgaria is unparalleled and we provide an honest assessment and full support during the selling process with an established after-sales support and one person point of contact for all enquiries.

We encourage all our clients to seek their own independent legal advice. However we can recommend a specialist English solicitor who will advise on Bulgarian legal matters within the context of English law. Similarly we can refer you to a specialist lender who deals solely with Bulgarian mortgages for UK and Irish citizens.

We provide a clear breakdown of costs which makes the buying process extremely transparent so the client knows exactly how much money will be needed for a purchase. With our vast sourcing experience, we often negotiate guaranteed rental schemes with the developer and the VAT, which is currently at 20% in Bulgaria, is often presented as part of the asking price so as to avoid any confusion about what costs are incurred.
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Inspection tours

For any client that purchases a property and legally commits to a sale (by paying the first deposit instalment) we offer a FREE INSPECTION TOUR which will cover flights and accommodation expenses for 2 days as well as all dining and transport requirements. If you are looking to purchase for investment purposes, you will often find that the demand for certain developments is extremely high. Given this, it is sometimes advisable for the client to look to reserve before seeing the site.

In this case, we are happy to offer the free inspection tour at a later stage so that the client can safely secure their interest and not lose out on a good investment opportunity! However, investment is not always every client’s primary objective and viewing before purchasing may be preferable, particularly if you are looking for a holiday home!

How we arrange the tour

If you wish to undertake an inspection tour, we will talk directly with you to obtain your requirements in terms of dates and location of departure and arrival, accommodation requirements, etc. Thereafter, we will arrange the finer details of the trip including the flights and accommodation on your behalf. The client will initially pay for the flights and accommodation. However these costs would be refunded if you decide to purchase and legally commit to that purchase by paying the first deposit instalment.

How we conduct the tour

When you arrive at your destination, you will be met by one of our representatives who will drive you to your hotel accommodation and ensure that everything is to your satisfaction. Over the following two days, they will personally escort you in privacy to all the relevant developments and make sure that you have the time and opportunity to have detailed viewings, always with a knowledgeable representative with extensive local knowledge at hand if you need to ask questions.

You will also be introduced to an English-speaking lawyer who will explain all the purchasing procedures before you decide to buy. Our inspection tours are by no means ‘hard-sell’ and we respect that clients will often need some time in privacy to consider their options. The tour is designed to be focused on finding the ideal property for you, but it is conducted in a relaxed manner – we want you to enjoy the experience!