Research

Keeping a cool head

The secret to buying a home in Bulgaria successfully is research, research and more research, preferably before you even arrive. A successful purchase is more likely if you thoroughly investigate the various regions, the types of property available, prices and relative values, and the procedure for buying property in Bulgaria. If you’re unsure about where and what to buy, the best option is to rent for a while.

It’s easy to be caught up in the excitement surrounding the property boom in Bulgaria and fail to research the market properly. You may hear and read about people who visit Bulgaria on a three-day holiday and put a deposit on a property before they go home – a recipe for disaster!

There is the danger of being overwhelmed by the natural beauty of Bulgaria and the low property prices and rush into signing a contract without giving it sufficient time and thought. If you’re at all uncertain, don’t allow yourself to be rushed into making a decision by fears of an imminent price rise or because someone else is supposedly interested in buying the property you want.

Although many people dream of buying a holiday home or retiring overseas, it’s vital to do your homework thoroughly and avoid the dream-sellers who will quite happily take advantage of your ignorance and tell you anything to sell you a property. There are many people who make expensive (and occasionally catastrophic) mistakes when buying a home in Bulgaria, usually because they do insufficient research and are in too much of a hurry, often setting ridiculous deadlines such as buying a home during a long weekend or a week’s holiday.

WARNING
It isn’t uncommon for buyers to regret their decision after a few months or years and wish they’d purchased a different kind of property - or even purchased in a different country!

Where it’s possible, you should try to obtain advice from people who already own a property in Bulgaria. They will usually give you valuable information (often based on their own mistakes) and you will really believe it if you hear it ‘from the horse’s mouth’!

It also helps to read specialist property magazines such as Homes Overseas and A Place in the Sun and to visit property exhibitions such as those organised by Outbound Publishing and Homes Overseas magazine. There are also many websites where you can find information and advice from other expatriates.

SURVIVAL TIP
The cost of investing in a few books or magazines (and other research) is tiny compared with the expense of making a big mistake. Nevertheless, don’t believe everything you read!

Buying a property in Bulgaria can be a straightforward and relatively pain-free procedure, but it can also be complicated and painful – especially if you aren’t prepared for or realistic about potential problems. Make sure you’re aware of the buying procedure (see our article: Purchase procedure) and take the usual precautions regarding offers, agreements, contracts, deposits and obtaining proper title to a property.

Avoiding Problems

The most common problems experienced by buyers in Bulgaria include:

• Buying in the wrong place
  Do your homework (collect as much information as possible about the different regions of Bulgaria and visit them) and rent first.

WARNING
The wrong decision regarding location is one of the main causes of disenfranchisement among people who purchase property outside their home country.

• Buying a home that’s difficult or impossible to sell
  If you think you might need to sell (and recoup your investment) in the short to medium term, it’s important to buy a home that will be easy to sell. A modest, reasonably priced home is likely to be much easier to sell than a large, expensive home, particularly one with high maintenance costs. A quality property in a popular area with a good location (usually close to the beach or with sea views) will usually attract buyers. The most popular areas are around the coastal and mountain resorts, but supply can exceed demand in some areas. Your dream home may not be to everyone’s liking and you must be realistic about what’s likely to sell.
• Paying too much
  Foreign buyers, particularly the British, are often asked for more than the market value of a property and many pay the asking price without question because it’s so low compared to prices in their home country and they’re reluctant to negotiate for fear of losing the property. This is unlikely to happen when buying through an agent but you should be wary of paying too much when buying direct from the vendor.
• Underestimating restoration and modernisation costs
  That run-down village house for €20,000 might look like a bargain, but renovation can cost as much as new building, as well as taking time and causing innumerable headaches.
• Buying a property for investment, e.g. to let out in the summer, and being too optimistic about the income
  Competition is fierce in the tourism industry and you will need to do your research well. The letting season in some areas can be as short as four months, making it difficult or impossible to cover the cost of maintaining a home, let alone making a living.
• Not having a survey done on an old property – Surveys aren’t common in Bulgaria but for property over five years old a survey should be seen as a necessity, not as an afterthought. For a small fee you can avoid potentially disastrous consequences.
• Not taking legal advice – Many people have successfully bought property without legal advice but you must ask yourself whether it’s worth the risk.
• Taking on too large a mortgage – If a bank offers you money at a competitive rate, it can be hard not to take on a large mortgage. But you must consider what will happen if there’s an economic downturn in Bulgaria or in your home country, if mortgage rates go up, or if the cost of living rises?

This article is an extract from Buying a Home in Bulgaria from Survival Books.