Buying property in Bulgaria

Bulgaria has attracted a lot of attention over the last two years, as foreign buyers and investors flock to its emerging property market. In 2004, foreigners invested over Euro 500 million  in Bulgarian property, compared to Euro 98 million in 2003.  Frequently listed in the top 20 places to buy a foreign property, Bulgaria is now firmly on the property investment map.

With EU entry forecast for 2007 investors are keen to buy into the Bulgarian market to reap the inevitable rewards of capital appreciation and establish a rental income in a country that has demonstrated increasing tourism over the last few years.  In the first 6 months of 2005 alone, over 2.7 million tourists visited Bulgaria; with a 42% increase in the number of British tourists.  By 2020 the World Trade Organisation has predicted that the number of foreign tourists visiting the country will increase to 10 million.

The most popular regions for foreign property investors can be broadly categorised into 3 sectors: the Black Sea Coast, Sofia and the mountain ski-resorts.  Other buyers are attracted by the old houses inland that can start from as little as £1,700 and the medieval charm of picturesque cities and villages like Veliko Turnovo, Arbanassi and Tryavna in central Bulgaria.
Enjoying over 300 days of sunshine a year, boasting a coastline that stretches over 380km, spectacular mountains, eco-tourism and some of the most affordable property in Europe, there is no wonder that Bulgaria is attracting such interest. Property prices in some regions have doubled in the space of the last two years alone – though new apartments on the coast are still available from as little as £20,000.

Despite recent bad press about developers and estate agents in Bulgaria over-estimating rental returns and exaggerating capital growth rates, Bulgarian property remains under-valued and is a good investment.

Bulgaria’s Hottest Property Spots

Hot-spots

Sunny Beach
The country’s largest package holiday resort has a good beach with excellent leisure facilities, entertainment and activities. It is close to Bourgas’ international airport and has been a focus for building and buyer interest, although over-development is becoming a problem, with a glut of new properties meaning unreliable rental returns.


Golden Sands
A large package resort with a good beach and facilities set in pretty surroundings on the forested coast north of Varna. Easy access to Varna airport and the city. Strict building controls have limited development and ensure strong demand for property.

Bansko
The country’s largest ski resort, which is enjoying major infrastructural investment, including a new golf course. The negative impact of rapid development could be reduced by a clamp-down on new developments in the area.

Pamporovo
European’s most southerly ski-resort is increasingly popular with the British

Veliko Tarnovo
The picturesque countryside around this historic city is the target for a growing number of foreign buyers looking for peaceful rural retreats and renovation properties. The beautiful scenery has led the area to be dubbed “Bulgaria’s Tuscany”.

Sofia
Renovation properties and off-plan developments in the country’s capital are popular with investment buyers for their solid rental returns and capital appreciation.


Rising Stars

Balchik
A small seaside town, north of Varna, that is near a new golf course development. Easy access to Varna city and its airport.

Byalla
A quiet beach resort favoured by Bulgarian holidaymakers, which is set in beautiful countryside halfway between Bourgas and Varna.

Ruse
Provincial city on the Danube that has a hinterland of unspoilt countryside dotted with villages.

Sozopol
An atmospheric seaside town with good beaches that is close to Bourgas airport.

Borovets
A small ski resort near Sofia that has been slated for major investment.

Advice on Picking a Real Estate Agent

The ideal agent is not always the one with the most sales under his or her belt, or the most years on the job. The ideal agent is one who listens to you, is easy to get along with, and has the tools and skills to address your unique situation.

Every home buyer is different. Some have credit issues. Some are buying from out of state. Some need help selling their current home in addition to buying a new one. Just as buyers have different needs, real estate agents have different skills and specialties.

Here's how to find the agent who's right for you:

1. Ask friends and family for agent referrals.
Nobody knows you as well as your friends and family do. So they're often in the best position to recommend an agent who is well-suited for your needs. You can also trust a referral from friends or family more than one that comes from a stranger.

2. Talk to multiple agents.
I once saw a statistic that 84% of home buyers choose the first real estate agent they contact. This means one of two things. Either most people are choosing wisely the first time, or they're just rushing into things without shopping around. Probably a little of both.

You don't have to exhaust yourself interviewing agent after agent, but at least talk with two or three to see who you're most comfortable with (which leads to the next point).

3. Consider the vibe factor.
Professional expertise is an important criterion when choosing a real estate agent. But interpersonal skills are equally important. After all, you'll be working with this person anywhere from 2 to 12 months, so it helps to get along with them. We all have unique personalities, and that's the way it should be. But when working with someone professionally, if helps if their personality "meshes" well with your own.

4. Ask how they hunt.
When deciding on a real estate agent, ask how they search for homes. Some agents have their own preferred listings that they favor. But you want what's best for you, not what's best for your agent. You're paying them, right? So make sure the agent is willing to search high and low to find the best home for you. That includes using the Multiple Listing Service (MLS) as well as their own personal network.

5. Read paperwork carefully.
This advice is heavily used for a reason. It's critical that you examine all documents during the home buying process, and that includes your agent agreement. At some point during the relationship, your agent will probably ask you to sign an agent agreement. Basically, it just means that if the agent shows you a particular property, your purchase of the property should be credited to that agent. In most cases it's a simple, just be sure to read it carefully and ask questionss.

10 Steps to Getting Top Dollar for Your Home

When you decide to sell your home you should immediately begin referring to it as a house. You’ve become emotionally attached to this place and it’s now time to say goodbye. Start detaching yourself by making some changes that will help you with the sale of the house.

You probably have accumulated a lot of clutter over the years. This must be the first step.

1.  Unclutter your home. Start in the basement and either throw things out or rent a locker off premises to store it until you move but prospective buyers need to see what the house looks like behind all your stuff. This means going room to room and clearing everything out that makes it look junkie and disorganized.

2.  Neutralize the personal nature of your home. You may love the native tapestry on the living room wall from Bora Bora but I’ll guarantee 95% of   your prospects will have it on their mind when they leave your home and not in a good way. Knick knacks and generally all things that you’ve previously enjoyed should be stored away until after the sale, that includes grandma’s spoon collection that takes up half a wall in the kitchen. Replace these things with neutral items like picture frames or vase with a simple arrangement.

3.  Minor cosmetic work. Once you remove the clutter you will see all the things that you’ve been meaning to get to over the years. Painting where necessary, new carpet/s, moldings repaired, cracked plaster and re-taping/ repairing drywall. When making these improvements think neutral colors for any coverings be it paint or carpets. If you have hardwood floors sand them and finish them. Area rugs can look amazing. Whatever you do, don’t over do it. Try and think like a buyer.

4. Hire a professional cleaner. Once you have the house cleared you should hire a professional cleaning crew to wash the walls, windows, work over the kitchen and bathrooms, clean the floors and shampoo all carpets that don’t need to be replaced. Your house should be spotless and kept this way for the duration.

5.  Staging each room. If your rooms are smaller rearrange the furniture to make the room look bigger. For example removing some furniture is better than having too much cramped in. Set your furniture up in conversation pit style. Like a gourmet coffee house, make it cozy. Pull couches away from walls to give the appearance of depth. Remove wall clutter, one or two pictures but no more. Generally make it look inviting.

6.  Kitchen and bathrooms. These are the most important rooms in your home to a buyer. Make sure they are impeccable. Plumbing fixtures should be working properly and look like new or they should be replaced. Use a good cleaner or even a metal polish to make them gleam. Showers and tubs need to be spotless! Sinks and vanities need to be pristine and uncluttered. Kitchen cupboards should be orderly, doors opening and closing properly, drawers the same. I can’t stress enough how important these two rooms are to your potential outcome.

7.  Doors and windows. First thing prospects see when they walk in your home is a door. Make sure its painted or cleaned up and that it will open and close properly. This goes for screen doors as well. Often screen doors are a problem people let go. Not anymore. Windows should all be cleaned and be sure if someone wants to open them that they work properly. If they have been painted closed as is the case with some older homes, now is the time to get them to open. Do whatever it takes.

8.  Garages and workshops. These are the second most important areas. Again remove all clutter from the garage and make it accessible so you can actually park your car in it! As for the workshop, try and organize it so the handy person prospect will appreciate what they can do with their “new shop” when they move in. It’s all about your prospect picturing themselves in your house.

9.  Family effort. Everyone in your family needs to be on board with the presentation of the house. This means your kids need to buy into the project and keep their rooms tidy. Bribe them if you need to but everyone has to help maintain the appearance of the entire house.

10.  Odors and pets. Wow, is this ever important. If you have pets only you really love them. When you walk into a house with dogs or cats you immediately smell them, especially if you don’t have your own. Keep litter boxes fresh and clean daily. Restrict your animals if at all possible to certain areas of the home until after the sale. Vinegar and water will do wonders when you clean their areas every other day until the sale is complete, and top it off with effective air fresheners wherever you need them. Vacuum often with carpet fresh powders two or 3 times a week.

This sounds like quite a bit of work and it is. Try and remember that by following these tips you could easily add five to ten thousand dollars to the sale price of your home, maybe more. A little elbow grease now will be a solid investment.

The Author is the President/CEO of www.realestatemate.com , www.homeheap.com  and www.agentsmate.com . He has over 26 years experience in the real estate industry.

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