Bulgaria Pitfalls & Dangers

[jenni124q]

Hi guys, I've wanted to get on the property market abroad and always had Bulgaria in the back of mind purely for price reasons.

Basically I've had an idea for a specialist holiday let, I'm fairly certain I can get the demand for people to let it out, but I need a house with a fair bit of land - and I'm not afraid of a wreck!

I've seen loads on rightmove at silly prices, I'll have to set up a company, and have legal costs etc so it won't be as low as it looks,

But what are the pitfalls?
I'm not looking at multiplying the investment in the short term! I'd like to think that once the restoration is complete there'll be an increase in value for the property, but I wouldn't be looking to sell for probably 10 years +
The value would be the holiday let.

Does this seem like a reasonable plan or have I completely overlooked anything?

I'm normally a "location, location, location" person - but because the idea is quite niche i'd be wanting to get people off a plane, in a bus or whatever, straight to the villa, and then they pretty much don't leave until they go home! So will location matter the same or are there some simply proper dodgy areas that need to be avoided at all costs?

Thanks guys!
Jen

 

[KayJay]

How long is a piece of string?

You won't need a company to buy the property, unless it is also agricultural land or you're not an EU citizen. You'd be well advised to discuss the financial and tax side with a good Bulgarian accountant.

There are plenty of areas/places to avoid, for all sorts of reasons: large "ethnic minority"; areas with old mines/quarries/refineries/chemical factories/ammo dumps etc; dying villages; bad communications (check roads, esp in Winter/ broadband speed/reliability of water, electricity etc)

Renovation will cost MUCH more than you reckon - even if you reckon it will cost more than you think!

You need to supervise EVERYTHING, especially if it will be hidden/buried when the job is done. It's easy to find "builders" - it's VERY difficult to find (and afford) good ones, and you'd be foolish to trust even them not to screw up or screw you over.

Roads are bad, so you need to be sure you have reliable vehicles if you intend to offer an airport-property-airport service. Reasonable mechanics are cheap here though.

Many people have lost their shirts on "sure-fire" letting projects, so make sure you have funds to survive several years until the business takes off - or you come to your senses!

Learn the language: if your clients are reliant on you then you better not be reliant on someone else.

Make sure your security is good - use a local company and set off a few false alarms to see if they even get out of bed when you really need them.

Don't believe ANYONE - check and re-check everything. If you screw up or trust the wrong people then you'll be in deep doo-doo if you expect the courts to work speedily, efficiently - or at all.....

 

[plic]

You need a good lawyer and that is the first step in bulgaria. This is I recommend to do. Finding one is already hard enough shop around

 

[plova25]

Hello Jen,
I am new to this board and hopefully can offer you some advice. I lived in Bulgaria for three years 98-2001 and have been in the building business there since 2003. The advice you have been given in the other posts are good. If it was 8-10 years ago I would have a much different view than I do now. Without knowing your exact business plan it is hard to give advice, except for the addage of location being true no matter where you go. The coast is the most thriving area but due to the massive amount of building the past 10 years there is an over supply of rentals of all kinds available.
In short I would never say never but I am doubtful that I will ever build or do business in Bulgaria again. I speak Bulgarian and have family there (my wife is Bulgarian) and there are just too many problems. The legal system is a complete mess and I just do think it is worth it at this time. If you really, really want to invest there then simply buy some land for the project you are interested in and wait until things improve.