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Bulgaria: Buying for investment
Bulgarian Property one of the most popular investment locations for European investors. Property in Bulgaria for sale, Bulgaria Investments, off-plan developments and apartments in Sunny Beach, Pamporovo, Bansko, Borovets, Varna, & Sofia... Superb investment opportunities.
As experienced Bulgaria property investment consultants we believe by operating independently and providing accurate and impartial advice. We can best service our client’s needs. If you are serious about Bulgarian Property and taking advantage of this exciting new Property Investment destination and its huge opportunities, let Stage Property help you find the right Bulgarian Property opportunity for you.
'Off Plan' purchases have seen some spectacular returns for hundreds of people over the last couple of years. The real key to why buying 'Off Plan' can be such a good investment lies in the fact that normally you only have to pay approximately 30% of the purchase price as a deposit and then often nothing until completion of the property when the rest can be financed on a 70% mortgage.
For example:
Purchase Price: € 100,000 (Jan 2003)
Deposit payable: € 30,000
Let us assume that you sell the property in January 2007 just before the completion, and that you sell for 130,000 Euros (this is a much lower return than has been achieved in recent years)
Your profit is €30,000 which obviously on the €100,000 asking price is a 30% return, but remember all you have had to pay is a € 30,000 Euros deposit, so your actual return on cash invested is 100%
"Lower than 'market' prices offered by the developer initially"
Foreign Ownership
Under the Bulgarian Act on Foreign Ownership, foreigners are allowed to buy buildings but not land. Buying a property with the land is possible by setting up a Bulgarian Limited Liability Company after your name and it owns the land. This law is due to be removed before EU membership in 2007. It is one of the main reasons that property prices are so attractive compared with Western Europe but it will not last.
However, off-plan developments and complexes in general DO NOT require company incorporations and when you buy an apartment you buy a section of the building. This section of the building is freehold and there is no lease, the apartment is yours forever, or until you decide to sell.