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» Why us?
» Property Market
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Bulgaria Investment Property OOD has been evaluating the Bulgarian Investment Opportunity since the Millennium and was incorporated in Bulgaria in 2004 to satisfy the demand for an independent Bulgarian Company with UK property consultancies and English & Bulgarian members and staff to advise both new and experienced investors on potential growth opportunities. We are able to offer maximum capital growth and rental yield opportunities in both mature and emerging property markets.
B.I.P OOD is an Independent Property Consultant: We act on your behalf to find the most favourable low risk investment opportunities independent of any single developer, builder or agent.
Market research: We apply a unique method of market research in prospective countries of interest. This methodology is thorough and can take as long as 6 months to prepare. Then and only then will we invest and recommend the same investment to clients.
Qualification of Developers and Builders: this research includes extensive financial and credit checks of potential suppliers using reputable organisations.
Process and Legalities: We always physically go through these processes in order to protect our clients. Contracts are scrutinised and renegotiated where necessary to provide the best terms for our clients
Maximising investment opportunity: must be low risk, competitive in the local market, best quality, and best payment terms.
Fully customised inspection trips: we ensure that prospective clients have the option to view a selection of Investments including complete habitable developments, under construction, new build, land and “pre-owned”. This ensures that clients can see build quality and interior fixture and fittings before buying off plan.
Customer Care: Is our number one priority. We provide the most favourable low risk investments in emerging markets. Investors are guided through the complete process to ensure that everything runs smoothly and returns meet and exceed projected expectations.
Specialising in the Bulgarian Sector, tried and tested methodology is applied to assess investment opportunities, taking into consideration political and social stability, economic indicators, direct and indirect foreign investment, regional and local inward investment. The project is ongoing and current compilations are based over the last 24 months.
In the UK there is a growing demand for property investment, particularly the opportunities proffered in Bulgaria. This is a direct result of falling world stock market values, poor financial and pension fund performance, limited availability of property fund investments and concerns around UK house pricing, combined with interest rate rises which particularly affects the UK Buy to Let market, the outcome is, up to 40% of UK adults, are considering foreign property investment.
Many property markets such as Spain and Portugal are now mature and good investment opportunities are becoming more and more difficult to find. The reality is, many areas in these mature countries are already peaking through over development.
This in turn is now forcing many potential investors to look further a field at new more buoyant emerging markets such as Bulgaria, Croatia, Romania and Turkey. We have researched and analysed many different countries and can provide advice on them with regards to the benefits and risks involved. However, our main function is to isolate and deliver the real opportunities which represent least risk with the best return. This is a complicated task, as property investment is not a defined art, however by applying established criteria we are able to maximise potential income opportunities.
We would not expect you to invest in anything that we were not happy to invest in, or you were not comfortable with, which is why it was necessary to experience the investment process first hand, including Legal and Tax issues.
Through this “adventure,” benefits and of course pitfalls were encountered, enabling us to offer the benefit of our experience FREE on this web site, If you have any concerns or questions just Contact us now and we will endeavour to answer your enquiry.
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Property Market Recent Development Research Criteria
Political stability
Religious stability
Social/Ethnic stability
Corruption/Judiciary/Police
Macro Economic indicators
Foreign Direct Investment
Foreign Indirect Investment (Tourism etc)
Legislation which effects buying property as a foreigner
Flying time from the UK, present and planned budget airline routes
Internal infrastructure e.g. utilities and transport
Border countries stability
Immediate history
Projected 5 – 10 year economic and social plan and associated risks
Assessment of independent expert sources and reports
Property & Value Factors
Some Property prices doubled during 2006-7
Continuing momentum
Rising international awareness
Independent and Business articles
Bulgarian section in UK and overseas properties magazines
Explosive interest at recent London overseas property shows
Prices still 30-40% of European Levels
Underdeveloped seaside and ski resorts
Sofia property Class A office rental market booming
Value Growth
Growing GDP: 4-5% next 3 years
Low inflation
Tourist industry booming
Privatisation 80% completed
Very well developed banking sector 95% foreign owned
3 tier pension system (property valid investment class)
Bullish on overall retail sector
Strengthening economy
Rising disposable income
The Latest Emerging Market
Bulgaria and the Bulgarian property market is our latest and most exciting investment opportunity. The Bulgarian property market is made up of four distinct opportunities. Firstly the Black Sea Coast and inner Coastal Areas, Secondly the ski resorts and chalets around Pamporovo, Bansko and Borovets, Thirdly Sofia the capital, Stara Zagora and other cities and Fourthly the Ethnographic treasure regions in the Araplanina mountain
The Black Sea coast is undoubtedly the most buoyant and compelling at this moment in time with superb new developments in the Sunny Beach area and a strong resale market. Rental opportunity on the right developments is set to explode as tourism continues to grow exponentially
So why do we recommend the Bulgarian Property market:
Capital growth in the last 12 months has been over 40% on the Black Sea and this upward trend looks set to continue
Entry level pricing for frontline developments can starts as little at 30,000 euros
We have negotiated superb payment profiles for our off plan investors typical breakdown is 20%, deposits, 20%, at level one, 20 % at roof stage 30%completion of fittings and fixtures 5%on completion of Government completion stamps, 5%.on occupation.(the above percentages do vary with different projects)
We have superb developments with unrivalled facilities which include apartments with mineral hot water baths, under floor heating, summer and winter air conditioning, contemporary fitted kitchens and flooring. On complexes with facilities which include Adult and children’s swimming pools, tennis courts, gyms, saunas, medical centres, restaurants, bars and all year round security
Tourism is exploding due to the climate, superb blue flag beaches and one of the lowest cost of living in Eastern Europe.
But most important of all they have now joined the EU and are well on track in all areas for a explosion in the price of the property market.
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Investing in Bulgaria
There are two main reasons why you should be interested in Bulgaria.
An almost unrivalled investment opportunity
Quality of life
BULGARIAN ECONOMY & INFRASTRUCTURE
BULGARIA as a LOCATION
Bordering Greece & Turkey
Part of European Sunny Belt
Stunning Natural Beauty
Unspoilt Countryside
Uncluttered Seaside
Combination of Mountains and Seaside (e.g. Portugal, Spain,)
The Black Sea airports are about 3 hour’s flight from Britain.
Regular flights
The Black Sea coast boasts 220km of sandy beaches
The Black Sea coast has over 1700 hours of sunshine from May to October
The diverse geography and climate allows both ski and beach resorts.
The general cost of living is one of the cheapest in Europe
BULGARIA MAJOR DEVELOPMENTS
Joined NATO in April 2004
Bulgaria is firmly in the EU (together with Romania).
The currency is stable and linked to the Euro
Significant EU funding committed until 2011
All major British tour operators will be on the Black Sea coast next year. Some, such as Thompson, etc.
EU companies expected to enter with significant implications on the property market (Tesco etc)
Japanese, Chinese and Korean direct property investors entering the country now
Property prices are currently some of cheapest in Europe and last year some rose by over 30%
Aged but decent infrastructure and improving
Rising popularity as a European holiday destination
INVESTMENT STRATEGIES
We believe that Bulgaria offers an almost unrivalled investment opportunity and confidently predict at least a 100% return on your investment by the end of 2009. This is why Bulgarian Investment Properties OOD recommends a broad based market, from exclusive luxury complexes, to the small parcels of land.
Of course, to many, quality of life is more important than financial reward. This is exemplified in the beautiful sweeping sandy beaches of the Black Sea coast, the rugged mountainous regions, perfect for the adventurous walker and the picturesque ski slopes which can be challenging or easy depending on your needs. Bulgaria truly is a largely undiscovered gem. Whether you invest through us, another agent or simply visit the country on holiday, we are sure that you will love Bulgaria as much we do.
Investment opportunities are available in many areas
Agricultural land: Plot without regulation but in areas that will most likely to be regulated main focus is near the mountain ski resorts and seaside regions.
Pros Cons
Least Costs Holding period involves change of status of land, i.e.
High returns planning permission
Lower capital commitment More commitment of time and effort
Risk of being unable to obtain planning permission
Land plots: with planning permission targets in the mountain ski resorts and seaside regions
Pros Cons
High return on invested capital Higher capital commitment
Minimum additional efforts
Easy to sell
Old houses for renovation: –main focus in the hinterland but also periphery locations at seaside (Far North and South)
Pros Cons
Higher return on invested capital Higher capital commitment
Lower downside risk Commitment of time and effort
Additional capital requirement
Expanded time frame
Land plots & Build: with planning permission targets in the mountain ski resorts and seaside regions
Pros Cons
Higher return on invested capital Higher capital commitment
Lower downside risk Commitment of time and effort
Additional capital requirement for construction project
Expanded time frame
Third-party developments:
Seaside Locations: • Bourgas Region • Golden Sands • Sunny Beach •
Sunny Beach • Nessebar • Pomorie • Sozopol • Pimorsko • Tsarevo • Varvara•
Ski Resort Locations: Pamporovo • Dobrinishte • Apriltsi
Locations and Value Growth Potential • Speculative Only
Pros Cons
Least Efforts Higher capital commitment
Lower downside risk -absorbed by Expanded time frame
gain on development
Rental Income
Highest return on invested capital
Owners & Land Prices Growth Price Rationale
1) Private individuals & Municipalities
2) Selective approach
3) Attractive when sellers lack vision and awareness of property’s potential application
4) Particularly true for plots beyond third tier, but with good access/view/landscape etc.
Land
Flat level price of regulated land for building properties ˆ40 to ˆ60 per. sq m. (conservative estimate)
Slightly escalating construction costs: from ˆ350 to ˆ450 per sq m.
Influx of capital bringing from the current high levels of 60+% to 30% and down to 15% until accession in 2007
Room for another 60% increase in first tier property, land plot prices from ˆ150 per sq m.
The local and regional level assessment criteria
Local inward investment
Regional events such as sporting events etc
Local planning laws and future permissions
Volume of tourism and countries of origin
Weather and season time scales
Resale market
Rental market
Previous 12 months capital growth
State of development of property market e.g. mature, emerging etc
Local culture and history
Local infrastructure e.g. utilities and transport
Local Market assessment criteria based on value for money
Construction quality
Construction guarantees/worth
Aesthetics and quality of fixture and fittings
Size and views
Complex facilities
Complex management and services
Rental market and potential
Resale market and potential
Security
Transfer times from the airport
Complete Package of Services for you:
We are constantly striving to add greater value to our products and services which include
Property insurance
Mortgage and Financial planning through Bulgarian specialists, (authorised and regulated)
Furniture packs and white goods
Tax advice by Bulgarian accountants
Moving Abroad
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BULGARIAN PROPERTY RIGHTS PROTECTION & LEGAL FRAME
•Best practiced branch of law
•Rock-solid title of ownership protection
•Legal sources since Ottoman Empire
•Not scrapped during Communist Regime
•Processes of acquisition and disposal practiced on a daily basis:
–Streamlined
–Clear
–Procedures perfectly known to average solicitor
•Regional registrars of property ownership
•Searches reliable
•Disputes, mortgages and burdens easily identifiable
The System
We find a property and determine whether it is being sold with or without land. If it is being sold with land currently you need to form a company as the land owner (much the same as a "Limited" company in the UK this will be changing next year)
* Negotiate and agree the final price with the current owners.
* After the verbal agreement, draw up the preliminary contract and get the property removed from the market. (Similar to "Sold subject to contract" in the UK)
* Do the standard ownership search (Using a solicitor)
* Title documents
* Licenses and permissions
* Debts on title
* Terms of contract
* Sign the Notary Act (Contract to Purchase) in front of a Bulgarian Notary Public and the Final Legal Contract
* You are then the proud owner of a Bulgarian property
Bulgaria’s ownership policy will be harmonised with the EU in the future.
Generally apartments On or Off-plan do not require company incorporations
(Please note that the final Notary Act is not signed until the building is completed in the case of “off plan” developments.)
The Law
Bulgarian law currently stipulates that only Bulgarian entities (a person or a Bulgarian company) can purchase land. Therefore if you want to buy land, or a villa with a garden, you must create a Bulgarian company. This is a simple process and we can assist you in creating a company, if you so desire, it can cost up to £500 though.
However, there is no need to go to the expense of creating a company if you are purchasing an apartment. When you buy an apartment, you buy a part of the building and as such there is no need to create a company. This part of the building is freehold and there is no lease, the apartment is yours forever, or until you sell.
Some Brief Information on Forming a Company
Private Limited Company (a limited liability company) "OOD" it is a commercial company with share capital owned by its members whose liability is limited to the amount of the capital subscribed. A private limited liability company may be founded by one or more persons, including foreign natural or legal persons. The minimum foundation capital is Levs 5,000 divided into shares with nominal value of Levs 10 each and at least 70% of the capital must be paid up on foundation (we recommend to save future problems that the full amount is paid). Contributions to the foundation capital may be paid in cash. The statutory bodies of the private limited companies are the general meeting of shareholders, which must be held at least once a year, and the managing director or board of directors.
Formation and Registration of a Company
A company is considered incorporated as from the date of its registration into the commercial register of the relevant district court. The application for registration furnished with certain documents required by law shall be filed with the court by the elected managing body.
A Private Limited Company in order to be registered in a commercial register must:
* produce its articles of association (Memorandum of Association in the case of a single-person private limited company); the Law on Commerce stipulates the obligatory provisions of the articles;
* have appointed a managing director (or board of directors).
* have paid up at least 70% of its authorised capital (see note above), including at least one third of each member's contribution. (Approximately £1780.00)
This information together with details of the management etc is recorded in the commercial register and promulgated in the State Gazette.
Don't worry! It's not as bad as it seems, Bulgarian Property Investments arrange all the necessary documentation with all the appropriate bodies, all ready for you to authorise.
Visa requirements
Holders of UK passports do not require a visa in order to visit Bulgaria for a period of up to 90 days; extensions can be applied for whilst in Bulgaria.
Long-term visas: Visa can be obtained from the Bulgarian Embassy in London. This visa is for foreign nationals who intend to apply for a long-term or permanent residence in Bulgaria. Processing can take up to 90 days due to popular demand for U.K residents. Prices can be obtained by clicking on the link below. Foreign nationals can obtain long-term or permanent residence in Bulgaria on several grounds. Investors intending trade within Bulgaria and retired people with pensions are among this group. Certain provisions may apply if you have a business in the UK or elsewhere in the EU.
For further information please click on this link, www.bulgarianembassy.org.uk
Òaxation
We always recommend you consult a Bulgarian Accountant and Lawyer who can offer professional guidance and advice on the most beneficial method of administering your accounts. There are many factors that will influence the ultimate formation of your business and will vary on an individual basis.
There we have it, a really comprehensive look at what Bulgaria can offer, Sun, Snow, Health Spas, Hot Mineral Springs, Skiing, Rafting, International Music Festivals, Waterfalls, Mountains, Ancient Architectural Artifacts, Archeological Treasures, Traditional Folkelore, Established Culture, Exceptional wines, Glorious food, Sureal Wildlife, Majestic Lakes, Rose Oil,……. Yoghurt……and a perfect
INVESTMENT OPPORTUNITY….WHAT ARE YOU WAITING FOR ?
Click here
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