Sure-Fire Formula for Successful Property Purchase - Part 1

Online, April 15, 2010 (Newswire.com) - Buying property in a foreign country can be quite daunting, particularly for those who may be visiting for the first time. So here, in the first part of a five-part series - A Sure-Fire Formula for Successful Property Purchase - we take an in-depth look at the property market in Bulgaria and identify a number of fundamental points that you should consider when planning your property purchase ...

Bulgaria's Property Options:
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A city apartment, a house in the suburbs, a new-build in one of the beach or ski resorts, a villa on a golf course or a rambling old rural home in the countryside. The choices are extensive, the options are available and the decision is yours. Whether you're looking for cosmopolitan city chic, a place in the sun, a hideaway in the mountains, or a more laid-back village lifestyle - here's all the information that you need to make the right decisions about your property in Bulgaria.

Background to Buying Property in Bulgaria:
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Real estate in Bulgaria includes: houses, flats, villas, building plots, apartments, holiday homes and village properties from all locations and areas of the country - cities, towns and villages, beach and mountain resorts, rural countryside. Buying property in Bulgaria is now well established and can be summarised into two main categories, namely: property with land - and - property without land

The defining issue is that under current Bulgarian law foreign persons may own physical property (ie: bricks and mortar) but they are not allowed to own land or properties that come with land, such as: houses with gardens, villas and building plots. New-build apartments do not normally have land attached and, accordingly, can be purchased by private individuals. However, until 2014 when the law is scheduled to change, the only way to buy a property with land is to form a Bulgarian limited company. The company that you register will own the property and you will own the company and its assets. The process of setting up a business is simple and straightforward and can be accomplished in around 3 to 4 weeks. While it's possible to set-up a business independently, most people use the services of a lawyer, often arranged through the real estate agent from whom they are purchasing property, with a Power of Attorney (POA) authorising them to act for their client. There is no requirement for a business set up in this way to trade, however, your business will be an official limited company and, therefore, you can conduct business operations if you choose to do so. Thousands of foreign nationals have set up businesses in order to buy property ... some are now trading - others are not. Once again, the choice is yours.

Bulgarian Property - Market Conditions:
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There are thousands of city, rural and village properties available today and current market conditions reflect the impact of the recent global recession in terms of reduced asking prices for most properties. This has created a buyer's market in which price negotiation is the norm and there are plenty of properties available at bargain prices. But, as Bulgaria's post-recession recovery continues apace, demand is beginning to rise again and the bargain properties will inevitably be snapped up. Our advice is that if you are considering a property purchase in Bulgaria - even if you are only thinking about it as a possibility at this stage - we recommend that you should start your information gathering, planning and decision making sooner rather than later.

And when you are ready, remember that the entire package - from car hire, accommodation and English speaking staff for your viewing trip, through the set-up of your business, the translation and registration of documents, to the transfer of title deeds - can usually be completed in just 4 to 6 weeks

General Advice:
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The general advice from a number of ex-pats who have already purchased property and live here is to focus on the following strategies at the time of purchase ... know what you want, confirm that this is what the agent / vendor will actually be delivering to you - and don't be fobbed off with silly promises of guaranteed returns on your investment, or statements such as "ah well, this is how it works in Bulgaria ..."

Follow all five parts of this release series at www.movetobg.blogspot.com