Finance

Bulgaria offers some of the cheapest properties in Europe and certainly the best value properties to be found. Some of the older resale houses in need of renovation can be bought for a few thousand pounds. However, many of the newly built complexes offer high-quality luxury properties at a fraction of the prices found in other European countries.

Reservation Fee (All Properties)

When you purchase any kind of property in Bulgaria, the first step is to place a Reservation Fee. This is usually between 1,000 euros and 2,000 euros. This will secure the property at the price agreed, and take it off the market. You must then pay the stage payments within the time agreed……..or you could lose your reservation fee.

Resale Property

If you purchase a resale property, you will be expected to pay between 10% and 20% of the purchase price within 2 weeks. The balance of the purchase price will be paid on completion, when you receive the deeds.

New Property

If you purchase a new property, the stage payments will differ between developers depending on the build-time remaining on the property. You will have to pay more money, more quickly, if the property is almost finished. When you buy Off-Plan, the build has not started, and there is more time to pay the stage payments.

Typically, stage payments are:
30% - On signing the Preliminary Contract (Usually within 3 weeks of placing reservation fee)
40% - At rough construction stage
30% - On completion

Mortgages

Mortgages are available in Bulgaria. However, they are usually more expensive than in the UK. Currently the interest rate is around 6.7% -7%. Maxi Homes Abroad can assist you to obtain a mortgage if you require one.
Property prices in Bulgaria are very low when compared with the rest of Europe. For these reasons, many UK citizens use their savings, or cash-in their ISAs and unit trust holdings to raise the finance to buy a property in Bulgaria.

British clients who are house owners in the UK, sometimes decide to take-out a second mortgage on their UK property to purchase a property in Bulgaria.

Bulgaria will join the EEC in January 2007. It is expected that increased competition will eventually lead to cheaper mortgages. However, it is also expected that property prices will continue to rise. Bulgaria should be a great place to invest in property for future gains.