I have seen too many investors buy in Bulgaria just because someone tells them it is a good investment opportunity and they buy without having a clear strategy or idea of ​​what they want to achieve, they do not know or forget the basic principles of real estate investment and they make mistakes.

It’s good to understand that at this stage Bulgaria should not be seen as a quick return on investment, there are some exceptional deals that could give you this, but overall you invest in the opportunity, you see it as a medium to long term investment . If you can look past the poor infrastructure and get excited about the opportunity to invest in a growing and developing economy, stay as you will learn how to prepare for your real estate investment in Bulgaria.

1. The Bulgarian infrastructure is not as developed as in Western Europe, but this is where the opportunity lies. Now, with the accession to the EU, there are a number of infrastructure projects and millions of EU money coming into the country. Look further!

2. The real estate market is very dynamic, don’t stay with what you see on the Internet, it always looks different.

3. Learn as much as you can about the country, the economy, the political system, the geography, the law, the culture, the people; This should give you a good understanding and reason why and how to invest in the country. Try to use independent and reliable sources of information that do not market products.

4. Have a clear strategy and plan how to achieve it, set a budget and time limit and stick to it – Lots of property in Bulgaria looks cheap and it’s tempting to stretch your budget too far.

5. Take into account the total cost: duties, taxes, management costs, construction works, etc.

6. Have a realistic exit strategy: do good market research and consult with professionals.

7. Never sign anything until you are fully aware of what it says and agree to it.

8. Deal with trusted agents who understand what you want and have in-depth knowledge of the Bulgarian market. Currently, the real estate agent is a very popular profession and there are many people who do not understand what they are doing. Be careful!

9. Bad Titles: In 1992, it became clear that one of the biggest administrative barriers could be title registration. As a result of the neglect of the title registration system during the 50 years of socialism, land registries are often out of date. Some records are missing entirely and this, combined with a mostly non-computerized system, can create a very confusing picture. Make sure you get expert advice.

10. In Bulgaria there are terms such as “tax estimate price” and “purchase price”. The “tax estimate price” is for real estate tax purposes and is much lower than the actual sale (purchase) price. Most Bulgarian property owners want the “tax estimate price” to be written on the property deed, and not the sale (asking) price paid by buyers, so due to this practice there may be discrepancies between the price you are paying and the price written on the deed. You should know that having a lower priced deed does not invalidate your business. However, such a situation has its financial consequences, such as not having official documents for the money spent and higher taxes if you later decide to sell the property at its real value. Please consult with your agent on every aspect of the deal to avoid any misrepresentation and misunderstanding at a later stage.

11. The usual term for the property owners to vacate the property once the sale is consummated is one month. This could be negotiated if buyers require a shorter lead time, but it is recommended
to plan ahead.

12. Guaranteed Rental Income Offers. There are some rare opportunities to earn good returns on your investment this way, but be sure to check that your guaranteed rental income is backed by a contract with a reputable tour operator, not simply an inflated purchase price to allow the developer to return “your own money” during the first few years of your investment.

13. Building permits for off-plan developments – ensure the developer has the necessary building permit and that the property specification is agreed in detail with the builder and that the property will be delivered to you complete with the necessary license to occupy it as home. Ideally, you do not pay the last installment of the price until it occurs.

14. During the observation trip, take lots of photos and notes. All properties at the end of the day can look the same.

15. If you want to demolish an existing property and build a new one, you need planning permission, however it can be waived if you only intend to repair the property. Before committing to renovation projects, be sure to consult with a builder and get an idea of ​​the costs.

16. Don’t rush into a decision; take your time to think: this is your money and your investment make the most of it.