Bulgaria Property

Engine ear

Really interested in buying a property in Bulgaria in the coming months. Looking at a place about 6 miles from sunny beach in a place called Kosharitsa. Looks great but trailing through the web and getting mixed info everywhere, some saying area is a kip others its paradise!!!
Can anyone who has bought a property in the area offer REAL advice. Is it a nice area, family friendly, rentable, cheap to live in etc.

Any help would be much appreciated, cheers

conorhal

Wouldn't it be wise to take a holiday in the area that you are thinking of buying in and using some of that time to scout prospective purchases?

Engine ear

Yeah will be heading over there in August but I have heard some really strange things about the place so wondering if maybe Berlin or Turkey are better areas to be looking at property. Some forums say things about Sunny Beach being controlled completely by russian mafia, pickpockets at every corner prostitutes dragging out of you where ever you walk, people being rude. Not really a spot I bring to bring the family but like I said the next forum then will say things about how great it is!!
If people have experiences that it is not a great place for families might be better saving money on the hols and head somewhere else.

connundrum

I, in a previous life, used to sell property in Bulgaria.

Yes, the mafia were ever present in most areas, and from what I saw and know - they were providing 'security' and controlling prostitution in the area.

The reason I left the company I was working for was that I found out about the mispricing and selling of property in order to evade tax. I couldn't see how this would end happily, and decided that being out of the whole industry was the best thing for it.

See just one example - http://www.justlanded.com/english/Bulgaria/Bulgaria-Guide/Money/Other-taxes

Capital gains tax

Technically, there’s no capital gains tax (CGT) in Bulgaria, but under certain circumstances capital gains are taxed at 15 per cent (and if that isn’t a capital gains tax, what is!?).

WARNING Beware of the practice of understating a property sale price on the contract: while this may reduce the vendor’s tax bill and some of your fees, when you come to sell the property it will appear as if you’ve made a larger capital gain than you actually have and you will be taxed accordingly.

Your liability for tax depends on various factors and differs according to whether you’re a resident or non-resident of Bulgaria (see below).

SURVIVAL TIP Capital gains tax is a complex subject, particularly if you aren’t a Bulgarian resident for tax purposes, and you should consult an independent financial adviser before making any major financial decisions.

Other points to raise are:

The difficulty in actually getting to Bulgaria, as direct flights out of season are nearly impossible to come by.

The complete lack of a 2nd hand market should you wish to sell on your property. At the height of the boom here i.e. 2006/2007 I couldn't shift 2nd hand places - what chance would you have now or in the next 2-3 years?

The complete over selling of the Bulgarian rental market. Doesn't exist for 70% - 80% of property owners who bought on the premis of 10% rental guarantee.

For the above, I'd duplicate the points when talking about Turkey and nearly all Eastern European destinations.

Engine ear

stark reading really appreciate the advice. as a family holiday home in this area away from the sunny beach area if the price was right and did not plan to rent do you think they are a nice holiday destination in general?

connundrum

I spent 2 weeks in Sunny Beach with the family and we toured around a small bit. The difficulty with Sunny Beach itself is outlined above, the difficulty in moving away from Sunny Beach and down the coast is that you lose infrastructre and services.

For a family holiday home/apartment I'd stick with Western Europe all the way, for the sake of €10-20k more you'll have much better access, better facilities, everything will (should) be above board with taxes/property rights etc, you won't have to deal with fears of mafia and/or prostitutes on street corner (depending on where you go obviously).

Bulgaria is cheap and can provide a yearly holiday destination, but if you think Spain/France/Portugal you could be going to your holiday home 3, 4 or 5 time s a year.

The above is my personal opinion, so please do research more yourself.

jdivision

you wouldn't be paying more than 10-20k for a property there surely? Look at local wages versus quoted prices here, look at the amount built without planning permission, look at the oversupply and look at the weather in the winter. Then Avoid

thetravelbug

As someone who has lived in Bulgaria for four years (all be it in central Bulgaria) I can say that I have always avoided Sunny Beach in the past. It has is place if you are looking for a cheap holiday, lively atmosphere, bars, entertainment, clubs etc....has lovely beach, clean water....lots to do but too many Brits and Scandinavians there for me. Sure there are some problems with pick pockets but no worse than resorts anywhere else. And yes organised crime is part of Bulgarian life and culture, but as a 'normal' person living or holidaying here you will not come across it. You do get a few prostitutes along the main coastal road targeting lorry drivers mainly, not so much in resorts.

Kosharitsa is just outside Sunny Beach and started off as a small village but there has been loads of complexes now built there. It offers a good alternative to Sunny Beach. More rural feel, quieter etc but can still get regular bus into Sunny Beach and to sea. There are a fair few villas and apartments for sale there now. Some are wanting close to 100,000E for a 2 bed villa or apartment, but more realistic price is around 60,000 E for a decent apartment.

Nicer places along the coast are Ravda, Sozopol, Obzor or villages south of Burgas where there is still a 'town' as sorts and some Bulgarian culture and life still.

Whilst my main home is in the centre of Bulgaria, I am now currently looking for an apartment somewhere around Burgas on the coast to spend weekends.