Buying off plan

This is very popular in Bulgaria and as the name suggests, you are buying a property from the plans. This involves making a commitment before the property has been built. It is vital that you know everything about your agent and developer. The building must comply with all current legislations. The advantages of this type of purchase is that you can buy property at well below the true market value. You could buy now and sell when its built – making a good profit. This can amount to 20-30% or more.

You will base your purchase on information supplied to you by the agent and developer. The plans should be very detailed and your contract should state exactly how the property will be built, when it will be finished and what is and is not included in the price. Watch out for hidden extras such as appliances, furniture and fixtures. You might have a choice of extras to be fitted by the constructor.

Make sure that the developer owns the land and that planning permission has been granted. Make sure that all mains services are going to be connected at the point of completion.

You will probably be able to pay for your property in stage payments. This will involve an initial deposit then payments every couple of months or so or at different levels of completion. This again can make you money – all the time the money is in your hands it can be earning you interest, and the value of the property is constantly rising.

You should opt for a developer who has already completed some developments in Bulgaria and that you can see. This way you can examine the quality of build and the level of service they provided to past clients. Also look at the change in value during the construction process.

If the property is part of a complex then make sure you get a copy of the complex rules. Make yourself aware of any charges payable such as annual maintenance fees etc. Can you have pets here? Have you a parking space? Is there a fee for security measures?

Finally, remember that the property will be subject to VAT, currently 20%. This must be paid on completion of the property. Is this VAT included in the price you have been quoted or is it a surprise at the end of the day?