Buy a house (with land) for living

iwico · #1 07-03-2008, 03:41 PM

Hi

I am new here and never buy a property in UK or abroad before.

I am thinking to buy a house with large land (free hold) for living in. I like a big house with large land but cannot afford in UK or other countries, Bulgarian looks like price very low.

1. I heared Bulgarian do not allow people from abroad own the land, only a limited company can do. How does this work? How much cost to register a company? Do I must pass a agent? How much to run a company? Could I setup a company by myself or I have to find another one to setup a limited company.

2. If I buy a property from a private landlord without a company, who will own the land after I bought.

3. If in countryside, are there good supply of electricity, water, telephone, internet access? Water is clear? What about toilet system? Is it like the village condition in "Borat" film?

4. What about service charge from local council?

5. Someone here, already bought a simily property and live there? we can talk more.

6. What about weather condition there? Winter very cold? Which area are good? I like area's weather like London.

Thanks everone.

thetravelbug · #2 07-03-2008, 04:21 PM

Ok will try to answer your questions but feel free to PM me or email me for better chat.

1. I heared Bulgarian do not allow people from abroad own the land, only a limited company can do.

Yes this is true at the moment until they eventually abolish this rule

How does this work?

very easy to set up, usually done by lawyer or sometimes agent selling you house. Involves choosing company name, checking its available, registering it, placing 5000 levs (about 2500 E) in company bank account, making court application to set up company and getting tax ID for company. You simply need to give lawyer power of attorney to set up company, pay company capital, choose name etc and leave him/her to do the rest.

How much cost to register a company?

Usually around 500 to 650 Euros

Do I must pass a agent?

Sorry do not understand - for company you mean?

How much to run a company?

Once set up and if only to buy your property and not actively trading etc, then no real costs except accountancy fees each year for filing tax return.

Could I setup a company by myself or I have to find another one to setup a limited company.

Can do it yourself if you can speak and write Bulgarian and are in the country but expect this is not possible for you so you will need someone to do all legal aspects on your behalf and register company.

2. If I buy a property from a private landlord without a company, who will own the land after I bought.

You cannot buy a property without a company, only an apartment. You cannot buy a house without buying the land it sits on and usually the garden. Would be very silly to do so.

3. If in countryside, are there good supply of electricity, water, telephone, internet access? Water is clear? What about toilet system? Is it like the village condition in "Borat" film?

Obviously there are more rural places than others but generally villages all have electric, mains water, telephone not a problem, internet access depends on where you are and what providers are available but I connect anywhere in Bulgaria through mobile data card. Water lovely to drink in most villages and many have natural springs. Usually rural houses have septic tank. Most villages very civilised. Maybe you should visit and see!

4. What about service charge from local council?

Depends on area, your house value, and can change a little each year. But not much - maybe 50 levs a year max plus your rubbish collection tax - similar amount.

5. Someone here, already bought a simily property and live there? we can talk more.

Yes I have lived here for 15 months. I have built a new house on site of old one. I have large garden. Also own 11 further rural houses with large plots. Please see my website for houses I have bought here.

6. What about weather condition there? Winter very cold? Which area are good? I like area's weather like London.

Again depends exactly where you are in Bulgaria but generally weather colder than UK with snow and frosts. Summers much warmer. Further south in Bulgaria tends to be less cold in winter, less snow etc. But can depend on where you are in relation to mountains. I live in between two mountain ranges and fairly sheltered. Cold in winter but bearable and hot summers.

You really need to come here and travel around and see the country. You will then understand much more.

Rachel

Jain and Chris · #3 07-03-2008, 04:26 PM

Afternoon Rachel, as good a reply as I have ever seen, thanks

iwico · #4 08-03-2008, 11:25 AM

Thanks thetravelbug

More questions:

1. Ususally setup a limited company need at least 2 persons (director and secretary). My question is in Bulgarian setup a limited company need 2 persons or 1 person (me) is enough?

2. You said there is no activety cost after setup a company. but how much cost for hire a accountant evry year to sort out the tax account? Or I can do it by my self?

3. In Winter, what is lowest degree there is? How do you warm up? electricity or gas or other means?

4. What about hospital and medical care in there, there is NHS? If yes, is it good?

5. Transport, if in village do I must need a car?

6. About how much for a house with large land in there?

7. Do I must pass a agent to buy a property? I saw lots of private sell online, could I directly deal with them or pass a agents? Are there some fruad there? If yes, how do I find out?

Regards

thetravelbug · #5 08-03-2008, 12:01 PM

1. Ususally setup a limited company need at least 2 persons (director and secretary). My question is in Bulgarian setup a limited company need 2 persons or 1 person (me) is enough?

One person is enough. There is only me in my company. With one person as owner and manager it is called EOOD, with 2 or more, OOD.

2. You said there is no activety cost after setup a company. but how much cost for hire a accountant evry year to sort out the tax account? Or I can do it by my self?

It would be very difficult to do it yourself if you are not good at Bulgarian and in any case with new rules and regs from EU and Bulgaria all the time it is adviseable to have an accountant prepare proper declarations and reports for your company. Cost obviously depends on accountant, area etc. This year it is costing my clients 200 levs total which includes photocopying everything accountant needs, consultation with accountant, her preparing everything, lawyer preparing power of attorney for tax declaration to be signed and submitted by lawyer/accountant and then delivering papers to local tax office. But can get it done a little cheaper or others cost more like everywhere.

3. In Winter, what is lowest degree there is? How do you warm up? electricity or gas or other means?

Depends on the year. 2 or 3 years ago got to minus 20, this year was around minus 10 where I am for a while, last year was 60 in January. Plus depends on where abouts in country you are.

My heating is wood fueled back burner on a fire. I have used electric heaters also in other places. Wood is cheapest and easiest if in a village. In cities tend to use air conditioning units from electric. Can get bottled gas or oil but not usual.

4. What about hospital and medical care in there, there is NHS? If yes, is it good?

There is an NHS equivalent but you need to be registered on the system same as in the UK. I have always tended to go private up until now as am not paying into their system but will start this year. Again care often depends on hospital and area same as anywhere. Some very good doctors, some not so good. Private care I have found excellent and cheap.

5. Transport, if in village do I must need a car?

Basically yes although most have regular bus services and some a train station.

6. About how much for a house with large land in there?

The million dollar question!!! How big a house, how big a plot (1000 sqm? 4000sqm?), state of house - new build, complete renovation job, very rural, close to city....

too many variables to answer properly but minimum for basically a wreck with 2000sqm in more rural area maybe 8000 E. I have just bought a further two houses. Both need substantial renovation (30,000 to 50,000 E) and have around 1000sqm plus small barn etc. In large village with shops, bus etc, 20 minutes to city centre, 10 mins to decent town....I paid 14,000 E for each.

7. Do I must pass a agent to buy a property? I saw lots of private sell online, could I directly deal with them or pass a agents? Are there some fruad there? If yes, how do I find out?

If you were buying privately off an English person or off a Bulgarian who spoke English then maybe you could buy privately but generally as you are new to the country, do not know how things work, want to view in different areas and different properties, it is usual to use an agent, or a few agents to see and buy property and deal with all paperwork. You will also need a lawyer and a notary to buy the property. Someone to sort out changing water and electric accounts etc. If you do not speak any Bulgarian I think you would find it difficult to do with no agent or someone to rely on.

What do you mean by fraud? You need to be careful of course and do your research and take care to use an agent with a good reputation and backed up by happy customers but so long as you do that and do not get pushed into anything or rush to buy anything you are not sure about and so long as you have independent lawyer etc then all should be fine.

Rachel

Lysos · #6 08-03-2008, 02:36 PM

For all your eminently sensible advice, Rachel, I think it's a bit premature. iwico has obviously done no research whatsoever about Bulgaria and needs to get over there, travel around and get a feel for life there before he even thinks about buying property. Just because he/she thinks Bulgaria is affordable does not justify moving there.

iwico · #7 08-03-2008, 06:40 PM

Hi Thanks for all answers.

I agree I should go there, and I may do, but if I do not like the conditions written on paper or website, it is no point to see there.

More question: this time is a simple one:

Why all people go to Bulgarian to buy property? As I know Romania also join EU, what is different between these two countries' property market? Is in Romania more difficult to buy properties? or more expensive? or no property there? or bad people there?

Regards

thetravelbug · #8 09-03-2008, 07:05 AM

I guess much is personal preference which is again why you cannot make a decision about a country without viewing - facts and figures on paper and websites do not tell the whole story.

I do not know anyone that has bought in Romania. But I drove through it and hated the place. And most people I speak to have said the same. Very depressing and poor areas, lot of power stations. I saw no appeal to the country at all but then I have not visited the coast there.

Seem to recall property more expensive in general in places in Romania but really know nothing about it.

On the other hand for all its frustrations and problems, Bulgaria is a fantastic place to live - great weather most of the time, lovely friendly people on the whole, fantastic fresh food, amazing scenery and good value property.

Many people buy in Bulgaria because on the whole it is cheap but also for the life style the country offers.

But as others have said, while I appreciate you are doing your research now and this is a great idea, you cannot get a proper feel for a country until you spend time here.

Rachel

iwico · #9 09-03-2008, 12:32 PM

Hi

Thanks for the answers.

Some people offer to register a company in Bulgaria for £299 on Ebay. Do you think is it good or there are some trick.

They said I can set in London to setup the company, Where is my address in Bulgaria?

Regards

thetravelbug · #10 09-03-2008, 02:19 PM

It is possible to set up the company from the UK but you will need to give power of attorney to someone in Bulgaria, usually a lawyer to do everything on your behalf. If giving power of attorney from UK, you will need to have it notarised and apostiled at embassy in London and then sent back. And also all other declarations required. It can be quite a long procedure as can take a while to make and get an appointment at the embassy. And with posting documents back and forwards.

I do not know about the people advertising on eBay to set up companies but would just say becareful. I know a few that have bought houses off eBay and had nothing but trouble. 299 pounds is around 400 Euros so possible for all court fees if it is an agent doing it themselves and not a lawyer.

But again stress there is absolutely no point in setting up a company until you have been here to Bulgaria and decided whether you like it and want to buy. Then set up your company while you are here as much easier.

Rachel