Buying Off-Plan
When buying off-plan your property is priced BELOW today's market
value (You literally
buy your property at a discounted price). Your equity is limited to only around
3% of your property's price. You only pay a fraction of the total sales price to
secure your ownership rights
During construction you can sell your property on to a buyer benefiting from any pre-scheduled price increases from the developer and capital growth. You could alternatively elect to go to 'title deed' and then sell the property on after completion. If you hold on for a couple of years you are likely to see even stronger growth as it is easier to sell a property once a development has matured and the swimming pools, gardens and infrastructure have been completed.
Property Prices
Property prices for Bulgarian developments are often quoted on the basis of price per square meter built. These are calculated on the basis of location, quality of building specifications and the overall quality of the project. With guarantees in place the smartest investors move in early during the launch phase to secure the best possible prices and return on investment. It is inside knowledge of the development lifecycle which allows investors to make substantial returns in a secure way.
Property Values
During the construction phase your property rises in value as the developers requirements are met. As more and more properties are sold the developer is in a position to increase the sales price of the new unfinished properties. This has the effect of immediately increasing the value of your own property. This can take place without any independent growth in the property market as the developer is initially only raising the price to the undiscounted price which the property should really be.
The true market value is of course driven by the current price of existing completed property finished to the same specification and in a similar location. Usually the first significant prices increase take place when the required number of off-plan sales have been met. This can often be in the first two to three months after launch.
The second significant increase takes place after construction begins. Period increases take place as the development nears completion but I think you can already see that with off-plan investment the smart money gets in early. We hope that you will take advantage of the low price inspection trips and see for yourself the opportunity that is Bulgarian property!