Off Plan

Current Off Plan Investing Outlook

Most investors know that with just a little 'inside knowledge' it's still possible to produce well above average returns, with no risk to their equity in Bulgaria.

BGHouse Agency specializes in identifying and qualifying the very best developments which are ideally positioned to benefit from the Off-Plan model. We only seek developments that offer sea or mountain views or are golf course fronting in order to maximize the potential property values. BGHouse Agency and our suggested legal advisors insist on guarantees from the developers to protect your equity.

Your property rises in value as a result of being initially purchased below its true market value in the early stages of the development's life cycle. During construction, the developer raises the price of the properties to reflect their true market value. This process is explained in detail in the following pages.

We also provide a clear breakdown of additional costs to consider, as well as a brief overview of why investing in Sofia, at the seaside and in winter resorts areas of Bulgaria makes excellent sense and how we help serious investors find the most promising development projects.

After you've finished reading about Off-Plan investments we encourage you to browse the rest of our website for more in depth information about the Bulgarian lifestyle - you may end up moving into one of your investments!

Overview

As a serious investor you can expect above average returns from investing in the Off-Plan Bulgarian property developments being identified by BGHouse Agency.

Why? Four reasons:

• 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 0% 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 additional capital market growth.

• Or, elect to go to Title Deed and complete your purchase; then sell the property on approximately two years later and see potentially even bigger gains on your investment due to the development's 'mature' status and desirability (it's easier to sell a completed apartment with a beautiful swimming pool and gardens than something still in construction)

There are 3 Golden Rules to consider when purchasing off-plan property for investment:

• Location, Location, Location (close to amenities, beach, sea views, on a golf course , ski resort, mountain views )

• Try to buy in a lower density development, increasing your chances of successful re-sale with minimal competition

• Quality always wins out. You get what you pay for ...

Lifecycle

The life cycle of a new development can be thought of as the stages which the development goes through to get off the ground.

After a developer secures the land and completes their due diligence, the project is fully conceived and approval to build is acquired from the relevant authorities.

Once that approval is granted, the developer sets up finance arrangements for the initial investors.

Finally, the developer secures the contractual arrangements for the execution of the project and begins to market the properties to the initial investors.

In order to actually begin construction, around 30% of the development usually needs to be sold off-plan.

Our expertise in finding the very best off-plan opportunities in Bulgaria is unparalleled and we provide honest assessments of all projects. There are also a few Developers that we refuse to work with or recommend due to their track records of poorly built projects or high amounts of complaints from owners. Thankfully, the amount of reputable developers offering high quality built products greatly outweighs the few 'bad apples' in Bulgaria.

Property Prices

Prices for new Bulgarian property developments are often quoted on the basis of price per square meter built.

Prices per square meter are calculated on the basis of location, quality of building specifications, and the overall quality of the project.

Once the initial offer price has been determined, timing is everything. With guarantees in place the smartest investors move in early during the launch phase to secure the best possible prices and the best possible returns.

It is inside knowledge of this ‘lifecycle of a new development’ that makes it possible for serious investors to make a far above average return in a fully secure way.

Property Values

During the construction phase, your property rises in value.

As more and more properties are sold the developer's sales requirements are met. The developer therefore increases the price of the remaining properties. This has an immediate effect on the value of your property.

The developer increases the prices of the properties in the development in order to regenerate the income from the discounted properties sold initially. This can happen without depending on any overall market growth because the developer is simply raising your previously discounted property’s price to what it should really be.

The true market value is of course derived from the current prices for existing properties in the same location, built to similar specifications.

Usually the first significant price increase takes place when the required number of off-plan sales has been reached. This period is usually two to four months after the launch.

The second significant price increase takes place when construction actually begins. This usually happens another two to four months after the required percentage of off-plan sales has been achieved.

Remaining price increases then occur periodically throughout construction as the development progresses. These price increases eventually result in your property reaching a selling potential of at least equivalent to today’s price per square meter for similar developments in the same location, built to similar specifications.

As one of the fastest growing property markets in the world, your strategic investment in off-plan property in Bulgaria is made even more secure. We have seen record gains during the last year.

Potential Returns

As you are now aware, the returns for serious investors who enter the Bulgarian property market at the right time are above average. This is due to the limited equity required and the nature of the price increases which result from the developer achieving their off-plan sales targets.

As mentioned previously, any further growth in the overall property market will only add to your already above average returns.

The added growth that a positive movement in the market adds to your returns simply makes the prospect of getting on board early even more attractive.

Unless peoples' attitude to physical pleasures changes completely, there will always be a strong demand for living in Bulgaria- part-time or full -time. And that demand will have to be met by properties, and the best will always sell and re-sell and re-sell many times over in our lifetimes and those of our children's.

Opportunities

Please contact us today so that an BGHouse Agency Property Consultant or one of our Directors can assist you with further information on several exceptional developments. We also urge you to visit Bulgaria and let an BGHouse Agency Property Consultant show you these opportunities in person.