Michael Cain was seduced by the bargain property and Olympic-standard ski slopes of this popular winter resort.
At a Glance
Name: Michael Cain
Contact: www.turkishdelite.com
Agent: Avatar International, 08707 282827, www.avatar-international.com Budget: €45,000 (£31,077) but with good exchange rates it converted to around £41,000 (£28,315) plus lawyers fees and furnishings. The total outlay was about £45,000
Having already purchased a holiday home in Turkey, Michael Cain wanted to buy somewhere that his family could enjoy on ski holidays and that would give him a decent return on his investment. Bulgaria seemed to fit the bill. “I compared the property and living costs with other European areas and thought it was excellent value for money,” Michael explains. “I had read in European journals and articles that this area of Bansko was being developed with big investment to upgrade the infrastructure. Bulgaria (Bansko and its other resorts collectively) has applied for the 2014 Olympics which will raise the profile and letting potential of the property.”
As Michael isn’t a stranger to buying abroad, he knew to do his homework before choosing the agent he would use.“I researched various UK agents,” he says. “We had previously had communications with Avatar International when I bought in Turkey a couple of years’ ago (www.turkishdelite.com). I found Avatar to be forthright and honest about the different ski areas. This, coupled with my own information gathered over the previous year, confirmed to me that Bansko was a good place in which to buy, whether we were looking for a capital gain or to let, or for our own purpose of enjoying skiing holidays with a young family.”
All-Year-Round Resort
The ski resort of Bansko is in a National Park in the Pirin Mountains and is therefore protected as a World Heritage site. It has many natural thermal spas in the area – not so common in Western Europe – and the fact that you can enjoy a summer as well as a winter holiday in Bansko was a major advantage to Michael and his family. “Also, family ski holidays are being overpriced due to travel companies loading charges for under-occupancy. By buying our own apartment we can stay in trusted accommodation in an area where we want to be,” Michael tells us.
“Avatar were very helpful leading up to the contract point, thereafter it was down to their international agent in Bansko, who pointed us to a lawyer; he has turned out to be a star! Avatar were the front window and they let us into their network of agents. I would recommend them.”
It didn’t take Michael long to find the property he was after: “Over a period of a month or so I narrowed it down to two resorts. With Avatar’s advice, which in hindsight was the right choice, I bought off-plan at Bell Tower 2 due to its location, price (‘cheaper than a garage in London’), and south-facing balcony.”
Michael has bought an apartment in a small-rise apartment block with only 24 units. It has access to the leisure facilities in a nearby hotel and his apartment is accessed via a security door, then stairs or a lift. The apartment has one bedroom with a bed-settee in the lounge, and a breakfast bar and kitchen area – which he says is adequate for a family of four. The bathroom is spacious and modern and they have a south-facing balcony with a view to the mountains. “Having an early off-plan choice meant we could pick and choose which apartment we wanted.”
Payment Plan
Michael paid €45,000 (£31,077) for his apartment, but with good exchange rates it converted to around £41,000 (£28,315), plus lawyers fees and furnishings. The total outlay was about £45,000. He was pleased that there were no hidden costs to worry about, which can hike up the price for the unwary. “The payment plan was basic, with a deposit followed by stage payments. We did not engage the lawyers (Stanislav Stanev of the Ivan Mitov practice in Plovdiv) until we had received the preliminary contracts. Thereafter, all dealings were with the lawyer who sourced surveyors for us and dealt directly with the developer, which overcame any language problems. There was a slight delay in completion by the developer but we have been awarded penalties as per the contract, so all has gone well and I would have no hesitation in doing it again.”
The family plan to use the apartment themselves, but would like to be able to let it out if they can, but Michael is wary, having experienced problems with his Turkish home: “Primarily we want to use it ourselves at prime times, so in the future, we may not let it out. We have experienced letting snags with our other property near Alanya in Turkey, so have gone with a property management company in Bansko for the first year, to see if lettings take off.
Bansko is also a summer season resort, an international golf course is being built 5km away which should encourage summer lettings. We were informed that we could expect up to 6 to 8% rental returns after expenses, but I would be happy with a 4 to 5% return.”.
“I have only been once and that was after we had already bought the property. We went out in November to meet with furnishers and the agent. The town centre was very nice and the architecture rustic and quaint – it felt like stepping back in time with narrow streets and mehanas tavernas aplenty... it was very cheap and the people very helpful.”
Michael was also impressed by the company he chose to look after his apartment for him: “The property management agent was extremely helpful, offering me water and painkillers for the after effects of their local hooch/moonshine – they could not do enough for me! The restaurants did not mind being questioned about their specialities, in fact, they took pride in it and were interested in our being there. Bankso is a living, breathing town as well as a ski resort for tourists – it creates a nice mix. There were around 200 eating places and we were only there three days, but no bad meals were had and their local wine was cheaper than spring water.”
Subtle Persuasion
Michael is so pleased with his investment that he has persuaded their friends to buy the apartment next door: “They have two children of the same age (four and eight). My brother in-law was also looking for an investment overseas, I sold him the resort of Bansko for its many plus points, summer and winter. I then mentioned it to a colleague looking for property investment, he’s a golfer, so as Ian Woosnam was designing the new golf course nearby, he decided to buy.”
“Every property for sale in Bansko is priced by the square metre, there are no new properties with a price as low as ours. The apartments with a balcony and mountain views (like ours) are about 30% more expensive, so we are already in positive equity. We do not intend to sell within the next 10 years or so – so feel comfortable with our level of investments.”
Michael plans to ski twice a year in Bansko with the children and to let his apartment out in the short-term, but if the costs outweigh the gains then they intend to simply let the apartment to their friends and family. They would also like their children to use it themselves when they are old enough. Michael is now looking forward to experiencing a different country at different times of the year.
Why Buy in Bansko?
• Bulgaria expects to join the EU in 2007 which will bring with it benefits and increase property prices
• The cost of living is much lower than the UK
• Bansko has a four or five-month skl season
• Over 200,000 tourists enjoyed the 2004 summer season at Bansko
• During the first six months of last year Bansko was visited by over 2.7 million tourists, who spent over 700 million euros (over $800 million)
• There are more than 60 ski resorts in Bulgaria
• Bansko is currently the recipient of government investment, inpreparation for the 2014 Winter Olympic bid
• Bansko has a total ski run length of 65km covering 14 pistes
Michael Cain & Avatar International’s Top Tips for Buying in Bulgaria
• Do check out the additional ski areas now being looked at for development such as Super Borovets and Pamporovo and one close to Sofia 15minutes from the airport
• Do go on an inspection trip if you have never bought property abroad before
• Don’t be afraid to buy off-plan provided you can work out location of property in relation to town or skiing
• I highly recommend Ivan Mitov lawyer practice (Stanislav Stanev), they cover coastal resorts as well as ski resorts
Top Five Tips for Buying Properties in Bansko
By Amar Sodhi, Managing Director of Avatar International
• Always buy through a reputable agent and research the developer first; try to look at examples of their previous projects before you make your final decision
• Check the location of the development, particularly its proximity and accessibility to the ski lifts
• Consider the length of the ski season and snow record of the resort. Bansko has the best snow record and longest ski season in Bulgaria, spanning from December to April
• Take into account the type of skiing the resort offers and whether it reflects what you are looking for. For example, are there a variety of runs for all abilities, or does the resort cater more towards beginners?
• Check the proximity and accessibility to the airport, as well as the regularity and type of flights on offer: for example, whether the airport is served by scheduled or charter flights and low-cost airlines. This is important for both holidaymakers and investors, as the more accessible the property is, the more attractive it will be and the more use it will get