Jain and Chris Goodall are Britons who moved to Bulgaria to publish a property magazine about… Bulgaria. Jain’s family are Hungarian, while Chris had been visiting Bulgaria since 1984. So moving east was not at all daunting but certainly set its challenges!

Jain Goodall talked to Sofia News Agency Editor-in-Chief Milena Hristova

Q: A quest after what was your decision to move to Bulgaria and publish a magazine here? Was Bulgaria the destination you originally wanted to emigrate to?

A: We originally came to Bulgaria to buy a house. Amazed at the lack of service and decent advice we returned home disappointed. Upon our return we reflected on what was happening in Bulgaria for English speaking people trying to buy property there.

An idea started to form - ten years ago we had moved to France where we had created and established a magazine to better inform and assist English speaking people considering buying property and even moving there. What was happening in Bulgaria with the lack of correct information was exactly the same as in France all those years ago. So we decided not just to buy a house in Bulgaria but also to establish an English language magazine again, called “Quest Bulgaria”, dedicated to helping all those buying and investing in Bulgaria.

Q: What were your feelings and expectations when you first arrived in Bulgaria more than a year and a half ago?

A: Moving out in winter 2004, the Bulgarian temperatures came as quite a shock - coming from south west France where it hardly ever went below zero, we weren’t quite prepared for the minus 20 that Sofia threw at us. Even though Chris had been visiting for over 20 years it had mainly been in the summer months so it came as a surprise that the +30 degrees he was used had suddenly dropped to -20 degrees! We were definitely excited though and really looking forward to settling in.

We were also extremely happy to be living in a capital city, we lived in a small market town in France so were absolutely astounded by the number of restaurants, cafes and bars that Sofia had to offer - everything right there on our doorstep, and most of it available 24 hours a day.

Q: For you as a foreigner, which are the bonuses of living and doing business in Bulgaria? Looking back have there been more ups than downs?

From D Visas, through Lichna Karte, importing a vehicle, to learning the language (alphabet first!) and setting up a company, VAT registration … we went through it all ourselves.

Definitely more ups than downs though! We found the Bulgarian people extremely supportive of us and our business venture and they made all efforts to assist us where they could.

This also meant that for ourselves, everything went incredibly smoothly with sorting out most things as we had already made the perfect contacts through establishing the magazine for any information we then required personally!

Plus of course, as for many foreigners coming here from western europe, the cost of living is incredibly good - which is a huge appeal.

Q: Do you have any tips you would pass on to other foreigners considering a permanent move?

Learn the Cyrillic alphabet as soon as you can - what a difference it makes when you can read signs and a menu! We now buy Bulgarian newspapers and can read most of the headlines, plus work out the TV listings!

Definitely keep an open mind and try not to make comparisons between Bulgaria and your home country. Things are different here and you have to be prepared to adapt. That’s the charm of living in a foreign country; to experience a different culture and atmosphere.

If you are unsure about anything (inheritance, company setup, visas, etc) then seek professional advice - there is a great deal of incorrect and out of date information available on the internet which is misleading a great many people - paying for an hour’s time of a professional could actually save thousands in the long run.

Q: Residential prices have pushed Bulgaria squarely into the real estate spotlight. How long do you expect it to enjoy this popularity?

A: It’s a very difficult question. In Spain and France it went on for many years. We think the only concern here in Bulgaria is that the market is moving much more quickly and prices are increasing dramatically, not in such a smooth progression as they have done in the western European countries. The worry would be that the prices are going up too fast and the market cannot support this long-term. If the market calms, then we see no reason for this not to continue for years to come.

Q: Why did Bulgaria turn into a hot place for vacation homes and, to a lesser extent, for investment?

A: It’s cheap for holiday homes. For investment Bulgaria is well located as a country, sitting at a good axis.

Q: Which are the drawbacks that foreigners buying property here usually overlook?

A: Most foreigners do not spend enough time getting to know the different areas of Bulgaria. They often see something they like on the Internet and just visit that one location. Sometimes they are upset afterwards because they rushed it and find that the village down the road is nicer than where they have bought! Take your time is the best advice. It’s so much better to discover Bulgaria first and then choose the property, rather than the other way round.

Among the legal issues concerning the risks involved in buying property here are under-declaring the real value of the property on the deeds is one of the main issues; which of course can lead in the longer term to a high capital gains tax bill for foreigners. Visas, residency permits, setting up a company, inheritance laws, taxation laws, accountancy laws, importing a vehicle, managing a property from a distance…. are all extremely important and are always asked about.

Q: What are your tips for those who want to go for a safe, hassle-free and profitable property purchase in Bulgaria?

A: Do your research first from as many independent sources as you can find. Don’t trust all that you read on the Internet. Get your own lawyer rather than use the one recommended to you by the estate agent, that way you know they are acting in your interests. On the whole though, most property purchases are hassle free here; it’s the same as with most things, you tend to hear the bad news shouted loudly from a few and the majority who have had no problems say little.

Strong price growth appears to be continuing in Bulgaria with the average apartment value rising by 1.6 per cent between April and June.

The average price for a square metre of property in the country has now reached 819.3 leva (£285), up from 806.1 leva (£280) in the first quarter, although the price increases have been anything but uniform.

Some of Bulgaria’s busiest areas, it seems, are experiencing the strongest house price growth, which would appear to be a reflection of Bulgaria’s progress as it approaches EU accession. Cities and town centres have gradually been developed to meet the demands of industry and tourism and property investors are now reaping the benefits.

Figures from the National Statistical Institute illustrate that Varna is still one of Bulgaria’s prime areas for property investment.

During the first quarter, a square metre of land in Bulgaria’s third largest city cost 1,237.8 leva (£430) and this has now reached 1,263.8 leva (£440), reflecting strong demand for properties around the Black Sea coast.

The province of Montana, meanwhile, saw prices rising from 561.8 leva (£195) in the first quarter to 615.4 leva (£215) in the second, in another of the most impressive increases.

And while apartments in Bulgaria’s lively and cosmopolitan capital city of Sofia are proving hugely popular at the moment, property investors are still snapping them up at a good price. In the second quarter, the average price was around 1,322.7 leva (£460) per square metre and it is an option that certainly appeals to many investors as Bulgaria continues to boost its standing within Europe.

But the ski resorts in Bulgaria are also attracting a huge amount of interest, largely because of the potential for rental income from tourists visiting the areas. The buy-to-let sector in Bulgaria still has a long way to go before it can compete with the likes of Spain and France but Bansko in particular is beginning to attract a staggering number of ski tourists each year.

Citing mediapool.bg, the Sofia Echo reports that construction in Bansko’s Gramadeto area is set to end at the beginning of 2007, but that a new golf course is soon to be built between Bansko and Razlog.

The report speculates that investors will be focusing on projects including Spa centres, five-star hotels and apartment complexes, as the region begins to accommodate tourists throughout the year.

Once this has been achieved, rental demand for properties in and around Bansko has the potential to be considerable and investors have already shown a great deal of enthusiasm for these opportunities.

The average property price in Bulgaria has risen with 1.6% in the second quarter, compared to the first three months of 2006, National Statistical Institute announced.

The reached level calculates at leva BGN 819.3/sq. m. (EUR 417.4/sq.m.; US$ 529.7/sq.m.). Six out of 27 regional towns mark significant growth in prices –2 -15%. Sofia estate has been the most expensive in the last three months – BGN 1322.7/sq.m.
(EUR 674 /sq.m.; US$ 855.2/sq.m.), followed by the seaside towns of Varna and Burgas.
The average price of estate in Bulgaria has increased with 36.6% in 2005 and is equal to BGN 738/sq.m. (EUR 376/sq.m.; US$ 477/sq.m.).

There is new evidence today of Bulgaria’s continued progress as it cements its reputation as a European property hotspot.

Bulgaria is set to join the EU early next year and it is a prospect that has hugely enhanced the country’s status as a strong option for property investment. Bansko, Borovets and Pamporovo have proved particularly popular with investors, largely as the ski properties are still exceptionally cheap despite huge levels of investment in recent years.

There is also a chance that Bulgaria will host the 2014 Winter Olympics, which has again stirred interest from investors across the world.

But EU accession is of course the real attraction for many, with experts suggesting that it will bring about huge house price growth as links with Europe are notably enhanced.

There is already evidence of these links being improved, particularly in the world of transportation. The Sofia News Agency reports that new flights have been launched from Sofia to Alicante, for instance, operating every Wednesday. A new flight path has also opened between the Black Sea city of Varna and Italy’s Milan, while there are now also flights going between Burgas and Dublin as well as Burgas and Madrid.

Links with Holland have also boosted Bulgaria’s relations with its European neighbours and there is a sense that it is now picking up momentum ahead of EU accession.

Interestingly, the Bulgarian News Network (bnn) has reported today that Bulgaria and Romania are set to adopt the common European currency before Hungary, which has been a member of the EU since 2004.

Adoption of the euro could again prove to be a key development in Bulgaria’s emergence as a genuine rival to the likes of Spain and France in terms of overseas property investment, with buyers less concerned about currency complications.

Interest in Bulgarian property from buyers in the UK seems to have been particularly strong over the last couple of years. As reported by the Western Mail, Bulgaria is now being seen as a top destination for beach, ski and golf holidays, and this combination is undoubtedly making it a favourite among holidaymakers from the UK.

David Wingar, founder of Future Asset Management, told the publication that we are on the verge of “a second property revolution in the UK”, with 750,000 people likely to buy a second home within the next decade.

“World stock markets are volatile and nervous investors will look to other sources, as happened in 2001,” he added.

With Bulgaria expecting impressive growth during this period, thanks largely to EU accession, it may well be that it is in an ideal position to take advantage of this “revolution”.

The profile of property investment in Bulgaria is perhaps set for a huge boost in the coming years and many investors have already gambled on this by purchasing in the country. A closer relationship with the EU will undoubtedly add impetus to prospective growth and there are clear signs that this is already being achieved.