Renovating A Property In Bulgaria – As Easy As 1 – 2 - 3?

There is no denying that some of the real bargains available to purchasers in Bulgaria are properties in need of renovation. Whilst this offers wonderful investment potential for someone looking for a long-term financial gain, there are also numerous issues that need to be considered.

Renovating a property is hard work and full of potential pitfalls, even in your home country. When you factor in a foreign workforce, a foreign language and a different set of professional standards, there are more than a few things that you should consider, before buying a derelict Bulgarian property in need of renovation.

One thing to be aware of is that even a property which is considered to be fully renovated in Bulgaria is unlikely to be up to the standard of a modern western property. So, make sure that you look carefully at any property, before you buy, so that you can get a real picture of what ‘modern’ and ‘renovated’ actually mean!

Price of property in need of renovation

A property of at least 3 to 4 bedrooms in need of full renovation can be bought for under £10,000. However, bear in mind that this type of property is likely to be in need of considerable work and may not even have the basic infrastructure such as running water and sewerage.

There are quite a few properties available for under £10,000 that do have the basic infrastructure, such as electricity and running water, although there may still be a lot of work involved in order to make the property habitable to Western standards.

Most of the cheaper properties that are in need of considerable renovation are rural properties that are located outside the main villages and towns. With this in mind, it is important that you consider issues such as the transport infrastructure and the tourist potential, to protect your rental yield down the line. Renovation costs may also spiral out of control if transport links are poor as it may make getting materials to your site difficult. Bear this in mind and cost EACH project, as you view your short listed properties. The cost of works will vary depending on location and availability of local tradesmen and materials. Take care, therefore, to cost each project accurately and do not assume that a quotation can be simply transferred to the next property.

Professional workmen

Managing a workforce can be difficult, at the best of times; in a foreign country, however, things can get even harder! There are many companies that now offer a full renovation service and will assist in sourcing architects, builders and decorators as well as overseeing ongoing works. This service of course, does not come cheap and is normally around 10 percent of the total cost of renovation.

Prices for renovation can vary dramatically, depending on the area and the type of work that is required. Experts do, however, suggest that renovation costs are somewhere between 25 and 33 percent of the equivalent costs that you would expect to pay in the UK.

Locating professional workmen can be a real headache and is something that is best achieved through word of mouth or through a pre-arranged agency. Although you may wish to save money by managing your own renovation project, this is a very risky strategy and often paying a local, English speaking professional manager will save you a lot of money (and hassle).

Most agencies that offer properties for renovation, also offer a renovation service that is well worth considering, although you should always obtain at least three quotations.

Finally, always make sure that you have a detailed written quotation that states clearly what is and what is not included. For example, will the property be furnished for you? Will the renovation be completed to Bulgarian or EU standards? This is vital, particularly before Bulgaria joins the EU, as the two standards will not always be the same. It is wise to insist that the renovation work is completed to EU standards as this is what you as a landlord will have to comply with, in years to come. Ideally, you should take a UK builder that you trust with you to Bulgaria on a visit so that they can inform you of any work that they would consider necessary to bring the property up to UK standards, not just up to Bulgarian standards! This is particularly important if you are aiming on letting the property to tourists who will expect EU standards to be met.

Speak to other locals and do your homework. Remember, the key is to believe that if it looks too good to be true, it probably is!