Looking for Advice - Apartment in Sofia

@HeebieGeebie

Welcome to the expat.com forum, and good luck with your (property) adventures in Bulgaria!

It's all pretty subjective, I'd say, so some will love your idea, others will hate it. Personally, I'm tending to the latter side, so I'm very sorry to be raining on your parade. :-) Hopefully, someone else will give us the bullish case, for comparison.

In any case, Bulgarian property prices are rising, especially in Sofia. So it might work out well, due to appreciation/leverage, despite any concerns.

However, I'm not at all sure about buying something specifically for Airbnb (as you'd hardly use it), as opposed to something to live in. I also wonder about how easy it is to get a Bulgarian mortgage (as you're perhaps not a resident) for this... or using a UK mortgage for an overseas purchase.

And I'd have to think carefully about buying something in joint names, especially if I were the one plunking down the 50k deposit. But if it's her money, then it's a no-brainer. :-)

You also have to consider whether to apply your cash + borrowing power to a UK property, which might get better returns, and be easier to manage as you're living there.

I like Airbnb (I was a Superhost for many years), but I don't think I'd buy something specifically, or principally, to be an AIrbnb let. Especially if I had to borrow money to do it.

The Airbnb hosting fee (as you're not here to manage it) is a big unknown. I still have my apartment in Buenos Aires, and my neighbour's commission for dealing with Airbnb means I make almost zero profit - and that's without any rent/mortgage costs. Most that I see (and my neighbour is no exception) charge based upon your gross revenue (= nightly rate). Even small gross percentages look pretty distressing when you compare it with your net after mortgage payments, property taxes, and general expenses for enabling strangers to live in it.

But there are folks with properties in high-demand, high-price locations that do have mortages and still make money. So I certainly don't say it's impossible.

On the other hand, it seems perfectly understandable that you want to own a place in Bulgaria that you can come to regularly. However, my suggestion would be to explore what you can get here as a small, lock-up-and-leave apartment without needing a mortgage. Sadly, 50k euros no longer goes very far, especially in Sofia. So this means you need either a bigger budget and/or consider other locations.

I bought a studio in Plovdiv for 40k, about 4 years ago. (To rent on Airbnb, ironically, and before you ask how it went, let me say: Pandemic. I bought with cash, so no big deal, but if I'd had a 150k mortgage it would have been much more unpleasant!) Plovdiv is a great city, and we very much enjoy living here... but I doubt a (decent) 50k studio is still possible. There might be smaller cities (e.g. Stara Zagora, Veliko Tarnovo, Sliven, Ruse) where you can. However, you can definitely still find properties under 50k in/near Bansko (main ski resort, and also lovely) and in/near Sunny Beach (main beach resort).

No need to be sorry, you've given an unbiased and reasoned opinion. i really appreciate your detailed response. There are a lot of considerations indeed. I'll keep researching and discuss with my partner what the priorities are. Opinions from anyone else who may be reading this are also welcomed!!

@HeebieGeebie Hello,

It is always good to invest in a property so you are not insane.

I do not think that the British national  will get a mortgage in Bulgaria.

Have you checked this?

Otherwise you have done your homework quite well.

Yes, you can buy the property on joint names.

Kind Regards,

Vesela Mc Callum

Keep us posted Heebie

@HeebieGeebie Yes you have missed something the price of groceries in Bulgaria I’m in Bulgaria now to purchase and the prices in supermarkets are silly the same or more than UK

https://imgupx.com/RbJgmiEQ

@HeebieGeebie Yes you have missed something the price of groceries in Bulgaria I’m in Bulgaria now to purchase and the prices in supermarkets are silly the same or more than UK
-@jeffrey747

The price of food has gone up everywhere in Europe.

@HeebieGeebie

Obtaining mortgages is very difficult and costly. 

As you are not married, I suggest you create a BG Corporation as 50-50 and co managing partners.   This is the safest route for you.   

I suspect that you can title in co names as apartments do not include ownership of land, however the laws are so disconnected in Bg that many unintended consequences have occurred when one law is modified and its impact is not evaluated.

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Off topic, but Jeffery, you are looking at supermarket prices for UK products imported into Bulgaria! Hellmann's mayo is hardly representative of real prices in Bulgarian supermarkets, IMO.