New Builds

[Cliff Curtis]

Hi

I have sent the last year getting approved architects drawings for a new build in Varna but, not unexpectedly, the building quote has rissen by over 50%.

I have not found a method of establishing how reputible a builder is.

I just drove down to Bourgas as a developer there, from a small office in an apartment block, is trying to pesuade me to use his services at about 70% of the costs of other quotes and will be fixed.

The builder requires 50% deposite to start paid direct to his company!

Quotes from companies in Varna request a bank account be set up and, like an escrow account but without all the safeguards that you get in the UK. The main problem here, apart from price, is that prices are only estimates.

Non of the current options look inviting.

Any suggestions or advice?

Cliff:

[Jain and Chris]

Hi Cliff

You could try contacting Craig Thomas of Bulgarian Villa. He's got bases in the UK and in Varna. Contact numbers are :
Bulgaria
00359 52 60 62 64
00359 898 491 045

UK
07952 091797
01608 642411

or you can email him at info@bulgarian-villa.com

Good luck,

[damyanov]

Hi Cliff,

One of the most important things that I would advise you to do is to prepare and sign contract with the building company. Very often people pay the amounts required by the builder (building company) without having such contract signed which, I think, is a significant mistake.
Try to cover all major points in the contract (term, price, method of payment, sanctions and defaults for non-fulfillment or delay, etc.).
It is not a bad idea to make a Application to the contract and to include there the stage of completion of the object as well as the materials that you require to be used.
Good luck and regards

Bozhidar Damyanov
DK lawyers

[Ivelin]

Ask to see what they have done before,
Dont pay a big amount at the begining, and pay for a good done work.
Good Luck.

[Jain and Chris]

I agree entirely Ivelin. When we did our renovations (I know it's not a new build but the same ideas apply), we paid on a scheduled basis and kept a good 35% for after it was finished - just to make sure was all ok.

The builder was happy with this - any decent builder will be happy with a retainer kept back at the end so that you can be sure everything is correct. It's up to you to negotiate the amounts. And remember, anything not written in a contract does not exist, so be careful!

All the best

[neggy]

We have been investing in the Varna area of Bulgaria for over 5 years now. We have bought new builds from developers, older property and land of our own to build on.

There are pitfalls to investing in Bulgaria. The legal and financial framework to the Bulgarian property market takes some getting used to.

You should make friends with trustworthy locals. Be weary of trusting everything the developers say. Get translators and independant legal advice.

Does anyone hve any experience of investing in Bulgaria in the current climate?

[SPview]

Originally Posted by neggy

We have been investing in the Varna area of Bulgaria for over 5 years now. We have bought new builds from developers, older property and land of our own to build on.

There are pitfalls to investing in Bulgaria. The legal and financial framework to the Bulgarian property market takes some getting used to.

You should make friends with trustworthy locals. Be weary of trusting everything the developers say. Get translators and independant legal advice.

Does anyone hve any experience of investing in Bulgaria in the current climate?

Neggy - in what respect do you mean "any experience of investing in Bulgaria in the current climate" ????? Was it a retorical question, or do you actually want to know ?

[daveandtrish]

Originally Posted by Cliff Curtis

Hi

I have sent the last year getting approved architects drawings for a new build in Varna but, not unexpectedly, the building quote has rissen by over 50%.

I have not found a method of establishing how reputible a builder is.

I just drove down to Bourgas as a developer there, from a small office in an apartment block, is trying to pesuade me to use his services at about 70% of the costs of other quotes and will be fixed.

The builder requires 50% deposite to start paid direct to his company!

Quotes from companies in Varna request a bank account be set up and, like an escrow account but without all the safeguards that you get in the UK. The main problem here, apart from price, is that prices are only estimates.

Non of the current options look inviting.

Any suggestions or advice?

Cliff:

Ask how much per sq m they are charging. If it is over 550euros tell them to take a hike and look elsewhere. Whoever you go with, have a pre contract drawn up signed and witnessed by a notary. Make sure everything is specified. Does the price include finishing work, ie. a fitted kitchen, bathroom, tiling and laminate, also internal and external doors, windows, plaster finished walls etc. If not, see previous advice. Also make sure full insulation work is included, ie written in the pre contract. Also make sure a completion date is included, together with penalties for non completion. Also be sure that your stage payments are included, linked to various points in the construction program.
Best of luck,
Dave

[neggy]

Hi SPview it was a genuine question. As I have not kept as close an eye on the Bulgarian property market as here in the UK. I was curious to know if people were still optimistic about buying, and more importantly, selling in Bulgaria, given that we are now in a global recession.

I know that many Bulgarians do not have mortgages. So one would imagine the market would be largely unaffected by the many of the symptoms of the recession seen here in the Uk and America with bad debt and the banking crisis.

That said they have enjoyed alot of foreign investment from the UK and other countries and wondered how severely the loss is global confidence has affected the growth of the Bulgarian property market.

There appears to have been an oversupply of retail development in Varna and Sofia. Which suggests many were a little over optimistic about how long the market demand would be particularly in the retail sector.

I for one, however, very much hope that Bulgaria weathers the storm better than many other countries (UK included).

[neggy]

I can't agree more about pre-contracts. Our builder has not met the target completion date, but I doubt we will enforce the penalties. They are a relatively small outfit and I feel it is almost as important to keep on good terms with them.

We have had our issues though. They were going to fit out the apartment with floor finishes, lighting, internal doors etc. They gave us the impression this would be done almost at cost. But after 3 days of choosing materials and finishes it became apparent that their costs were going to be far from competitive.

I can see how many unsuspecting foreign investors might be taken advantage of in such situations, unless they keep their wits about them.

Anyway we have now had 'Act 16' completed and have employed our own contractors to finish the inside of the apartment. It should be finished by June.

Will keep you posted.