‘Every day 10 people are killed or injured as a result of gun crime in the UK’
The Sunday Times 26.08.07
‘British summer 2007 – the wettest since records began 240 years ago – in 1767’
BBC News 24 26.07.07
‘Last year 385,000 people left the UK’
Office for National Statistics August ‘07
The following contribution on Property Management is written by a good and trusted friend to the definitive guide, who also has five years independent asset management and renovation experience in Sofia.
Houses
High-end commuter belt living is found in Dragalevtsi, Boyana, Bistritca, Simeonovo, Kniajevo (Vladaya is not bad either), Pancharevo (a personal favourite), near the reservior. Living in Boyana, Dragalevtsi etc.. incurs crossing the dreaded ring road and congested transport arteries to get into the town centre. It is also in the shadow of the mountain being North facing and tends to miss out on late afternoon sunshine in the Summer month’s as a result. It is also handy to have a Jeep or 4x4 if you live up on the Mountain as in winter there can be icy snowy conditions and the melt water tends to leave potholes in its wake despite annual attempts to re-patch the roads! Some parts of this residential area still do not have mains sewerage and you will be required to foot the bill for septic tank collection this is a relic of when it used to be a Summer Vila zone for the well heeled apparatchiks.
Apartments
If you choose downtown living it comes with all the lack of parking and over loaded infrastructure & air quality issues that figure large in central Sofia but provides an opportunity for easy access to cultural historical and entertainment sites restaurants clubs and bars. The best areas are considered to be Lozenets, Ivan Vazov (both the aforementioned near to S.Park), Iztok (has a contingency of Embassies & new Metro links), anywhere in central Sofia from the NDK to the Radisson Hotel and the Cathedral & bordering Vitosha St. (the expensive Oxford St. of Sofia!). Dr.Garden is an area BGN brokers seem to have earmarked for foreigners, it is centrally located but tends to be a bit overrated and over-priced in my view. There are emerging areas with a lot of new developments such as Borovo with relatively good access along Blvd. Bulgaria. Vitosha district suffers from the same traffic problems if as Boyana & Dragalevtsi if you are making the daily commute into the centre.
‘Prophylactic'
I always thought this word sounded rather profane and it certainly leaves an indelible mark when you get a cold blast from the shower early on a Monday morning, as the unsuspecting foreigner unaware that the municipal central heating authority has closed off the local sub-station to perform annual maintenance on the hot water pipes! This occurs depending on the district from the end of July to end of August and is a good reason to make sure your rented property has a back up electric boiler, if you intend to be in Sofia during these months!
Bills
Be ready for the ‘Toplifikatzia’ (central heating) bill in the winter months, this arcane and inefficient system has in the past been plagued by corruption scandals at Directorial level & tends to eat heavily into household budgets, much to the chagrin of locals and ex-pats alike, with prices topping those found in the more affluent West ranging anything from 60 to 110 Euros per month! Electric radiators may provide an alternative to the expensive Municipal central heating system. Water & electricity are thankfully still reasonably priced compared to the West. Communal charges for cleaning the so called ‘common areas’ of an apartment block range from as little as 4 leva per month to more than 50 leva per month depending on whether you have a lift, gated security, landscaping & porter. LAN Cable TV & internet packages are relatively affordable at around 23 Euros per month, whilst BTK the local telephone company tends to offer more costly alternatives, though maybe more reliable.
Pets
Generally not welcome in rented properties.
Noisy neighbours?
Watch out for neighbours doing so called ‘remonts’ (renovation work) this can entail more jaw-jarring drilling and banging than a trip to the dentists or a hip replacement!
To Air-Con or not, that is the question!
I have never found this an essential part of Sofia living with no more than a few days per year being unbearably sticky as the temperatures tend to be fairly manageable if you are not running around town on-foot. Of course this is down to personal heat tolerance and as an added luxury it allows you to regulate the temperature without opening windows to potential traffic fumes and noise. It does markedly increase your electricity bill though if you crank it up on a regular basis!
Fully serviced apartments
This is an option it is expensive but obviously saves you dealing personally with local bureaucracy and may be a price you consider worth every penny to preserve your sanity during your time in Sofia!
Agents …‘Brokers-Shmokers’!
Don’t be surprised to turn up to viewings crowded out by these ‘creatures’, I have been on viewings with upto 4 brokers, translators and varied assistants crowding out a modest apartment, whilst the potential tenant c cowers apoplectic in the corner! The brokers hungry as vultures to carve up the deal make sure you have no chance of direct contact with the owner & heaven forbid exchange business cards! Please note that with a few notable exceptions many brokers represent themselves first and last, despite claims to objectively represent your best interests as their client at all times! Don’t forget that brokers can often represent both the owner and the potential tenant, but may deem this to be of minor importance and not worth mentioning.
Finders fees
Expect to pay a standard 50% (EX-Vat) of the Gross monthly rental fee. Colliers charge a full month’s rent to both sides ….nice work if you can get it!
Terms and conditions & ‘Contracts shmontracts’!
Bulgarian’s have a love of contracts and stamps in all their guises, this maybe a hangover from before ‘the changes’ and can come as shock to new arrivals! Rental contracts are generally fairly standard, expect to pay up to 2 months equivalent rent as a deposit depending on the size of the monthly rental fee and how well the apartment has been fitted out. Landlord’s letting to a company or apartments with lower rents may ask you to pay the rent quarterly in advance giving them some security whilst reducing the administrative burden to all parties. The owner should insure the property against third party fire and theft & pay the annual property tax, barring the garbage collection tax, which can be passed onto the tenant, who is also expected to foot the bill for the common area charges. As with everything it is down to reasonable negotiation.
James Flint Director
+359 (0) 2 9530116
+359 (0) 897 684 208
James@sofiacasa.com
Purchase
Who ordered these chairs? Visitors to Bulgaria are referred to as ‘foreigners’, though with EU accession a lot of the foreigners are Europeans. At present, Bulgarians can buy a house but foreigners are not permitted to own land in Bulgaria. Therefore, if you want to buy anything other than an apartment* it is necessary to form a limited company that can own land and then register as a company director. The company formation usually takes around four weeks and costs approximately 650 euro.
A solicitor, usually representing the builder (“investor” in Bulgaria) will draw-up a preliminary contract of sale. The contract will usually be bi-lingual, Cyrillic and English, however there are sometimes horrendous instances of lost in translation. The Latin phrase used universally by the judiciary is caveat emptor, translated to buyer beware. The reason to beware in this case is that, the Cyrillic version of the contract will apply. Despite eventual recourse to the European Court as an aggrieved purchaser, initial resolution through a Bulgarian court could take between three and five years. For peace of mind and prior to signing a preliminary contract, consult an English-speaking Bulgarian attorney (available through bi-lingual www.lex.bg), this should not cost more than 100 euro.
Prior to completion in the UK it is commonplace to ‘snag’ the property to highlight structural or finishing work defects. Snagging is not recognised by Bulgarian statute but is still recommended (irrespective of what the sales agent will tell you). The advantage to the buyer is that the builder is required to rectify structural defects for up to 10 years and other defects for up to five years. Many preliminary contracts stipulate two years for other defects but this is sharp practice and the term is illegal, as such it will not affect you statutory rights. That said, when faced with too much remedial work your builder is liable to bankrupt the company and transfer the assets to a newco and then any claims for compensation or work to be rectified will be without foundation. The two drivers towards the Protocol of Completion, the Deed transfer and subsequent ownership, are Act 16 and the Certificate of Habitation. Payment of the balance of the purchase price, including 20 per cent VAT plus local taxes and the Notary fees conclude the transaction. This can all be transacted at distance providing your solicitor is given power of attorney.
Property Insurance
Property insurance is available to individuals and legal entities (the vehicle currently used by foreigners to purchase land and housing, not apartments).
The basic policy cover includes loss and damage resulting from fire (including the consequences of extinguishing thereof), lightning, explosion or implosion, aircraft, parts or the cargo therefrom, natural perils (including storm, hail, torrential rain, flood, snow and ice pressure, freezing, falling trees, branches, or other external objects following storm or hail), sewer water, vehicle or animal impact, and as well expenses made by the insured providing due care for loss minimization.
The basic policy cover includes loss and damage resulting from a burglary as well as additional damage (incl. to walls, doors, locking devices and the like) caused by the burglars. If agreed, the coverage may be extended to include a burglary by using technical device.
If agreed, the insurance cover may be extended to include:
The insurers include, in no particular order:
Removals
The concept of “Dad, do you the piano is on my foot – no son, you hum it and I will play it” is alive and well in Sofia.
There are the large, reputable and established removals companies such as Allied Pickford (who also benevolently support the children’s charity – One Life Bulgaria) and Voerman. There are also many small companies who will convey your individual or company possessions. The scope of the service and cost provided by the various removals companies will vary considerably. There are a number of obvious considerations:
Utilities
It is necessary to take hallucinogenic drugs to understand how most utility providers operate, or not as the case maybe.
In Sofia, the electricity provider is CEZ Group. Bulgarians regularly comment that it is easier to plat sand than change the content of one of their quarterly bills. Examples of lunacy include:
Experience dictates that when dealing with governmental and other bureaucratic organisations a can-do attitude does not exist. Seemingly a thousand reasons will be given why something cannot happen before, if ever, it does!
The Sunday Times 26.08.07
‘British summer 2007 – the wettest since records began 240 years ago – in 1767’
BBC News 24 26.07.07
‘Last year 385,000 people left the UK’
Office for National Statistics August ‘07
The following contribution on Property Management is written by a good and trusted friend to the definitive guide, who also has five years independent asset management and renovation experience in Sofia.
Houses
High-end commuter belt living is found in Dragalevtsi, Boyana, Bistritca, Simeonovo, Kniajevo (Vladaya is not bad either), Pancharevo (a personal favourite), near the reservior. Living in Boyana, Dragalevtsi etc.. incurs crossing the dreaded ring road and congested transport arteries to get into the town centre. It is also in the shadow of the mountain being North facing and tends to miss out on late afternoon sunshine in the Summer month’s as a result. It is also handy to have a Jeep or 4x4 if you live up on the Mountain as in winter there can be icy snowy conditions and the melt water tends to leave potholes in its wake despite annual attempts to re-patch the roads! Some parts of this residential area still do not have mains sewerage and you will be required to foot the bill for septic tank collection this is a relic of when it used to be a Summer Vila zone for the well heeled apparatchiks.
Apartments
If you choose downtown living it comes with all the lack of parking and over loaded infrastructure & air quality issues that figure large in central Sofia but provides an opportunity for easy access to cultural historical and entertainment sites restaurants clubs and bars. The best areas are considered to be Lozenets, Ivan Vazov (both the aforementioned near to S.Park), Iztok (has a contingency of Embassies & new Metro links), anywhere in central Sofia from the NDK to the Radisson Hotel and the Cathedral & bordering Vitosha St. (the expensive Oxford St. of Sofia!). Dr.Garden is an area BGN brokers seem to have earmarked for foreigners, it is centrally located but tends to be a bit overrated and over-priced in my view. There are emerging areas with a lot of new developments such as Borovo with relatively good access along Blvd. Bulgaria. Vitosha district suffers from the same traffic problems if as Boyana & Dragalevtsi if you are making the daily commute into the centre.
‘Prophylactic'
I always thought this word sounded rather profane and it certainly leaves an indelible mark when you get a cold blast from the shower early on a Monday morning, as the unsuspecting foreigner unaware that the municipal central heating authority has closed off the local sub-station to perform annual maintenance on the hot water pipes! This occurs depending on the district from the end of July to end of August and is a good reason to make sure your rented property has a back up electric boiler, if you intend to be in Sofia during these months!
Bills
Be ready for the ‘Toplifikatzia’ (central heating) bill in the winter months, this arcane and inefficient system has in the past been plagued by corruption scandals at Directorial level & tends to eat heavily into household budgets, much to the chagrin of locals and ex-pats alike, with prices topping those found in the more affluent West ranging anything from 60 to 110 Euros per month! Electric radiators may provide an alternative to the expensive Municipal central heating system. Water & electricity are thankfully still reasonably priced compared to the West. Communal charges for cleaning the so called ‘common areas’ of an apartment block range from as little as 4 leva per month to more than 50 leva per month depending on whether you have a lift, gated security, landscaping & porter. LAN Cable TV & internet packages are relatively affordable at around 23 Euros per month, whilst BTK the local telephone company tends to offer more costly alternatives, though maybe more reliable.
Pets
Generally not welcome in rented properties.
Noisy neighbours?
Watch out for neighbours doing so called ‘remonts’ (renovation work) this can entail more jaw-jarring drilling and banging than a trip to the dentists or a hip replacement!
To Air-Con or not, that is the question!
I have never found this an essential part of Sofia living with no more than a few days per year being unbearably sticky as the temperatures tend to be fairly manageable if you are not running around town on-foot. Of course this is down to personal heat tolerance and as an added luxury it allows you to regulate the temperature without opening windows to potential traffic fumes and noise. It does markedly increase your electricity bill though if you crank it up on a regular basis!
Fully serviced apartments
This is an option it is expensive but obviously saves you dealing personally with local bureaucracy and may be a price you consider worth every penny to preserve your sanity during your time in Sofia!
Agents …‘Brokers-Shmokers’!
Don’t be surprised to turn up to viewings crowded out by these ‘creatures’, I have been on viewings with upto 4 brokers, translators and varied assistants crowding out a modest apartment, whilst the potential tenant c cowers apoplectic in the corner! The brokers hungry as vultures to carve up the deal make sure you have no chance of direct contact with the owner & heaven forbid exchange business cards! Please note that with a few notable exceptions many brokers represent themselves first and last, despite claims to objectively represent your best interests as their client at all times! Don’t forget that brokers can often represent both the owner and the potential tenant, but may deem this to be of minor importance and not worth mentioning.
Finders fees
Expect to pay a standard 50% (EX-Vat) of the Gross monthly rental fee. Colliers charge a full month’s rent to both sides ….nice work if you can get it!
Terms and conditions & ‘Contracts shmontracts’!
Bulgarian’s have a love of contracts and stamps in all their guises, this maybe a hangover from before ‘the changes’ and can come as shock to new arrivals! Rental contracts are generally fairly standard, expect to pay up to 2 months equivalent rent as a deposit depending on the size of the monthly rental fee and how well the apartment has been fitted out. Landlord’s letting to a company or apartments with lower rents may ask you to pay the rent quarterly in advance giving them some security whilst reducing the administrative burden to all parties. The owner should insure the property against third party fire and theft & pay the annual property tax, barring the garbage collection tax, which can be passed onto the tenant, who is also expected to foot the bill for the common area charges. As with everything it is down to reasonable negotiation.
James Flint Director
+359 (0) 2 9530116 +359 (0) 897 684 208 James@sofiacasa.com Purchase
Who ordered these chairs? Visitors to Bulgaria are referred to as ‘foreigners’, though with EU accession a lot of the foreigners are Europeans. At present, Bulgarians can buy a house but foreigners are not permitted to own land in Bulgaria. Therefore, if you want to buy anything other than an apartment* it is necessary to form a limited company that can own land and then register as a company director. The company formation usually takes around four weeks and costs approximately 650 euro.
A solicitor, usually representing the builder (“investor” in Bulgaria) will draw-up a preliminary contract of sale. The contract will usually be bi-lingual, Cyrillic and English, however there are sometimes horrendous instances of lost in translation. The Latin phrase used universally by the judiciary is caveat emptor, translated to buyer beware. The reason to beware in this case is that, the Cyrillic version of the contract will apply. Despite eventual recourse to the European Court as an aggrieved purchaser, initial resolution through a Bulgarian court could take between three and five years. For peace of mind and prior to signing a preliminary contract, consult an English-speaking Bulgarian attorney (available through bi-lingual www.lex.bg), this should not cost more than 100 euro. Prior to completion in the UK it is commonplace to ‘snag’ the property to highlight structural or finishing work defects. Snagging is not recognised by Bulgarian statute but is still recommended (irrespective of what the sales agent will tell you). The advantage to the buyer is that the builder is required to rectify structural defects for up to 10 years and other defects for up to five years. Many preliminary contracts stipulate two years for other defects but this is sharp practice and the term is illegal, as such it will not affect you statutory rights. That said, when faced with too much remedial work your builder is liable to bankrupt the company and transfer the assets to a newco and then any claims for compensation or work to be rectified will be without foundation. The two drivers towards the Protocol of Completion, the Deed transfer and subsequent ownership, are Act 16 and the Certificate of Habitation. Payment of the balance of the purchase price, including 20 per cent VAT plus local taxes and the Notary fees conclude the transaction. This can all be transacted at distance providing your solicitor is given power of attorney.
Property Insurance
Property insurance is available to individuals and legal entities (the vehicle currently used by foreigners to purchase land and housing, not apartments).
The basic policy cover includes loss and damage resulting from fire (including the consequences of extinguishing thereof), lightning, explosion or implosion, aircraft, parts or the cargo therefrom, natural perils (including storm, hail, torrential rain, flood, snow and ice pressure, freezing, falling trees, branches, or other external objects following storm or hail), sewer water, vehicle or animal impact, and as well expenses made by the insured providing due care for loss minimization.
The basic policy cover includes loss and damage resulting from a burglary as well as additional damage (incl. to walls, doors, locking devices and the like) caused by the burglars. If agreed, the coverage may be extended to include a burglary by using technical device.
If agreed, the insurance cover may be extended to include:
- landslide or collapse of earth mass, earthquake, short circuit or over-voltage, malicious acts by third parties, change of address;
- removal of debris, relocation, protection and storage, loss of rent;
- glass breakage with the option of 'all risks';
- third party liability following an insured event.
The insurers include, in no particular order:
- Generali Bulgaria Holding AD
- Allianz Bulgaria
- DZI - General Insurance Plc.
- Bulstrad Plc. - since April 2007 Vienna Insurance Group is a major shareholder of Bulstrad.
- Interamerican Bulgaria – owner is the Dutch financial holding Eureko
- QBE Bulgaria - branch of London based QBE Insurance (Europe) Limited
- HDI Insurance – main shareholders: HDI-Gerling International Holding /Germany/ and the Central Cooperative Union /BG/.
- Bul Ins
- Bulgarski Imoti – main shareholder /98%/ is Wiener Staedtishe Allgemeine Versicherung
- Lev Ins
- Victoria Insurance – part of Generali Group
Removals
The concept of “Dad, do you the piano is on my foot – no son, you hum it and I will play it” is alive and well in Sofia.
There are the large, reputable and established removals companies such as Allied Pickford (who also benevolently support the children’s charity – One Life Bulgaria) and Voerman. There are also many small companies who will convey your individual or company possessions. The scope of the service and cost provided by the various removals companies will vary considerably. There are a number of obvious considerations:
- The quantity of goods to be moved;
- Cross-border removal requires international experience;
- Within Bulgaria or across a city;
- The cover, if any, afforded by the removers’ insurance
- A need for English speaking or not
Utilities
It is necessary to take hallucinogenic drugs to understand how most utility providers operate, or not as the case maybe.
In Sofia, the electricity provider is CEZ Group. Bulgarians regularly comment that it is easier to plat sand than change the content of one of their quarterly bills. Examples of lunacy include:
- A quarterly charge (payable monthly – according to assumed consumption until the quarterly reading) of 75 leva, with assumed usage the next monthly charge was 134 leva.
- Our sympathies to the Bulgarian who purchased a Sofia apartment in 2005. Having endured the conveyance and “remont”, CEZ continued to address the bill to the deceased former occupier at the wrong apartment but with the correct ITN (meter number). When the new occupant tried to resolve the situation he was told by CEZ to write a letter and visit their Head Office which would involve queuing for hours, the bill remains blissfully incorrect!
Experience dictates that when dealing with governmental and other bureaucratic organisations a can-do attitude does not exist. Seemingly a thousand reasons will be given why something cannot happen before, if ever, it does!