Borovets Gardens + Exclusive Ski & Spa Resort

[Basilpea]

Hi, I am new to this site and to blogging so forgive my naivety. I have bought an off-plan property in Borovets Gardens and have paid 50% so far, completion due and apparently on target for December. My concern at the moment is not about the agent Dream Resorts (who have been very helpful and professional so far) or about the developer Glavbolgarstroy who seem (I hope) to be one of the better ones as far as I can tell. Having read numerous articles in the press I am sceptical now about the Bulgarian property market as a whole.
My main objective in investing in the property was to achieve income from holiday (ski) rentals, so I can take a more long term view on the capital value aspect of the market - does anyone have experience of holiday lets in Borovets? What sort of yield can I expect from this apartment on completion? Does anyone know about the progress of the "Super Borovets" project?
I originally bought another apartment in the Exclusive Ski & Spa resort (completion due Dec 09) but I am pulling out of this one sacrificing the deposit paid of 15% as mortgages seem to be now unobtainable for the foreseeable future in Bulgaria. Is this the right thing to do?
I have written to the agent and the developer suggesting that in view of the current state of property values and lack of purchasers they need to offer incentives to all current purchasers to ensure they are willing and able to complete in December - I have suggested such things as revaluations, discounts, rental guarantees etc. Has anyone else had experience of this? It would be interesting to link with other purchasers in this project.

 

[francks]

I bought in this resort as well and I am worried too. Especially since it looks like financing is still unavailable and that I might have to put up with the remaining 50% in cash. It would be interesting to know of anyone who has managed to secure funding recently. Dreamresorts have been unable so far to find anyone willing to lend for the project and that in itself is worrying.

 

[barrymetters]

Borovets Gardens

Hi, I have just found your post through a google search. I am in exactly the same situation. I am buying a property in this development and have paid 50% of the purchase price, and am now unable to get a Bulgarian mortgage. I am at risk of losing the money I have already paid. I have been in many discussions with the developers, but they wont help. The only option they gave me is to transfer to a cheaper apartment, which I did. I feel that finance options should be made available to us or a delay on the final payment until mortgages become available.

 

[Todan]

Hello, also purchasing an apartment on the borovet gardens development. As I understand it Bulgaria does not have the full ability to help its self out of recession. They are dependent of ECB and the IMF providing funding for the economy to grow, regarding property it requires people like us to return to the market in droves to push prices back up. I suspect that long term they will bounce back but I question how much now places like Brazil hold the lime light.

Basilpea, wanted to ask the property you lost you 15% on, was this on
the borovet gardens development and when did you pull out. I might have to face up to doing the same thing.

Hi, I am new to this site and to blogging so forgive my naivety. I have bought an off-plan property in Borovets Gardens and have paid 50% so far, completion due and apparently on target for December. My concern at the moment is not about the agent Dream Resorts (who have been very helpful and professional so far) or about the developer Glavbolgarstroy who seem (I hope) to be one of the better ones as far as I can tell. Having read numerous articles in the press I am sceptical now about the Bulgarian property market as a whole.
My main objective in investing in the property was to achieve income from holiday (ski) rentals, so I can take a more long term view on the capital value aspect of the market - does anyone have experience of holiday lets in Borovets? What sort of yield can I expect from this apartment on completion? Does anyone know about the progress of the "Super Borovets" project?
I originally bought another apartment in the Exclusive Ski & Spa resort (completion due Dec 09) but I am pulling out of this one sacrificing the deposit paid of 15% as mortgages seem to be now unobtainable for the foreseeable future in Bulgaria. Is this the right thing to do?
I have written to the agent and the developer suggesting that in view of the current state of property values and lack of purchasers they need to offer incentives to all current purchasers to ensure they are willing and able to complete in December - I have suggested such things as revaluations, discounts, rental guarantees etc. Has anyone else had experience of this? It would be interesting to link with other purchasers in this project.

 

[Basilpea]

Borovets Gardens

Hello, also purchasing an apartment on the borovet gardens development. As I understand it Bulgaria does not have the full ability to help its self out of recession. They are dependent of ECB and the IMF providing funding for the economy to grow, regarding property it requires people like us to return to the market in droves to push prices back up. I suspect that long term they will bounce back but I question how much now places like Brazil hold the lime light.

Basilpea, wanted to ask the property you lost you 15% on, was this on
the borovet gardens development and when did you pull out. I might have to face up to doing the same thing.

Firstly, I did mention in my first blog, the property I am abandoning is at Exclusive Ski & Spa resort with consequent loss of deposit.
I have a couple of articles from the press, one of which I have attached, the other is too big to upload on this forum, I can email it to you directly if you let me know your email address. The prospect as painted by the Press is somewhat bleak for Bulgaria, but I do take these things with a large pinch of salt - one week they are saying a country will crash and burn, the next week it is the hot place to invest. I think generalisations can be misleading as local circumstances can affect property values to a very large extent.
Borovets Gardens we have just learned is well ahead of schedule, which is good news for me as it means I will be able to let the apartment this coming ski season (hopefully),I am assured full management facilities will be in place and the communal facilities will be operational. I am lucky, in that I am in a position to complete the purchase without a mortgage, although I would have preferred to gear the investment and re-invest the remaining capital elsewhere.

I have asked the developers for a reduction in price due to the current state of the Bulgarian Real Estate market but they have ruled this out on the basis that the project is different to any other in Borovets (I guess they would say that) and that there is even a price rise anticipated on the remaining unsold units (hard to believe). I had hoped that more buyers would contact via this blog to enable us all to gauge the prospects for the project when completed, it is also disappointing not to have had any feedback on the progress of Super Borovets.

Before making the final payment I will be visiting the project (for the first time) to see what is actually there and make sure I am getting value for money - this is likely to be in the next 3 or four weeks. I will get an independent valuation and I will let you know how it is looking.

 

[Lysos]

Rosebud,

Obviously you 'crunched the numbers' before investing. Bearing in mind that the ski season is comparatively short - 8 to 12 weeks dependent on snow, obviously - and you are unlikely to get any rentals outside of this period, what rate of return do you realistically expect taking into account ALL costs e.g. purchase, mortgage, legals, service charge, insurance, utilities, council tax (equivalent) your own visits to check on progress, maintenance,cleaning. furniture etc. ?. (Remember furniture is not a one-off cost).
Is your block let to a major tour operator or are you trying to market it yourself ?.

 

[Basilpea]

Rosebud, Lysos,

This investment was pre-credit crunch, so the main play was on capital growth, particularly bearing in mind the Super Borovets development of the resort. Things look rather different now - capital growth is unlikely for some years and the Super Borovets project has stalled due to the current financial climate. Who knows if/when Super Borovets will happen? Although I did notice that the developer Glavbolgarstroy have disposed of a number of major assets allegedly in order to fund the Super Borovets project.
With regard to cash-flow, I have made enquiries with some other apartment owners & agents in this town and they say that you can probably expect to earn between 3k and 5k per annum marketing privately, GBS tours apparently deal with the big tour operators (Thomsons etc) but whilst you may get higher occupancy through them, by the time they have taken their commission you are unlikely to end up with a higher return. I note on the contract that the maintenance costs are quite reasonable (8 Euros/sq mtr) and are pegged to the local inflation rate (whatever that may be),so that sounds comforting. This does mean that you will probably just about cover the running costs but would not cover any mortgage interest. Basically, the viability of the project boils down to whatever happens to Bulgarian Real Estate prices and whether or not Super Borovets happens - don't hold your breath! It's fine if you have no mortgage and will get some personal use from the property, but if you were looking at it as a source of income or are funding it via a mortgage, the numbers will not add up (not in positive territory). Maybe my children will benefit from it one day, luckily I have other property that performs much better than this (at the moment).

 

[Lysos]

Very level headed approach, Basilpea, and proves without doubt the old aphorism of eggs & baskets, particularly when it comes to investment. I did caution an acquaintance of mine who fell for the sales patter and bought two apartments in Sunny Beach (unseen !!!!!),believing he could flip one and profit longer term on the other. He is now left to rue his decision at leisure and is debating whether to walk away & suffer the capital loss rather than the ongoing costs of maintaining them at a loss. He (and I) don't see the prices ever recovering enough to make the purchase viable in real terms, and it's a fact that over time even well maintained 'holiday' blocks deteriorate. I've seen this in Spain, Portugal, Turkey & Cyprus.

 

[lavathrow]

Help

Hi All, I too are in the same position re financing. What address (or email address) should I write to in order to put a case forward for delayed payment? Thanks

 

[lavathrow]

Hi Rosebud, yes Dream Resorts, they have been good, but it still concerns me re the finance. Have Dream Resorts discussed bridging further. Or is that a no go-er as well?

 

[lavathrow]

yep fraid so, and struggling.

 

[lavathrow]

they have not come back to me yet.

 

[barrymetters]

Dream resorts have advised us to email them stating that we will be able to make the payment once re-mortgage has been approved, the developer may be more flexible with the final payment.

 

[francks]

Dream resorts have advised us to email them stating that we will be able to make the payment once re-mortgage has been approved, the developer may be more flexible with the final payment.

What is the final payment? Is it not the remaining 50%? I was also thinking of going there to see status before spending any more money. Any idea what the payment schedule is until December?

Also, has anyone purchase any furniture yet? Any advice?

 

[Basilpea]

What is the final payment? Is it not the remaining 50%? I was also thinking of going there to see status before spending any more money. Any idea what the payment schedule is until December?

Also, has anyone purchase any furniture yet? Any advice?

Francks,
My contract states that the balance of the full purchase price is due within 7 days of signing of Act 15, which the developer is expecting to do within the next couple of weeks. The lawyer has a meeting with the developer this week and expects to have a specific timescale agreed at the meeting, I will post to this site as soon as I know what this is. I think the developer has to be sensible about the payment schedule as most buyers have been told final payment would be December, so have planned around that - GBS are just trying to make sure the money comes in as quickly as possible and doesn't drag on too far into the New Year.
Re. furniture, it has been indicated that the "basic" package will cost about €6000, I don't know if this is reasonable or not, it depends on what is included in the package and of what quality. I am hoping to see a sample when I go out there to view the property. If anyone has experience of furniture costs in Bulgaria I too would appreciate some advice. There is an Ikea in Sofia, so I suppose a look at the website for this branch would serve as a benchmark.

 

[Basilpea]

Rosebud wilted?

Moderator,
I am intrigued, why were all Rosebuds comments removed? They did not seem contentious to me.

 

[dongle]

borovets gardens resort

Hi everyone,

I would like if some one could help me with my enquiry. I bought an apartment in borovets gardens last year and it is nearly built. I was told at the time that i could pay in either sterling or euro.
I chose to pay in sterling but dream resorts said that everyone has to pay in euro. The euro then dropped so i lost money because if i paid in sterling i would not have so much left to pay off right now.
I would like to know if anyone else who invested in borovets gardens were able to pay in sterling or if anyone had to pay in euro in the end.
Thank you!

 

[barrymetters]

We had to pay in euro's. We were naive and didn't consider the exchange rate. When we bought at the very beginning of the project, the euro was 1.45....imagine how we feel now...losing a couple of thousand...!!! gutted..!!

 

[dongle]

I know. Gutted myself. They gave me the option of paying in sterling or euro and when i decided on sterling they said it wasn't allowed anymore because everyone was paying in euro which i find hard to believe to be honest. Someone is making a lot more money than they should here and its not us. I'm so annoyed.

 

[francks]

Francks,
My contract states that the balance of the full purchase price is due within 7 days of signing of Act 15, which the developer is expecting to do within the next couple of weeks. The lawyer has a meeting with the developer this week and expects to have a specific timescale agreed at the meeting, I will post to this site as soon as I know what this is.

Basilpea,

Do you mean that we would have to pay the balance before receiving the keys? It would leave us in a very dire situation if something is wrong upon delivery of the flat. Usually you pay the balance upon inspection and delivery of the keys. Do you think this is something reasonable to ask (say keep 10% for payment at key exchange)?