Non completed blocks to be torn down within 5 years

[ladybird2011]

A Bulgarian friend staying with us recently mentioned that the government had recently passed a law so that any apartment block or hotel development, not completed, can and will be demolished after a period of 5 years. It does not matter if the building has proper permissions. This is great news to try and clean up and restore areas around Sunny Beach and Bansko but I imagine rather worrying for those with money tied up in developments where work has halted and they have a non-complete development.

Don't know the ins and outs of this and exactly what would be classed as non-complete - something without act 15 say or just something that was concrete pillars and a roof????

 

[ssanner]

A Bulgarian friend staying with us recently mentioned that the government had recently passed a law so that any apartment block or hotel development, not completed, can and will be demolished after a period of 5 years. It does not matter if the building has proper permissions. This is great news to try and clean up and restore areas around Sunny Beach and Bansko but I imagine rather worrying for those with money tied up in developments where work has halted and they have a non-complete development.

Don't know the ins and outs of this and exactly what would be classed as non-complete - something without act 15 say or just something that was concrete pillars and a roof????

good news, so many unfinished developments polute the landscape in Sunny Beach, some with just pillars and a roof (nothing else). Eyesore!

 

[Veronica]

What about the poor people who have bought properties in these blocks?
Will they get their money back or other properties in lieu?

 

[ladybird2011]

I very much doubt it but in any case these people have most likely lost everything they invested in these blocks - they have now sat there for a couple of years and nothing has happened, the developer has disappeared......

 

[Veronica]

I very much doubt it but in any case these people have most likely lost everything they invested in these blocks - they have now sat there for a couple of years and nothing has happened, the developer has disappeared......

So as usual its the little man who risked his life savings that suffers while the criminals reap the benefits.

 

[Veronica]

We looked at Bulgaria a few years ago intending to buy there but we got a feeling of unease while there and felt it would too risky so decided against it.
Thank god.

 

[ladybird2011]

True that it will be the average person on the street that put in their savings to buy a place and the developer used some of that money before things collapsed here in terms of the property market and the developers did a runner.

However, often these buyers did no research, never visited, just kept sending money without ever checking on progress, getting a lawyer etc.....There are many such stories like this.

It does not mean Bulgaria is a bad place to invest or every property here is a risk, it means you need to do your research and take precautions.

 

[Veronica]

True that it will be the average person on the street that put in their savings to buy a place and the developer used some of that money before things collapsed here in terms of the property market and the developers did a runner.

However, often these buyers did no research, never visited, just kept sending money without ever checking on progress, getting a lawyer etc.....There are many such stories like this.

It does not mean Bulgaria is a bad place to invest or every property here is a risk, it means you need to do your research and take precautions.

I know what you mean. There are a few developments here in Cyprus which were sold by agents in the UK. Most of the buyers never came to see what they were buying and they believed all the lies they were told by the agents. Then when they eventually come to see their properties they are upset because they have not got the sea views they were promised, the apartments are tiny and the location is surrounded by scruffy wasteland. These developments also tend to be very much overpriced.
As you say people don't do their homework before jumping in and buying abroad.

 

[ssanner]

I agree with your comments, like any business investment, you need to do your research before parting with your hard earned cash! In the case of Bulgaria, go and visit, research the developper, talk to other investors, get professional advise (not from real estate agents).

Many investors lost their money in property worldwide, not only in Bulgaria, you just need to read through the forums here (Dubai comes to mind, Spain, Cyprus, etc.). On the plus side, the quality of the buildings is good, and Bulgaria is a great destination for holiday (Black Sea resorts, Sofia, Ski).

 

[bulbasaurus]

Off plan

The completely daft thing frankly is to buy anything off plan in tourist resorts. Why buy something that may never be built rather than something that is already complete?

This I never understand....If you are going to do this off plan thing then use only an absolute market leading estate agent in the country in question like,eg, Oberhaus in Baltics who have massive local reputation at stake and will do their own detailed due diligence. NEVER use a UK agent.

 

[ladybird2011]

I think you will find that many of the people that did buy here and ended up with nothing did you what were supposed to be market leaders at the time!

And a few years ago there was very little to buy in the way of resales - that market is only now. It was basically off-plan or nothing.

 

[ladybird2011]

Sorry already agreed to buy an apartment.

 

[Appletree]

A kickstart to the building trade

Maybe this law is the reason that work has resumed on so many apartment complexes along the coastal areas. Last year there were hundreds of part-built developments which were completely deserted (apart from the odd security guard). This year I have noticed that there are workmen doing things on many of those sites again and some of them are now nearly finished. Perhaps the reason that the law was passed was to encourage the developers to get back to work.