Buying a home abroad is not only a major financial commitment but also a decision that can have a huge influence on other aspects of your life, including for example your health, security and safety or lifestyle.
You need to take into consideration any restrictions that might affect your choice of location and type of property, such as whether you will need (or be able) to learn another language, whether you will be able (or permitted) to find work, whether you can adapt to and enjoy the climate, whether you will be able to take your pets with you, and not least, whether you will be able to afford the kind of home (and lifestyle) that you want.
It’s important to ask yourself exactly why you want to buy a home in Bulgaria. Are you looking for an investment property or do you plan to work or start a business there? Are you seeking a retirement or holiday home? If you’re after a second home, will it be used mainly for long weekends or for extended stays? Do you plan to let it to offset the mortgage and running costs? If so, how important is the property income? You need to answer these and many other questions before deciding on the best location and the most appropriate type of property to buy.
Many people buy a holiday home with a view to living there permanently or semi-permanently when they retire. If this sounds like you, there are many more factors to consider than if you’re ‘simply’ buying a holiday home that you will occupy for just a few weeks a year (in which case it’s usually wiser not to buy at all!). If, on the other hand, you plan to work or start a business in Bulgaria, you will be faced with a completely different set of criteria.
Can you really afford to buy a home in Bulgaria? What will happen in the future? Is your income secure and protected from inflation and currency fluctuations? In the ’80s many people purchased second homes overseas by taking out second mortgages on their family homes, stretching their financial resources to the limit. When the recession struck in the ’90s many people had their homes repossessed or had to sell at a huge loss when they couldn’t meet the mortgage payments.
This article is an extract from Buying a Home in Bulgaria from Survival Books.