With over 25 years' experience in the local property scene, Dhalia Real Estate Services last year broadened its horizons overseas. Successfully setting up a real estate office in Sofia, Bulgaria, Dhalia has made overseas property investment more accessible to Maltese private investors.
Even though real estate investments in Bulgaria might at times sound threatening and complicated, Dhalia has managed to make this an attractive opportunity. With a full-time lawyer as manager for its Sofia office, and a team of dedicated consultants, the process of investing in Bulgarian property has become relatively safe and easy for the Maltese investor.
The Sofia office has already sold a good number of apartments and plots to Maltese investors, making the buying process a friendly experience.
Dhalia has formed a Maltese consortium of investors, who earlier this year purchased land with the intention of developing a residential project in Bansko called The Balkan Jewel.
Situated 150 km from Sofia and 300 km from Thessalonica in Greece, Bansko has established itself as a leading alpine skiing, hiking and golfing centre in Eastern Europe, causing the property industry to flourish.
The ski season spans from mid-December to mid-April, and the slopes comprise of 11 marked ski runs, four ski-tracks, 65 km in length (33 km of which are fitted with artificial snow equipment).
The Bansko ski area will make you feel the bite of the cold winter months and the sensation conveyed by the gentle yet whimsical spring, and all this in the spirit of winter sports competitions. A new 18-hole golf course designed by Ian Woosnam (Ryder Cup Captain 2006) is being developed and should be completed by the end of next year.
The Balkan Jewel is three kilometres from the ski lifts in central Bansko and adjacent to the newly-developed golf course. This strategic location makes the Balkan Jewel a destination all year round with guaranteed rental returns during both the skiing and golfing seasons.
In order to maximise the return on one's investment, Dhalia Real Estate Services, together with the developers of the project and a world leading property management and re-letting company, are designing a letting scheme whereby the owners would be entitled to use their apartment for three weeks a year, while renting it out the remaining part of the year.
All the owners interested in this scheme will pool in their rents, and profits net of commissions and other expenses will be distributed to owners, pro-rata according to the market value of each apartment.
Adding this to a healthy capital gain on the eventual resale of the property makes property investment in the area a wise decision. This is sustained by the favourable capital gains rules taxed in Bulgaria at the rate of 15%, which requires no topping up tax in Malta as a result of the Malta-Bulgaria tax treaty, which specifies that tax is only incurred in the country where the property is situated.
Spread over 7,500 m2 of land, The Balkan Jewel is made up of 159 residential units, and includes various amenities, namely a restaurant, outdoor swimming pool, mini market, gym, sauna, steam room, jacuzzi and massage parlour.
Laundry and ski/golf equipment storage facilities are present in each of the six blocks. The developers are also catering for all transport requirements, by way of a shuttle service, transporting people to the ski slopes, Bansko city centre, the entrance of the golf course, and on a daily basis, to and from Sofia, for people travelling via Sofia International Airport.
This makes life easier for travellers, thus avoiding the hassle of renting a car during their stay. Apartment owners, who prefer providing their own transport, may utilise the underground car park facilities, at no additional cost.
The mix of apartments varies between studio, one- and two-bedroom apartments, most of which enjoy stunning south facing views of the Pirin Mountains and the golf course. Prices for studio apartments start from €43,000 (Lm18,460), inclusive of 20% Bulgarian VAT.
Payment terms are also very favourable:
Reservation fee - €2,000
First payment - 30% less €2,000 (already paid), on signing the preliminary agreement (tentative date - December 2006)
Second payment - 30% on roofing of block (tentative date - December 2007)
Third and final payment - 40% on completion of project (tentative date - July 2008)
Other expenses over and above the cost of the property include:
¤ Stamp duty at 2% on the market value of property;
¤ Registration tax 0.1% on the market value of property;
¤ Notarial fees between 1% and 1.5% with a capping of €1,500;
¤ Annual maintenance fee in the region of €12/m2; and
¤ Annual property owning taxes and garbage collection fees, not exceeding 0.2% of market value.
When buying through Dhalia, individuals will be investing into direct property ownership and they can put their mind at rest that they will be provided with a professional and reliable service. Investment in Bulgaria has never been in safer hands.
Mr Camilleri, ACCA, MIA, CPA, is financial controller of Dhalia Group of Companies.