A home instead of deposit

Estate agents comment that there is movement of the market and increase in the business transacted. The notaries also affirm, that for the past few months, the property deals have increased of one and a half times.

The main reason people to buy more, is that property prices in Bulgaria are very reasonable right now. Experts explain that it is possible to buy well-maintained apartment at double lower price than in 2008.

Experts believe that the political crisis is the other reason why people seek refuge for their money in a property. Brokers explain that there is a part of customers who want to convert their deposits into housing, because the yield on property is currently higher than the interest rates of banks.

The sellers are people who sell their property to release the money to cover current needs, or to buy a nicer home with minimal credit. The main buyers are Bulgarians, usually managers and people with stable incomes who want to buy a first home or a property for a son or a daughter.

A new trend, which notaries noticed is that nearly 80 percent of real estate transactions are currently with credits. According to them, precisely because of this that the interest on the loans is more profitable, there is a slight movement in the market. Increasingly rare is paid with cash.

Despite the misconception that buying mortgaged property whose owner could not pay the loan, is profitable, notaries maintain that announced for public sale housing is becoming less searched.

According to them, this type of housing is more expensive because of the fees payable by the buyer. On one hand he pays a local tax to the municipality, which is from 2 to 4% of the cost of acquisition of the property.

Each municipality determines itself the exact size of the tax. The State fee for registration is 0.01 percent of the purchase price.

There are extra charges for the private enforcement agent (usually the deals go through him). 1,5% of the price, but not more than 3,000 BGN, are for preparing a decree to award. This is the document of ownership, equivalent of the Notary Deed.

A percentage of the cost is for entering into possession. The amount shall be due if the bought property is used by the former owner or tenant who refuses to leave voluntarily.

Public sale may be delayed and, if the debtor appealed to the existence of the debt before the Court or the actions of the bailiff. This is exactly why people prefer a simple purchase of housing.

Mass people prefer to buy new homes, which have no need of repairs and are in good places. Most wanted are gated complexes, which have their own security guards. Usually the demand is for small and medium-sized accommodation.

Over 55 000 people, who bought new homes, have registered with the registry agency from April to June. This is about 2000 sales of homes more, compared with the same period last year. The number of deals with apartments and offices, are with nearly 11,000 more in comparison with the first three months of 2013.