Look East for a hot bargain

Aug 10 2008 Laura Davidson

Place In The Sun Couple Enjoy Sunshine Hols And Skiing At Spa Resort Flat In Bulgaria

With a redundancy cheque burning a hole in his pocket, Scott Bain wanted to ensure he didn't fritter away his cash.

Savings plans didn't appeal so he decided to plough his money into property and snapped up a luxury pad in a Bulgarian spa town.

Scott, a customer services manager with TV firm Setanta, and wife Lisa, a civil servant, had never visited the former Eastern Bloc country before deciding to buy a holiday home there.

But low prices and a high-spec development in an upmarket spa town were too good to refuse.

Scott said: "My sister had visited Bulgaria and loved it. She had loads of literature about buying there and told me all about it.

"I was made redundant from my job with Sky and had another job lined up so I was in the rare position of having money to spend on property. I'm delighted with the deal we got."

The couple, of Dunfermline, considered buying on the Black Sea Riviera, around the popular Sunny Beach area.

But they decided against it in favour of an area with year-round rental potential instead of just the hot summer months.

Their research took them to Sandanski, the spa capital of Bulgaria, which is two hours drive south of the capital Sofia.

The village is famous for its hot mineral water springs and the temperatures soar into the high 20s in the summer. In winter, its good snowfall and position at the foot of the Pirin mountains make it a popular skiing area.

Sean and Lisa, both 32, bought their one-bed apartment in the Medite Resort development. They have a 10-year deal where the hotel guarantees rentals with a return of 5.25 per cent per year on the purchase price of £43,000.

The couple have 25 days per year to stay in the apartment with 16-month-old son William.

Sean said: "It suits us perfectly. We work full time and don't have time to manage the property."

The couple bought through London-based agents Rockarch Estates at the end of 2006.

The couple paid £43,000 but if the apartment went on sale today it would cost more than £60,000

Sean said: "Rockarch have been great. They emailed every month with pictures and set us up with an English-speaking Bulgarian lawyer.

"I'm considering buying more property through them. As well as this being an investment for our future, it's going to be a brilliant place to go on holiday."

FACTFILE

Compared to other European hotspots, property prices in Bulgaria are relatively cheap, making it ideal for buyers or investors with limited budgets.

Bulgaria is a popular destination with Scots due to the great weather and low cost of living. A bottle of wine typically costs £1, while a good meal for two, again with wine, is less than £8.

Rockarch Estates have a pre-launch sale of four-star hotel-serviced apartments in the spa town of Melnik, Bulgaria, with prices from £33,500. Owners can sign up for a 20-year, 5.25 per cent net per year guaranteed rental scheme. Call 0207 614 3585 or visit www.rockarch.co.uk