Renovating to Sell

Buy, Renovate, Sell and make profit?

house in Bulgaria in need of renovationMany property buyers in Bulgaria look to renovate an old property in Bulgaria to make it a home to live in or to resell it. In our previous post we hafe informed you about the Potential of Renovation and Renovating in Bulgaria. In this post we will try to look at the best way to approach buying a run down old Bulgarian property with the intention to resale. Many of the points would be valid too if you are buying such a property for you and your family. Even if finance is no problem you should always keep an eye on the budget in case you have to sell the property later in the future.
Old buildings in need of renovation are to be find in the Bulgarian countryside in the smaller villages. Just a few kilometers from the sea you will find beautiful villages with lots of old houses. you’ll The British have long been advocates of renovation and usually do a great job in bringing back these buildings to their former glory in a sympathetic manner.

Can you handle it?

Improvements are certainly adding value to the property; the key is not to take on more than you can handle. A large renovating project in Bulgaria will cost you time and personal engagement. Unless you can do the design (select, source and transport materials) and manage a team of different builders it is advisable to hire a tradesman (small building company) to do most of the jobs for you. If the builder is professional he will take care for things to go smoothly and your job will be to observe the process. If you have no experience in renovations in Bulgaria this will save you time and money for sure.

Can you make a profit?

As in any other business you can make more profit the more you plan and organize your business. Property price is a function of location and type of property. Make sure you buy in the right location and you buy the right type of property. When buying an old property the price strongly depend on the expenses made to renovate the building. But nevertheless what you need is a property with charm that will suit your potential buyers. During the work you should always keep in mind who will be using the home and design it correspondingly.

Where to start from?

Select and research an area that you think has a potential. Research for old properties and get an idea about the asking prices. Prices of old properties in need of renovation vary in a wide spread but what you mainly should be interested in is how much would be total to buy the property and to renovate it. You should also do a research about the prices of similar properties on the market – new built or renovated. This will help you to determine a budget for the project. You are better off buying a smaller property in a good location than a larger property in a poor location.

Additional cost

There will be some extra costs to consider when working out your budget. There will be property purchase fees (about 4 %), solicitor cost, company formation & annual bookkeeping, property insurance, maintenance if you are not onsite and cannot sell immediately, transport cost (flights, car, gasoline). Also do not forget the real estate agent commission when selling the property plus any taxes on the capital gain.

There are many hidden things in one house that might need repair but are not obvious because there is no access to them. A roof is a good example – it might look OK or “not that bad” but you will be able to check its condition only when you “open it” and see inside.

The golden rule is, whatever you do, don’t be rushed into buying the property. Take your time and visit as frequently as you need. Take a builder to look at the property and give you a quotation, then make the math and take a decision. If the property is sold in the meantime do not worry – the next property will come. We have a saying in Bulgaria: “You never know what you win when you lose”

Hiring a Builder

If you are going to employ builders or a project manager, do check out the quality of their work and get in touch with past clients if you can. Check our guide: "How to find a good Builder in Bulgaria". Get all quotes in writing, together with a timeframe of the work to be undertaken and a payment plan. There should be penalties for late completion - but on the other hand, you could add in a clause for a bonus if they finish early?

Decorating and Furnishing

With a renovation project it is all too easy to see the money slipping away. It is really tempting to splurge on extras, particularly fixtures and fittings. Think carefully about where you allocate your money for maximum effect. When considering decoration, neutral is best - it is usually brighter and most buyers won’t object as they can then make up their own mind about colour.

Tip - if you can affford to furnish the house, do so as it is much easier to sell a furnished property than one with empty rooms.
We are wishing you luck with your renovation project in Bulgaria and would be happy to help you.

Builder in Bulgaria - Contact You can contact us if you are looking for a Builder in Bulgaria. We are general builders covering all aspects of construction including Property Renovation, Repairs and Property finishes in Bulgaria. Click here to >> Contact us <<

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Renovating in Bulgaria

Where to start with a renovation

House in Bulgaria was not structurally sound and had to be demolished
To renovate an old Bulgarian house is in general cheaper than building a new property. This depends on a couple of factors like purchase price and the cost of renovation – the volume of works to be done and materials used.
When renovating an old Bulgarian property you will be rewarded with a home full of charm and character. The renovation might require some more self commitment from the property owner as the house is to be totally refurbished there are some decisions regarding design and material to be taken, but with a an experienced builder this will not cause any headache.

A skilled builder will give you tips and ask the right question from the beginning on and this will save you time and more important money.
One thing to bear in mind is that renovating a property in Bulgaria is far more than a quick paint job and a few plush soft furnishings. Most old buildings are bordering on dereliction. They have faced years without investment and improvements and consequently are often in need of major structural repair.

Survey - It is not common to have a survey carried out in Bulgaria and if you are buying a building which you intend to demolish, then it really isn’t necessary. However, if you are buying a house to renovate, you would be well advised to organise a survey. Many Bulgarian houses look pretty but hide a multitude of sins; damp, rotten wood, dangerous electrics, old water pipes, the list is literally endless. Naturally if you have your potential house surveyed, you must expect it to come back with a daunting list of problems, but ultimately what you must determine from this is whether it is structurally sound. If it is not structurally sound then only a large amount of renovations are going to mask the underlying problems which will make the project (sometimes) more expensive than taking the house down and building a new one. A building survey is fairly cheap in Bulgaria and is a must even if the old property seems to be in not that bad condition.

Once you know that the house is in good condition and repairable you need to estimate the cost. Here we have prepared tips on “How to find a good builder in Bulgaria”.

It is essential that you hire a builder who can give you a quotation for the entire renovation project. Ask for references, speak to previous clients and you will now if you can trust him and his quality and price estimates.
There are a lot of building and construction companies in Bulgaria but you should be aware that not many builders are English speaking. The language barrier should not be underestimated – it is not a small thing if you cannot communicate directly with your builder. The services of translators are not always reliable and sometimes unavailable when decisions has to be taken quickly. Our advice: look for English speaking builder.

Builder in Bulgaria - Contact You can contact us if you are looking for a Builder in Bulgaria. We are general builders covering all aspects of construction including Property Renovation, Repairs and Property finishes in Bulgaria. Click here to >> Contact us <<

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