UK-based Bulgarian property specialist Bulgaria Revealed has unveiled a new scheme that takes the hassle and uncertainty out of buying an investment property abroad.

The agency’s latest Jupiter Bansko Boutique development, situated in the heart of Bulgaria’s best skiing terrain, offers investors a guaranteed nine percent annual rental return on their initial investment for the first three years of ownership. The scheme allows prospective investors, second homeowners or those looking to profit from their holiday home to receive a yearly retrospective lump sum, equivalent to 9% of the net purchase price of their apartment, in return for six month’s rental of the property.

Owners simply need to enter into an agreement with the developer to allow the agency to rent out their apartment for a continuous six month period in each of the first three years. This gives owners the freedom to rent out or alternatively occupy the property themselves for the remaining half of the year.

The development, currently under construction, offers purchasers a variety of property types, ranging from studios for as little as 48,500 Euros (currently under £33,000), through one bedroom apartments for the Euro equivalent of between £37,000 and £63,000. Two bed apartments within one of Jupiter’s three floors are currently available for the Euro equivalent of between £52,700 and £81,500.

Buyers at the Jupiter development make staged payments, depending on the progress of the construction. An initial 30% deposit is payable on exchange of contracts, followed by 20% on completion of the foundation stage. A further 20% becomes due once the roof is in place, followed by the final 30% on physical completion of the transaction.

Bulgarian VAT is payable on the purchase price at a rate of 20%, but becomes recoverable prior to completion. All prices quoted are therefore net.

5 year investment

‘With proposed membership of the EU scheduled for 2007, Bulgarian property prices are already on the increase. Purchasers and investors buying now can expect to reap significant financial rewards, including excellent guaranteed rental returns combined with significant market demand over the next five years,’ states Bulgaria Revealed director Qasir Ali.

‘Our guaranteed rental scheme is simple in concept, easy to understand and provides for a very lucrative income stream for prudent investors. Once you have agreed to purchase a property, the developer will enter into an agreement to source tenants for six months within each year for a three year period. The bonus is that, for the remaining six months of each year, you can occupy the property yourselves or rent it out however you wish,’ he adds.