Rentals Agreement Bulgaria Property Investment Our agents offer GUARANTEED RENTALS in selected properties and a full rental management service on all other homes purchased through us in Bulgaria Sofia Bansko Sunny Beach  GUARANTEED RENTALS WITH FULL MAINTENANCE & RENTAL MANAGEMENT SERVICES They can only build so many homes on or near beach fronts and ski lift/slopes, thus those currently being sold should have continued rental demand and renewals for many years rather than late comers to the market with secondary positions. The guaranteed rental is different depending on the type of apartment from 14% - 5% plus possible annual capital appreciation for these best locations of 25-30% yearly is not included. The guarantee is available for 3 years at today’s purchase price (including VAT!) and then renewable The Guaranteed return is clear from all operating expenses and is net after management fees which include all fees like electricity, water etc. except from property taxes and community charges, details below. The owners are paid the money by bank transfer every three/four months. Own use of the property can be arranged in the rental management contract. RENTAL MANAGEMENT SERVICES Our agents offer rental management services to all apartments bought through our agents, either guaranteed or management and rental only. The service is 'hands free' for the owner as they manage the rentals, arrivals, airport transfers, etc. In the rental management contract it is written down that the owner receives all the income from the rent minus 10 % for the rental management agency. Please see below our FAQ (Frequently Asked Questions), and if in doubt, ask Is the 10% management fee  taken from the 10% guaranteed rental income? No, deducted before, so you get net 10% The 10 % management fee out includes paying all fees like electricity, water etc. except from property taxes. How long is the rental guarantee for? The period of the contract is 3 years and then renewable I notice unlike other countries and companies, you include VAT in your prices, is the guarantee also based on VAT inclusive price? Yes, the rental income, which the owner gets is including the VAT, which with VAT at 20% in Bulgaria even further increases the guarantee value when compared to other countries and companies Do I have to pay any maintenance charges? No, maintenance charges are covered by the rental management agency prior to you receiving your net. Are there any other fees I have to pay from my 10% and what are they? Community charges of around 5/6 euros per m2 per annum depending on development Annual property tax of 100-150 Euro You should also insure your property and contents What insurance do you recommend we take out and how much? Building Insurance which is 0,2% of the purchase price (for example price ? 60000 = ? 120 Euro per year). Internal Contents/furniture insurance is 2-4% of the purchase price. (for example price ? 3000 = ? 90-? 120 per year). Do I have to come to Bulgaria to complete any stage of the purchase or rental guarantee contract? No, you can authorise the lawyer to sign contracts and deeds within the legal fees quoted of approx ? 450 On what value is the 10% guaranteed rental income based and will it rise or fall over the years? It is a minimum figure, guaranteed for 3 years and is based on the initial cost of the property and this figure will not rise/ decrease in line with the value of the property. For example: ? 65,000 at 10% ROI would give an annual rate of return of ? 6,500 and as this is a minimum it is possible for a property to make more than this. Can I use the property myself? Yes, and this can be arranged with rental management company, obviously you would be responsible for pro-rata costs for the period of usage and depending on amount used it could effect the guaranteed return Own use of the property can be arrange in the rental management contract What extra costs am I liable for? None connected with annual rental apart from property tax & community charges. Naturally initial purchase costs are payable, i.e., Purchase price and any mortgage, Legal fees of approx ? 450 Notary fees, document translation & Country Tax (the equivalent of the Stamp Duty in the United Kingdom). This is a maximum of 2% of purchase price THE Property Buying Process property in Bulgaria Can I have a mortgage on a guaranteed rental property? Yes, up to 70% of purchase price which we will help arrange for you What does ROI stand for? Return On Investment How often do I receive the income? The owners are paid the money by bank transfer every three/four months. Do the apartments come fully furnished? If not, do you provide furnishing packages and if so, how much? Some apartments are fully furnished and included within the price as indicated Furniture package prices depend on choice but we would recommend you budgeted for ? 2000 to 8000 Euro. What If I buy a property without Guaranteed rental? Our agents can offer rental and management services to all apartments not only those with guaranteed rental. The rental management company does the advertising. The client receives 80% of the rental income What if I want to sell the property Please advise on the potential for selling a property in Bulgaria? You are free to sell at any point Property prices in Bulgaria rise 25-30% per year. So if you buy off plan now the price with rise at least 30% when the complex is ready. In three/five years the prices are expected to double in Bulgaria. Where there exists a guaranteed rental offer on a property I choose, do I have to rent the property? No, the owners choose whether they want to sign rental management contract after they buy the property in Bulgaria. The guaranteed rental does not come from the Developer but from the rental management services and this contract is guaranteed for 3 years although you can review terms for own usage periods etc. For non guaranteed rentals: Where we use your rental management services, what is a rough cost, say per quarter for utilities i.e. gas, water and electric? The rough costs are 150-250 Euro per quarter but with guaranteed rentals they are deducted before you get your 5-10% ROI So where we quote 10% Guaranteed Annual Rental Income that is exactly what you get For non guaranteed rentals: Can you assist with sending the bills through to myself, or do the bills just get deducted Our agents manage these costs and payments for you from the rental income each month. The bills can be deducted from the rental income. But they will provided quarterly statements. THE Property Buying Process property in Bulgaria WHY BUY NOW They can only build so many homes on or near beach fronts and ski lift/slopes, thus those currently being sold should have continued rental demand and renewals for many years rather than late comers to the market with secondary positions. Also property prices in Bulgaria are currently rising 25-30% per year. So if you buy off plan now you could expect the price to rise at least 30% when the complex is ready. In three/five years the prices are expected to double in Bulgaria especially with the planned entry into EU European Union in 2007, being a candidate for 2014 Winter Olympics, current availability of best locations and with numerous charter airlines operating throughout the year to Bulgarian sun and ski resorts the likelihood of low cost carriers like EasyJet and Ryan Air beginning operations is high. Ever wish you had bought in Spain 10 years ago

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Your broker Tatyana Surcheva

surcheva@imotibg.com +359/2/9335935 +359/888/375877

Property Management Guaranteed Rental in Bulgaria up to 8% return of investment per annum

THE Property Buying Process property in Bulgaria