Yes, real estate for the typical gringo is way overpriced.  Yet when I was there, thinking about moving there, I found a nice little house in a cute small town about two hours from San Jose for only $20,000.  No, this wasn't in a walled compound full of other gringos, with condos imitating something you might find in Miami.  It was in a perfectly safe and pleasant area, with friendly neighbors.  But the neighbors were ticos, not other Americans. If I wanted to be surrounded by other Americans, I could just stay where I am. 

I should admit, though, that my Spanish is fairly good, so I could interact with and get to know my neighbors.  But why would anyone expect to move to another country without learning the language?

Of course, the country has its problems, and from what I understand, the economy is rather stagnant right now.  But if I do decide to move there, I would hope to make my own little contribution to helping solve these problems, not just complain that Costa Rica isn't as rich as the USA.  I will not move somewhere and then be the Ugly American.

Ted Chabasinski
 

I have read the article "Buy in Croatia".

I must say that everything which is written is true, I am teling you that because I am also building and selling apartments here in Bol on island Brac.

In the last couple of years I sold many of my apartments to foreign people (English,Irish,Italian...) and they were always going through the same things like you said in article. Many things here in Croatia are very different then in rest of the Europe and the World.

I think that the most important thing for all people that want to buy something here in Croatia is to find a good lawyer (indepentent from the seller) so he can check all papers and building promisions from the property.

My buyers were lucky because I am working everything by the book and now I can say that we became friends,but many people are not doing everything by the book and that can be a big problem.

Best regards from Bol,
Goran Delta Zivkovic. 
 

Overseas buyers looking to purchase property in Bulgaria frequently hear that the regular practice is to put a lower price in the deeds to save money.

Agents and even lawyers often assure the purchaser that most property transactions in Bulgaria are conducted precisely in this manner. The overseas buyer often poses no more questions, because they believe this information to be correct. How wrong they are -  there are such enomous risks to the buyer; it's really important that people don't get tricked with this.

Putting a lower price in the deeds during the last stage of the conveyancing process in Bulgaria is generally done because the vendor wishes to avoid taxes and fees which are due on final signing and which depend upon the property price which is declared in the deeds. The higher the value of the property, the higher the taxes and charges. But by declaring a lower price in the deeds than that which is actually being paid is an evasion of Bulgarian law and creates an 'invalid' or 'fake' deal and can lead to serious consequences. 

From a civil law point of view this kind of 'fake' deal would be considered null and void anyway. To add to this, if you were found guilty of having been party to such a deal you could be charged with a fine of up to 1,000 pounds and even imprisonment of up to three years. 

This is also a common practice at the moment with Bulgarian constructors who are trying to avoid VAT which has to be paid on new build or off plan sales. They offer the potential of putting in a low and false price in order that they do not pay all or any of the VAT due. 

For the overseas buyer, one can only imagine what any mortgage company might have to say about all of this if at a later date they become aware of the property being under-declared on the deeds! Bulgarian estate agents often say, 'oh well, don't worry, you can do the same; just find someone else to pay you part in cash later', but it's not that simple. With European entry looking increasingly likely in the immediate term, it won't be so easy to find a buyer willing to do this. Fortunately after EU accession people trying to operate in this way will find it increasingly difficult to do so. Any buyer really has to ask himself whether he would do this in Britain with a similar proposal from an agent, paying in some cases up to 70% of the price in cash and then hoping to find a future buyer who would do the same. 

Even if after all this, anyone still thinks it's a good idea to put a lower price in the final deed, then let's take a look at the financial implications on just a small scale when it comes to re-sale. :

Firstly, if the full purchase price is declared
Price 40,000
Taxes and Notary Fees about 3.5% 1,400
Re-sale Price 60,000
Profit 20,000
Gains Tax at 15% 3,000

Secondly, if a lower price is declared (the real price remains at 40,000 as in the first example above)...
Price 20,000
Taxes and Notary Fees about 3.5% 700 
Re-sale Price 60,000
Profit 40,000
Gains tax at 15% 6,000

Initially,it looks good - 700 pounds is saved on the initial taxes and fees when buying. However, when it comes to re-sale there's an additional tax burden of 3,000 pounds! The best advice we can give to anyone is to get your own independent lawyer who will act in your interests. Buyers should not be tempted by those that say this kind of practice in Bulgaria is above board, it's certainly not and purchasers could end up in real difficulties all round. 

Jain Goodall, Marketing Director
Quest Bulgaria
Sofia
Bulgaria
Tel : 00 359 2 851 90 65
GSM : 00 359 878 227 222

I am now updating that to say that indeed it was a correct statement. Powell River has been discovered a s a gem of a place to live and is now one of the hottest real estate markets in British Columbia presently.

It provides solid comfort to American families who worry about their children being drafted to fight in potentially dangerous conflicts around the world.  

We also face into the sunset in powell River which is unique as many Canadina coastal communities in the area do not have that luxury and the sunsets are incredibly spectacular here.

Every tradesman from plumbers, carpenters, to finishers are exceptionally busy. Growth is here but not in such a big way as to take away from the charm and small town quality of Powell river. It still remains one of the most beautiful and affordable places to reside on the West coast of Canada and last year was deemed to be Canada's cultural capital.

There will be choirs from around the world here this summer and last year there were several symphonies and in keeping with Canada's hockey traditions, Powell river is also a strong hockey town just having won the prestiged Allan Cup.

Lots happening, an excellent place to live or invest.

Good luck - Carl McIntosh