Bulgaria is the new hotspot for prospective holiday home buyers who can't afford the inflated prices of Spain, France and Italy. The country has been included in the brochures of the main UK tour operators for several years, and its cheap beach and ski holidays have made it the third most popular destination after Spain and France for British holidaymakers. Property investors and those looking for a second home for themselves are following hot on their heels, buying a range of property from new beach and ski developments to dilapidated farmhouses. The attractions are obvious. The summers are long, hot and dry and the beaches on the Black Sea have glorious white sand. The Ski Club of Great Britain says Bulgarian ski resorts are good for beginners, intermediates and those looking for a budget option. Club spokeswoman Vanessa Fisher says: 'If skiing is one of the things you want to do on holiday, Bulgaria could be a good choice.' The country is set to become a member of the European Union in 2007, and property prices are expected to more than double. Ben Garner and Emma Hawkins already owned one property to let in the UK, but decided on Bulgaria for their next investment. The couple have bought a two-bedroom apartment in Elenite, just outside Sunny Beach - one of the biggest coastal resorts - without even having been to Bulgaria. Garner says: 'We decided to buy just out of Sunny Beach because we thought it would be a bit quieter. It's a new development - they've got to the stage of putting the electrics in.' Garner paid £80,000 for the apartment, which he thinks may be a bit high, but he's confident prices will soon catch up. 'I was speaking to a property expert out there, and she says there has been a 40 per cent rise in Sunny Beach prices over the last year. She thinks it will carry on like that for the next few years. We expect to rent out the apartment for an average of £300 a week for the six- month season, and hopefully in four or five years time we'll have a nice capital gain too.' At the moment though, prices are still reasonable for anyone on a limited budget. Robert Jenkin of Bulgarian Dreams, a UK firm with offices in London, Sofia and Sunny Beach that acts as an estate, letting and management agent, says it's possible to find a one-bedroom apartment in Sunny Beach for £30,000, while a rural idyll that needs works can go for as little as £10,000. He recently sold a five-star spa development, Belle Vue, in the ski resort of Bankso - where the most expensive apartment went for £70,000. 'The deal includes room service and the front door is just 100 metres from the ski lift,' he says. Legal and running costs also tend to be lower than those in the rest of Europe. The Bulgarian equivalent of the council tax costs about £25 to £30 per year. Bulgarian Dreams has negotiated a bulk conveyancing deal for customers buying into devel opments that costs just €250 per purchase, although the government levies a purchase tax of 2-3 per cent of the price. The process, based on the notary system, can be quick, taking an average of two weeks from start to finish, provided ownership of the property is straightforward. Jenkin says the firm has experienced no problems, but warns: 'If there is any corruption, it would be in the land ownership stemming from when the USSR [began to break up] 15 years ago. Ownership should be checked before you exchange contracts.' Simon Conn of Conti Financial Services, a firm that specialises in overseas mortgages, says that the emerging 'Eastern Eight' countries, which include Bulgaria, have gained a reputation for having legal systems that make it difficult for purchasers to establish legal title over their chosen properties. But Greek lender Piraeus Bank, which is willing to lend on Bulgarian properties, will ensure that it can establish whether a title has been registered, providing buyers with peace of mind that they actually own their home. The euro-based mortgage, available through both Conti and Bulgarian Dreams, has a minimum of €40,000 and a maximum term of 15 years. The current rate is 7.5 per cent. Conn says: 'It is not possible to get a mortgage on an apartment that has not been built. However, to ensure that your investment is safeguarded, it is possible to achieve a mortgage on completion when the title is registered in your name.' He says that non-Bulgarians are not permitted to own land in their own name, so those buyers considering purchasing the land to build a villa, for example, must do so through a Bulgarian company with the purchaser as legal owner of that company. It is then possible to achieve stage payments for building. Affordable Bulgaria · The summer season runs from 15 May to 15 October · A two-bedroom apartment in Sunny Beach can be rented for £60 per night in high season · The Bulgarian government levies a 15 per cent 'withholding' tax on any income or capital gains made on a property owned by a foreigner · As Bulgaria is subject to the double taxation treaty, this 15 per cent can be offset against the tax you would otherwise have to pay on bringing any income or gains into the United Kingdom · New properties have a 10-year guarantee · Bulgarians learn English at school, and many Bulgarian builders have worked in the UK. The Observer(10.04.2006)