Eastern Bloc Busters

You don`t have to be a millionaire to afford your own place on the pistes. While deep pockets may be needed if your heart is set on established resorts in France, Austria and Switzerland, those on more modest budgets should consider former Eastern Bloc countries. Bulgaria's property market has had its fair share of bad press, thanks to over-building and dodgy developers, but it remains among Europe's cheapest investment destinations, as Mark and Maureen Fleming know.

The NHS workers bought a four-bedroom off-plan chalet in Borovets, Bulgaria's oldest winter resort, for £130,000 (€160,000) in 2008. It was completed in 2010 and keen skiers Mark, 46, Maureen, 50, and their children Jack, 18, and Sophie, 12, love their holiday home in the Chamkoria Chalets complex.

"Bulgaria appealed because of the cost," admits Mark. "We'd skied in France and Italy but prices were outside our budget, other than studios in resorts that didn't interest us."

The Flemings, who live in Kilwinning, Ayrshire, began researching Bulgaria's three main ski resorts, Bansko, Pamporovo and Borovets, after seeing adverts for ski properties. "We decided Bansko wasn't for us because there was too much development," says Mark. "We wanted a smaller resort so we chose Borovets."

The resort is 50 miles from Bulgaria's capital, Sofia, and nestled on the northern slopes of the Rila Mountains, the highest range in the Balkans. In the 19th century it was a hunting place for the Bulgarian kings and now it's an ideal resort for intermediate skiers and learners and perfect for family holidays.

"Prices are good," says Mark, "with lift passes and ski lessons much cheaper than in France and Austria. For 2013 it's around £120 for an adult's week-long lift pass, or £20 for a day. It would be at least double elsewhere."

Eating out is inexpensive too: "A beer is about £1.20 and a one-course meal for four is around £15, and that's in the resort. In Samokov, six miles away, we can eat for a tenner."

The Flemings spend up to two weeks each winter in their Borovets chalet, which is inside a national park. They visit in summer as well, and go mountain biking and walking. The rest of the year it is available to rent, although Mark explains: "We're not looking to rent it out every week, just enough to cover our annual maintenance costs of around £1,500 (€1,800)." Chalet Sinchets costs from £460 (€565) a week in summer to £1,200 (€1,500) in winter.

The Flemings bought the chalet for family holidays and don't intend selling, which is fortunate because the Euro crisis has reduced its value. The economic downturn, however, means that now is a good time to buy.

"Property prices in Bulgaria are at record lows," says Concept Bulgaria's managing director Sean O'Leary. "Between 2008-2011 prices dropped 50 per cent before stabilising in 2012. Currently, you can buy a ski chalet or apartment cheaper than you could build one."

At the Chamkoria Chalets complex, where facilities include everything from a swimming pool and sauna to mini-market and restaurant, one and three-bedroom apartments are available from £24,500 (€30,000) and £65,000 (€79,000) respectively, while four-bedroom chalets are on sale for £122,000 (€149,000).

Bulgaria is well served by budget airlines with Wizzair and EASYJET flying to Sofia, the nearest airport to Borovets and Bansko, and Ryanair serving Plovdiv, the country's second city 50 miles from Pamporovo. Set 1,620 metres up amid the pine-clad Rhodope Mountains, Pamporovo is the country's sunniest ski resort.

Bulgaria has more affordable ski properties than ever before according to Polina Stoykova, chief operations manager of estate agents Bulgarian Properties, with Bansko offering the "lowest prices in Europe".

She says: "Bansko, our biggest and most modern resort, has studios from around £8,200 (€10,000) and two-bedroom apartments from £20,000 (€25,000), and that's fully-furnished. Pamporovo is competing in terms of prices, too. Borovets, closest to the capital, is more expensive because supply is lower."

While Polina acknowledges there was rapid development in Bansko, she stresses that it is a thing of the past. However, anyone buying in Bulgaria shouldn't expect rental yields.
"The most realistic expectation should be to cover maintenance costs, taxes and utility bills. If rental service is wanted, buyers should choose complexes that offer property management and a rental scheme," she says.

For rental yields you could consider Poland's premier ski resort, Zakopane in the Tatra Mountains of Southern Poland. It is less than a two-hour drive from Krakow, a beautiful city popular with tourists. Zakopane is the biggest of the country's 16 ski resorts. Still undiscovered by British skiers it has seven black runs and plenty of apr¨s-ski facilities. Prices won't break the bank, either, with adult ski lift passes at £39 for three days and ski equipment £30 for five.

Zakopane is popular with Russians and Ukrainians, and a new condohotel with 158 apartments is due for completion in 2014. It is attached to a 4-star hotel with 38 flats already reserved. Prices start from around £58,000 for a studio to £197,000 for a fully-fitted one-bedroom apartment, plus 23 per cent VAT.

"For anyone wanting an investment, the operator is offering a five-year lease contract on these freehold apartments, with a yield of seven per cent net per annum," says Louise Reynolds, of UK-based Property Venture, "but they can also be bought purely as holiday homes, without the leaseback arrangement". This concept is operated in other countries, including France and Morocco, although many are 10-year lease agreements. Under the leaseback arrangement in Zakopane, apartment owners get a guaranteed income of seven per cent net, a great return for a property they still get to use two weeks a year.

"It's the Holy Grail for those who want a holiday home but don't use it as much as they want, and end up saddled with running costs." At an altitude of 1,960 metres, Zakopane compares favourably against other European resorts at a similar height. Chances are, it won't be long before it's on everyone's radar.


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