— buyers without the full amount due upfront;
— those planning a move or a future purchase;
— investors distributing capital;
— those not considering a mortgage.
In Bulgaria, installment plans are an agreement with the seller or developer, not a bank loan.
The amount of the down payment depends on the project and the stage of construction.
In practice:
— the minimum down payment is 10 percent;
— most often 20 to 30 percent;
— the maximum is up to 50 percent.
The higher the down payment, the more favorable the installment plan terms.
Payments are made according to a pre-determined schedule:
— quarterly;
— semi-annually;
— or according to construction stages, as per the deeds.
The terms depend on the type of property:
— new buildings—longer terms;
— completed properties — short installment plans;
— secondary market — customized terms.
— preliminary agreement with payment schedule;
— terms of title transfer;
— liability of the parties;
— terms of contract termination.
— fines for schedule violations;
— restrictions on resale;
— dependence on construction deadlines;
— loss of funds upon contract termination.
Purchasing real estate with installment plans does not qualify for a residence permit or permanent residence permit.
New construction more often offers installment plans, while the resale market offers them less frequently and for shorter terms.
— focusing solely on the down payment;
— ignoring contract terms;
— underestimating annual expenses;
— confusing installment plans with mortgages.
