We are building a Nomad Utopia together in an iconic building at a very special place. So let’s take a look at the numbers and assumptions.
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This document and its contents are provided for informational purposes only and should not be construed as investment advice, financial guidance, or an offer to buy or sell any securities or real estate properties. The information contained herein is based on sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Investing in real estate and participating in cooperative (coop) business models involve risks, including but not limited to market fluctuations, regulatory changes, and environmental factors that could impact the value of the investment and the returns from rental income and cooperative dividends.
Potential investors are strongly advised to conduct their own due diligence, consult with professional financial advisors, and consider their financial situation, investment objectives, and risk tolerance before making any investment decisions. The potential for property appreciation, rental income, and dividends from cooperative membership discussed in this document are speculative and dependent on various factors that cannot be predicted with certainty.
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People buy an apartment either in Block A & B. This is your private property. You can do with it whatever you like (use it, rent it out, sell it, refinance it etc.)
All apartment owners together form the Coliving Semkovo Cooperative (coop) that owns the coliving areas (Block C).
This means that the community owns the coliving business together and everyone benefits from its success.
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While we aim to start with a low monthly fee of just €500 for our smallest units to make sure we can fill the building with life, the goal is to increase rents afterward to regular European coliving price levels, which would be at least double that amount.
The owners will receive roughly half this fee as rent, while the coop will keep the other half to cover its the costs (coliving, marketing, cleaning, utilities etc.)
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To conduct more research on this, please look at other coliving spaces around the world (start here) and take a look at their pricing. Generally single bedrooms with en-suite bathrooms are well over €1.000 per month.
Our planned coliving amenities cannot be matched by many other coliving destinations. They include: en-suite bathrooms, some private kitchens, an iconic building, swimming pool and sauna, communal kitchen, on-site private restaurant, on-site grocery shop, a self-serve cocktail bar, gym, movie room, generous workspaces, a large space for special event space, a sizable community, a natural setting with sports (skiing. snowboarding, mountain biking, hiking, trail running etc). And of course, out building is truly iconic. We are getting a lot of attention from the media, and our chairman is well known in the nomad community. Taking all this into account, what do you think are the odds to successfully build nomad utopia in Semkovo?
In the recent years, Bulgarian real estate prices have grown year over year by about 10% (see here)(and here).
Our apartments are priced competitively at around €839 per m2 (gross, unrenovated)
and include a share in the coop that owns and operated the coliving areas.
We do not expect to pay out any dividends in the first two years as we are ramping up operations and will probably have many things to invest in. After that it should be possible to start distributing dividends.
If you're always on the move for work or adventure, owning an apartment in Coliving Semkovo can give you a stable place to call home. It's comforting to know you have your own space waiting for you, no matter where you are in the world. And if you can move your tax residency to Bulgaria then there is an attractive 10% flat income tax.
Buying property, like an apartment in Coliving Semkovo, is a clever way to guard your money against inflation. When prices go up, so does the value of your apartment and the money you can make from renting it out. This means your investment can help keep your money's buying power strong over time.
Investing in Coliving Semkovo, nestled at an elevation of 1600m, offers a unique hedge against climate change. Properties at higher altitudes are less prone to extreme weather conditions and flooding, a key consideration as climate patterns become more unpredictable. The cooler temperatures and cleaner air at this elevation not only ensure a comfortable living environment but also attract a growing demographic seeking refuge from the heat and pollution found at lower levels. This natural barrier against some of the adverse effects of climate change not only preserves the value of your investment but could enhance its desirability and, consequently, its long-term appreciation.
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The cooperative ownership structure of Coliving Semkovo offers a unique advantage in terms of transparency and governance. As an investor and part-owner of the cooperative, you gain a say in the management and future direction of the property. This democratic approach ensures that decisions are made openly and with the collective best interest in mind. It fosters a sense of community and accountability, making it a more attractive investment opportunity. This level of involvement and oversight can provide peace of mind, knowing that you have a direct impact on the sustainability and success of your investment.
Putting some of your money into Coliving Semkovo is a smart way to spread out your investments. Real estate is different from things like stocks or digital currencies because it doesn't go up and down in value in the same way. It's a good move to keep your savings growing steadily.
Investing in Coliving Semkovo simplifies the often complex task of property management. With a dedicated team handling the day-to-day operations, from maintenance to tenant issues, investors can enjoy the benefits of real estate ownership without the usual hassles. This setup is especially beneficial for those who live far away or prefer a hands-off investment approach, making your investment both stress-free and potentially more profitable.
Investing in Coliving Semkovo leverages Bulgaria’s status as one of Europe’s most cost-effective destinations. The country’s low cost of living means your investment goes further, covering everything from daily expenses to leisure, offering significant savings without compromising on lifestyle quality. Despite potential future price increases, Bulgaria is expected to retain its relative affordability compared to other European nations. This makes Coliving Semkovo an appealing choice for those seeking value and a high-quality lifestyle, ensuring a smart, economical investment in a scenic, high-altitude haven.
Annual Financial Performance Model of a €40.000 Apartment Investment
This estimated return correlates with the risk profile of the project. It is not guaranteed and you are encouraged to make your own calculations and assumptions.
It's crucial to emphasize that the anticipated returns are speculative and contingent upon several underlying assumptions. Foremost among these is the expectation that our ownership framework will incentivize over 100 people to actively promote the project and the rental of their units to our target audience, thereby ensuring optimal occupancy rates. The viability and profitability of the investment are intricately tied to the effective implementation of our business strategy, the prevailing market demand for coliving spaces, and a range of external influences that may affect real estate valuations and the broader trends within the co-living sector. We are also renovating the coliving areas at the moment and while we have a generous budget the final level of amenities can change. Investors should be aware of these factors as they consider the potential risks and rewards associated with this venture.
What is the downside? How much money can you lose?
At Semkovo Coliving, we prioritize transparency and security in investments. Our recent appraisal of the unrenovated apartment B301 highlighted an important financial safeguard—the appraisal value. Priced at €18,856, this valuation isn't just about numbers; it’s about reassurance and limiting down side risk.
The appraisal value represents what you can expect to recover if you ever need to sell your apartment, perhaps in unforeseen circumstances. This ensures that even in a pinch, your apartment in Semkovo has value - independently of the future success of the coliving operations.
However, when you purchase an apartment at Semkovo, you're getting more than just a an apartment. You're also acquiring a share in the cooperative, which owns the coliving areas of the building. This share has value as well not only based on the operations and brand but also for the real estate that it owns (Block C). We estimate that Block C has been appraised at €2.6million unrenovated and we plan to invest another €2m from the apartment sales into the renovation of Block C. Should the coop decide to sell Block C then the proceeds would be distributed to the members. You can think about this like another €11,000 of value from the coop share per apartment.
This apartment B301 that we used as example was sold for €30,450 - and the proceeds of the sale finance our project, including renovation of the coliving areas and coliving faciltities. So based on the appraisal of the apartment and the estimated value of Block C the risk is much less than the price of the apartment.
This dual investment into an apartment that you own and a coop that you are part of of not only enhances the value of your purchase but also safeguards your financial interests in our community.
Read the full appraisal here
Buy an ApartmentGo to the Apartment Sales PageYou will be required to sign several contracts as part of your apartment purchase at Coliving Semkovo. We have compiled all the necessary contracts in this PDF for your review:
Coliving Semkovo Contracts PDFPlease examine these sample contracts carefully before selecting your unit. These documents are crucial as they outline the specifics of what is included in your purchase. The main contracts include:
This is the contract between you and the Coliving Semkovo Cooperative for buying an apartment. The payment terms are as follows:
1. A €500 non-refundable reservation fee is required when you select your unit.
2. A 25% initial payment upon signing the preliminary contract, about 7 days later.
3. The remaining 75% is due before the transfer of the deed at the notary, we aim to complete most/all sales before 30 September 2024
If you are a Bulgarian citizen or Bulgarian resident then we can introduce you to one of our banking partners for possible financing.
Please email cvetelina@colivingsemkovo.com for more info about financing.
This agreement between you and the Coliving Semkovo Cooperative covers the annual owners' fee for repairs and maintenance of the apartments in Block A and Block B.
It is a strict contract designed to ensure all members contribute to these expenses, which is a common challenge with apartments in Bulgaria.
You can find these documents on the Bulgarian Registry Agency's website: Coliving Semkovo Cooperative Registration
Please note that Block C, which houses all the coliving spaces and amenities, is restricted to adults only.
Therefore, this project may not be suitable for families with children.
In Bulgaria, the net unit size is calculated from the outer walls, meaning the actual usable area inside is smaller.
The term "common area" refers only to spaces in Block A or Block B, while Block C is owned collectively by the cooperative.
We believe that the community is stronger if we have more individual owners.
But we also have several owners that bought more than one apartment - either to combine multiple apartments for themselves or as an investment.
After all other apartments are sold, we will auction one special premium unit - B228 with the option to also buy the adjacent unit B226.
If you win the auction but have already reserved another unit, then you can transfer the paid deposit.
Please let us know if you are interested in this as we would postpone your closing date accordingly.
We will have 36 private storage units available for sale. Half of them are for sale already, the other half will go on sale later.
This will allow all interested owners to purchase a storage unit.
As the project progresses and therefore reduces risk for buyers, the apartment prices slowly increase to reflect that.
If you want to own an apartment at Coliving Semkovo, then getting it now is the best deal.
All apartments are sold in their current condition. They will require renovation and furnishing!
We estimate about €12.500 - €15.500 in additional renovations cost for a small studio and around and slightly more for larger units. Depends on selected options and of course you could also self-renovate your apartment.
We have some more information around renovation with data of Block A units here
We will also make some furniture proposals (at IKEA price level), so budget about €5000 for funiture and equipment.
Click here for our modular furniture design concept and here for specific prices
We also offer a solution for a kitchen here
The contracts you sign provide the legal basis for your purchase. Although various concepts, ideas and plans for the project have been discussed in meetings and on social media, only details explicitly stated in the contracts are legally binding and guaranteed to future owners.
The contracts are available in both Bulgarian and English, translated by the lawyer who drafted them. In case of any discrepancies, the Bulgarian version takes precedence.
As an apartment owner, you are also entitled to join the Coliving Semkovo Cooperative that operates the coliving and get a share of its profits.
So you are not only buying an apartment but also become part of the business.
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Join our dedicated WhatsApp group for backers and investors to engage in discussions, ask questions, and connect with fellow participants. It's a great platform for last-minute inquiries and to understand the motivations of others who are investing.
For specific queries, feel free to reach out to our chairman, Matthias, at:
Access the latest pricing and availability information online. The most recent pricing and availability is on our reservation site.
Visit our YouTube Channel:
Review these sample contracts for a better understanding of the legal aspects of your purchase.
Closing date depends on your preference and time of purchase
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We have summarized the most important questions in our FAQ. Click the button below to see all.
FAQ
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