For artist Paola Minekov, the concept of owning property is deeply ingrained, a mindset shaped by her formative years in Bulgaria under Communist rule. Growing up until the age of nine in a system where private ownership was severely restricted, she found herself drawn to the tangible security that owning a home represented. “Despite working in the creative industries, owning property has always felt incredibly important to me,” she explains. “Private ownership was restricted for decades, and I think that legacy shaped my mindset.”
This profound influence has led Paola and her husband, a software engineer, to amass a portfolio of four flats and houses in the UK, valued collectively between £1.3 million and £1.5 million. Her childhood experiences paint a stark picture of life in Bulgaria prior to the fall of Communism. “When I was young, a property couldn’t just be bought; you had to go on a waiting list that could last years. Apart from artists, such as my father, people weren’t allowed to own more than one property. Artists were allowed two properties as one was allowed to be used as their studio.”
The Communist era in Bulgaria, spanning from 1944 to 1989, imposed stringent limitations on private property. Not only were there size restrictions, but the acquisition process itself was often painstakingly slow. While artists and those within the creative sector were recognised for their role in shaping propaganda, authorities maintained a watchful eye, ensuring any second property was indeed utilised as a studio. “It was a strange environment for artists to work in,” Paola recalls.
Life in Communist Bulgaria
Paola’s early life, like many families in the capital city of Sofia, was spent in a flat. “Here, and in the main cities, there were no houses; it was all flats. Although people did live in houses outside the city,” she notes. Mobility was also a significant challenge. “People also couldn’t move from one place to another very easily. It was like citizenship is now, and my father could only move to Sofia because my mother was from Sofia. The restrictions ended when I was nine, and things slowly changed. There was a ‘soft revolution’.”
This period of change saw many families have their seized property and land returned. “This has influenced my perspective; even in drastic circumstances, once the cycle is over, you will gain a level of ownership back, even after 40 years,” Paola reflects. The return of property offered a tangible sense of security. “Both my parents had land taken away from them, and it was given back eventually. Not 100 per cent, but most of it came back to them after 40 years. It’s a long period to wait, and for things to work out, but land and property are a physical thing.”
A Journey to Property Ownership
Paola’s personal journey led her to Israel at 18, followed by the Netherlands, where she met her husband. In 2008, the couple relocated to London. After a couple of years of renting, they purchased their first property in 2011: a two-bedroom, share-of-freehold flat in Herne Hill. “We paid £335,000 for it, and it doubled in value in the first few years,” Paola shares. While her Dutch husband was accustomed to a culture of long-term renting, Paola found it lacked the security she craved. “My husband is Dutch, and culturally, there’s much more acceptance of long-term renting in the Netherlands. But for me, renting never felt secure enough.”
Capitalising on the equity built in their first home, the couple leveraged £100,000 in 2014 to purchase a three-bedroom house in East Croydon for £320,000, intended as a buy-to-let investment. “The Croydon house is freehold, which is important to me, and there is parking. It went up £100,000 the year after we bought it as well,” she notes.
Their investment strategy continued in 2017 with the acquisition of a second rental property, a two-bedroom flat in Abbey Wood, for £260,000. The funds for this purchase were a gift from Paola’s mother, derived from the sale of property that had been returned to her after the Communist era.
Family Home and Rental Portfolio
Three years ago, the couple and their two children moved from their Herne Hill flat to a five-bedroom house in Reading, purchased for £550,000. They utilised the equity from their now largely mortgage-free Herne Hill flat to fund the deposit for their family home, retaining the flat as a rental property. It currently generates £2,500 per month.
The East Croydon house is tenanted and brings in £1,850 per month, while the Abbey Wood flat rents for £1,350 per month. All investment properties are held in their personal names, are in good condition, and are tenanted.
Navigating the Changing Landscape for Landlords
Recent shifts in tax and regulation have prompted Paola to re-evaluate her position as a landlord. “No wonder landlords are thinking of selling up – I have thought about selling up, but felt strongly that I didn’t want to do this with my Herne Hill home.” While she acknowledges the necessity of some provisions within the Renters Reform Act, particularly concerning landlords engaging in questionable practices, she believes smaller landlords like herself are disproportionately affected.
“It’s not just Labour; not being able to claim mortgage interest as an expense is unfair. Everything about being a landlord is treated like a business, except the expenses. You can’t expense mortgage fees, and it doesn’t come into our profits.”
Despite these challenges, the long-term plan is to retain the properties for her children. “I will try to keep them, but I don’t know if we will buy any more. Some years I make a profit, and some years I don’t, if we do a lot of work.”
Paola’s passion for art and property has also led her to co-found Creations Atelier. This initiative organises networking events in London, fostering connections between artists and property professionals, developers, and architects. Even amidst the current pressures on small landlords, Paola remains a staunch advocate for the value of property ownership. “Property represents security, stability, and long-term safety to me.”
