Residential Property in Cyprus
If you are considering a residential property in Cyprus, then you're in good
company. Although real estate in Cyprus is a great investment, you can make a
poor investment of a great opportunity if you are not well informed.
This article will take you through what you need to do, what you need to avoid
and what you need to be aware of?
I must admit that I am already making an assumption that you already know much
about Cyprus and why it is a great real estate opportunity. I resist that
temptation and pause to make sure everyone reading this article has a good
overview of what Cyprus offers especially as it relates to residential
properties.
Cyprus is the third largest island in the Mediterranean Sea (Just a little
geography). The climate is temperate and Mediterranean. There are hot, dry
summers and cool, variably rainy winters. There is enough snow for a seasonal
ski. All these combine to make it a great holiday location.
These are its major cities: Paphos (south-west), Limassol (south), Larnaca
(south-east), Famagusta (east), and Kyrenia (north).
Reasons why a residential property investment in Cyprus is a smart one?
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Very low crime rate. One report states that Cyprus has a crime rate that is 6% of UK's (Talk about a safe neighborhood)
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It is has a property market that is growing at a stable rate. This makes forecasts very predictable.
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Residential property prices are very competitive when compared to other EU countries like Spain.
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The booming tourism industry means that there will always be a demand for rental properties to cater to the needs of these visitors.
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Its recent accession to the EU has made it a lot easier for investors from fellow EU countries.
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Like most former British colonies, its legal system is based on the British system. This ensures that your investments are protected.
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For those who intend to use their residential property as their retirement home, Cyprus has friendly inheritance tax laws.
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It has up to ten months of sunshine. This means that there are sustained tourist activities with the attendant benefits.
Now that we are all on the same plate, let me go into the meat of this article. I'll start with what you should be aware of...
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Available finance options for residential properties in Cyprus
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That you can waste a lot of money in the transfer of funds. You should ensure you use the most efficient methods. It will save you a lot of money.
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The tax laws of Cyprus and how they affect you. This will help you take full advantage of the opportunities offered.
Now that you know what you should be aware of, let's give you a general guide
on buying residential property anywhere but especially for Cyprus. I will
quickly go through a list (This will influence factors like: region of Cyprus
for your residential property, price range youe operating within, number of
bedrooms, etc)...
1 .What do you intend to use this residential property for?
Sounds like an unnecessary question? Then consider these following options...
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You may want it as a holiday home.
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You may want to rent it out to tourists or expatriates.
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You may want to have it as your retirement home.
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You may want to relocate there now and live there permanently.
Picking any of these options focuses on several factors that I can't possibly
exhaust here. However, the important thing is that it gets you thinking in the
right direction.
If you want it as a holiday home, you'll definitely have to consider your entire
family's preferences. You'll take into account how convenient it will be for you
and yours. How far you would have to travel to your favourite spots. Do you have
little kids? How will the property suit them? Yes, you'll have to ask these and
many more questions (Just like you did when you moved into your present home).
What if you want it as a retirement home? Won't you consider whether you'll have
to climb too many stairs? You certainly don't want that. Depending on the kind
and size of family you have, you may also consider if you’re grand kids will fit
in when they come for those visits.
Individual criteria differ when it comes to acquiring residential property. But
I guess I have buttressed the importance of defining what the residential
property is to be used for.
2. How will you finance your residential property?
Are you going to pay from your savings (If you can afford it)? Most likely you
will require a mortgage. You can get loan amounts that are up to 80%. But how
and from whom will you get it? You will need to do due diligence. There are a
host of agencies that will walk you through the process.
3. Knowing your neighbourhood
It is very important that you make sure the neighbourhood fits your preferences.
Will you like your property by the beach or closer to the mountain? You have to
take note of the fact that the environment you buy your property and what it
becomes will affect your returns on the long run.
4. Inspecting your residential property
I am sure you will not call it a nice idea to buy a residential property on
someone else’s say so. You will need to see and evaluate the property
personally. This raises other issues: Your journey to, and stay at Cyprus.
Good agents can arrange all this for you.
5. Working out a deal
When you see a suitable property, you will have to negotiate a few things like
price, repairs to be done (if any), your payment terms and things like that. You
must bear in mind that nothing is cast in stone. A good agent will give your
professional advice on what and how to go about the entire process.
Once you reach an agreement, you will have to pay a reservation fee that is
usually about 1% of the price. Once this payment is made, the property is taken
off the market.
There is a lot more to the process of acquiring a residential property in
Cyprus. However, I hope this has put you on the right footing. Furthermore, you
must have noticed I always underlined the importance of a good agent. Get one! a
very good one! and your residential property in Cyprus will yield returns that
will be any investor’s dream a few years down the line.
