So you’ve already looked at all the reasons why you should choose Cyprus and decided it’s for you. And now you are thinking about what sort of property you will buy.
If you are attracted by the idea of owning a property with a bit of history and character, in keeping with the many pointers on the island to days gone by, then property resale could be for you.
The current market for resale is strong and reliable. You will find that financial matters in general are conducted quite efficiently, helped by Cyprus’ EU membership. The country has double tax agreements with forty other nations, there is no inheritance tax for permanent residents, and the taxation rate on income from pensions is only 5%.
The purchase of both new and resale property, for non-residents, does require permission from the Council of Ministers.
Extra expenses you can expect to incur in the process of a resale transaction include: government tax, agent’s fees and other taxes including a land transfer tax and fees associated with the maintenance of your apartment complex.
Your lawyer can advise you of the exact specifics of all these costs. Be sure you do not run over your budget.
Points to Ponder
You need to consider carefully your reason for buying. For holidays? To live there? As an investment? If the latter, for what length of time? What is your expected profit margin?
If your intention is to own a holiday-let, to how many people do you expect to be able to rent it out? Avoid areas where the market is already saturated with holiday villas.
If you intend to reside permanently on the island, what type of home do you want?
The importance of ‘doing your homework’ in all these areas cannot be stressed too strongly!
Advantages of Resale
You will find that the process of buying an older property is quicker than when purchasing a new one, since you will not be dealing with an off-plan project.
The resale market is good, meaning a better chance of a good return on your investment. If making a profit is your main intention, resale property is in fact the best option.
You will also find that resale property means that you have no restrictions on how you use it. A good location and great marketing can therefore lead to more and more regular bookings and therefore a healthy income for you.
Perhaps surprisingly, maintenance costs will actually be lower with an older property. A range of extra costs, for parking amongst other things, can be associated with new properties and do not apply to older ones.
Factors to Consider
Be sure to ascertain the real market value of resale properties. Local estate agents can advise you.
Take a good look at the area where you are thinking about buying. Check out the shops, transport links and (if applicable) schools. Do you want your property to be in the heart of a busy, thriving area or somewhere more remote, with plenty of peace and quiet?
If the property includes a garden or yard and pool, think about maintenance. If you know you will not be able to keep them well maintained and presented, it could be better to opt for a town-based property with yard maintenance included.
Do your homework, stick to your budget, take as much advice as possible from your lawyer, and you could find yourself with a dream property full of character – perfectly suited to this beautiful island with so much ancient history.
