What Are the Possible Pitfalls of Buying Property in Cyprus?

 

Buying property in Cyprus is a popular investment choice for both first time investors and seasoned investors looking to diversify their assets. In particular, Cyprus properties are highly valued in Europe for their strong resale value, which makes them attractive investment choices for many European homeowners seeking to purchase property in the region. However, in recent years, there has been a noticeable decline in investor confidence, as a result of various factors such as the prolonged political stalemate in Cyprus, the potential impact of a Cyprus bankruptcy, and the worst economic crisis since the World War II. As a consequence, the availability of quality property has significantly decreased over the last few months, with some areas of the Island even seeing a shortage of apartments for sale.

For those considering the purchase of property in Cyprus, the key areas where buyers can find good bargains are Cyprus' two major cities-Larnaca and Nicosia. Both cities offer a diverse range of accommodation options for those looking to purchase property in Cyprus. Some of the most sought after properties in Larnaca include the Cyprus Grand Hotel and the Holiday Inn on the Bay, while the former's beachfront villa provides an ideal base for relaxing and enjoying the local culture.

If you're considering purchasing property in Cyprus, it's important that you engage the services of a lawyer when buying any commercial or residential property, particularly if you're not aware of the legal ramifications involved. This is because Cyprus property purchase legislation is different than that of the rest of the EU, making it essential that you engage the services of a qualified solicitor to ensure that you obtain the correct protection. Lawyer-assisted buying also ensures that you can benefit from the tax benefits available to buyers of commercial and residential property in Cyprus.

A major concern that potential buyers should be aware of relates to the purchase of property in Cyprus by foreigners. Since Cyprus is a member of the European Union, all purchases require the buyer to have a property price certificate. The certificate contains detailed information such as the property's area of coverage, the property price, the property's classification and whether the property has been reserved or non-reserved. In the case of non-reserved properties, the buyer will need to pay a certain "title fee" on top of the amount of the property price. The title fee is charged in addition to the cost of clearing the property land.

There are several ways that potential buyers can reduce the cost of buying Cyprus residential property prices. One way is to utilise immovable assets, such as the cypress in which the house is built. Immovable assets do not need to be purchased via a mortgage. Purchasing cypress from a private seller allows the owner of the cypress to retain ownership of the asset at its current market value. However, an owner who wishes to take out a mortgage does not lose all of the asset, as long as he agrees to pay for improvements that will increase the value of the house over time. This ensures that the person who is paying for the mortgage does not lose any potential profit when the house increases in value.

Another way of helping to reduce the cost of purchasing a Cyprus property is to work with a qualified estate agent. Many estate agents in Cyprus have a "market value" clause so that they will offer potential residential property buyers an accurate fixed rate based on the current market rate for similar properties in Cyprus. In addition to this, some estate agents will also provide a vat to the purchaser, which is a pre-approved lump sum of money that is transferred directly from the estate agent to the buyer's bank account upon completing the sale of the property.

When buying property in Cyprus it is essential to ensure that there are no liens that may affect the land registry value of the property or make it difficult to sell the house in a timely manner. If there are any debts listed on a land registry then these debts will need to be cleared before you make any negotiations with any potential buyers. If you are unsure whether debts will need to be cleared before buying a Cyprus house or property then you should seek advice from a lawyer who specializes in purchasing property in Cyprus.

It is possible to save money on the purchase of Cyprus property by using a real estate agent. These agents will normally use a fixed-rate mortgage and will often require a buyer to obtain an insurance policy in case of any eventuality such as damage to the property due to fire or flood. As a buyer, you must also consider that there is typically a down payment required. If you are able to afford the monthly down payment then this can help you to save a significant amount of money. If you do not have this type of money available then you may want to consider working with a real estate agent who is familiar with purchasing property in Cyprus.