Cyprus property sales are in many ways different to buying real estate in other parts of Europe even the U.K. Athough Cyprus and Britain have very similar legal systems there are some stark contrast when it comes down to the nitty gritty of buying that dream villa or luxury apartment. There will be plenty of legal professions on hand when you decide to actually get involved in Cyprus property sales but an overview of how the home buying and selling is done on the Island should prove useful. Like the saying goes “forewarned is forearmed” and you can never really have too much information.

The most glaring differences appertaining to real estate in Cyprus is how and when buyers are expected to pay for their property. In the U.K. you pay a few hundred pounds to the builder to reserve your plot or house followed by 10% of the total price. Then once and only once the house or apartment is completed you are expected to complete the purchase by paying the outstanding balance via your loan or mortgage. All of this is of course would be handled by both your own and the builders solicitors who work together to ensure that all the funds change hands on one given day.

Cyprus property sales work rather differently in so much as the buyer will be expected to pay the developer a large proportion of the cost before the house or villa is finished. In most cases you will be expected to put down a reservation fee of anything upwards of cyp2000 which usually secures the property for thirty days. After this time you are most likely to be contracted to paying the Cyprus developer around 30% of the total cost of the property. Failure to proceed to this point (dependent upon the contract) may see the builder reliving you of the holding fee as a none refundable deposit so check the contract if you are considering withdrawing your offer to buy.

Once the buyer of the Cyprus property has paid the first 30% the rest of the money will become due at various phases of the build such as completion of the shell, plastering and final finishes. Again, it is a good idea to scrutinize your contract because many of the Cyprus developers will insert penalty clauses for any late payments of these outstanding amounts in the form of interest. Many of these developers in Cyprus property sales will encourage you to pay them directly but you may prefer that all moneys be sent via your Cyprus solicitor. This way the solicitor will only release your funds to the developer when they are sure that the building work is at the agreed stage. The other advantage of using this method is that you will have the benefit of a third party keeping account of how and when the funds were paid over.

The other big difference with Cyprus property sales is the whole matter of the title deeds. Unlike the U.K you are unlikely to receive any deeds for your new build property when you pay for it. This is where the contract between yourself and the Cyprus property developer comes into play. Apart from detailing all the specifications of your new villa or apartment it is also your document of ownership in leu of the title deeds. The reason this situation occours lies in how the land is transferred to the developer in the first place. The land acquired by the developer will come with one title deed for the whole plot and will remain in force until the project is complete. Then the developer applies to the planning authorities for separate deeds as per the original construction plans.

The process of acquiring separate title deeds for new build Cyprus property can take up to seven years or longer and there will be a cost too. At the time of writing this article the deed tax on an average Cyprus villa was working out at around cyp6000 so you should take it into account when buying. Although these differences may appear a little strange to foreign buyers it has worked well this way on the Island for many years. There may be other subtle differences when buying or selling on the Island but the great news is that there is no shortage of English speaking experts available to help you make sense of Cyprus property sales.



Sell and Rent Back

Even with mortgage rates at historical lows, house prices continue to climb making some to wonder if now is the time to buy. So some are asking themselves the question “Buying vs. renting, which one should you choose?”. There are many people that are trying to make this decision. This is one of the biggest and sometimes hardest decisions you will ever have to make. There are many advantages to renting and there are many advantages to buying. This article will tell you the advantages of both and then you will have to decide if renting or buying is right for you.

These are not all of the advantages of renting vs. buying, and it may vary depending on the areas you want to live in, but they are the most important ones. You will want to make sure that you learn more about renting or buying before you do either.

Here are the advantages to renting:

One: When you rent your home you will not have a big debt hanging over your head. You will not have to worry about losing your home and all the money you have already paid towards your home if you can’t pay the mortgage payment.

Two: When something mechanically breaks or stops working you won’t be responsible for fixing it. You will just need to call the landlord and they will take care of it. This means you don’t have to spend your money when something goes wrong.

Three: One big advantage to renting vs. buying is that you will have less liability. If someone were to get hurt while they were on your property, and it was through no fault of your own, than you won’t have to worry about being sued because of it. In most cases the landlord’s insurance will be responsible.

Here are the advantages to buying vs. renting:

One: When you buy your home you will be the sole owner of the property. You will be able to do a lot of things to your property that would not be allowed without a landlord’s permission if you were renting. Some of the things you can do when you buy your home are to paint the walls inside and out, you can add tiles where you want to, you can basically change anything you don’t like or want changed. These changes have the added benefit of adding value to your home. When you are renting you can’t do this without permission.

Two: When you buy a home vs. renting you will be building equity in your home. Although most of your mortgage payments go to paying interest a portion does go to paying down the mortgage amount. Think of this has a kind of forced savings.

Three: Buying a home can be a big debt but when you pay off your mortgage you will no longer have to worry about losing your home and you will not have any more monthly payments to make. So you will be able to use that money for a lot of other things.

As you can see there are many advantages to buying or renting. You will have to decide which of the advantages appeal to you more. This will help you make your decision easier. Take your time and do some research if you are really having problems deciding between renting vs. buying.



Rent Back Fast

i bought a repossessed house to rent it out. The couple wsho lost the house have contacted through our estate agent to rent the house with the girl’s father acting as guarantor for rent?
Go ahead or not? Anyone with similar experience?
Thank you in advance.

Sell House Quick

I’m 24 and hoping to be able to buy my first property in the next year. My idea is to buy something small, that needs minor renovations – like upgrading furnishings, modernising bathroom etc. Do you have any tips in general. Are property auctions an affordable way to get on the ladder?

Passive Income