Choosing the Right Property

Every purchaser has different requirements. Others prefer a quiet and secluded location, others favour being near the local amenities. Others value unobstructed sea view and consequently want to be near the coastline, others would rather live in a village with the locals. Here we will not try to argue who is right and who is wrong. On the contrary, we will attempt to list a few, less obvious issues that need to be taken  into consideration when choosing what is suitable for you.

The possibility to add to or extend your property: This depends on the local town planning regulations and restrictions.

Re-sale value: Although this is inevitably related to supply and demand, there are other factors that will influence the re-sale value of your property. For example, converting a villa with 3 bedrooms into a villa with 2 bedrooms will in most cases decrease its value. Additionally, a villa with unobstructed sea view will be worth more than one where someone might build in front of it, therefore blocking its view.

Look to the Future: This is possibly the biggest mistake home buyers make. A seemingly quiet location might in a few years turn into an overcrowded area. Your safest bet is to assume that in a few years the whole area around you will be built. Therefore, it is important to evaluate the future situation based on the current regulations and restrictions as well as the status of the neighbouring plots of land. Choosing an area with a low building density ratio allowance, for example, will ensure that even when the whole area is built, it will never be overcrowded as the development of the area will comprise of widely spaced, low rise, bungalows and villas. Similarly, if the property in question is surrounded by land marked as ‘green area’, government land and so on, it is safe to assume that nobody will build adjacent to you.

The Vendor: It is important that you buy from a reputable and well established vendor/developer. It is worth carrying out a small investigation to establish whether the vendor has a good reputation, has a good track record in issuing title deeds for his developments and that his existing clients are satisfied. Another important issue is how much involvement the vendor will allow you to have in the construction process. At the end of the day nobody would like to buy a property under construction where he or she will not be allowed to choose the colour of the floors, say.

Building Specifications: Wrongfully, most buyers perceive the building specifications as the quality of the finish of a property. This is a mistake because should the specifications include cheap floors, cheap sanitary fittings and plain kitchen units, for example, this can easily be rectified by paying an additional one or two thousand pounds to upgrade these to your desired standard. On the other hand, substandard construction can not, or is difficult and costly to, be rectified.

Comparing Property Prices: This is another common mistake people make. In order to compare the prices of various properties you have to make sure that you make all the necessary adjustments so that the two properties are comparable. To begin with, you have to allow for any differences in the value of the land for each property. For example a house on the sea front will cost more than a house in a local village. Secondly you have to allow for any major differences in what is included in the purchasing price and in the building specifications. For example, a swimming pool or a large patio might be included in one of the offers. Lastly, make sure that you allow for any differences in the size of the properties in question. Please note that 2 houses, each with a covered area of 100 sq.m, say, are NOT necessarily of the same size as this depends on the definition given by the developer to the term ‘covered area’. For example, a house with 70 sq.m inside area and 10 sq.m covered balconies could have a 100 sq.m roof above it (i.e. the roof could extend a little bit beyond the walls of the house around its perimeter). The house could be advertised to be 70 sq.m (if the developer defines the covered area to be the useful living space inside the house), 80 sq.m. (if the developer defines the covered area to be the useful living space plus the covered balconies)  or even 100 sq.m if the developer defines the covered area to be the space under the roof).

Buying the Property

The first thing to do when you have made up your mind about which property to buy is to pay the so called reservation deposit. This is usually around £1,000 and paying it will ensure that the property in question is removed from the market and that you will have adequate time to prepare the contracts and finalise the deal. Although a reservation deposit will count towards the selling price, it will not be refundable should you decide to cancel the deal.

Although the law in Cyprus does not require the involvement of a solicitor, it is strongly recommended that you employ one, unless of course you are well aware of the local laws and regulations.

Your solicitor should carry out all the necessary searches and investigations, prepare the contracts of sale, register the contract with the land registry, apply for the permit from the Council of Ministers (if you need one) and in general take care of all legal and technical aspects involved in the transaction.

Buying property in Cyprus is in general a straightforward and fast process. If the property is already built you will most likely be required to pay the whole amount within the agreed period of time and you will receive the possession of the property and the ownership, of course, if the title  deeds for the property are already issued and you have already been granted the permit from the council of ministers.

If the property is under construction, the most common terms of payment are 25% deposit, 25% with the completion of the frame of the property, 25% with the plastering of the walls of the property and 25% with the delivery of the possession of the property. The title deed will be transferred on your name as soon as the individual title deeds are issued.

Construction of the Property

Around 10-12 months is a reasonable time to construct a house and for a block of apartments 12-24. During this time it is important that you keep an eye on what is going on. If you cannot be present, it is advisable that you ask a friend, or to even employ an independent civil engineer to supervise construction on your behalf.

Most developers will offer you a choice of materials like floors and sanitary fittings. Some developers will offer less choices and others more. Some, like us, will even let you position exactly the location of each socket should you wish to do so.

Make sure that you study the architectural drawings and try to visualise how it will be when the property is finished. Try to establish the desired location and orientation of your furniture so that you can proceed with customizing your house. Moving doors and windows, changing the location of sockets and TV points and designing your wardrobes and kitchen units are some of the changes you can make so that at the end you get a custom built home to match your own personal requirements.

Lastly, it is usually worth spending some extra money to get exactly what you want. Five thousand pounds, say, might sound like a considerable amount of money to spend on extras, on the other hand, if you are paying £150,000 to purchase a villa with 3 bedrooms it is worth spending a little bit extra to get exactly what you want. Marble or wooden floors, a provision for a home cinema system or a Jacuzzi might make ‘the difference’ in what all home buyers dream of. At the end of the day buying a home is not something most of us often do.

Delivery of the Property

Once the property is completed you should receive the possession of it. Before you do so it is advisable that you carry out a thorough and detailed inspection of the property together with the vendor to locate any possible defects and in general any problems that there might be. This is important so that no one can claim in the future that these were done by you after you moved in. Agree on what needs to be done and on a time frame. It is not a bad idea to keep a couple of thousand pounds from the last payment until these defects and problems have been rectified.

From this point the possession of the property is yours and you should enjoy an unrestricted and an unobstructed possession of it. The title deed might still not be registered on your name but having your contract of sale registered at the land registry ensures that your investment is protected and that the deed will be transferred on your name as soon as the individual titles are issued.

Utilities such as electricity, water and telephone lines should readily be available unless the construction of the whole project is not completed. Should this be the case, the developer should provide you with adequate alternative means such as water through his supply used in construction and electricity provided by a generator.

Electrical appliances, furniture and in general anything that you will need are widely available on the island. You could also import these from your country of origin but it is doubtful whether this will result in any significant savings, unless of course you are relocating here and you own them anyway.

Should you need any assistance in any of the above we are sure that your developer will be pleased to help. At the end of the day we believe that good after sales is one of the most important factors distinguishing a bad from a good developer.