Cyprus Property Purchase
Cyprus property is a hot item on the real estate market and analysts predict that this trend will continue for some time to come. Even with the growing number of houses under construction, it does not appear that supply will outstrip demand anytime soon. If you’ve been thinking of purchasing Cyprus property, now is a great time to do it – before prices become too prohibitive. Don’t get left behind like many investors did when Spanish real estate prices skyrocketed. A lot of real estate investors hesitated about getting in on the ground floor of the real estate boom in Spain and have regretted it ever since.
Fortunately, for interested Cyprus property investors, there are a large number of houses and villas all over the island from which to choose. Both apartments and luxury residences are plentiful and easy to find. In fact, the choice can sometimes be overwhelming, and, since there are literally hundreds of real estate agents as well as developers in Cyprus, it’s important that you get a handle on the real estate situation there before you begin your search. Furthermore, as is true with everything else in life, there are good and bad real estate agents to be found so shop around until you find someone you feel you can trust. As a rule, however, Cyprus property companies have a solid reputation when it comes to dealing with non-Cypriots.
Another fortunate aspect of buying Cyprus properties is that many Cypriots speak English as a second language. Moreover, since all of the solicitors and property agencies have English-speaking staff, there’s very little likelihood that you’ll experience any communication problems during business transactions. Yet another favorable aspect is that, as a result of Britain’s occupation of Cyprus up until the 1960s, Cyprus’ legal system closely resembles the UK’s legal system. There are, however, two differences that you should know about: 1) As a non-resident of Cyprus you are limited to owning only one piece of property on the island, although this restriction may quite possibly be lifted in the future, and 2) in the event that you do purchase a brand new Cyprus property, you will most likely not receive your title deeds for up to five years after the project has been completed. There are a couple of reasons for this delay and they are detailed below.
Typically, when a Cyprus property developer purchases land for development, only one title deed is issued for the entire plot. Only after the plot has been divided and the construction project completed, is the developer issued title deeds for individual pieces of property. Of course, this won’t happen until all the houses have been built and all the roads have been completed. At this point, the developer will apply to the land office for the deeds and a full survey will be conducted of the whole development to ensure that all of the work carried out complies with the original planning application. For this reason, owners of these new properties are advised not to make any structural changes to the property before the deeds have been completed. If someone does make structural changes before the deeds have been issued, it may jeopardize the chances of getting the deeds for all the properties that are part of the development.
The long wait until you get your property deed for a brand new Cyprus property makes it vitally important that a contract be drawn up between the developer and yourself. The contract guarantees your entitlement to the house even though initially the developer is the only one holding a deed. This procedure may also apply to the purchase of a Cyprus property that is five years old or under for which title deeds have not yet been transferred. In fact, many sellers have been shocked to find out that developers require a fee of approximately three thousand Cypriot pounds so that a replacement contract for a new buyer can be drawn up. The purchaser of such resale properties, however, is not required to contribute towards the cost of the replacement contract.
Hopefully you will find the information that has been provided on the Cyprus property market useful. There are additional factors to take into consideration when purchasing property in Cyprus as well, such as the availability of finance in Cyprus and the costs associated with property ownership etc. Banks in Cyprus are eager, perhaps more than ever, before to make loans for property purchases to non-residents. Plus, the cost of living is significantly less in Cyprus than it is in the UK or other parts of Europe. With this in mind, we wish you good luck in your house hunting endeavor and enjoyable times in Cyprus.