Buying in Cyprus ?

sconieroany

I am thinking of buying a property in Cyprus and would like any information on the pro's and con's of doing so, there are also a few deals in which the developer pay's 50% of the property and rents the property out for 6 months of the year for the first 9 yrs to fund this, it's a kind of buy to let, exept they do all the work, has anyone done this with a developer in the past ?

Cheers.

Prudent

Be careful. There is quite a glut of newly developed properties to let in Cyprus. It is not uncommon for devlopers to use letting potential to sell a property when the prurchases may actually get very few lets. I would check the terms and conditions carefully - do you have to pay them extra money if the property is not let in that period? Are you paying them agents fees? Resale properties can be better value.

If you are buying get a solicitor to check out the deeds as there can be complexties over land ownership.

Remember when you sell you will be taxed on the sale price. Property can take time to sell because of the amount of new builds.

Cyprus is a lovely place to live. Wonderfully low rates, good climate, cheap petrol, lovely beaches.

daleuk_3

Hi, sconieroany, what are the developments you are referring to?

I have been looking at one called Caesar Resort on the east coast of cyprus, v low prices due to the size of the resort and that they are blocks and that the east coast is currently under developement. But in 3-6 yrs time i can see the value at least doubling.

£28k for a 1 bed apartment... I have £7k cash as a deposit, can raise an extra £3k via student loan :-) get the remaining £18k on a mortgage..? Im not sure where to look for a mortgage of this low amount?

£25k sale price
£800 Solicitors fee

The following costs are based on a tax mans evaluation of the cost of replacing the building (should be lower that cost of apartment, but will calculate at the potential purchase price).

£750 stamp duty 3% (reduced price for 1st time buyers)
£1250 Vat @ 5%


Total cost = £27800

Savings = £10k

To mortgage = £18k

I am a student, but do have a part time job paying £300 a month (after tax), 1 yr remaining at uni, when I will be finding myself a half decent job. I can see this would be considered quite a risk to lenders. But a mortgage of £18k, over 10 yrs, would cost no more than £200 a month?

ttoli

As Prudent warns do be careful, do your homework but dont be put off buying over here. 2 years ago i paid 98k for my 3 bedroom villa with; pool,AC,CH etc, My neighbour has just sold his (identical) for 145k!!.