In the past five years, Cyprus property values rose with as much as 30-50% in certain areas. The economic future of Cyprus is also very bright which predicts a steady growth in property values for quite some time to come. This is big news for homebuyers for two major reasons.
One – Now is a good time to invest in a home since the chances of getting a more affordable price in the near future is pretty slim and you can even expect to pay much more the longer you wait.
Two – Your home is basically guaranteed to be a good investment since property values will only keep increasing. This means the chances of a good resell value with high-profit margin is pretty good if you ever do want to relocate.
First-time homebuyers should, however, be very careful when investing in property in this popular island. There are plenty of pitfalls that you need to be wary off so you can get the best possible deal and reduce bank repossession risks. Here are a few things to look for when you are buying a home in Cyprus.
Look for a good property lawyer
Real estate lawyers are an absolute must if you want to avoid property disputes and ensure that the property will be transferred to your name legally, binding and without the loss of money. Property lawyers also make the entire purchasing process a lot simpler because they handle all legal aspects of property including closing documents, insurance policies and much more.
Do a title search on the property
UK governments warn to ensure that there are no ongoing disputes on the title deeds and to ensure that the seller is in fact in possession of title deeds. This is a big pitfall to watch out for if you don’t want to end up empty-handed.
Check for mortgages placed on the property
If a buyer invests in a property on which a mortgage or loan has already been placed he or she can become liable for that mortgage if the landowner declares bankruptcy. Your lawyer should check for all prior mortgages or loans that might be in place for that particular home.
Be sure to buy in a good and stable area
Property disputes are still ongoing in the north of Cyprus which is still under Turkish occupation and that makes it a risky home investment. If you want to be safe and secure then you should do proper research and stick to homes in the south of the island controlled by the Republic of Cyprus, member of the European Union, which is the only recognised government by the United Nations.
Consider all legal relevant costs
When you are calculating your budget you should also take relevant costs into consideration such as vat, transfer fees, legal fees, property taxes, disbursements and more.
Ensure that everything is in writing
Never accept or make a deal unless it is in writing. A proper sales agreement or contract should include all agreed amounts and terms and should be signed.
There are many other things to watch out for when you are buying a home in Cyprus for the first time. The best way to ensure that you make no mistakes and don’t get trapped in nasty property pitfalls is by consulting with our real estate lawyers throughout your purchase.
