Before investing in property in Cyprus, you might be happy with a quick and superficial market research based on your personal preferences. What most people don’t realize is that your ‘personal preferences’ can be quite limiting. Let’s say you know exactly the kind of investment you want and have decided on everything there is to know from the type of property to its location, from the number of rooms down to the smallest decorative details. What next
1- Do your research and do it well.
Pretty much everyone considering the idea of investing in the property gets lost in the many details of the process. The best thing to do is to first decide on whether you are buying property for personal use or as an investment. Your answer will determine your expectations from the property and how you will profit from your investment with your allocated budget.
2- Examine the property and take a walk around the neighbourhood.
If you are planning on purchasing a property from a completed development project, be sure to examine the house beforehand. Inspect the quality of the building and materials used. The quality of the materials used, such as ceramics, appliances, and flooring are important factors that increase the property’s value.
3- Make sure the property matches the development plans.
The location, size, and floor number of the property you plan on purchasing need to be compatible with the development plan. The last thing you want is to pay a penalty fee or face a demolition decision because the flat you bought did not comply with legal regulations upon inspection in the following years. That would not make for a happy home now, would it?
If the property you intend to buy is part of a recently completed project without prior residents and has been built by reliable construction companies in Cyprus, you won’t need to worry about these problems.
4- If there is a tenant’s agreement, read it carefully.
If there is a tenant in the house you want to buy, check their lease with the former owner.
- If your property investment in Cyprus is for your own personal use and you intend on moving into this property yourself, you must inform the tenant by following legal procedures and request that they move out.
- If your investment is for the purpose of generating income and the current tenant is going to continue renting your property, draw up a new lease
5- Verify the property’s sales value.
Another thing you should consider before investing in real estate in the TRNC is the location of the property in question and the investment value. What is the price in relation to the area or building type? Many people wanting to sell or rent their home give unfavorable prices by charging above its true value. Buying property valued more than it should be can lose you a great deal of money.
6- Calculate rental income and depreciation period..
Whether you’re buying a home for living or investment purposes, calculating the income from your investment is one of the most crucial criteria for making the right investment. Short depreciation periods (8-12 years on average) in North Cyprus are certainly worth the investment.
The short depreciation periods (8-12 years on average) in Northern Cyprus provide you with an important advantage.
7- Be in charge of the sale process when buying property in Cyprus.
The process of purchasing property in North Cyprus requires different procedures for foreigners. However, this process is a lot easier for foreigners than in other countries. (Click to learn more on this process and your rights: Home-buying Process in Cyprus)
8- Calculate the costs you will incur when buying property.
There are different expenses when transferring title deeds. However, these expenses when purchasing property in North Cyprus are nothing to be afraid of, thanks to low taxes and advantageous property prices.
Before investing in property in Cyprus, we highly recommend you pay attention to all of the above to make sure you make the right investment choice.