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For Apartment Buyers in
Cyprus
There is no difficulty in finding apartments to buy
in any of the towns and developed villages in Cyprus. Land development into apartments is
very common and there is an abundance available for sale at any
time all over Cyprus, the vast majority being very new. There is
also a tendency to sell apartments "on paper", (i.e. when
construction plans are still on the drawing board), or during
construction, as a means of raising part of the finance for the
project. Cyprus Apartment prices are not uniform. They vary to a
great extent with the location, the facilities provided, the quality of the project and the
town/district where they are situated.
Apartment resales have a sales price of
approximately 20%- 25% less than new units, depending on the
individual property's specific characteristics (age, state of
repair etc). Price per square meter refers to gross area plus
covered verandas plus portion of the floor's common area (usually
10% of the apartment's gross area where applicable). It is usual
for developers to give credit terms of payment when selling these
flats.
Terms vary from developer to developer (but not for
resales), but
commonly these are as follows:
If the unit is ready the vendor will most
likely require at
least 75% payable within a short period and the remaining in 12
months maximum. In most cases, however on most occasions, the
vendor will require a cash
payment and the purchaser secures a bank loan with repayment
facilities.
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Location: In any
particular area there are many blocks of apartments under
construction. Try to shop around and choose a block in a good
area. Of course what a "good" area is, is relative and depends
on various factors including personal judgment and taste. It is
widely accepted, however, that a "good" area is one which is
relatively central, not densely developed with apartments, more
of a residential area, relatively quite (not on main road) and
one which is close to schools and shops. Although the better the
area the higher the price, an extra sacrifice, at this initial
stage may prove worthwhile in the future. If you have children,
pay particular attention to the proximity of public open spaces,
such as parks, since you will find that children will need some
space to play.
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The Block: Try to
choose a small block of apartments. A five storey building
accommodating a maximum of 15 -20 units is ideal. Larger blocks
have problems primarily related to their management and lack of
privacy. Bear in mind, however, that smaller blocks have a
higher common service bill. Try to avoid buying an apartment on
a block with shops on their ground floor, since these are
usually the cause of nuisance.
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Ask, before buying,
who has purchased the shops (if any) and ascertain whether any
restrictions have been imposed on their use. You may find out,
for example, that the shops below will be used as a Kebab House
or as a Bar (causing you a lot of hardship). If you have to buy
an apartment in a block with shops on the ground floor, avoid
buying the flat just above the shops. The further away (the
higher up), the better.
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Accommodation: Avoid
purchasing a studio type of accommodation (unless you are in a
resort area) since you will have problems on resale. Prefer to
get rented accommodation rather than buy, if you are thinking to
sell your one bedroom/studio unit and buy a larger one in the
future. You may well find that selling the studio is difficult.
Apartments with the higher demand are the average size three
bedroom units (around 120-130m²) and the two bedroom (85-100m²)
one. The sq.mts. given include external wall and all covered
areas including covered verandahs, including a portion of the
floors’ common area. However, this state of affairs is flue and
changes from time to time and from location to location. In
resort areas the most marketable accommodation are the compact
two and one bedroom apartments, especially for renting purposes.
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Services: Experience
has proved that it is difficult for co-owners to agree on the
common servicing of the blocks. It is therefore advisable,
especially if you are buying in a large block, to prefer to buy
where the block has the lowest common service bill. Common
central heating has proved to be a major problem and the cause
of many disputes amongst co-owners. Avoid also apartments which
have common hot water facilities.
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Prices are usually
quoted as Euros per square meter (it includes the analogy of
common areas and covered verandahs.) The extends given are based
on external dimensions. It is important, however, to ascertain
which area in square meters you are paying for. Most developers
include part of the common areas (staircases, lifts etc) while
others include the verandas and so on. If therefore, you are
shopping around for the right price, make sure that you are
comparing the same area. Our advice is to take the gross area of
the unit (including part of the floors common areas, usually 10%
of the unit extend), including covered verandas, in external
dimensions. Where there are uncovered verandahs take 50% of
their area. This will provide you with a good common basis for
comparison of the price per square meter. Another factor also
affecting the price is the payment terms.
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Quality: In all
advertisements for the sale of apartments you may find the word
"luxury". What is luxurious accommodation may be distant from
what you have in mind. If the flat you are buying is still under
construction, have your property surveyor go through the
specifications of the materials and finishes so that he can
explain their meaning to you.
The quality of construction is another issue. If the unit is not
built, normally the developer's reputation and a visit to a
previous project will give you an idea of what you can expect.
Show a preference to blocks utilizing low maintenance materials;
sprits finish to a block, as opposed to decoration is an
advantage; the use of timber as opposed to plastic/ aluminum
ones is a disadvantage; a poor quality lift will cause you major
future difficulties etc. If under construction use an
independent civil engineer to check the specifications and what
it is built. Check also which management agreement is in place and
at what terms. Make sure before purchase that the previous owner
has paid all common expenses, electricity & telephone bills.
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Common Expenses:
People in Cyprus do not show particular discipline for the
payment of common expenses. So check your sales contract and
ascertain who will manage the common expenses and ensure the
smooth running of the building. Common expenses are charged
usually at cost plus “something” for the coordinator and are
apportioned based on the covered area of the unit in analogy.
Common charges vary depending on the facilities provided but for
residential areas, they are on average approximately €70/m. (2-3
bedrooms).
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Sales Prices:
Average quality apartments have a sale price in the range of
€2000/sq.mt. in residential areas and in the touristic areas
€2.500/sq.mt (new properties). Beach properties cost around
€5.000/sq.mt. depending on location/town etc. New properties
i.e. just completed or under construction have a V.A.T. 15%
addition. Second hand apartments have
a sales price at 20% - 25% less than the new units [depending on
the state of repair etc.]. Second hand apartments do not have
VAT
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