No matter how much we read instructions from leading experts about buying property in Cyprus, each experience is unique in its own way.
Therefore, today I want to share with the readers of the portal my personal experience of buying resale real estate using mortgage financing.
Honestly, this process made me quite nervous, as many aspects didn't match the usual standards of real estate transactions.
The idea of buying property had been brewing since 2017, when Cyprus abolished the annual property tax that all homeowners on the island used to pay. At the same time, Cypriot banks offered numerous advantageous mortgage programs with interest rates starting from 1.8%, especially for those who live and work in Cyprus. As it turned out, the government actively created conditions for expatriates to settle and establish a life in Cyprus.
My family and I explored all possible options in all cities of Cyprus where our children could attend international schools, while we could work and enjoy the Mediterranean lifestyle, like these cheerful grandmothers in the photo from a scorching July day in Larnaca.
We started with Limassol, the most lively coastal city on the island with developed infrastructure.
It's often referred to as the island's financial center. The average price per square meter here is significantly higher than in neighboring Larnaca or the capital of Cyprus, Nicosia. Limassol offers a greater variety of properties. Here, there are more modern quality new developments, and the resale market is also actively growing. However, the only downside of the city is a result of its main advantage — traffic jams and noise that might become overwhelming over time. Wasn't it for this reason that we left our previous location?
In Nicosia, we also considered several options.
We found that the capital offers a lot of decent housing at reasonable prices. The city itself is interesting and developed, leading in the number of educational institutions, and its economy is thriving. However, due to sharp temperature fluctuations in winter and summer, not everyone would want to live in Nicosia on a permanent basis.
Larnaca turned out to be much quieter, calmer, and more affordable.
Furthermore, progress has already reached this coastal resort town. Since 2020, Larnaca has improved significantly. There are more green parks now, children's playgrounds, and the first shopping center has opened, surrounded by modern residential neighborhoods. Moreover, it was Larnaca that we initially chose for our children's education in a secondary school. While changing educational institutions was relatively easy in 2017, in 2022, after a wave of relocations of professionals and businesses, school placements became as precious as gold. This led many parents to temporarily switch to homeschooling.
In March 2022, Cyprus news portals announced an increase in standard mortgage rates, as a floating rate from the European Central Bank was added. After this news, our property search became more active.
We went for viewings on weekends and in the early morning hours on weekdays to not miss out on that cozy nest of ours. All the familiar agents in the city were involved. They were all very helpful with advice and encouraged us at the right moments. The listing for the apartment we eventually bought was found on a popular local real estate website.
We fell in love with the apartment at first sight. The previous owners had worked thoroughly on its design. It featured a bright, vibrant, and cozy African style with a modern twist. The courtyard with lemon trees and palm trees was a pleasant addition. The location in a developed area near a beloved cinema was also appealing. The owner was represented by a reputable local real estate agency that is a part of the professional association RICS, an agency that our bank had experience working with and could confidently recommend.
The first unexpected moment was the size of the deposit. Instead of the standard 5,000 euros, they asked for three times that amount. The solution was to find a middle ground. The second unexpected moment was that after paying the deposit, during the viewing, we discovered an empty apartment with white walls, devoid of any designer charm. Later on, it turned out that before completing the purchase, we would have to wait for the owner to go through Tax Clearance in Cyprus, a process that took more than two months. This document is required by the financing bank. To conclude, there would be no purchase and sale agreement for this transaction. It was deemed unnecessary in this case, as there was no need for approval from the Ministry.
On the appointed day, our family gathered at the Land Department along with a bank representative, three agency specialists, and the seller. It was then revealed that the seller's account was in two names at once (those of the wife and husband), as is often the case in Cyprus, and the transaction could not take place. At that moment, my knowledge of Greek, and even English, couldn't influence the process.
We were asked to wait 50 minutes. Then, we again approached the manager of the Land Department who was overseeing the transaction. Instead of a purchase agreement, we signed a consent form for the title deed to be transferred to the bank. Right there, at the Land Department, we requested two original copies of the title. The bank kept one, and we had to go and transfer the water and electricity services to the relevant departments of the city.
In the end, we received the keys before the title, as the seller and the agent went out for coffee after a tough day's work. It was heartening that the agent remained in touch even after the transaction.
As soon as the water supply was connected, we arranged for a plumber to check the water supply. But that's a whole other story.
Interested in property on the island? Check out the number one real estate agency in Cyprus, DOM! The agency's website features the largest property database in the country — over 30,000 residential and commercial properties across the island. Choose and reach out to the professional brokers who will help you make the right choice!
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