How to profitably sell old apartment to buy one in new building in Cyprus

Как выгодно продать старую квартиру, чтобы купить новую квартиру мечты в новостройке на Кипре
4 October 2022 Irina Starinskaia
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In this article, we will analyze in detail how to buy a new property if you decide to sell your old one.

When the only way to pay for a new building is to get money from the sale of existing housing, you need to act as carefully and consistently as possible. The process will be less risky and nervous if the property is not the main place of residence. Otherwise, it can become a quest to save time, money and effort, which will last about a year.

In any case, it is better to enlist the support of an experienced lawyer and realtor.

A quick exchange of old housing for a new one is not popular in Cyprus.

The scheme, when an old apartment is changed to a new one is often called "trade-in" in the financial world. It is characterized by the fact that the developer, without any intermediaries, exchanges old real estate for their new one. It partially takes over the functions of the agency. The scheme is good because in the presence of a full package of documents and a well-formed request, a complex transaction takes a few days. The buyer does not risk losing their favorite new building during the sale of old housing. They have a place to live during the execution of the transaction. 

When we started to find out whether "trade-in" works in the Cyprus real estate market, it turned out that this method is not popular here.

'An exchange in Cyprus is a complete utopia', the real estate broker DOM says, 'since the re-registration of secondary real estate is now stretched for at least a month. Developers will not wait for a potential client to solve their financial issues. If there is another buyer, they, will sell the property to them.'

'If we are approached with the question of exchanging old housing for a new one, we immediately explain that in Cyprus this is a long process. We think it's better to start selling old housing, and only then look for a new building', - continues the real estate expert of DOM, the top real estate agency in Cyprus. And this is a classic alternative deal.'

There is a way of exchange in Cyprus, when it comes to some exclusive property. It doesn't have to be an apartment or a house. Perhaps a store, a plot of land or some other real estate. If the developer is really interested, then the old property can be used.

'One of our clients had a small shop in the Omonia area of ​​Limassol. The developer, by agreement with the buyer, took this property as payment,' - our expert recalls.

We buy a new building at the excavation stage

As a rule, when buying a new building in Cyprus at the stage of excavation, payments can be split over at least a year. You don't have to pay the entire amount at once. This is a kind of protection of the buyer's money from unforeseen circumstances: construction freezes, bankruptcy of the developer, natural disasters and other things.

The first installment for a new building is 30%, later 10% and so on. Payment schedules are negotiated on an individual basis. Thus, you can first make a 30% down payment as a conditional deposit, and at the same time start slowly selling your old apartment. Hoping that it will sell out within a year, confidently go to the new building of your dreams.

How to sell a second home in Cyprus faster

The demand for real estate in Cyprus is high. And in cities such as Limassol, Larnaca and Nicosia, housing is often considered as a very profitable investment. Of course, this mainly concerns new buildings in tourist and coastal areas, but secondary housing does not remain on the sidelines.

Everything is for sale in Cyprus. It is only a question of correct assessment. If the price of secondary housing is real, clearly not overstated, it will definitely be sold, — says the real estate expert of the DOM agency. 

We wrote in detail about how to avoid mistakes when selling a secondary apartment in Cyprus in a previous blog. In general, nothing has changed since then. Many buyers are considering the secondary market because they want to save on taxes. In general, real estate will not stand idle. To expedite the process of selling a second home, it is important to have all the necessary property documents with you, get a fresh certificate from a professional appraisal company with a clear figure to provide a reasonable market price, and set yourself up for success.

The Cyprus real estate market has a number of distinctive features. One of them is that it is simply impossible to quickly buy and arrange housing here. The authorities carefully study each transaction: how, to whom and when the property of the island is transferred and sold. Recall that foreigners for the purchase require additional permission from the Council of Ministers of Cyprus. In the event that you need to quickly sell a resale to buy a new dream home, you will have to think about how you will exist in the period between two transactions. Well, if you are not in a hurry with the sale, try to pre-sale the apartment in the best possible way.

In general, the property market in Cyprus continues to strengthen. This is evidenced by the latest data from the Land Department: the growth in the number of transactions in the first 9 months of 2022 is 18% higher than in the same period of the previous year. Real estate is still a profitable investment and a reliable way to save capital. At the same time, the most profitable investment is considered to be in new housing at the initial stages of construction.

In addition, there is reason to believe that in the foreseeable future, certificates of ownership - titles deed - will be issued faster, which will further strengthen the real estate market, which shook up a strong flow of migrants during the spring-summer of 2022.

You can find more real estate options in the catalog of DOM, the agency No. 1 in Cyprus, and also get advice from professional brokers, learn about new projects in all cities of Cyprus.

Read also:

  1. TOP 10 new buildings in Cyprus due in 2023
  2. GESY General Health Care System in Cyprus
  3. Villa or apartment: what to choose for living in Paphos?
  4. How profitable is it to rent an office in Cyprus?
  5. School close to home: options for buying property near the most popular educational institutions in Cyprus
  6. TOP 10 new buildings in Cyprus due for completion in 2022
Source: DOM
Photos: DOM
Майя
Майя
29 November 2022 3:03
thank you, it's interesting and informative
Place qoute
New objects

€ 315 000

€ 600 000

€ 1 600

€ 1 260 000

Flat for rent

€ 1 500

Flat for rent

€ 2 100

Apartment for sale

€ 182 000

Flat for rent

€ 1 300

Apartment for sale

€ 125 000

Apartment for sale

€ 182 000
Компания «Dom Real Estate» Контакты:
Адрес: Limassol, Cyprus,
Телефон:+357 25 212 212, Электронная почта: info@dom.com.cy