Very often the question arises of whether to buy an apartment in Cyprus or better to rent it. In our article we will talk not only about the financial side of the issue.
We will consider the main nuances of renting a home in Cyprus and owning your own property. And at the end of the article, you will already be able to understand what is closer to you: buying or renting. Let's start with the purchase.
1. Why it's better to buy an apartment in Cyprus
We list all the advantages of owning property in Cyprus (and not only).
1.1. Reliable investment
Of course, buying property almost anywhere in the world is a good investment. Apartments, as a rule, rarely depreciate, so they are bought not only for living, but also in order to save money.
Cyprus in this regard is a favorable region. Real estate prices here are steadily rising along with demand. Of course, some analysts talk about a "big soap bubble" that may burst in due time. However, even such pessimistic forecasts do not suggest that housing in Cyprus will lose value.
Also, when purchasing real estate in Cyprus worth more than 300,000 euros (you can buy one object or several - the main thing is that for the specified amount), the buyer is recognized as an investor. For this, they receive certain advantages, namely, a simplified registration of permanent residence on the island. More on this will be discussed below.
1.2. I am the boss here
It would seem that this point is so obvious that there is no need to talk about it. But, in reality, some people are not aware of some pitfalls. Simply because they have never rented a house anywhere.
For example, in some countries landlords do not want to see families with small children in their apartment. In Cyprus, everything is much simpler. This is a very child-loving country, so renting an apartment with kids is not a problem. But with pets, especially with dogs, it is not an easy task.
It is also worth taking into account the individual wishes of the owners of the apartment, which may seem inconvenient and even ridiculous to tenants. However, they must be listened to.
And your own housing is a game where you choose the rules. Starting from repairs and ending with the number of cleanings per week, you are free to do whatever you want in your apartment, whenever you want.
1.3. Stability and calm
This point touches on an important psychological point. A person wants stability. Having your own apartment on a sunny island is a reliable financial and psychological support.
Renting an apartment is always life on a "powder keg". The owners can ask the tenants to move out at any time. Whereas you definitely won’t have to move urgently from your own apartment and against your will.
1.4. Opportunity to earn
An apartment in Cyprus is not only an investment, but also a way to earn money. You can always rent out a property - at least for a long time, at least for a short time. There is always a demand for apartments in Cyprus, and if you buy housing in a tourist area, you can earn good money during the season.
The subsequent sale of an apartment in Cyprus is also a good way to increase your capital. At a minimum, everyone knows the scheme of buying a home at the stage of "pitting", and then reselling it. As a rule, commissioned real estate always adds value.
In addition, you can choose promising areas of Cyprus, where the demand for housing is projected to grow over time. For example, in 3-5 years, real estate in Larnaca, the nearest suburb of Limassol, the resorts of Ayia Napa and Paralimni will grow in price. Smaller, but stable growth shows the property of the center of Limassol and Paphos.
It is interesting to read: An apartment with a perspective: TOP 6 most profitable investment options in Cyprus - article
1.5. Possibility to easily obtain permanent residence in Cyprus
When buying one or more residential properties in the amount of 300 thousand euros, the owner is automatically considered an investor. A special program for obtaining permanent residence in Cyprus becomes available to them and their family - you can become a permanent resident of the island without knowing the language and within just a few months.
There are a number of other conditions to consider:
- deposit in a Cypriot bank in the amount of 30 thousand euros;
- a certificate of non-conviction for each family member who participates in the program;
- and the spouse (a) of the buyer, their parents, children under 25 years old can participate;
- confirmation of income from abroad (you cannot earn money in Cyprus);
- the property must be primary, that is, purchased from the developer.
1.6. You can get a mortgage
Mortgages are quite affordable for foreign buyers. Of course, without a Cypriot passport or permanent residence, it is more difficult to obtain it, and the conditions will differ from those for locals.
However, mortgages still remain attractive:
- when buying a primary home, the probability of loan approval increases, and the down payment is also slightly reduced - it will be approximately 30-40% of the total cost of the object;
- foreign citizens are given mortgages at 5-7%, which is quite a bit;
- terms can be very long, and some programs provide for early repayment.
- You can read more about mortgages for foreign citizens in Cyprus here.
2. In what cases is renting more profitable than buying
Despite all the advantages of owning property in Cyprus, sometimes renting remains a more convenient and profitable option. Let's see in which cases it is easier to rent an apartment in Cyprus than to buy it.
2.1. No down payment required
When compared with the mortgage, rent does not require any additional savings. The maximum that may be needed is a deposit, which the owners return to the tenants upon leaving the apartment. The deposit, as a rule, rarely exceeds the amount of payment for 1-2 months.
This also includes the lack of funds for the provision of housing. As a rule, an apartment can be rented fully furnished and equipped with household appliances, with repairs and serviceable plumbing.
2.2. Opportunity to take a closer look
A very important moment for those who have just moved to Cyprus or moved from one area to another. Before buying your own housing, it would be nice to look around: find out where and what kind of infrastructure, how convenient it will be for you and your family. Finally, a special atmosphere and small things that are invisible at first glance are also important.
You can look not only at the area of residence, but also at the type of property. Perhaps the economy class housing will seem too uncomfortable for you, and you want to purchase a comfort class? Or will you realize that an apartment in Cyprus is not your option at all, and you definitely need a house?
When renting a home, you will discover what moments are important to you. Someone can not stand the local drafts, and someone can not stand the humidity. All this can be understood on rented housing, so that when buying your own there are no more annoying oversights.
2.3. Freedom of movement
Now quite a lot of people live in a rhythm when you can break loose and leave at any moment: to another city, district or even country. Of course, this partly contradicts one of our first points (the desire for stability), but only at first glance. At a second glance, those who have had time to "ride around the world" want to settle down most of all.
And so for individuals, freedom and not attachment to a place become quite important. They want to see more, choose a country, city or region - and then gain a foothold somewhere. So renting accommodation in different parts of Cyprus is one of the great ways to find the best place for yourself on this beautiful island.
2.4. Less responsibility
Tenants are not fully responsible for the landlord's property. If you need repairs, or deal with bills, or just pay a tax - all responsibility lies with the homeowner.
Of course, this does not mean that the tenant can delay utility payments or make a mess in the apartment. But still, owning real estate is also a willingness to solve issues of varying degrees of complexity.
2.5. Possibility to adjust the amount of the monthly payment
And again, the comparison with a mortgage comes into play. The monthly mortgage payment is fixed, while the prices for renting an apartment are always different. If the family has financial difficulties, the mortgage price cannot be reduced easily.
Whereas in a difficult situation, you can move out to cheaper rental housing: smaller or further from the center. And vice versa: if the financial situation is stable, you can afford to rent a more spacious apartment.
Of course, these are not all the points that relate to renting or buying property in Cyprus. We have given only the most general points that you can consider when choosing.
Interested in housing in Cyprus? Visit DOM.com.cy! The agency's website contains the largest real estate database in the country - more than 30 thousand residential and commercial properties in Limassol, Paphos, Larnaca, Nicosia, Protaras and Ayia Napa! As well as information about new projects and all developers of the island! Choose and contact professionals who will help you make the right choice!
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