Those who buy property from a developer in Cyprus usually do not have to worry about renovating a house or apartment. The buyers get a completely ready-to-live home. It is enough just to move in and bring all your things.
Buying real estate on the secondary market is quite another matter.
By the way, it is difficult to buy old housing in perfect condition in any country, and Cyprus is not an exception. Most of the villas and apartments for sale require at least some cosmetic repairs.
Undoubtedly, there are almost ideal options, but the price for them is big.
An alternative can be real estate which requires a radical transformation.
Today, in the segment of housing in need of renovation, you can find very favorable prices. True, but there are a few nuances.
Damp, mold on the walls, insects inherited by previous tenants, not everyone can decide to buy house in Cyprus if the property is in such a condition. But if all this does not scare you, then you may even find a lot of advantages. The price of housing in need of renovation is 10-15% lower than the market price of real estate that require cosmetic repairs, and, accordingly, 30% lower than similar homes in perfect condition.
So is it worth buying real estate in Cyprus and making renovation? Is it profitable? What are the pros and cons of housing in need of renovation?
Let's start with the fact that you need to decide for what purpose a purchase is made: for subsequent resale or you want to live there.
Buying for subsequent renovation can be very profitable, especially if you want to not only renovate an apartment for living, but resell it after renovation and make money.
Before you finally decide to buy something you need to:
- Find all possible information about the Cyprus houses. You need to find out whether the building needs a major overhaul, conditions of the utilities, whether it is possible to obtain a permit for construction work (redevelopment, expansion, etc.), if everything is legal.
- Lear more about the area where the property is located and find out if housing in this place is in demand, if the infrastructure is well developed, if it is considered safe, if it is far from the sea or the parks as these factors also determine how profitable the resale will be.
- Calculate all possible repair costs. This is the most important, since sometimes the cost of repairs in Cyprus can be unreasonably high, so the idea of resale might be completely unprofitable. Be sure to estimate the budget. Sometimes it's better if a professional takes care of this issue. Find an architectural engineer to inspect utility lines, load-bearing walls, house foundations and more, so consult with a repair specialist and let him make you estimated costs of renovation.
All of the above applies to the other option: buying cheap housing in need of renovation in Cyprus to move in and live there.
There is one exception as you are not looking for benefits, and this simplifies everything! If you buy a flat in Cyprus in a very bad condition, you can calmly and inexpensively repair it. Make a complete redevelopment, change utility lines, use better materials for home decoration, improve thermal and sound insulation... thus turn the property into your dream home!
There are, of course, more advantages in this case:
- The demand for real estate in need of renovation in Cyprus is much less than for a secondary property in good condition or for a new building. That means that it is easier to find an option that is suitable for the price and area.
- You can always bargain with the seller and get real estate at a lower price: the owners of such housing in Cyprus often give discounts, as they want to quickly get rid of illiquid properties.
- There is a high probability of finding housing for purchase in a very poor condition for very little money, but in a beautiful area, which is very important both for life and for resale in the future.
But there are still disadvantages:
- It is difficult to immediately move in, if the home needs renovation.
- Thus, you will have to spend money on rental housing.
- It is impossible to predict how long real estate renovation will take.
- There is a possibility of making a mistake in preliminary calculations for the renovation.
By the way, if you don't want renovation to last for years, you have to take into account a number of local features:
- If you want a major renovation, you need to find a local architect who is well versed in legislation, has an excellent knowledge of the city's and building's plan. Very often, local architects have their own workers for all types of work.
- Regardless of whether you decide to completely renovate your home or you just want to repaint the walls, it's better to find a designer. If you have a design project it saves you from a number of surprises.
- Understand what exactly you want. A small repair or full reconstruction? Here you may need the advice of an experienced realtor or lawyer, since for reconstruction you need to obtain many permits and approvals.
- If we are talking about expanding a building or increasing the number of floors, a permit is 100% required, and it is not a fact that they approve your application. There are many municipalities in Cyprus that are concerned about preserving the architectural and stylistic unity of the city or village, since traditional architecture is important to attract tourists.
- Check the qualifications of your specialists, ask them to show the permits and other documents, so that in case of an unfortunate turn of events, you are able to file a claim with the contractor and architect.
- Monitor the progress of the renovation work or order a supervision service, otherwise you have to spend a lot of time in the renovated housing, taking into account the Cypriot 'siga-siga'.
- Put a certain amount of expenses in excess of the budget, or better multiply by two. For example, the cost of materials may change during the repair, which can greatly affect the final costs.
Real estate in need of renovation in Cyprus is always in demand.
Somebody wants discounts and the prospect of profitable real estate investments. Others look for housing in a bad condition as they want to have real estate in an elite area and renovate the house as they wish.
There is only one conclusion: think for yourself, decide for yourself, but remember - not everything is angry that is cheap!
Looking for a property to rent or buy? Contact the DOM real estate agency in Cyprus. The company's specialists will advise you and help to find the perfect home for free! Follow the link.
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Photos: DOM LiVE, pixabay.com