When choosing real estate, a pragmatic investor pays attention to two main criteria: the quality of the property and the developer.
Even if the parameters of the dwelling fully coincide with the buyer's needs, the seller's dubious reputation will be an insurmountable obstacle to the transaction.
The construction industry in Cyprus is represented by many large and small companies offering a wide range of villas and apartments in all regions of the island. Before making a final decision and proceeding to the signing of the contract, the investor should determine the degree of reliability of the developer, paying attention to the following evaluation criteria.
Track record
The main features of the company's responsibility to clients are the length of stay in the construction market and the portfolio of commissioned objects. It will not be superfluous information about unfinished buildings or transferred to the depositors of square meters with a great delay. Touching upon the structure of the legal entity of the developer, it is necessary to find out whether it is part of a corporation or a holding company and whether financial support is provided by the parent company. It will be useful to get acquainted with the developer's ambitious plans for the future, for example, the acquisition of land plots, opening branches, or involvement in government construction programs.
The activity of a construction organization during the crisis period may indicate its financial stability. In fact, at the height of the pandemic after the lifting of the ban on work in Cyprus, many contractors resumed their labor activity in the face of limited investment.
Customer feedback
From the testimonials of a builder's previous clients, you can form a clear idea of the strength of its position in the industry market. In the process of visual contact or visiting thematic forums, a potential buyer should be interested in the opinion of completed projects and the support of investors after the transfer of housing in operation. Statements about the same object on forums may differ dramatically from each other. Nevertheless, on the basis of this information it is possible to make fair conclusions about a potential seller.
To get acquainted with the expert point of view it is recommended to visit the portal of the Association of Developers of Cyprus, which was created to help buyers of island real estate choose a suitable and reliable partner.
Communication
The company's resource on the Internet helps to form an opinion about its potential, to cause confidence or, on the contrary, reasonable apprehension on the part of possible investors. The website serves not only as a source of corporate information and a tool to promote the company in the market, but also as a means of communication between the developer and clients. Reliable developers provide an opportunity for remote familiarization with the characteristics of projects, provide necessary explanations and advice.
On the portal of the construction company should be published portfolios of commissioned and under construction projects with the layout and current prices. In the public domain should also be a model contract for the sale of real estate. Some companies publish on their websites financial information, for example, about the terms of mortgage lending.
For a closer acquaintance with the potential seller should negotiate in his office, find out the number of employees and assess the attention and flexibility to potential clients. If the meeting does not make a favorable impression and leaves a lot of unresolved issues, it is better not to proceed to contractual relations with the company.
Quality of properties
The use of high quality materials, professional approach to construction and finishing works cause a high degree of confidence in the developer. A visit to an existing facility before making a decision to invest is a reliable way to assess the prospects of business cooperation. Companies with a proven reputation are not afraid of such visits and guarantee that their work will stand the test of time.
Violation of construction technologies and the use of materials and standards not agreed with the customer indicate a difficult financial situation of the company. The massive destruction of buildings during the recent tragic earthquake in Turkey provides further evidence of this conclusion. The contractor's long delays and repeated postponement of the completion date are also evidence of its budgetary problems.
Permit documents
When choosing a developer, first of all, it is necessary to study in detail his license, confirming the admission to perform certain construction works. You should make sure that the company is a full member of the above-mentioned Association of Cypriot Builders, whose seal can be seen on most of the approved documents. In addition, on the Association's website, you can find out about the company's current and completed projects.
When starting a new project, the developer, by default, must have a building permit, a document defining the rights to the land and its intended purpose (land lease agreement or ownership deed), and an approved building plan. The sales department should provide them to a potential investor upon request.
Financial audit
A positive result of negotiations on the subject of finances is most often a determining factor in choosing a particular developer. The investor needs to understand what exactly is included in the final cost of the object, as well as to find out the schedule of payments. Large Cypriot companies with a well-deserved reputation cooperate with leading banks in the country, which, if necessary, can provide customers with attractive credit terms. Checking the financial stability of the developer is designed to protect equity participants from the loss of their savings and purchased real estate. A developer whose equity capital is commensurate with borrowed funds is in a stable financial position and can count on bank support.
Choosing a developer can not be done without checking information about lawsuits, the presence of debts to fiscal authorities and creditors, and participation in bankruptcy cases. It will be useful to have an idea of the ultimate beneficiaries (physical owners) of the company.
Unscrupulous or close to bankruptcy developer can be identified by the following signs:
- the value of the property is significantly below market value;
- Significant discounts offered by the seller for no apparent reason;
- excessively large requested amount of the first installment (in Cyprus it does not exceed 30% of the total value of the property);
- demands on the investor to make payments outside the approved schedule;
- prolonged downtime and, as a consequence, the violation of the deadlines for the delivery of the object;
- lack of permits and sanctions imposed against the developer.
For reference: comprehensive information on Cypriot companies and their owners can be found in the electronic register on the state portal Ariadni or in the trade register of Cyprus.
The choice of a professional and trustworthy developer is the key to financial security and a prosperous life in a new place.
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