Choosing real estate in a new development is an exciting and responsible process.
To become the owner of the desired property, an investor needs to carefully process a significant amount of information and conduct a series of mandatory meetings. Usually, on this path, there can be many "pitfalls." In order to make the right decision, we suggest paying attention to the main mistakes made when searching for housing, as well as measures to avoid them.
Unformed Budget
During the search for real estate, a situation may arise where a buyer is set on a specific property that ultimately turns out to be unaffordable. It should be noted that before starting to explore options, it is necessary to determine the acceptable budget as accurately as possible. The investor must clearly understand that expenses do not end with the payment for square meters. Cyprus' taxation system is considered fair and comfortable, which encourages foreign citizens to purchase property on the island. Nevertheless, expenses for documentation, fees, and stamp duty have not been canceled. It is necessary to take into account the difference between the preferential 5% VAT rate in the case of the first purchase of residential real estate and the standard rate, which is 19%.
In case of insufficient funds, an investor may need to purchase property on credit terms. It is recommended to obtain the bank's approval for a mortgage at the initial stage of the property search. In this case, the borrower must clearly understand the conditions of the mortgage agreement, undoubtedly on terms favorable to them. Obviously, in the case of a loan, the price per square meter will increase. As a rule, properties in new developments in Cyprus are delivered to the owner with interior finishing, and furniture may also be included. However, additional expenses on household appliances and lighting fixtures are quite permissible. As a result, the nominal price of the property in the developer's offer and the total amount of all expenses for its purchase may significantly differ from each other.
Lack of Market Analysis
The main criteria for choosing real estate in new developments are price and quality. Once you have determined your budget, you can start looking for a suitable property without making hasty or emotional decisions. It is not advisable to immediately rush for promotional offers, which are likely not without flaws. Several options in the desired area or city should be considered for purchase.
For the convenience of analysis, it is recommended to create a comparative table and enter the maximum number of parameters for the properties, as well as their advantages and disadvantages. Thus, by evaluating all the details, it is easier to choose the optimal option. The total cost of real estate and the price per square meter, apartment layouts, and construction characteristics of the complex are taken into account.
During the analysis, a significant decision may arise to sacrifice the total area or the number of rooms for a more rational layout or quality of finishing. It should be noted that apartments with the best room layouts in a particular building are the first to be purchased. During the comparative evaluation of areas, it is determined how well they suit a potential buyer. Infrastructure, building height, proximity to the city center or the coast, and the nearest development prospects will be considered. Perhaps, for the sake of proximity to the sea, it will be necessary to sacrifice the square footage of the future apartment, or vice versa, choose a more "continental" option. Considering the high level of safety in Cyprus, this factor is not a priority when choosing an area. After completing the analysis, it is rational to stop the choice not at one option but to have several backup options.
Lack of Knowledge of Your Perspective
Searching for housing without a comprehensive assessment of the foreseeable future can lead to a wrong choice. The type of real estate to be purchased depends on future life scenarios. There are three options for using square meters, and for each, it is advisable to find answers to the corresponding questions.
Purchase for Personal Use:
- Planned duration of residence?
- How will the market value change over time?
- Will the apartment remain suitable and comfortable in case of changes in the composition of household members?
- Is it possible to have pets?
Investment for Resale:
- Optimal timeframe for selling the property?
- How will the price change at the time of property transfer or after a predetermined period?
- Profit size considering all mandatory taxes?
Purchase for Rental:
- What is the tenant category?
- Does the location of the property suit them?
- How successful will the sale of the property be if it stops generating rental income?
In addition, it is important to analyze how the surrounding area will change over time. Infrastructure development, the opening of stores, and educational institutions will increase the housing's rating. Conversely, the construction of a high-speed highway or a skyscraper in close proximity that obstructs the sea view will have a negative impact. As a result, ignoring the assessment of the future can lead the owner to be disappointed in their choice.
Buying Without Checking the Developer
Only the developer possesses complete knowledge and pricing policy regarding a particular property. In Cyprus, most of them have earned a good reputation. However, it won't hurt to gather specific information, especially if the investor is interested in real estate in a new development for the first time. The length of activity in the construction market and the list of properties put into operation confirm the company's business reputation. At the same time, long interruptions in work and the transfer of real estate to owners with regular delays indicate the opposite. It won't hurt to inquire about the opinions of previous buyers about the developer's business qualities.
The developer's website serves not only as an information source but also as a means of communication between the seller and the buyer. Here, the portfolio and characteristics of completed and under-construction properties are posted, along with licenses for specific types of work. The portal also allows you to familiarize yourself with a standard contract for the sale of properties. A visit to the seller's office will allow you to get to know your potential partner better. If, after such a meeting, unfavorable impressions persist and many questions remain unanswered, it is better to discontinue contact. Finally, it is highly recommended to visit the construction site. Here you can firsthand assess the quality of finishing, ensure that the windows indeed have a sea view, and compare the declared deadlines for property delivery with the actual ones.
Unsatisfactory Layout
A convenient and functional layout is one of the priority factors when choosing a new home. Inexperienced investors may not always appreciate the nuances of an apartment, even though the same square meters can be distributed differently. You can thoroughly inspect existing real estate during viewings. However, in a new development, especially in the initial stages of construction, you can use floor plans, apartment layouts, and your own spatial imagination. Below are some recommendations that will help you choose the optimal apartment:
- The external perimeter of the apartment should have a regular shape with right angles, rather than resembling a piece of cake.
- For an adequate amount of natural light throughout the day, windows should face different directions.
- The most cozy and convenient rooms are square or have a 3:4 aspect ratio.
- Avoid apartments with narrow rooms.
- Sharp angles should be avoided in all rooms, including balconies.
- The kitchen should be a separate spacious room with a window.
- Apartments that form internal corners of the building often have an unfavorable layout.
- Don't forget about the building's orientation relative to the sides of the light.
Experience shows that an unsatisfactory layout can cause discomfort and a desire to change the environment.
Cypriot developers with expertise strive to offer investors an optimal real estate option and comfortable payment conditions. However, the final choice, after a thorough study of the property, must be made independently by the buyer with a "clear head." In such a case, the new home will provide comfort and positive emotions.
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