Property purchase and running expenses

[Snuggy]

I'm considering searching for and purchasing a property in the Paphos District, probably a small house or apartment in the €50,000 to €60,000 price range. It will be used for occasional visits by my wife and I and possibly family and friends (but no rental). Total occupancy would be around 2 months a year.

I'm trying to put together a budget, both for the initial purchase costs and then for the ongoing annual costs. I'd appreciate feedback on the kind of things I should include, and (especially) some typical costs for a small property.

Here are a few things I've thought of, but please add more if I've missed any:

Purchase:

• Solicitor
  Agent
  Taxes

Annual:

• Electricity
  Water
  Taxes
  Internet
  Insurance

Many thanks,
Snuggy.

[Nigel Howarth]

Hi Snuggy and welcome to the forum,

I guess your lawyers fees will be in the range €1,500 - €1,700 and this will include Land Registry search, drafting & depositing contract.

Get my Golden Commandments Guide - there's a checklist on the last page. And you can find a list of lawyers on the British High Commission's website by clicking here.

The vendor pays the estate agent fees - typically 5% of the purchase price.

Taxes - Property Transfer Fees. For a €60,000 property, these will be €1,800. There's also stamp duty payable on the contract - €300 on the same property.

Annual taxes - Immovable Property Tax. You'll probably be exempt due to the low value of the property, but budget €100/year to be on the safe side. And budget a similar amount for municipality/community tax and sewerage tax.

Electricity depends on usage - budget €60/month, water - €10/month.

Insurance - I suggest you get some quotes for content & building cover. Budget €250/year.

If you buy an apartment or a house in a development with shared facilities you'll be asked to pay communal service charges for the insurance, maintenance, repair etc. of those shared facilities + their associated utility costs. This can be expensive as shared pools on a private development are treated as public and have to have a lifeguard. Also, if there is a lift it has to be inspected every month.

There's a further problem as some people refuse to pay the communal charge and this leads to problems.

Personally I'd avoid buying an apartment or on a development with shared facilities - it can be a headache.

Telephone, call charges and Internet - €60/month.

Regards,

[footy123]

Hi Nigel

You mention avoiding shared facilities/communities..We have not had any trouble so far after ten years,however a new one has just tuned up.....

The apartments on the ground floor have developed mould/fungus and expect ALL owners to foot the bill.The owners of the top floor apartments say its nothing to do with them for example would the ground floor owners want to pay for say a roof leak.

Is it part of the interest living in Cyprus that there's allways something different turning up

Terry

[Nigel Howarth]

Hi Terry

The Management Committee should have built up a fund to carry out the necessary repairs.

Regards,

[Snuggy]

Thanks Nigel. That's really useful.

Snuggy.

[emgee]

Our Management Regulations say that the roof is the responsibility of the top and bottom floot occupants. Please check yours.

Alan

[Nigel Howarth]

Hi Alan,

The owners of the units of jointly owned buildings may (by 75% agreement) draw up their own rules for a Management Committee or amend the Regulations in the Law, providing for the manner in which their building will be controlled, managed and enjoyed. Such Regulations should be drawn up by a lawyer in order to ensure that they comply with the law. Most particularly the Regulations may not:

• Limit transfer rights of the units; Terminate or alter the rights of any owner of a unit;
  
  Impose an obligation or payment not specified by law or Regulations;
  
  Allocate a specific part of the jointly owned property as limited unless this is done in accordance with the law.

You can get a copy of the law by clicking here.

Regards,