Buying resale property in Cyprus

Resale propertyThere is a lot of resale (second-hand) property for sale in Cyprus at the moment - and there are some good deals to be had if you're prepared to negotiate. One property marketing company claims it has 20,000 on its books. That's more houses and apartments than are built in Cyprus in a year!

Many people are desperate to sell - particularly property investors who have been mislead into believing all the marketing hype. But due to the unacceptable delay in issuing Title Deeds and the fact that the Cyprus banks will not give you a mortgage to buy a resale property unless it has its Title Deed, they have great difficulty in selling. if you have the ready cash and are willing to negotiate, there are some pretty good deals to be had. Some properties haven't even been lived in!

Of course, not all of the resale properties advertised are suitable for permanent living - many are holiday homes. How can you tell? Simple - take a look at the kitchen. Holiday home kitchens are so small that you couldn't get a cat in one, let alone swing it around!

If you want to move into your new home in the shortest possible time, then buying a resale property is your best option.

Choosing your resale property

Because of the delay in issuing Title Deeds, many recently built resale properties are offered for sale without them.

  • If the resale property you're thinking of buying does not have its Title Deed, the Cyprus Banks will not give you a mortgage; you'll have to raise the money some other way.
  • You may have to pay more for a property with Title Deeds, but believe me, it's well worth paying for the added security, freedom, and flexibility that you get if you have your Title Deeds.

And if the resale doesn't have Title Deeds, much of the information and advice in my buying off-plan property page is appropriate.

So what are the advantages and disadvantages of buying resale property in Cyprus?

Advantages of buying resale

  • The buying process is very quick in Cyprus and you could take possession of your new property within a matter of weeks of signing the contract.
  • You will see exactly what you are getting for your money.
  • The garden may be landscaped ready for your enjoyment.
  • Some resale properties are sold complete with furniture and other useful extras such as household appliances, satellite dish, television, etc.
  • The price should be substantially less than buying a new property off plan from a developer.

Disadvantages of buying resale

  • You will need to arrange for the property to be inspected and valued by an independent surveyor and valuer.
  • The property may need modernisation, so you may incur additional costs in repairing, modernising and/or the property, which could work out more expensive than buying a new one.
  • An independent survey of a resale property may not uncover hidden problems that may be laying in wait for you.
  • If the property  is relatively new, you may find that its Title Deed is not available and it may therefore take a long time for you to complete your purchase.
  • If you decide to sell the property before its Title Deed is registered in your name, you may need to come to a financial arrangement with its registered owner to cancel your contract of sale.

Advice for resale property buyers

  • Follow the advice in my 'Legal Advice & Fees' section and my 'Property Conveyancing' pages.
  • Do not enter into any sale agreement until you’ve had a report prepared on the structural condition of the resale property and its market value assessed by an independent firm of surveyors and valuers.
  • Get firm quotations for any modernisation, extensions, changes, repairs and additions that you wish to make to the property and ensure that these will be acceptable to the Town Planning Authority.
  • If the present owner has made any structural changes, extensions or additions to the property, ensure that they obtained the required permissions and permits and that the changes are reflected on its Title Deed (if issued).
  • If the properties furnished, come to an arrangement with the vendor whereby you buy any furniture, etc. in a separate furniture agreement. (This will reduce your Property Transfer Fees and the vendor’s Capital Gains Tax liability).