Archive for June 2009
How To Find The Right Real Estate Agent In Cyprus
June 17, 2009 | 
Author If you are looking to buy property overseas, the process can be fraught with uncertainties and worries as you look for that dream house in an area in which, to be frank, you¡¯re not all that familiar. Here, Cyprus is no different. So, how do you go about finding the right real estate agent in Cyprus?
First off, authorised real estate agents in Cyprus need to be both licensed and registered. However, not speaking the same language as you do, and having their fees paid for by the seller, may give you serious cause to wonder whether they have your best interests at heart or the seller¡¯s! If this is the case, then your first port-of-call should be the Cyprus Real Estate Agents Association. While the Association may not be able to give you conclusive evidence that your chosen real estate agent is either the best or worst in the business, they should speak English and should be able to give you some reassurance towards calming your worries. Also, with the European Confederation of Real Estate Agents trying to harmonise the standards of real estate agents across Europe (which these days includes Cyprus), the Association should be able to give you the name of some reputable real estate agents in the area where you are looking.
Besides checking the details of any real estate agent with the Association, if you know anyone in Cyprus, you might also want to ask them if they have any recommendations. In fairness, there is rarely anything as good as a good recommendation given by word-of-mouth.
Finally, if you are still in the UK looking for property in Cyprus before you go, then the Internet has a wide selection of Cyprus real estate agents advertising their wares. In most cases, the sites also have a good selection of pictures of properties, which, if nothing else, will give you some idea of the types of property that the agent commonly deals with. But, keep in mind that although many Brits do use the services of English-speaking real estate agents they found on the Internet, the Internet itself is no assurance that the real estate agent is going to be good so if you do find an agent this way, try to get testimony from someone who has used them before or ask for proof that they’re a member of the Association.
Panama Property Initial Cost
Whether you are buying for cash or with a mortgage there are some costs you are going to have to fund yourself.
The Reservation fee of CYP 1,000-2,000 is paid to the estate agent or developer when you decide on the property you want and have agreed the price and payment terms. Your next step is your lawyer.
Legal fees, For any property, be prepared to pay around 0.75% of the purchase price as the cost for the legal fees. For a new build property do not use the developers’ lawyer even if it is offered free. Get independent advice. There will also be Stamp Duty on the contract price, this is calculated as CYP 1.5 per thousand pounds up to CYP 100,000 and 0.2% over CYP 100,000. The contract can be written in English, and should be if this is your native tongue.
Agency fees, The vendor pays the agents fees. You should not be asked to pay anything extra.
The costs of a mortgage arranged in Cyprus
Mortgage deposit, the minimum amount you need to provide as your deposit for a mortgage depends on your residency.
For Cyprus residents it is possible to arrange a 90% mortgage For EU residents minimum amount of deposit is 20% of the purchase price, and 25 or 30% is not unusual. For residents of non EU countries the minimum amount of deposit is usually 30% of the purchase price.
Arrangement fee, All of the banks charge arrangement fees. Most charge 0.75% to 1.0% of the amount of the mortgage. It is advisable to check because they do differ from each other.
Repayment term, This is often as little as 10 years, but up to 15 years is often available and very occasionally, longer.
How to Buy Property in Cyprus
The process of buying property or land in Cyprus is very simple and safe.
All estate agents are required by law to be licensed and have insurance. A licensed estate agent is required to advise you of the bad points as well as the good ones about any property.You should make sure you do not use one of the many non registered agents ask to see the license which must be displayed in the office. Legal estate agents are members of CREAA, the Cyprus Real Estate Agents Association.
Paying for property
You will need to decide how you will pay for your property.
Buy for cash, a straightforward option. Once capital has been invested in a property it can be sold again if required although this needs time and any profit will be taxed.
Re mortgage your main home if you are buying a second home to raise the cash, again, a straightforward option and one that doesn’t involve you having to deal with anyone except your present lender or another mortgage lender in your country of primary residence. Your home may be repossessed if you do not keep up repayments on your mortgage, so you may be putting your main home at risk for the sake of a holiday home.
Finance your property with a mortgage from a Cyprus bank. This can be in the currency of your choice, but will probably involve higher setting up costs.
Posted in Business | 
Tags: ...P, a, Buy Property in Cyprus, CYPRUS, gen, goo, l, n, real-estate, s | 
No Comments »