Thinking of adding to your assets? Then how about buying a property and that too an overseas one? Cyprus is the new destination on the block for property owners around the world looking for a quaint bungalow by the sea to rent out or an elegant villa nestled amidst the hills all for you, to put up during the summer. But you need to exercise some caution when you are buying property overseas, whether it is in Cyprus or anywhere else.

Why Buy Property in Cyprus

In the international real estate market, Cyprus has gained quite a favor despite being a relatively new entrant in the EU. This is because Cyprus boasts of quite a robust economy and a stable currency. Besides, the property market in Cyprus is one of the fastest growing in Europe and is also secure enough to ensure that when you invest here, your hard-earned money doesn’t go down the drains.

Cyprus has caught the attention of the world at large with its luring regime of fairly low income and commercial taxes, moderately low inflation figures and a standard of living that is one of the highest in Europe. This means that having a property here doesn’t involve much of a pinch on your pockets and on top of that, you can expect quite a handsome rental from it.

Cyprus is a good option to explore when you are thinking in terms of buying a property. And it would definitely do you ample good if you follow some simple tips.

What to Do When Buying Property in Cyprus

Before you spend your money on something, you always give it a thought, more so if it is something as expensive as a property. After all, you need to make sure that you are not led up the garden path when dealing with the land sharks.

You have chosen Cyprus as the destination and you couldn’t have been more spot on. It is a thriving tourist haunt, its prime lures being its year-long equitable climate, scenic beauty in the likes of historical monuments and sandy beaches and an eclectic cultural milieu. But even then you need to think awhile before settling for a particular location within Cyprus for your property.

In this matter, take into consideration the use you are going to put the property into. If you plan to rent out the premises, then choose a location that is near the major tourist hangouts of the place and is close to the major modes of public transportation.

If you plan to transform your property into your very own vacation home, then let your heart have the last word. But do some research on the neighbourhood and in particular about the security aspects, the kind of neighbors you will be getting, the public transportation network around your property and the proximity of the departmental store, the daily market and the like (after all, you wouldn’t relish trudging five miles back to home with an armload of grocery).

After you have decided on the particular property, hire a property lawyer or a consultant immediately. Professional guidance is imperative when you are dealing with property. Usually the real estate laws are more or less identical in most of the countries. But still there are peculiarities and intricacies in them and you will require expert advice to steer you through the legal matters.

For instance, Cyprus has conducted Double-tax treaties with UK, USA, Russia, China, Canada, Germany, France and many other countries. This entails that if you are a pensioner from any of these countries, then you can avail your gross pension amount without any tax deduction once you start residing in Cyprus and also pay taxes at only 5% after the initial amount of CY£5,000.

Furthermore, you can also expect tax exemptions of up to CY£4,000 for an individual or CY£8,000 for a married couple in special cases. The Cyprus tax law has further goodies up its sleeves. For instance, Cyprus levies taxes on expatriate properties only on the basis of remittance. These are a few instances wherein only a well-informed professional property lawyer can help you grab the opportunities.

When you are buying property do not settle for the first price quote that is given to you. Take your time, browse around other similar properties and form an estimate of the approximate market value of your property. This way you can make sure that you are not being overcharged.

Speaking about budget matters, when you are buying property, you need to keep in mind that you will need to shell out much more than the actual price of the property. In fact, your expenses will also include lawyer fee, the taxes and of course, VAT. This tax amount of course, varies from country to country. Like in Dubai, there aren’t any taxes. While in Cyprus, the local authority taxes stand quite low at about CY£50 annually.

If you are a foreigner to Cyprus and not well-versed in the language, be very careful when you have to sign on documents written in the local language. Before putting down your signature, be absolutely sure that you have understood whatever is written on the paper and have also read between the lines. But the silver lining in the cloud is that most of the business communication in Cyprus is done in English.

Another thing to guard against when buying a property is that most premises come bundled with hidden debts. So before you sign on any contract, make sure that your builder hasn’t taken any loan for construction purposes that in turn has got attached to the value of the individual plots.

When buying a property, try to arrange for your mortgage principle well before you actually buy the property or go in for any kind of a contract. And until and unless you are sure of receiving a hefty rental amount from your property, try to fix up your mortgage in the currency that you earn in.

Speaking of mortgages, Cyprus offers numerous advantages with Cyprian commercial banks doling out mortgage facilities in both foreign currencies and Cypriot currency. You will only need to tender 20% of the contribution.

Buying a property may sound like too much of a hassle. But then you now know the ways and means to crack the jackpot. So go for it.

So you’ve decided you’re ready to sell your property. Well, before you place a "for sale" sign in front of your home/villa there are several things you need to consider.

First, you need to determine how much time you have. Do you need to sell right away or can the property stay on the market for several months? Believe it or not this will play a role when it comes to deciding on an asking price. If you need to sell quickly, you’ll want to price to sell, which may mean setting a lower asking price.

Next, evaluate the market value of your property as well as the current real estate conditions. Numerous factors including the time of year and the economy can effect conditions so be sure to do your homework. When deciding on a price be sure to take into consideration the maximum price the housing market will allow, how much similar properties in your area have sold for, and your time table for selling. Consider contacting an estate agent or a qualified value when determining the market value. They will help you avoid over pricing or under pricing you property, both of which can affect the sale of you home.

Keep in mind that although you decide on the asking price, buyers will ultimately decide what they are willing to pay for your property. For this reason, it is crucial that your property is appealing. You only get one chance to make a first impression, so before your property goes on the market consider doing the following:

•       Give your home/villa a thorough cleaning.
•       Wash windows, both inside and outside. Make them sparkle.
•       Dust surfaces and remove cobwebs from light fixtures and furniture.   
•       Repair any broken or cracked interior surfaces.
•       Fix cracked or peeling paint and wall paper. Perhaps even consider repainting or putting up new wallpaper.   
•       Clear out unnecessary junk so rooms are neat and uncluttered.  
•       De-personalize your property by removing personal objects such as photos.   
•       Remove stains from floors and carpets.   
•       Keep your lawn trimmed and edged   
•       Remove dead plants and clutter from your yard.  
•       Consider adding plants and flowers to make your yard more appealing.  
•       Repair broken fences and gates

Although you can sell on your own, working with an estate agent or realtor is recommended. Most commission rates are 3% of the final sale price, however, some agents do charge higher rates. Your best option is to shop around and interview agents. When you find one you like formally agree on his/her commission rate before the house goes on the market.

If you decide not work with an estate agent there are numerous sites on the internet that can assist you through the process. At sites such as homesgofast.com you can find advice or tips about selling your property as well as post your property for buyers to view. Other sites such as online cyprus property simply allow you to post your property for a small fee. The beauty of these types of sites is that they are accessible to people around the world. This is important since more and more citizens from other countries are looking to purchase property in Cyprus.

Marketing is the key to selling your property. In addition to placing a “for sale” sign outside, consider listing your home/villa in property magazines and newspapers. Newspapers such as Cyprus Weekly and Cyprus Property & Home reach thousands of readers and prospective buyers weekly.

When writing descriptions for such publications and for internet sites, be sure to include positive points such as the property’s location in relation to beaches, the supermarket, other towns, and even the airport. Also be sure to include any additional features the home may have such as a swimming pool or central air conditioning. While you want to emphasize all the positive selling points, don’t forget to include the basics such as the basic style of the home and how many bedrooms and bathrooms there are. You should also mention the size of each room in the home. If you’re writing the descriptions yourself remember to use key words. Avoid writing long-wordy descriptions that go on and on. Prospective buyers will get bored reading long descriptions and will move on to another property.

Consider setting up an appointment with your solicitor before you even get your first offer. They can fully explain Capital Gains Tax. Several factors determine the amount of tax you will pay after the sale including how long you have resided at your property, inflation, and the cost of any additions you may have made to the property.

Once you have accepted an offer and the buyer has put down a reservation fee you may again want to see your solicitor. They can draw up the necessary contracts or documents and answer any other legal questions you may have. At this time you should also make sure that you’ve paid all necessary taxes on your property. It is a good idea to get a Certificate of Release from the Inland Revenue verifying that all your taxes are settled. Doing this will help you avoid any unnecessary holdups later in the process.
The final sale and transfer of your property to the new buyer is relatively easy and can be concluded in about an hour. Both you and the buyer will need to go to the Lands’ Office counter where you will sign all necessary documents.

Selling your property entails more than simply placing a “for sale” sign out front and often can be an overwhelming endeavor. However, breaking it down into several systematic steps can make the processes easier thus reducing any anxiety associated with selling.