Off-Plan Property in Cyprus
Now a full EU member, Cyprus is one of the fastest growing off-plan property markets. Whether your off-plan purchase is for a villa, townhouse or apartment in Cyprus, many developers are offering beneficial payment schemes. Through the International Property Investment Network (IPIN) we carefully vet these schemes and work with only the most reputable and secure development companies operating in your favoured location. Payment schemes currently on offer allow you to purchase property off-plan, ie. before or during construction when the price remains low. By the time the off-plan property is finished, prices rise due to market forces and the greater general appeal of a completely finished property that is ready to move into. Investors can therefore sell the property on to another property purchaser and, in doing so, enjoy some excellent returns whilst never having paid the full purchase price.
Depending on the down-payment (normally around 20%) and speed of construction, profits from off-plan deals average at 20% per annum in the south and 25% in Northern Cyprus. Investors should however exercise due diligence and choose wisely, making sure their off-plan property in Cyprus is located in an area where they will resell quickly and easily or where there is a high rental demand for their buy-to-let option. Rental returns on initial property investment in Northern Cyprus are approximately 10% and 7-10% in Southern Cyprus.
There are large discounts available on most developments in both North and South Cyprus for multiple unit purchases. With an off-plan investment, even in the worst case scenario if the property cannot be sold upon completion, the final balance due can often be financed by the developer. Furthermore, the rental income may pay off the finance of this loan and yield further eventual return on investment.
How can property be cheaper if bought off-plan - How does it work?
In order to limit financial risk and debts, the developers of any project in Cyprus will wish to sell units off-plan. They understand that if buyers cannot see a physical property at the beginning, they will demand a lower price, while relying purely on the developer's reputation, the property location, artistic impressions and computer simulations on which to base their decision to purchase. In addition to the excellent off-plan price, some highly beneficial finance structures are in place.
You will need to pay only around 30% of the purchase price in the form of a deposit, while the rest is payable upon completion. This may be financed by a mortgage if necessary. If you decide to invest in off-plan property in Cyprus, you will need to decide which strategy you will adopt to achieve your return on investment. Our experts will help you to choose the most appropriate plan, creating an investment programme suitable to your needs, whether this is "pure investment" or a "buy-to-let" strategy. We will also assist you in finding the most appropriate location to suit your investment needs.
Source: http://www.propertyshowrooms.com/cyprus/property/investment/off-plan-property-cyprus.asp
