Cyprus' leading on-line resource for home buyers & real estate investors -

28th March 2024
Cyprus Property News logo
HomeArticlesTop 10 property investment tips

Top 10 property investment tips

THERE ARE many reasons to invest in a property in Cyprus – and probably twice as many pitfalls or reasons why you shouldn’t be buying here. So what do you need to do before taking the plunge?

Here are my top 10 property investment tips for those thinking of buying property in Cyprus.

Tip 1 – Visit Cyprus

I’m surprised by the number of people who email me who have bought property in Cyprus without even having visited the island. In my experience, far too many people feel they’ve been ‘conned’ or end up being disappointed with their purchase. Would you buy a property in the UK without visiting the area? Of course not!

Some property developers and overseas marketing companies offer low-cost property inspection trips from the UK. If you take one of these, you may be given very little free time to carry out independent viewings. Under absolutely no circumstances should you allow yourself to be pressured into buying something without doing some independent research & seeking independent legal advice.

Do your own research, visit the island independently and assess the true situation for yourself.

Tip 2 – Don’t sign any papers or hand over any money without taking independent legal advice.

Under no circumstances use a lawyer who’s been introduced or recommended to you by the developer or estate agent. There’s no rush to buy and if the sale falls though because you’ve asked for time, then you’ve had a lucky escape.

Tip 3 – Don’t believe the hype

What looks ideal on some of the overseas property TV channels, may not suit you in the slightest. Many of these programmes get their expenses paid by agents and developers touting for business.

There is a very well known property marketing company that publishes a number of glossy overseas property magazines and has its own television company. As you may appreciate, the costs of running a TV company, making TV programmes and producing glossy magazines are huge – all paid for by their customers who swallow the marketing hype hook, line and sinker.

Remember that overseas property magazines rely on advertisers to pay their running costs and salaries. They will therefore paint very rosy pictures of owning investment properties in Cyprus to keep their advertisers happy and the money rolling in.

Have you seen those TV programmes in which Mr & Mrs X have been flown to a country to find their dream property? How many times have they decided not to buy the property they liked, but said they’d like to visit the country again for a better look around.

The next big thing – If you think this describes Cyprus, I’m afraid you’ve missed the boat by seven or eight years. So now when you open up your Sunday supplements and read about Cyprus being the “new pearl”, “hidden treasure”, “unspoiled landscape”, “step back in time”, etc you can bet your life that it’s a journalist angling for a free holiday in return for an article.

Tip 4 – Exhibitions

These are fast becoming a waste of time for everyone; lots of hype, hard selling and glossy brochures. (I was recently contacted by someone who’d been to one of these exhibitions and was interested in buying an off-plan apartment in Limassol. Not only was the apartment hugely overpriced, it was bordering on the Linopetra industrial estate and on top of the Limassol/Nicosia motorway!)

The Internet is a treasure chest of research material. There are Internet forums, including the ‘Cyprus Property Forum‘ where you can ask questions of those people who really know about the island – those of us who live and own property in Cyprus.

And you can find many non-property websites about Cyprus covering local tourism, business, sport, politics, etc, etc.

Tip 5 – The biggest myths

(apart from those of ancient Greece and the Arthurian legends)

Guaranteed rental returns – invariably, these are built into the price you’re paying, so you’re actually paying over the odds but being made feel you’re doing very well out of the deal. Some property developers are so desperate to find buyers, they are even offering buyers a ‘free’ car!

Long rental seasons – Cyprus is always touted as an all-year-round holiday destination; this is a fallacy. And if you think you’re going to rent out your holiday home for 10 months of the year and cover your mortgage payments, think again!

The best you can reasonably expect is 10 to 15 weeks rental – and that’s assuming you’ve got a top-of-the-range property in an ideal location. If all you have is a ‘typical’ holiday apartment, your chances of covering even your basic running costs are extremely small.

The number of British tourists visiting Cyprus has been in decline for a number of years. At the moment, there are just too many holiday homes for the people wishing to rent them. Even hotels are closing down and being converted (illegally) into ‘prestigious’ beach front apartments.

Prices certain to rise – yes, Cyprus property prices have been increasing for a number of years. Since the start of 2004, prices have risen by an average of just under 10% per annum. However, recent price hikes and bad publicity are taking their toll; property sales to Brits are reported to have dropped by 20%. (And as they say with shares and investments, prices can rise as well as fall).

Tip 6 – Be clear on what you want from the property

Be aware that buying a property for your own use and buying a property to rent are two totally different things. It’s better to decide before you buy what you want the property for; investment or personal use.

Tip 7 – Put together a realistic budget

Don’t waste your time looking at properties that are well within, or well outside, your actual budget. Have a good idea of local prices; be realistic and add in a contingency of 10% to 15% to cover legal expenses, cost overruns, unexpected problems or extra paperwork.

Tip 8 – Don’t believe the “We have someone very interested and have to move fast” line

Call their bluff ask what the price being offered is. Be relaxed and top it by €100 and wait for a reaction. If none, then the interested party might never have existed.

Tip 9 – If you’re using an Estate Agent, make sure they’re registered members of the Cyprus Real Estate Agents Association

There are many unregistered estate agents operating illegally in Cyprus, but the authorities seem unwilling or unable to close them down. Although using a member of the Cyprus Real Estate Agents Association isn’t a cast-iron guarantee that you’ll have no problems, they are required to check out the properties they’re selling and they also carry professional indemnity insurance.

A common way for agents to brainwash you is to show you twenty properties in a day. You view one or two nice properties early on, then get dragged around the second-rate ones, and finally with a couple of more attractive properties that look good around sunset. Although it is important to view many properties to get a more informed choice, a good and honest estate agent will have taken on board your specifications and will only show you properties that meet your criteria.

There are also many middlemen dealing in property. These receive a commission or finders fee from the developer or agent when they introduce a client. Property middlemen who receive a commission and who are not directly employed by the developer or estate agent are acting illegally.

Some of these middlemen will insist on taking you to their homes to meet their family and enjoy some of the famous Cypriot hospitality. And will also find many retired Britons acting as property middlemen who prey on the fears (and wallets) of their fellow countrymen.

It makes no difference whether you get conned by a generous and affable Cypriot or a silver-tongued British expatriate, the end result will be exactly the same.

Tip 10Size doesn’t matter

Don’t assume that the bigger the company, the better service you’ll get. In my experience, the size of a company is no guarantee that it will do a good job. So don’t rule out a company just because it hasn’t got flashy offices, glossy promotional material or fluent English speaking staff. And you will often find that the service you get from companies that target the expatriate market to be generally lower than those that target a wider buying audience.

That concludes my top 10 property investment tips for those thinking of buying property in Cyprus. Feel free to contact me if you have any questions.

RELATED ARTICLES

Top Stories

Sign up to receive our free newsletter

We handle your data responsibly, find more about our privacy policy

Cyprus property transfer fees

Elsewhere in Cyprus Property News

EUR - Euro Member Countries
GBP
1.1684
RUB
0.0101
CNY
0.1285
CHF
1.0436

Property capital gains tax (CGT) calculator