It may be more advantageous to invest in new homes than in resale homes in the current market in Cyprus. To help readers make an informed choice, this article attempts to offer insights into the benefits of new properties along with relevant data.
Currently, a two-bedroom apartment that is 15 years old costs just under €200,000, while a brand-new apartment costs about €250,000. Why then should you think about spending the extra €50,000?
Modern features and amenities: New properties over the latest in design and technology, including energy-efficient appliances and smart home systems. Through the use of innovative storage options and built-in cabinets, designers maximize space use. Large windows framing, thermal insulated walls, indoor gardens, and live green walls all contribute to a peaceful, happy, and overall better living environment.
Customization options: The flexibility to personalize a property to suit your preferences is a big benefit of new homes. Pick layouts, materials, and finishes that fit your lifestyle. According to 2015 research by the Royal Institute of Chartered Surveyors (RICS), homebuyers are increasingly favouring customized homes that suit their preferences.
Lower maintenance costs: Compared to older homes, newer properties typically need less upkeep and immediate repairs. In the first years, maintenance costs for newly constructed homes typically amount to roughly 1% of the purchase price, but they might range from 2% to 4% for resale homes. Additionally, an Energy Efficiency Class A home (which is the norm on new constructions) can save about €80 per month on energy costs depending on an average home size of 150 sqm with an EPC Class C.
Warranty and guarantees: The builders or developers of new homes provide warranties and guarantees that cover building flaws, significant structural problems, and particular systems and equipment. The typical warranty periods in Cyprus are up to 10 years for the building, 2 years for the plumbing and electrical systems, and 1 year for the appliances.
Resale homes are frequently found in well-established areas close to amenities. The area may need to be revitalized, nevertheless, due to its outdated aspect. Even though resale homes typically cost less to buy, it’s important to factor in the cost of renovations and overall return on investment. Furthermore, compared to older properties, newer properties can be rented for greater monthly fees. Finally, there is frequently room for negotiating when buying a resale property because owners may be more accommodating than developers of new properties.
Considering your budget and finances, carefully assess if you can afford new homes, which offer modern features, customization options, and warranty coverage, favouring them over resale houses. Remember to evaluate potential revival projects and repair expenditures with resale homes. If affordable, new properties align with current trends for individualized living spaces, improving your quality of life and potential long-term profits through renting. The extra investment of around €50,000 for new properties, equivalent to €3,500 per year or €280 per month over 15 years, becomes a wise financial decision if feasible. By evaluating your specific needs, preferences, and financial considerations, you can make an informed choice for a fulfilling homeownership experience within your budget.
About the author
Christos Nikolaou
Licensed Real Estate Agent
Property Canvas (Registered & Licensed Estate Agency A.A.826 & A.M. 432/E)
Interesting article. However there are risks to buying a new build
1) Title Deeds. More resale homes will have these and as such the seller has gone through the hassle of waiting/getting these not to mention the uncertainty of even getting them.
2) Guarantees – if it’s anything me and other people had to go through, the developers were not good at rectifying issues plus those issues were quite large in scope.
3) A resale home is likely to have had all the maintenance fixed. if its been a rental they would have had to keep up with the maintenance.
4) Resale homes are frequently found in well-established areas close to amenities. The area may need to be revitalized, nevertheless, due to its outdated aspect. NOT necessarily.
5) The price maybe lower than a new build because a new build has more up to date features, however those features could be updated in a resale for probably less cost.
I’m sure there are others
No mention of title deeds. Keep a large figure back if they are not part of the completion.
Amusing. Developers not happy with a buoyant resale market.
Not much point buying a new build if there’s not an efficient resale market.
Why does the author fail to mention the significantly higher VAT (19%) buyers often have to pay when buying a new home, compared to transfer fees in case of resale, which normally only amount to a couple of percent points?
VAT on primary residency is 5% compared to aprx 3% of transfer fees. So the difference is about 2%. Also you can always purchase a property via a company and can claim the VAT back.