Off-plan property is, simply put, when a property is yet to be built and is still in the planning stages of development. Purchasing properties off-plan is extremely common in Cyprus due to its many advantages. One stand-out benefit is that you split your payments across key stages of the construction, giving you peace of mind over the development and your own cash flow.
There are a variety of factors to consider when buying off-plan, so make sure you are fully informed before you make the decision. Like with buying any type of property, off-plan requires thought, understanding and research. Therefore, what are some key areas of consideration before making an off-plan property purchase?
1. The Developer
Cyprus is a popular country for real estate investment from both local and foreign investors. Because of this landscape, there are many development companies in Cyprus currently planning and/or building new residential projects.
Therefore, choosing the right developer is important, this is someone you will be closely in contact with until the project has been finalised. It should be someone you trust and someone who is reputable to ensure the project will be completed to high standards.
2. Your Finances
As previously mentioned, payments are staggered across the construction and development of a building, something that works in favour of the buyer. Therefore, it is important to understand the financial structure of your off-plan property. For example, to understand payment schedules and timelines set for the project development. By doing so, you can make sure your own financial standing is in order and you have sufficient cash flow at the right times for the next payments as the project develops.
3. The Law
As with any property purchase, there are a series of legal steps required from both the buyer and seller. Off-plan property purchases are no different. For instance, you will need to sign a contract with the developer, and it is important to understand the legal implications of said contract and to ensure that your rights, as a buyer, are protected at all times.
Land ownership is something that may be worthy to consider when purchasing an off-plan property. In order to make sure you’ve chosen the right developer and to feel more secure with your investment, it is wise to make sure that the developer is the real owner of the land, where the project is to be built. This infers that the developer has title deeds and that there are no liens or mortgages on the property.
Cyprus is home to many different rules and regulations in regard to property development and purchasing, so make sure to consult with a lawyer beforehand and especially before you sign anything.
4. Pros & Cons
Understanding the pros and cons of buying off-plan can help you understand what you’re in for, what you are to expect and how it can benefit you. By setting your expectations and becoming informed of the process, there should be no nasty surprises.
Some key benefits of buying off-plan properties are:
- Lower prices as prices tend to go up during and by the end of the construction.
- Ability to customise your property.
- Staggered pricing.
While some disadvantages can be:
- Potential Delays in project development.
As with any big purchase, especially for property, it is important to do your due diligence. Buying off-plan can be an extremely lucrative investment if done right.
A.M.Y Group has over 30 years of experience and is currently involved in multiple development projects across Cyprus such as: Terra Court 1 & 2 in Germasogeia and Blue Coral Homes in Parekklisia. We are happy to provide any assistance in your off-plan purchases.