Are you buying a home? Save for these three costs in the Cyprus marketplace
If you are going to buy a property in Cyprus, it is necessary to make a previous savings. Especially if it is your first home. There are plenty of great investment opportunities and commercial property options on the market and a wide range of houses and apartments. And they are better alternatives than investing in stock markets. In this context, it is vital to be willing to make the purchase when we know that we have saved enough money to make the initial payment of the property we will buy. We must bear in mind that it is a significant investment.
Licensed estate agents recommend an initial savings of 20% of the property's value to be purchased. But here is an important fact: a real estate agent will tell you that they will need a little more than 20% of the value. Why? Remarkably simple: investing in the Cyprus marketplace, like any other real estate market, also involves incurring a series of unavoidable costs.
For now, if you want to invest in Cyprus real estate, we recommend considering a series of "invisible" costs that always arise:
Closing expenses and administrative fees
To start with, you will have to pay closing costs and fees. These expenses involve making a payment plan for the resale properties, including a wide variety of taxes and fees. We refer to own the costs of mortgages, fees of the origin of loans, legal transfer, attorney's fees, security deposits, property taxes, and others. This includes inspection costs.
To name a few localities, real estate industry agents with offices in Nicosia, Paphos or Limassol know these expenses perfectly. That is why it is always essential to seek advice from licensed real estate sellers. It is worth adding a fact: closing costs range from 2 to 5% of the property's value that we are about to buy.
A fact cannot be dismissed: the buyer and the seller of the property can agree to share all these expenses equally.
Furniture purchase and moving expenses
Buying a home is a long-term investment. It is critical to be organized with the expenses involved in adapting our new home in this context. For starters, the certain moving expenses. On the other hand, we must bear in mind that we will incur costs to adapt our furniture to the new house. We may even have to buy some new ones. New expenses will likely appear that we will have to pay no matter what—for example, internet service or satellite television activation.
Establish a reserve fund
When we invest in the property market, we always ensure that we are making a high-quality investment. This does not mean that everything is perfect. Even the more luxurious properties can present some unforeseeable damage. Roof leaks and broken pipes are first on the list of imponderables.
That is why it is always suggested to set up a reserve fund and open an account at the bank in a particular way. Properties for sale are genuinely nice in the photos and the first visits, but almost always, there are invisible imponderables, which cannot be avoided. And the best thing is to be prepared to tackle them.