All, my wife is now in the stage of planning where she is looking at what we could afford to buy when we arrive. She has been taken by a lot of the new build properties she has seen online. However, I have seen so many stories about Title Deeds, Rogue Builders and dodgy solicitors that I have advised her that would not be a good idea. Is my perception about new build property correct, there seem to be so many of them they must be selling.
Buying off-plan
MacGeorge8035
01 May 2022 09:48:07
296
Toon
01 May 2022 09:54:56
9541
New builds are fine it's just can take years to get your deeds especially if it's on a development.. deeds won't get released until the whole development is completed including sewage systems street lighting and other services . this is normal and is allocated legally to you .... The only risk is if the developer goes bust without completing......
gwynj
06 May 2022 09:23:14
1929
Title issuance is really slow in Cyprus, but it kinda gets there in the end (usually). And rogue agents, lawyers, and builders can happen anywhere, not just in Cyprus. Many of the common scams I've read about involve some very silly decision-making by the would-be purchaser (e.g. handing over a deposit without proper paperwork, no due diligence on the supposed owner and the supposed sale property, overly broad Power of Attorney).
So, yes, absolutely you have to be very careful, but ruling out all new-builds cuts out a lot of options. I bought off-plan in Cyprus and had no problems at all. However, I bought from Cybarco, a large and reputable developer. I think the simple step of choosing one of the larger construction companies avoids most of the cowboys. And buying only after you can see the structure of most of the building reduces the risk of the project not being completed.
Toon
06 May 2022 09:42:22
9541
Still be wary especially if a sewage plant is in the design and hasnt been constructed as sometimes it never gets installed .... And without it the project remains incomplete thus deeds cannot be issued
baxi2775
16 May 2022 12:07:06
19
@gwynj did you ever visit pissouri ? , see what cybarco have done there ?
gwynj
16 May 2022 13:09:54
1929
I've visited Pissouri many times, in the good old days I even used to cycle there! I didn't check Cybarco developments there though. Is it bad? My neighbours in Limassol are Trilogy and Limassol Marina, and they seem quite fancy. :-)
Toon
16 May 2022 13:19:14
9541
Collapsing and subsiding is not just bad it's a disgrace..a friend of mine has lost a £250k house .. and can no longer live in it ... He now has to rent and both have to now work two three jobs to meet the mortgage and rent etc .. developers engineers.surveyors municipalities all to blame for what's happened there
gwynj
18 May 2022 13:58:20
1929
That's very unfortunate, I agree @Toon. The key issue is that it's not just the constructor/developer to blame, there was, arguably, negligence on the part of several bodies, which together should have avoided such a situation. And, disappointingly, Cyprus doesn't provide some protection/compensation in such a situation, which arose through no fault of the homeowner. (I think a similar omission occurred with trapped owners in buildings by bankrupt developers.)
Toon
18 May 2022 14:17:33
9541
Exactly.... as well as the mis-selling of Swiss franc mortgages and the crash of the Swiss franc currency ... Has left many owners in a state of negative equity and some owning property that can never be issued with title deeds as the property cannot be signed off as complete because the developer has not completed the project and gone bust.... Some of these projects have major items such as sewage plants not even started and is a major expense potentially upto €300k. . Further exacerbated by developers taking massive loans against incomplete projects and it eventually catches up with them ..
It really is a nightmare situation to be in....and one that is not easy to get out of .. or resolve
TheMoustache
01 December 2022 19:40:31
2
@MacGeorge8035 My response may be late, but I hope this helps.
Having gone through the above responses, I agree that the success of an off-plan property purchase depends on the due diligence of the purchaser to a great degree and that the definition of this success includes the agreed ROI or retirement lifestyle being sought after to be fulfilled.
I live in the northern region of Cyprus and can attest to hearing the horror stories of many who have lost everything, not only at the beginning of their investment journey but even much later. Buyers experience the very same issues mentioned above i.e rogue developers, title deed issuances being tediously slow, and other matters of this nature. I also agree that these problems occur worldwide and are not localized.
With this mentioned, there have been a number of success stories as well, and this is taken from direct experiences with ex-pats and clients from other countries such as the UK, Israel, and South Africa (to mention a few) who have either chosen to live here or saught pure income generation, as I currently work in the industry not only here but in other regions as well; Turkey and Montenegro to name but 2 others.
I know with absolute certainty that the first step to purchasing a property is establishing trust, in the truest sense of the word.
"The proof is always in the pudding", as many would say, and 7 years living in Cyprus have taught me that.
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