We are here to assist you when it comes to smart investing, generally in New-builds, conversions, holiday lets, complete properties and institutional opportunities available in Cyprus and Greece.
We feature investment opportunities with a range of options available across the market, from city centre apartments, beach front compounds, towers, group of villas, land, commercial to hotel investments. Contact us directly to learn about the all-around investment opportunities.
Property/projects investment can be enormously rewarding, particularly as today’s low savings rates mean many people are seeking other places to put their money. As with any investment, there are many factors to consider, whether you own one property or several, so gaining some insight into what you can expect is essential.
Property/projects should be seen as a long-term investment. While it is possible to make fast returns, the best way to maximise the output from your property is to invest with a view to the future, looking at the yields and capital appreciation it will bring to you as some point of time if possible rapidly.
Our consultants along with our existing investment opportunities can point you in the right direction to help you make a truly smart and well-versed decision. See our investments page for more details on some of our opportunities currently available.
The three major factors to consider when investing
1. Timing: The old formula that timing is everything couldn’t be more true with property investment. Housing markets tend to work in rotations, so while investing at the peak of a boom might not get you the best returns in the short term, over time you are still likely to see your investment grow. Getting in when prices are at a lower point, or just as things are beginning to rise, is often the preferred strategy. Keeping an eye on house prices in an area can be helpful, with some locations performing more strongly than others at different times. The length of your investment matters – property is normally a long-term commitment, rather than a way to make fast money, so investors should be prepared to see their gains grow over time.
2. Location: Choosing the right location is absolutely vital, but is also a decision that will vary from investor to investor. Emerging markets are a good place to start, which could include areas that are about to receive or have recently benefited from local investment, or parts of Cyprus and Greece that have been relatively undiscovered until recently. Investing close to where you live, in an area you are familiar with, might seem appealing, but researching and considering other areas even overseas can prove more beneficial in the long term basis.
3. People: Who you work with can have a big effect on the outcome of your investment, so doing your own thorough due diligence is vital before making a big commitment. For example, working with property developers and contractors who have a good track record should mean that you can be confident your investment will pay off. You should also look into how each company works, to make sure that it fits in with your own investment strategy. For example, will you be buying a tenanted property with assured rental yields, or would you prefer a more hands-on approach where you manage the property yourself?
Types of Properties or Project’s Investments
1. Traditional buy-to-let: The most common property investment type is when you purchase a property with the intention of finding tenants. The rent should ideally cover any mortgage borrowing and other costs. This tactic is normally a medium to long-term investment, with returns made through the rental income as well as the future sale of the property for a profit where applicable. There are many factors to consider including stamp duty costs, legalities, taxes (if applicable), management fees if the property is not managed by yourself, running and maintenance costs, direct transactions with tenants. Almost any residential/commercial property can be used as a buy-to-let provided it meets all the required standards, so it is important to choose the right property investment for you.
2. Build-to-rent: Build-to-rent properties are those that have been specifically intended for renters rather than owner-occupiers. They offer an answer to the rising demand for high-quality rental housing to reflect the needs of today’s renters. Build-to-rent developments tend to have more of a emphasis on services such as on-site management, amenities and shared spaces such as work zones, fitness centres and outdoor space. They are a popular investment type for institutional and individual investors and often come with the option to be fully managed by a management company, sometimes with guaranteed annual yields.
3. Off-plan: Investing in a property before it is been built, known as Off-Plan, has become more and more a popular way for both individual and institutional investors to attain much greater returns. One of the major benefits is that the value at which you locked the property at the preliminary stage is likely to have increased by the time the development is completed, meaning the potential for capital appreciation is much higher than buying traditionally. Some projects are even presented at discounts of up to 5% for early investors, while the extra bonus of getting in early is that you can be more selective about which property or plot you choose. Some developers propose to buyers and investors the chance to personalise their units with various fixtures and fittings. They can also provide furniture packs at an additional cost, meaning the whole property comes furnished on completion and ready to be used.
4. Furnished holiday lets: This type of property investment has a different focus to long-term rental properties as they are only rented out for part of the year. Choosing the right location is probably one of the most important factors, as your target market will be both for local and international holiday-makers. This type of a project can provide extremely high returns as the daily or weekly charge is significantly higher than traditional buy-to-let. There are also possible tax advantages that may be applied as they are classed as a business, meaning you can often claim certain expenditures. However, they may come with added maintenance and running processes to take into consideration, due to the high turnaround of customers compared to buy-to-let. To qualify as a furnished holiday let, it must be available for at least 210 days a year and rented commercially for at least 105 days a year.
5. Freehold or leasehold: The majority of properties in Cyprus and Greece are on a freehold basis, which means you own the property as well as the land it sits on and you are exclusively responsible for its maintenance. Leasehold properties are offered for a fixed period of time. Usually you will have a legal agreement with the landlord (sometimes known as the ‘freeholder’) called a ‘lease’. This tells you how many years you will own the property. Ownership of the property returns to the landlord when the lease comes to an end. It is vital to know how many years are left on the lease before you commit to buying. Depending on the period left on the lease contract, you might struggle to get a mortgage and at times it can be hard to sell a property. With leasehold, you do not own the land and will not be responsible for running or maintaining the building if it is in a block. However, you may share the costs of this with other leaseholders through services charges, ground rent, administration fees and buildings insurance. Therefore, Investors need to be aware of what type of property they are purchasing.