News & Articles
You thought prices are high?
Just add another 15% for VAT!
After EU accession, Cyprus is no longer
just another tourist destination offering sandy beaches and fun. It’s
becoming the home, work place, business destination, retirement place for
more than half a billion people coming from all over Europe.
Furthermore, the government is introducing a 15 % VAT on property purchases
in accordance with the “acquis communautaire”. All these lead to one and
only conclusion - property prices are only going one way and that is up!
Until now, a foreigner was allowed to buy as much property as she/he wants,
but was only allowed to transfer one house or one plot of land up to 4,000
sq.m to her / his own name.
But now most restrictions to foreigner buyers are lifted which will lead to
an increase in demand by 50-100% and generate an increase in both sale and
rental prices. Chris Michael, with his more than 20 years experience in the
real estate industry, believes that property prices could rise by more than
50 %.
“Until now, there was a rush to buy before EU accession and VAT
introduction. But freedom of movement after EU, will further increase demand
for real estate. Once restrictions are lifted we will have a new wave of
buyers coming here to live, work, invest or retire. That’s millions of
people coming to a small island with limited land resources!” added Chris.
Marinos Kineyirou, another real estate expert, agrees with Chris’
assessment. “Prices will only go up. Cyprus is becoming a top destination
for retirement, investment, working and living. EU citizens prefer Cyprus to
other countries because they find it safer and friendlier. There is a big
interest on new properties. The relatively low taxation and low cost of
living in Cyprus has also an added appeal for potential buyers, offering a
full, but comparatively inexpensive lifestyle. ” he added.
All these will for sure increase demand for properties in Cyprus. But what
else could push up the prices even more? VAT is definitely another factor.
Cyprus has a transitional period until 2008 before imposing VAT on land but
buyers of houses, e.t.c will have to pay the VAT. What does this mean?
Prices will increase gradually, at least by 50 % by 2008. But then again we
have the possible solution of the Cyprus problem. A solution that could
result in certain price stabilization - especially in inland residential
properties. But Cyprus, after all, is only a small island with limited land
resources and with the current high demand, empty land is vanishing fast,
especially in prime locations near or on the sea.
The future remains to be seen but what we know for sure is that now the
prices of real estate in Cyprus are going up fast and will continue going up
even faster for sometime to come. So if you are considering to buy a
property my advice would be to first do your own research and then find a
reliable consultant to assist you in minimizing any risks of a price
stabilization.
Always, keep in mind that the best investment are properties on or near the
beach. Demand for these properties is very high, yielding both high resale
values and high rental return.
And don’t forget to invite me to chill out together at your pool, because
with my current salary I don’t think I will be able to afford to buy
anything, anymore, let alone something with a s/pool and near the beach. I
am waiting for your invitation!
By Maryann Serban
info@chris-michael.com.cy
www.marinosestates.com - Cyprus property database with properties for rent or sale in Larnaca & Famagusta.
www.chris-michael.com.cy - Cyprus properties directory offering information about Cyprus properties, hotel accommodation, travel, business, news, jobs, Paphos, and everything else you need to know about Cyprus.
www.accommodationcyprus.com
- Here you can book affordable and beautiful villas directly from the owner
and enjoy significant savings. An internet service which brings together the
owners of
Cyprus holiday villas with clients seeking
to spend their holiday in quality accommodation in
Cyprus.
www.cyprus-property-sale-rent.com
Cyprus property directory
Cyprus villa ,
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