Off-Plan Properties in Northern Cyprus

When a home is built the developer is always prone to certain risks.  They want to sell the property as quickly as possible so that they can pay off any debt concerning the construction.  In order to do this successfully, they sell the house “off-plan”, meaning that it is not built completely.  The benefit of this for the purchaser, is that the price is very affordable.  While the buyer cannot see what the home will look like physically, they can decide according to the location and the visual diagrams that have been designed.  The developer will continue to build the home even after the buyer has purchased the home, but they are receiving payment installments from the new owners to cover the existing loans.

The buyer is only responsible for 10 to 30% of the final price up front, also called a down payment or security deposit.  If the buyer does not want to worry with a loan from the bank, then many developers will offer a financing plan.  Meaning that the purchaser pays the developer installments as the home is being built.  There are many risks involved with this sort of financing because the government in Cyprus does not support any conflicts with this sort of “mortgage”.  In this case, the buyer can pay the deposit and then wait until the home is fully completed to pay for any of the value.

While the independent financing from the developer is not supported, the government system in Cyprus is very strong.  The legal system is UK based meaning that any buyer can feel confident in any type of purchase.  After you have found the property that you want to purchase, the next step is determining which strategy you will use.  If you want to have a vacation home in Cyprus then you could keep the home for your own use.  You can also “buy to let” meaning that you intend to rent out the home for tourists.  Many owners will use the home for their own personal use during the off season and then rent it out during the summer months.