You have saved some money and want to invest in real estate, which makes sense if you consider the history of this market boom. However, you are not sure where, how, or what to choose to make it the most profitable investment or the best living location for your family. Let's look at the possible questions you can or should ask yourself when entering the real estate market.

Property Purpose

The first decision you should make is your strategy or the purpose of this property. This statement of purpose will define all other requirements for your purchase. For example, if you want to buy and hold it for future renting when searching for a house or an apartment, you will have to look at this property with the tenants' eyes. If you want to buy a house, live in it for a couple of years, and then sell it and maybe move to another one, then you need a house suitable for your family size and special requests. If you want to buy, fix an apartment, and then flip (resell) for a higher price, then you will have to look for the property at a lower price, which will require renovation that could raise its price.
So first, sit and think about your goal as an investor. Once settled and determined to go with any of the known (or unknown) real estate investing strategies, stick to it through the whole process of selecting, buying, and managing your property.

Location

Location is always the key to any real estate deal. In Cyprus, for example, the most profitable and desirable locations are seafront houses and apartments. But you may want to enter the student accommodation market, making your target the most desired location near one of the big colleges or universities. If you want to buy a property for yourself and plan to spend at least a few years living in it, consider factors like proximity to your job, schools, gym, or any amenities you need.

Budget

The next question you need to ask yourself is what budget you want to put into this investment. It will require some calculation based on the kind of property you are buying and your country's regulations. Apart from the property price requested by the seller, you will also have to include VAT, taxes, lawyers and agencies' commission, or any other expenses surrounding the process. If you are looking for a property that is not new-brand from the developer, add here also the fees for potential renovations.

If you are going to take the mortgage for this purchase, you better get offers from multiple banks to compare possible terms and downpayment options. Once you have your ceiling number, you can start looking for the property at various agencies' sites or directly at some known developers.
Once you have several options based on your budget and location from your initial search, what are the most critical aspects of the property you must consider?

If you are looking for a second-hand property, the evaluation can be pretty straightforward—assess the general condition of the property (like walls, floors, bathrooms, garden, doors, and windows), any signs of damage (like stains, cracks, leaks, and mold), functionality (like noise level, air conditioning systems, kitchen and bathroom fixtures, energy efficiency), and safety features (smoke detectors, carbon monoxide detectors, fire extinguishers).

However, if you are looking for a brand-new property with a target construction year of 1-3 years, it can be challenging and confusing to assess it (unless you are an oracle and can predict the future).

So, given your limited knowledge and views of the project you are looking at, what should you pay attention to, and where is it worth inquiring more details from your property's developer?

As we mentioned before, your investment strategy will drive your buying process and future property requirements. Let's assume we found a few options as potential buy-and-hold apartments in different locations and at similar prices. How will our evaluation list choose the best one?

Quality of building

Even if you are a person who has no knowledge of building construction, you can still enquire about your building specifications and look at the following properties in apartment design:

  • Laminate Floors - look at the quality of laminate - if it's just a plastic sticker looking as wood (avoid at all costs) or a complete wood (the best you may desire for energy saving)
  • Tile - the size of tiles makes the difference - the larger, the better since it implies fewer seams and a smoother surface
  • Windows - you want the double or even triple glazing for the best acoustics, isolation, and energy-saving
  • Fixtures - you can look at fixtures manufacturers' warranty terms - the longer the period, the higher quality you will get
  • Kitchen - the most significant expense of the apartment's internal design to its quality is paramount to its owner. Dekton and Silestone-coated worktops are easier to keep clean and super durable. Kitchen cupboards and cabinets are not less important - durable, sustainable, and easy-to-maintain materials are the key to kitchen longevity. Baked or catalyzed painting of the cupboard surfaces will be resistant to  scratching or fading
  • Built-in wardrobes - can be part of the plan or not, depending on the developer. However, if they are part of the apartment's internal design, you will save time and money by adding them yourself later.

Energy efficiency class

Higher energy efficiency buildings will reduce your energy bills, provide more comfort, and have less environmental impact.

Luckily, Cyprus developers a few years ago started to comply with world-recognized energy efficiency and saving standards, so you can expect any new developer to announce the energy efficiency of class A for their projects. What does it tell, though, if you, for example, have it lower class (B) or higher (A+ or even A++)? The energy saving difference between B and A ratings can be around 20-40% and between A and A++ ratings - 40-60%, which is a huge difference!  The higher your energy efficiency, the better the quality of the construction, as it implies higher standards of materials.

Amenities

If your target property is located in one of the many buildings in the same project, consider the potential number of residents who will use its pool, garden, playground, or BBQ area and whether the size of these amenities will suffice to make all inhabitants comfortable.

Proximity to the sea

In Cyprus, like in many other seafront countries, the closer your house to the sea, the higher it costs. However, most agencies define the distance from the sea by the air distance, which is just a beeline on the map from your property to the closest sea point. What is more interesting is how close you will be to the nearest beach, which can be significantly different from the distance from the sea.

Location's future

Look for future development plans for your target location and its surroundings. If possible, contact the municipality to get information about district development for the next 5-10 years. It will make a big difference for your renting plans if you discover that a railroad is coming soon near your house or if there will be a lavish city mall instead. Even if it does not impact your desire to buy the property, it can change your target audience—from families with kids to students or tourists.

So don't hesitate to be nerdy and scrutinize the property you want to buy. The more details you know, the better you will be able to deduce its real value. As Warren Buffett said, "Price is what you pay, value is what you get," so use all your skills to make a truly valuable decision.