When purchasing a new property, especially off-plan or under construction, being well-informed is crucial for making a sound decision. Although it might not guarantee a completely risk-free investment, gathering detailed information can help you better understand the deal you are entering. Here is a comprehensive checklist of essential questions to ask your seller to ensure you have all the necessary information.
- Developer Information
Background Check: Research the developer’s history, portfolio, and leadership team. Look into their track record with previous projects to assess their reliability and quality standards.
- Project Investors
Investor Details: Identify who the investors are. Determine if the project is solely funded by the developer or if there are other stakeholders involved. Understand their share of investment and influence on the project.
- Land Ownership and Permits
Ownership and Permits: Verify the land ownership and confirm that the developer has obtained all necessary construction permits. This ensures that the project is legally authorized to proceed.
- References
Previous Projects: Request references and visit past projects completed by the developer. This gives you a sense of the quality and style of their work.
- Project Details
Location and Amenities: Examine the project’s location and proximity to essential services like the sea, beach, airport, shops, restaurants, universities, and commercial offices. Understand the number of buildings, floors, and available amenities within the project.
- Customization Options
Customization: Inquire about any customization options available for your apartment. Check if changes can be made during the design stage or later.
- Specifications
Material Quality: Request detailed specifications of the materials used in construction. Assess their quality and energy efficiency.
- Apartment Layout
Layout and Flexibility: Review the apartment plan for comfort and usability. Check if there is potential for additional rooms or modifications. Ensure the veranda or balcony offers sufficient privacy.
- Neighborhood Analysis
Neighborhood Insights: Investigate the neighborhood for current rental yields, growth trends, and any planned developments that might increase property value.
- Size of the Apartment
Square Meters: Confirm the apartment size and check for hidden spaces. Ensure there is an adequate space for your needs, including storage and kitchen areas.
- Balcony
Balcony Details: Determine if the balcony is covered, its size, and ease of access from the apartment.
- Storeroom
Storage Space: Verify the size and location of any included storeroom, as this is a desirable feature for many buyers.
- Parking
Parking Allocation: Confirm the number of parking spaces allocated to the property, typically based on the property size and number of bedrooms.
- Playground
Playground Facilities: If a playground is included, check its size and adequacy for the number of residents.
- Pool
Pool Size: Evaluate the size of the pool in relation to the overall project size. Pools are a major selling point, especially in warm climates.
- Price Negotiation
Price: Negotiate the price. Find out the lowest price the seller can offer and try to negotiate further if possible.
- VAT and Transfer Fees
Taxes and Fees: Confirm if the price includes VAT or transfer fees. Check your eligibility for VAT reduction.
- Project Status and Delivery Date
Timeline and Contingencies: Ask about the current project status and the expected delivery date. Understand the contingencies for delays and ensure they are included in the sales agreement.
- Property Management
Management Services: If there is a property management company involved, understand the terms and whether it’s possible to change the management company if needed.
- HOA Fees
Homeowners Association Fees: Inquire about the HOA fees, which are usually based on the property size.
- Payment Options
Payment Schedule: Discuss the payment schedule and its flexibility. Payment terms are often negotiable.
- Contract Review
Sales Agreement: Request a sample sale agreement and review it thoroughly, preferably with your attorney. Ensure it includes all discussed points and other applicable terms.
By covering these aspects, you can make a more informed and rational decision about your real estate purchase.
Useful links:
Limassol - Sale/Rent Yields and Prices
Larnaca - Sale/Rent Yields and Prices
Nicosia - Sale/Rent Yields and Prices