02.07.2023
In the current market in Cyprus, it may be more profitable to invest in new homes than in resale houses. Currently, a two-bedroom apartment that is 15 years old costs just under 200,000 euros, while a brand new apartment costs about 250,000 euros. Why, then, should one think about spending an additional 50,000 euros?
Modern features and amenities
New properties with the latest design are equipped with technologies, including energy efficient appliances and smart home systems. Using innovative storage options and built-in wardrobes, the designers make the most of the space. Large window frames, thermally insulated walls, indoor gardens and living green walls all contribute to a peaceful, happy and overall better living environment.
Customization Options
The ability to personalize a property to suit your preferences is a big advantage of new homes. Choose layouts, materials and finishes that suit your lifestyle. According to a 2015 study by the Royal Institute of Certified Surveyors (RICS), homebuyers are increasingly opting for individual homes that match their preferences.
Lower maintenance costs
Compared to older homes, newer homes usually require less maintenance and immediate repairs. In the early years, maintenance costs for newly built homes are typically around 1% of the purchase price, but they can range from 2% to 4% for homes purchased on the secondary market. In addition, a house of energy efficiency class A (which is the norm for new buildings) can save about 80 euros per month in energy costs, as opposed to the average house size of 150 sq. m with EPC C class.
Guarantees
New home builders or developers provide warranties that cover construction defects, major structural problems, and certain systems and equipment. Typical warranty periods in Cyprus are up to 10 years for a building, 2 years for plumbing and electrical systems and 1 year for appliances.
Second homes are often in well-established areas close to amenities. However, the area may need updating due to its outdated appearance. Even though pre-owned houses usually cost less, it is important to consider the cost of repairs and the overall return on investment. In addition, compared to old properties, new properties can be rented for a higher monthly fee. Finally, there is often room for haggling when buying a resale property because owners can be more accommodating than new property developers.
Given your budget and finances, carefully evaluate whether you can afford new homes that offer modern features, customization options, and warranty coverage. Don’t forget to evaluate potential restoration projects and refurbishment costs for homes on the secondary market. If the new property is affordable, in line with current trends in custom living spaces, enhancing your quality of life and potential long-term income through rental, an additional investment of around €50,000 in new property, equivalent to €3,500 per year or €280 per month for 15 years, becomes a wise financial decision. By evaluating your specific needs, preferences, and financial considerations, you can make an informed choice for quality housing within your budget.
