30.12.2023
This question comes up quite often for homeowners who have reached the age of 60-65 and are on the verge of retirement.
Times change, and the initially young couple faces new circumstances. Their children grew up and most likely left the family home to start their own. Older couples are not as active as they used to be, and their finances are not as strong as when they originally built or purchased their home.
Buying a home while children are around has different priorities. The garden is of paramount importance when initially purchased, more space is required and as children grow older they require their own bedrooms, family room, maid’s area and garage for an average of 2-3 cars.
As children leave home and retirement approaches, cleaning and maintaining the home becomes a challenge, as does owner mobility. This is especially true for duplex or two-story homes, which become most inconvenient if they do not have a private elevator, while the financial upkeep of the home is important and puts a strain on financially weaker retirees.
Therefore, it is not surprising that among property owners after 60-65 years of age, many are looking for an apartment that is more practical and less expensive to live in. These are 2-storey apartments. 3 bedroom apartments located in or near the city center are in high demand and location becomes very important.
Assuming that the house is about 300 sq.m. has an average price of 700,000 euros (in very good condition, about 30 years old), equivalent to the cost of an apartment of 200 sq.m. is approximately 400,000 euros (excluding transfer fees, VAT and other related expenses).
In terms of maintenance, a house will cost on average 400 euros per month (maintenance, garden, maintenance staff, etc.), while for an apartment in terms of general expenses, building maintenance fund, etc. it will be about 150 euros .
Having a good management committee for the block, everyone paying for common expenses and respecting the privacy of all tenants is a rarity in Cyprus, so the latter factor, if it doesn’t work, discourages many potential buyers from exchanging.
It is psychologically very difficult for homeowners to accept this “moving” from home to apartment after many years of living in the house, and problems with pets (particularly dogs) create problems with neighbors and dog walking.
What can you offer as general advice? It should be taken into account that retirement age will catch up with you, and at least some psychological and physical problems can be solved by planning ahead financially, at least 7-10 years in advance.
The Greeks say: “Cypriots eat as if it were their last meal and build houses as if they will live there forever.”
