New homes: the best investment in today's real estate market?

In the current market of Cyprus, it may be more profitable to invest in new homes, rather than homes for resale. To help readers make an informed decision, this article attempts to provide an overview of the advantages of new properties with relevant data.

At present, a fifteen-year-old two-bedroom apartment costs slightly less than200,000 euros, while a new apartment costs around250,000 euros. Why then should one consider spending an additional50,000 euros?

Modernized features and conveniences:new properties feature the latest in design and technology, including energy-efficient appliances and smart home systems. Through the use of innovative storage options and built-in closets, designers maximize the use of space. Large windows, insulating walls, internal gardens and living green walls all contribute to a calm, happy and overall better living environment.

Opportunities for individualization:The flexibility to customize the property to your preferences is a big advantage of new homes. Choose the layouts, materials and finishes that suit your lifestyle. According to a 2015 study by the Royal Institution of Chartered Surveyors (RICS), homebuyers increasingly prefer customizable homes that match their preferences.

Lower maintenance costs:compared to older homes, newer properties typically require less ongoing maintenance and immediate repairs. In the first few years, maintenance costs for newly built homes are typically about 1% of the purchase price, but they can range from 2% to 4% for resale homes.

Guarantees and assurances:Developers of new homes provide warranties that cover construction defects, major structural problems and individual systems and equipment. Typical warranty periods in Cyprus are up to 10 years for the building, 2 years for plumbing and electrical systems and 1 year for appliances.

Homes for resale are often in well-established neighborhoods close to amenities. However, the neighborhood may require rehabilitation due to its outdated appearance. Although resale homes are usually less expensive to purchase, it is important to consider the cost of renovations and the overall return on investment. Also, compared to older properties, newer properties can be rented out at a higher monthly payment. Finally, there is often room for negotiation when buying a resale home, as owners can be more flexible than developers of new properties.

Based on your budget and finances, carefully evaluate whether you can afford new homes that offer modern features, customization options and warranty coverage, preferring them over resale homes. Be sure to evaluate potential revitalization projects and repair costs when buying resale homes. If financially feasible, investing an additional €50,000 in new homes, which equates to €3,500 per year or €280 per month for 15 years, becomes a wise financial decision.

By assessing your specific needs, preferences, and financial capabilities, you can make an informed decision to purchase a property that will provide you with happy and comfortable living within your budget.

About the author

Christ is Nikolaus, a licensed real estate agent at Property Canvas (registered and licensed real estateagency A.A.826 and A.M.432/E).