Buying Property Off Plan

Because the property market in Northern Cyprus is emerging and beginning to boom it is enjoying intense investor interest.

This focus has been intensifying over the last 5 years and as investor confidence grows in North Cyprus, so the property prices begin to rise.

Those who have missed the boat elsewhere are drawn to the island because prices are still incredibly attractive. Those who know a good thing when they see one are keen to secure their place in this, the most beautiful part of the Mediterranean region, before they are priced out of the market.

According to the unbiased but expert opinion of major international property investors it is now no longer a question of ‘if’ Northern Cyprus is the next property hotspot; it is a case of ‘when’ the property market will become totally unrestricted. When it becomes unrestricted, when the embargoes have been lifted and the political situation secured, then the market is going to boom to unprecedented levels.

Developers who have been forced to overlook the potential in Northern Cyprus for so long because of the difficult political situation on the island have finally seen that a resolution is around the corner and that there is massive interest in all that Northern Cyprus has to offer.

These developers are now building dream homes in Northern Cyprus and a lot of the developments they are planning are for sale off plan.

But what are the realities of buying property unseen and off plan, and how can a potential investor benefit from this method of purchasing property?

One of the keys to purchasing property off plan in a place like Northern Cyprus where there has yet to be established a builder’s code of practice, is to examine completed properties or developments that your favoured developer has already undertaken. This will give you a clearer indication of the type of build quality and finish you can expect.

You could also consider courting the opinion of residents of these already completed properties - so long as you don’t harass them for information I’m sure they won’t mind telling you truthfully the highlights and low points of the property buying process that they went through with the developer! These people are likely to give you the best indicator of what you can expect not only in terms of the finished product but also the after sales care that you can expect.

One of the main advantages of buying property off plan in an area where the market is just beginning to rise or ‘boom’ is that you secure your property at today’s prices and by the time the home is completed and ready for habitation it has likely risen in value, thus giving the home owner instant equity, instant investment returns.

Another advantage is that you can enjoy a certain amount of input into the build process. You can pick out the tiles, kitchens, bathrooms, doors and paint colour you prefer, you can also potentially request additional features, the relocation of non-load bearing walls etc., and hopefully end up with the home of your dreams.

To secure your investment it is wise to have written into your legally binding purchase contract with the developer the projected completion dates, plus contingency, then to have some form of financial penalty applicable to the developer should he fail to deliver on time. Of more importance is the need to ensure that the developer has insurance and that if he fails to complete the build, goes into liquidation or suffers other catastrophic business failures that your financial investment to date is secure and can be returned to you. Speak to a good lawyer to make sure all these clauses are investigated and written in to the contract.

If you buy now in Northern Cyprus you will notice that you are buying into a building boom. The construction trucks are an unwelcome sight on the main highways for some, but the boom will not last, the boom is being controlled by the government and will not spiral out of control, and by buying now you’re buying at the bottom end of a rising scale. By buying now you are potentially securing your investment for the future just like those savvy investors did in Spain some 30 years ago!