The percentage of VAT for first time buyers in Cyprus will be reduced down to 5% for new homes that have a 15% VAT levy

Now is a great time to buy a property in Cyprus as a new law passed in October 2011 provides for a reduction in VAT on new-build properties for those wishing to permanently swap the British winter gloom for Mediterranean sun.

The timing is especially apt with the launch of the latest residential component at Eléa Estate. This is part of the first phase of the newly integrated family-friendly golf development. The mix of 2- and 3-bedroom Garden Villas (semi-detached) and luxurious detached 3- and 4-bedroom villas provide a new affordable entry price starting at €695,000, approximately £575,000 (excluding VAT).

The launch of a further 13 new villas in phase one follows hot on the heels of the seven exclusive golf fronted, 4- and 5-bedroom detached villas launched earlier in September 2011.

The new law passed by the government provides a reduction in VAT and benefits those considering a home at Eléa Estate as a main and permanent residence. The percentage of VAT for first time buyers in Cyprus will be reduced down to 5% for new homes that have a 15% VAT levy.

The legislation applies to homes of up 275m², although the reduction in VAT only applies to the first 200m². The normal rate of 15% VAT will therefore be chargeable on the other 75m² where the home measures 275m². This represents potential savings for buyers.

Eléa Estate’s centrepiece is a par-71 golf course which has been designed by the six-time Major winner, Sir Nick Faldo and 20 properties in phase one are close to the 13th & 14th tees

Golf membership is included with property ownership for immediate family and the annual dues are included for the first year.

The 2- to 3-bedroom Garden Villas also being launched are ‘linked’ (semi-detached) and provide a hassle-free ‘lock-up and leave’ option for holiday homeowners.

Pierrick Prillot, Real Estate Sales & Marketing Director at Eléa Estate says: “We are excited to be kick-starting the New Year with the launch of these new villas, especially as simultaneous steps have been taken by the Cypriot government to help boost property sales.

“This will simplify and speed-up the buying process in Cyprus. These new holiday homes at Eléa Estate offer a great lifestyle with an excellent level of service.”

These new homes will be set on a peaceful hillside and have been designed by Ergo7, under the guidelines of resort planers and lead architect Hart Howerton. There are currently eight types of villas to choose from which offer elegance combined with the best modern living and designs that can be modified to suit the individual buyers’ needs.

All designs take into account Cyprus’s climate and feature a similar amount of interior and exterior living areas. All properties consist of two levels with private pools, covered parking and have the added benefit of lower ground living space. Balconies, roof gardens and terraces have been a feature of Mediterranean homes for many years and these are incorporated to provide light and natural shade.

Each detached villa has a large infinity swimming pool, set in private landscaped gardens with indigenous species of plants. The property specifications include; a fireplace, under-floor heating, lift, en-suite bathrooms and walk-in wardrobes, optional sauna, pool heating and a room with flexible space suitable for a home cinema, study or playroom. Homes can be placed in the Eléa Estate rental pool and full home and garden maintenance will also be available.

Eléa Estate Club House

Eléa Estate will be a fully integrated five-star luxury development and amenities will include a boutique hotel supported by a range of dining options and a ‘village’ with shops and restaurants creating a friendly community feel. For those not keen on swinging a golf club on the signature golf course, an extensive spa is to open offering the ultimate pampering experience in the future.

The mix of 2- and 3-bedroom Garden Villas (semi-detached) and luxurious detached 3-4 bedroom villas provide a new affordable entry price starting at €695,000, approximately £575,000 (excluding VAT).

The launch of a further 13 new villas in phase one follows hot on the heels of the seven exclusive golf fronted, 4- and 5-bedroom detached villas launched earlier in September 2011.

Prices for the newly launched Villas in phase one start at €695,000 (approx. £575,000) for a 2-bedroom Garden Villa. Three bedroom Garden Villas start at €847,000 (approx. £700,000) and three bedroom detached villas are available from €1,521,000, (approx. £1,259,000). See: www.www.eleaestate.com for more information

Currently available is a three bedroom villa in the village of Tala, close to Paphos. Situated in a quite cul-de-sac location, this villa offers sea views and is surrounded by rolling hills, a ravine and lush vegetation. £305,000 with title deeds available through www.purpleinternational.eu

Owning a home abroad still ranks highly with the British public despite the ups and downs of the global economy. However, bad advice, impulse buying and general lack of research all contribute greatly to many a misadventure overseas.

Cyprus is currently one of the most sought-after overseas locations for those looking to move to pastures new. However, in recent years it has become synonymous with bad publicity in relation to title deeds, or rather a lack of them! Many potential buyers have undoubtedly had second thoughts about investing as they plotted their course over a bureaucratic minefield and of those that reached the relative safety of the far side, quite a few have felt despair, both financial and mental, as they struggled to come to terms with the effect of not having title deeds.

Kim Brown, director of www.overseasguidescompany.com said, “Contrary to popular belief the buying process in Cyprus is different to the UK and by taking time to understand the process and the legalities involved will make for a far more rewarding journey. Firstly it is important to understand that the delay on title deeds applies mainly to new properties but not exclusively. There are literally hundreds of resale properties with title deeds in place available to buy today and many of these are not more than a few years old.”

Part of the current problem in delays on deeds being issued is that Cyprus has experienced a property boom in the last five years and what used to be a two to three year process/delay has now spiralled to a 10 year wait! This is hardly satisfactory for the property investor or for the property industry in general! However the government is currently looking at ways to speed up this process by various means.

In essence each parcel of land built on by developers needs to receive a ‘Certificate of Approval’. Again, this is a lengthy process in which a government official has to physically visit the site and concur that all building regulations and land divisions have been adhered to. This process is further delayed if some of the new build properties remain un-sold as it is common practice for developers only to apply for approval once all properties have been sold. The broadening of the numbers permitted to provide a ‘Certificate of Approval’ is almost certainly the way forward.

It is important to remember that it is a case of ‘buyer beware’ for those without deeds, as even the addition of a conservatory would be deemed as illegal until the title deeds are in place.

Stunning beaches including Coral Bay and the central Kato Paphos tourist and harbour area are all within a 15 minute drive.

Investing in property in Cyprus does not have to be a laborious and stressful process. If you do your ‘homework’ and deal with professionals that have countless years of experience in the Cypriot property market then there are ways to safeguard your purchase even on a new build development.”

For peace of mind when buying property in Cyprus contact www.CyprusBuyingGuide.com. Their comprehensive guide to buying in Cyprus offers a wealth of information and they are available to talk to potential investors on the telephone.

www.OverseasGuidesCompany.com

(Kim Brown, director, launched The Overseas Guides Company (OGC) in 2005. The Guides are written specifically for the British buying abroad. Since its launch, OGC has become the UK’s leading educational resource for anyone interested in moving overseas and/or buying a property abroad. They offer free, informational guides to Britons buying property in over 15 countries)

According to Assetz International, the development offers a great financial investment in the long term either as a permanent residence or as a holiday home. The location also makes the development an attractive investment as the town of Peyia offers something for everyone.

Coral Bay

Cyprus boasts 300 days of sunshine a year and offers a mix of history, food and beautiful sandy beaches. With budget airlines now flying to the island, Cyprus is becoming a sought-after holiday destination.

Stuart Law, Chief Executive of Assetz, comments: “The economic recession of 2008 and the weakening of the British pound against the euro resulted in a dramatic fall in overseas demand for property in Cyprus and as a result developers may consider large discounts on properties.

“Now is the time for investors to pick up a property bargain before the tide turns and prices start to rise rapidly again. Cyprus is a popular destination among holiday-makers and property investors alike, and is set to experience significant property rental and capital growth over the next few years.”

Peyia Village

Peyia Village, on the south west Coast of Cyprus is just five kilometers from Coral Bay. The development boasts a communal swimming pool and offers excellent mountain and sea views. The apartments are spacious with open plan kitchens.

In addition to the superb beaches close to the development, the town has a number of restaurants and tavernas which are ideal for relaxing and enjoying some of the great Cypriot food. For those who are more active it is close to the internationally known golf courses, Tsada and Secret Valley. Alternatively, in the town of Peyia there are numerous activities available such as go-karting, paragliding or one of the many watersports the beaches have to offer. There’s really something for all members of the family.

Peyia Cottages

Assetz can supply 2-bed apartments from €90,334, reduced from a list price of €145,700.

Mortgages are available from 70 per cent LTV with rates as low as 3.5 per cent fixed for two years.

About Assetz plc (www.assetz.co.uk)

Assetz plc heads a group of well-known property investment companies offering carefully selected UK and overseas property and property funds as well as education, buying assistance, finance and after-sales service. Assetz offers expertise whether a client is seeking an investment, holiday home or both, and specialises in the UK, France, Portugal, Spain, Cyprus, Cape Verde, and Germany.

About Assetz International

Assetz International offers overseas property in selected countries including France, Portugal, Spain, Cyprus, Cape Verde,  and Germany, as well as having a dedicated Assetz Ski division. Properties range from small investment apartments in the Alps to luxury villas on the Algarve and the Cote D’Azur.

Assetz International: 0845 400 6000 or visit www.assetz.co.uk/international

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.