Is it better to rent or buy property in Cyprus? Whether you’re thinking of buying a place to raise your family in or as a solo investment, the idea of not having to pay rent every month is an attractive one. But, what if you plan to relocate in 10 or so years? This article will dissect the pros and cons of renting or buying properties and some things to consider when making your decision.
Renting
Pros:
- Renters can choose the length of their tenancy
- Easy to find suitable properties
- You don’t need to worry about expenses and upkeep of maintenance and real estate taxes
- Renters avoid the liability of upgrading properties with the times (e.g. wear and tear, new technologies)
Cons:
- Owners can raise the rent or put the property up for sale at any time
- Lease agreements may have limitations on how many people can live there, whether animals are allowed or not etc.
- Tenants cannot customise the properties to extents beyond their lease agreements
Buying
Pros:
- You can earn income by renting out your property
- You can customise the property in whatever way you please
- Property ownership provides a sense of stability as no one can take it away from you
Cons:
- It is a heaver commitment financially
- If you later decide to sell your property, it can be a lengthy process that takes months or years
- You have to deal with added maintenance and tax expenses, as well as the decrease in the value of the property over time
On the one hand, renting provides short or long-term residence for the number of months/years agreed to on a rental contract. On the other hand, buying a property means that the place belongs to you permanently (or until you sell it).
Home buying schemes
There are various schemes in Cyprus explicitly designed for supporting local home buyers with their real estate purchases. Some examples of real estate grants and schemes in Cyprus include:
Rent to buy scheme
The “rent to buy” scheme by Fox Realty allows a smoother transition between a rental agreement and purchasing a property. This route attracts people looking to buy their dream homes at a comfortable pace while also avoiding costly interest rates on loans.
Learn more about Rent to Buy here.
Government Interest Subsidy Scheme for New Housing
The implementation of the scheme aims to support citizens in taking out loans for their primary residence. The scheme encourages loan-taking through an interest rate subsidy from the Cypriot Government of up to 1,50% for the first four years. Clients can apply for the loan program through many of the banks in Cyprus (e.g. Hellenic bank, AstroBank, Eurobank, Bank of Cyprus, Alpha Bank).
Find more about government housing schemes here.
Conclusion
Ultimately, property decisions are up to the renter/buyer and their willingness and ability to commit and invest in real estate. How much money are you willing to put into real estate decisions? How much do you care about customising your living space to your lifestyle? What duration of months/years are you planning to live in a property? Do you plan to sublet? These are all factors to be taken into consideration when buying properties of any kind. Renting provides the freedom to pick up and move as your life changes and happens without having to worry about what you’re leaving behind. In contrast, buying gives a stronger sense of stability and ownership and the opportunity to earn income through subletting. To summarise, the decision is yours.
Find properties throughout Cyprus for short-term and long-term rent or sale with Estate Searcher.