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Buying a flat easier than before – An example for The Courtyard

Published on 4th June 2021
Buying a flat easier than before – An example for The Courtyard
o   The Courtyard gives ample choice to a prospective buyer. There are 2 types of 2-bedroom flats, 3-bedroom and 4-bedroom flats and one type of 5-bedroom (single floor) flats.

Two bedroom apartments
 
             Three bedroom apartments
 
           Four bedroom apartments
 
          Five bedroom whole floor apartments

Example for a 2-bedroom flat

o   The 2 bedrooms flats have an internal covered area of 88.5 and 94.3 square meters and 26.9 and 27.8 s.m. covered balconies respectively. Even the smaller 2-bedroom flat at the Courtyard is considered large by market standards.

Prices are very reasonable if one considers what he gets in The Courtyard

o   The first 10 units to be sold in the Complex that will sign a reservation agreement by July 31, will get a 5% discount. The starting prices for the smaller 2 bedrooms flats is €227,900. In this price, the flats include underfloor heating with a heat Pump, A/C units installed, external electric aluminium blinds, sliding aluminium shaders on the balconies for privacy and sun blocking and much more not usually offered by the competition. It also includes 1 covered parking at the underground level and the right to buy 1 more parking at €15.000.

o   One must remember that the flat owners jointly own a piece of land of about 10.000s.m. that includes a central garden, with plenty of facilities for everyone to enjoy (please refer to our website).

VAT is an added cost especially for investors

o   VAT must be added to the above price, at 5% for buyers for own residence and 19% for investment. Therefore, the above price for own residence rises to €239,300.

o   I am noting that there will be no transfer fees when the title deed is issued a saving of up to 4% (First €85.000 at 1.5%, next €85.000 at 2.5% and above this at 4%). Transfer fees do exist when one buys a resale flat or any other property that does not have VAT.

 

        Expected rents and yields with today’s market
o   The expected rent for the flat in our example is about €1.000 per month.
o   Therefore, the starting annual rental yield is 5% (€12.000/€239.300)
Bank Loans and instalments
o   For own residency, banks are generally happy to lend up to 80% of the total price before VAT. In this case the bank may lend up to €182.320 and therefore the buyer’s own contribution must be €56.980. The instalment for the above loan assuming it is a long-term loan (say 30-year loan) at 2.4% (ΣΕΠΕ) is €711 per month.
Government pays part of the cost of loan interest
o   The government pays 6% of the loan interest over 4 years for own residence to the buyers that proceed to sign a contract before the year-end. In this case, the amount that will be returned is about € 10.900, not an insignificant amount.
Payment terms
o   The payment for the flat will be made gradually. 10% of the total, i.e. €23.930 will be paid with the signing of the reservation agreement, 20% with the start of the construction and the remainder 70% with the progress of the work until delivery.

          
        Written by: George Mouskides
        FOX General Director

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