Property for sale in Pyla, Larnaca, Cyprus

Oceania Bay Village, Pyla, Larnaca

This beautiful new development of 101 units is situated just a 10 minute drive from the vibrant and popular Larnaca district, situated just minutes from the new international airport which will open in October 2009, providing the capability to handle in excess of 10 million passengers per year. Airlines flying to Larnaca include British Airways, Easy Jet, and Thompson.

Oceania Bay Village has comprehensive on-site facilities and services and all apartments come with white goods, wireless connectivity and tiling throughout.

Prices start from just €138,000 and completion is set for September 2010. There are 101 freehold one, two and three bedroom apartments over 3 floors with an allocated parking space for each apartment. The developer is offering a gifted deposit of 25% towards your purchase, and with a 70% LTV mortgage, you can have one of these fantastic properties for as little as €8,539 (including all of your costs).

Strong rental yields are expected as the development is only a 10 minute walk from the proposed “Disney Style” Theme Park, scheduled for completion in 2012, which has been approved by the United Nations. It is also only a 10 minute drive from the 18 hole PGA Golf Course. Approval has been granted for a new marina in nearby Larnaca providing 900 births and able to accommodate “Super Yachts” over 35 meters long and a cruise liner terminal. This also provides the investor with excellent exit strategies as Pyla has been recognized by many in the industry as a hot spot for 2009/10. At least 5% Capital Growth per annum is expected in this area. Last years growth was charted at 15-20% by Antonis Loizou & Associates, the largest professional firm of Chartered Surveyors in Cyprus, 2008

In general, full occupancy (12 months) will cover costs for long-term rental. For short-term lettings approximately 16 -20 weeks occupancy would be required to cover the interest on your mortgage. Which should be easily achievable either way.

Please click here for more images on this property development in Pyla

Please click here for detailed floor plans of the development

Location

Pyla, Larnaca, Cyprus

Construction Schedule

Building shall be completed by 30th September 2010 and ready to live in.

Facilities And Maintenance

Oceania Bay Village has COMPREHENSIVE on-site features including:

• Dedicated management office
• Large fully equipped gymnasium
• Solar heated indoor swimming pool
• Large communal outdoor swimming pool
• Communal sauna
• Jacuzzi
• Pool bar / Cafeteria
• Family sized changing rooms
• Convenience store

Maintenance will be charged at £CY200 - £CY250 (€342 – €427) per annum. This will include Cleaning and maintenance of communal areas including:

• Corridors.
• Elevators.
• Stairs.
• Gardens.
• Communal swimming pool.
• Communal Gym.
• Communal Sauna.
• Parking areas.

Payment Terms

The Property Purchase price includes 15% VAT. There are two different payment plans available.

Payment plan 1:
£1,000 reservation fee.
30% on signing, 25% of which is gifted by the developer.
70% on delivery (September 2010) through cash or 70% LTV Mortgage

Please click here for a breakdown of this payment plan with real figures

Payment plan 2:
£1,000 reservation fee.
30% on signing.
70% on delivery (September 2010) through cash or 70% LTV Mortgage

Please click here for a breakdown of this payment plan with real figures

FURTHER COSTS AND FEES

Solicitors Fee: Approximately 1% of the Price.
Stamp Duty for Purchasing Contract: 0.15% to 0.20% of contract value payable to the solicitor depending on the purchase value.
Stamp Duty for Mortgage Contract: 0.15% to 0.20% of contract value added to the loan depending on the purchase value.
Document Stamp Duty: 0.15% to 0.20% of contract value added to the loan depending on the purchase value.
Bank Fees: 1% arrangement fee plus CY 49.7 (€85) for preparation of documentation and CY60 (€102) for Miscellaneous Fees
Mortgage Fee Registration of Legal Charge with Land Registry: 1% of Mortgage amount, payable to the Land Registry Office. This amount is payable by the owner at the time of the issue of Title Deeds up to 5 years after completion. (Bank charges are not added to the loan)
Title Transfer Fees to Land Registry: 3% to 8% of contract value paid only by the owner at the time of issue of the Title Deeds (Up to 5 years after completion). Transfer Tax can be significantly reduced by purchasing in more than one name.

ONGOING COSTS

Immovable Property Tax (annual): 0.35% on 1980 values. 1980 values are defined as £CP230 (€393)/sqm. for villas and £CY150 (€256) sqm. for apartments.
Sewage Fees (annual): 0.35% to 0.60% on 1980 values depending on the area.
Refuse Collection (annual): £CY40 – 60 (€68 – 103) depending on the municipality.
Municipality Taxes (annual): £CY10 – 20 (€17 – 34) depending on the municipality.
Individual Property Management (annual): £CY300 – 500 (€513 – 854) depending on the agreement and the service provided.
Project Maintenance and Management Costs (annual): £CY250 (€427) depending on the agreement and the service provided.

Financing this Development

Finance can be arranged through the following bank:

Alpha Bank
Head Office
Yiorkion Building
1 Prodromou St.
P.O. Box 21661, 1596 Nicosia

• Capital and interest will become repayable upon expiry of the deferred period.
• LIBOR*¹ + 3% (based on securing a mortgage in GBP (£). Please note LIBOR can change on a daily basis). Currently LIBOR 0.9775% as at 29th June 2009.
• Bank base rate (EURIBOR)*² 5.5% plus 3% (Please note EURIBOR can change on a daily basis)
• Up to 40-year term or to purchaser’s 70th year of age (whichever is first)
• Bank fees are payable prior to the activation of the mortgage loan.

*¹ The term LIBOR stands for the London Interbank Offered Rate. It is a key reference interest rate, showing the lending rate between the different Banks.
*² The term EURIBOR stands for the (Euro Interbank Offered Rate): is the rate at which euro interbank term deposits within the euro zone are offered by one prime bank to another prime bank.

MORTGAGE REQUIREMENTS

• Reservation form completed by client.
• Reservation fee.
• Copy of Passport.
• Copy of a current utility bill (not more than 3 months old).
• Mortgage statements for the past 6 months (if applicable).
• Bank statements for the past 3 months.
• Original Proof of income - Payslips, P60, Accountant’s letter etc.
• Experian Credit Report to be provided by client.

Legal Information

CAPITAL GAINS TAX

Capital gains tax is charged at the rate of 20% on gains arising from the disposal of immovable property in Cyprus or the disposal of shares of companies which own immovable property in Cyprus.
Note: The first €17,086 of a gain per person from the sale of a property is tax exempt. An exemption limit of €85,430 is added to the initial payment (€17,086) if the seller has lived in the property continuously for the previous five years.
In certain circumstances, further allowances are granted for transfer fees, inflation and improvements made to the house, but the total exemption cannot exceed a €85,430 limit.

INHERITANCE TAX

Inheritance tax was abolished in Cyprus in 2001. Any persons UK domiciled (as apposed to resident) will be subject to UK IHT on their worldwide assets unless a new domicile of choice outside of the UK has been established.

TAX ON RENTAL INCOME

Rental income is taxed at normal income tax but you are allowed a 20% deduction for expenses including management and maintenance fees and expenses. 100% of mortgage interest paid for buildings which are rented is deducted from rental income. Any other income earned in Cyprus will be taxed as normal income.

OTHER TAXES

Real Estate Transfer Tax to transfer the freehold into the owner’s name. This is paid once the transfer of deeds takes place, which can be up to five years after completion.
• Up to the first £50,000 (€85,430) = 3%
• The next £50,000-£100,000 (€85,430 - €170,860) = 5%
• Above £100,000 €170,860 = 8%

Transfer Tax can be significantly reduced by purchasing in joint names.

Cyprus boasts 5% taxation on pensions compared to 22% in the UK, which could go some way to explaining why it is regarded as the number one destination for British retirees.

Property Management

Gold Smile Property Management Limited registered in Cyprus in conjunction with BHI Global Limited, an English based company with an experienced Cypriot management team, will provide a lettings and property management service on your behalf. Comprehensive services will include inspections, rental collection, and collection & management of service charges which may be due on selected properties.

About the Immediate Vicinity

South East Cyprus:

• Larnaca/Pyla is the anticipated location for the proposed Disney style Theme Park scheduled for completion in 2012.
• 15 minute drive from Larnaca airport.
• 1.65 km North of beaches.
• 1.4 km South of Pyla town centre.

The apartments will be located in “New” Pyla, a short drive away from the vibrant, popular Larnaca district, ideally situated just minutes from the international airport, within easy reach of all essential amenities, and well connected for travel to other areas of the island.

Cyprus is the third largest island in the Mediterranean Sea, situated at the crossroads of three continents and in the trading paths of the first merchants of antiquity. It already has an excellent communications infrastructure, which has contributed to the progressive development of the island, an excellent road network, ensuring that no two places are far away, telecommunications ranking amongst the most efficient in the world and fast, reliable postal services. It also has an excellent business infrastructure.

Cyprus is aiming to avoid low-end tourist apartments in favour of high quality accommodation. Capital Growth is predicted to be 5% p.a. It has been predicted that this will continue due to the limitations being imposed on developable land by the Cypriot government, the increased government expenditure on infrastructure and the countries aim at becoming one of the prime international golfing destinations in Europe, complimented by the highly anticipated Disney style Theme Park for which UN approval has already been gained which will generate a huge sustained annual tourist revenue.

With its largely English speaking community, a legal system based on English law and its favourable taxation policies has made Cyprus an enviable destination to invest and also the number one location for British retirees to live! Cyprus provides a fairly high European level standard of living, with low unemployment, low inflation, low crime, and excellent medical care. The overall cost of living averages around a third to two thirds of most parts of Europe, Japan, and the USA, making it one of the lowest costs of living within the developed nations, including the UK. It also has the ninth lowest rate of inflation in Europe. This has an added appeal for the potential buyer, offering a full, but inexpensive lifestyle.

Comparing post-EU figures with current statistics, tourism in Cyprus has been significantly boosted. Personal travel and tourism increased noticeably from £555.4 million in 2002 to reach £773.1 million in 2007 and by 2017, this is expected to grow to £1,508.2 million. However, the Cypriot government is keen to popularise every facet of Cyprus to not only include the traditional sun, sea and sand vacations but also agro-tourism in the Troodos Mountains and the beautiful fauna and flora that Cyprus has to offer, adventure orientated holidays including scuba-diving and cycling etc. Cyprus is aiming at a sustainable number of 250,000 tourists per month.

Statistics for tourism last year (2008) in Cyprus have recently been released (February 2009) by the Statistical Service of Cyprus (Cystat). Cystat's report showed that in the period January to December 2008 arrivals of tourists totalled 2,403,750 a minor decrease of 0.5% compared to the corresponding period in 2007 (2,416,081).

Demographic breakdowns of travelers visiting Cyprus in the period January – December 2008 showed 81,8% of tourists are from the European Union with travelers from the United Kingdom leading the list with 40.5% followed by Greece at 17.6%, Russia at 6%, Germany at 4.6%, Sweden at 3.3%, Israel at 2.4%, Austria at 2.3%, and Norway at 1.7%. The study also shows that revenue from tourism in Cyprus earned €1.792,8 million in the period Jan – June 2008 confirming the tourist industry as one of the most important to the national economy.

All these factors make Cyprus an un-missable investment opportunity.

“Cyprus has been rated as the best place to invest in property anywhere in the world” Quote: A Place in the Sun - 2007

Please click here for an overview of the investment potential of Cyprus