Buy or rent a property

[benjaminbutton]

Knowing what most of us are aware about the complications about buying and selling property in the TRNC, would you have still come to live here but have rented rather than bought and if you had chance to sell your property and choose to remain here but down size, would you buy or rent.

This complicated discussion was split 50/50 and it would be interesting to have your views, particularly from a rental point of view. Thanks.

[JoandJelly]

I think alot depends on when you came. If it was 15-20 years ago then buying turns out to have been a great option. Conversely, renting then was very cheap but definitely not now. I'm glad we bought.

[Mowgli597]

Spent three years dithering between rent or buy when we first moved ten years ago.

Decided to rent. Best decision we ever made (but we’re in a very fortunate situation).

[waddo]

When we came first, 26 years ago, we decided not to buy as it was far too dodgy in those days, we did not want to rent either. In the end we Leased! That was the perfect option for us as we also wanted to design and have a property built to our own specs. Sadly, the wonderful government here killed our perfect answer! By leasing we paid for 50 years up front, then paid for the tax on that amount as well - not all that much back then by the way. Then you start with the residency scam. You know, the one where the government says you can have permanent residency after X years but then changes the X amount once you get close - lol. Visits to immigration in about year 14 showed us the error of our ways and pointed out to us another little law that had passed without us knowing - If you don't work here then you will NEVER get permanent residency, your passport stamps are not worth the ink they have been used with! Meanwhile, that wonderful term "High Income" came into being which meant that you now could well find yourself under the sword on the rope waiting for the minimum wage to increase past your actual income. At that time it suddenly applied to not only renters but also to those with a lease! So they got you both ways, no matter how you planned it, the law changed and you lost your security plan. We have found that the real winners in this whole thing are the swallows, they get the best of all things provided that they have a kochan for their property and will sell at a profit in the end. The renter of course just carries on paying their rent but that has changed as well, now the government decides what the rent will be and not the person who rents you the property!!

So, which is best if we were to start again - now we would not come here. But if we did come here then I think I would still lease/rent as it is a lot less stressful in the end.

[susiesusie]

Totally agree with all valid points on last post . We've been here 22 years and are now worse off than ever.
Lawyer today said that if you sell as a swallow then the 6% sales exemption on your first sale does not apply. You have to live here.
Please let me know if untrue ..as we are having f to pay it.

[steveodp]

Maybe we have just been fortunate, but we bought and based on our experience would do it again. We bought the house 10 years ago, as swallows, from a foreigner, intending to use it as a holiday home. We had PtP within 5 months and the full kocan 3 months later. Along came COVID and we both had the opportunity to finish work years earlier than planned, so we moved out here permanently. Not having a mortgage or rent to pay was a big factor in deciding if we could do it. Being homeowners, even aged below 60, has ultimately worked out to our benefit regarding residency. We appreciate it may not fall like this for everyone, but can only answer the question from our perspective.

[waddo]

steveodp, Pleased for you that it has worked out well! I guess if we had retained property in the UK to start with and still been able to afford the outlay for our build/leasehold, we would have gone for build/purchase instead but that's life - lol. Decisions you made 25+ years ago bear no real relevance to conditions on the ground today and the only question you have to ask yourself is if you are happy now and can plan to remain happy in the future! Our answer is still YES, regardless of what the future holds we are still and have been for many, many years - Happy Here.

Came with eyes open and did our research for ages prior to that - paid dividends in the end!!!

[tutor4u]

i agree with waddo, we sold up in uk and moved over in 2007 , no regrets, happy bunnies (god bless air con)

[Reyntj]

Id only tell people to rent if they want a holiday home then just use airbnb much cheaper than owning & fkexible ..coming a few weeks s year its got to be the best option.

[kerry 6138]

Totally agree with all valid points on last post . We've been here 22 years and are now worse off than ever.
Lawyer today said that if you sell as a swallow then the 6% sales exemption on your first sale does not apply. You have to live here.
Please let me know if untrue ..as we are having f to pay it.

Has far has I'm aware the sales tax exemption no longer applies for everyone, swallow or resident.
Although I try to keep up, with so many changes over the years it gets more difficult so I could be wrong.

[a1sysman]

Has far has I'm aware the sales tax exemption no longer applies for everyone, swallow or resident.
Although I try to keep up, with so many changes over the years it gets more difficult so I could be wrong.

Correct.

2.8% of the (declared) sale price, the seller pays as sales tax.

6% of the (declared) purchase price the buyer pays. Sale price and purchase price will be identical, of course.

The Tapu / Land Registry will determine their own value for a property.

If the sale / purchase price falls below the Tapu / Land Registry valuation, tough luck, the percentages will be based on their valuation and not on the declared sale / purchase price.

I think this is an attempt to reduce tax evasion.

[benjaminbutton]

I haven't counted but it still looks like 50/50.. As I have casting vote I think I'll abstain and wait until Title Deeds materialised. Dear Lord , its costing a fortune as they have moved my GPS lines.!!!

[wanderer]

At least they're not in the air like apartment owners on shared title