Building a house is an investment decision, which should be studied carefully, as most families built a house once in their lifetime and the final decision in most cases can be irreversible. Below are some general guidelines, which could help the owner to assess the cost of building a house, since small items, which could build up the cost of the house, are usually ignored.

Prior to the commencement of construction of your own home, at least the plot should be, or nearly be paid. This will certainly give you an advantage with the financing of the building cost for the house and it is a prerequisite for all financiers. For the transfer of ownership of the plot a Governmental transfer fee of 7%-8% (on average) is required on the market value (not necessarily what you paid for) of the plot.

To register a mortgage, a fee will be paid to the Land Registry Office of about 1% on the Mortgage amount. Normally the mortgage amount is the actual loan %2B 20% on top. You will have to pay the stamp duties and other Bank expenses, which could take the form of once and for all Bank charge (say, on average CYP1000). If you borrow from a bank there is an additional charge of approximately 1.5%-2.0% p.a. on top of the legal base rate of 4.5%. There are now many alternative housing schemes including Life Insurance finance, Co-Op financing etc which extend for 25-40 years and own contribution approximately 20% (usually through term life insurance).

It is imperative to use a qualified Architectural Office which will have the responsibility for the work done. You should not compromise on this, since the Architect is the most important person in the whole process of building your house. Yes, go to different offices and do discuss fee levels and then make your decision, but always use a qualified architect. Rates are normally around 5% on the total cost of the building and includes the design and supervision. Some architects go up to around 6%-8%.

You will also need to employ a Civil Engineer to carry out the structural design. This cost, with supervision is approximately 1% on the cost of the building.

The cost of the building referred to, includes all items, but not the fees paid to the Authorities and decorative items. So please clear the matter with the Architect, Engineer, etc., what is included is the total building cost.

The Town Planning Department charges for the issue of the licence will cost you around £300 and for the building licence an added amount of £150-£200.

If you wish to engage a Quantity Surveyor for the building, a fee of 1% of the total building cost is required. The cost for a mechanical engineer (for large buildings) is approximately 3%-5% on the cost of the Electrical and Mechanical Budget. Although the use of the above is optional, it is recommended for large and complicated buildings.

Below you will find a guide of the building costs:

Normal quality house

* CYP500 per sq. meter for the covered area
* CYP150 per sq. meter for the uncovered veranda
* CYP250 per sq. meter for the basement

Good quality house

* CYP550-CYP650 per sq. meter for covered area (depending on quality/facilities)
* CYP180 per sq. meter for uncovered area

Plus the cost of a garage (£3000), water borehole (£1500), fencing and garden (£3500-£4500) for normal plots sizes.

Extra costs have to be paid for connection to the Water Board, Electricity, Telephone and Land registry Office (demarcation, issue of title etc) estimated at about £1000 in total.

-Total cost/sq.m. for a (250 sq.m.) house
-House 250 sq.m. @ £550/sq.m. £138.500
-Fees and Licences £9.000
-Interest on Loan (say) £6.000
-Other Authorities £1.500
-Garden etc. £3.000
-Sundry other expenses £4.000
-Total cost £162.000 or (£745/sq.m.)
-on top add 15% V.A.T.

The purchase of equipment and installation cost of central heating is an addition and costs approximately £20/sq.m. and for the airconditioning system, an additional amount of approximately £40/sq.m.

A large number of people act as their own contractors for the building and subcontract all the various jobs and supplies of the work. Where the owner is able and with sufficient knowledge and has the time to carry out the supply and coordinating function, there could be a possible saving of 8-10% on total cost. Going further, if “weekend housing” is put into effect (whereby all the family and friends offer themselves as labourers, skilled and unskilled) then the cost can be reduced by 12%-15%. Obviously, in both cases there is the strong danger that the quality will suffer and the time of completion extended.

In recent years, with the introduction of VAT and the increase in labour costs, we have experienced an increase of 7-10% per year, in building cost, a level which is higher than inflation. This has made the building of a house that much more difficult. A house can take approximately 18 months to be completed.

A last item that can cost between 5%-8% in addition, is the right of the Contractor to ask for increase in labour costs and materials prices during the period of construction. Therefore a certain amount for unforeseen costs should be included in the final costing.

Unfortunately in Cyprus we have not reached any stage of prefabrication, whereby sections of the house, windows, doors, kitchens, etc., are prefabricated so that there is a reduction in costs. Also the shortage of skilled labour has created a certain indifference to the quality produced and should always be watched.

The problems related to the building of a house and the related delays have caused the market to direct its interest towards ready houses (a circumstance which did not exist 7-9 years ago). We expect this trend to continue with a positive effect on the value of ready homes.

Would Cyprus villas for sale have to do with your retirement? It may be one of the best ways to invest your funds, as a matter of fact! Why would you want to while away the rest of your days in a climate that is so cold that it seeps in your bones instead of spending long days in a place akin to paradise? For example, you may want to put a chunk of your money in a piece of real estate that is part of a planned village. While you may think that you have just enough to purchase a small flat, you may be in for quite a surprise.

Cyprus has quite a low cost of living, which would translate to your income possibly being enough to buy yourself a place among the villas in Paphos, Cyprus. It’s one place where you can still feel that you’re in an untouched portion of Cyprus. You’ll still be able to cash in on the uptrend of the Cyprus real property trend, because while you can still find some of the cheaper properties in Europe here, more and more people are getting the same idea and the prices are increasing by the year! What would it be like to have a home in paradise? For one, you won’t be stuck with a cookie-cutter home built by the thousands in the suburban areas of most bigger metropolises.

These are beautiful homes that are made predominantly of stone with accents of wood, designed to make the most of the tropical season while giving comfort to the occupants. It is suggested that any features in the home be based on this type of architecture. While perfect for contemporary life, these touches would give the owners the ability to do so much more with their homes. For example, window shutters were employed in order to keep the harsh sun and strong winds out but these are also a means of passive temperature control throughout the home.

The spacious balconies and open terraces which are popular to many Cypriot homes normally serve as an outdoor room for the house. While commonly used by the extended families, it would be a perfect place for anyone to have small outdoor gatherings or even a big cocktail party! What a way to make full use of your home. And with the perfect weather cooperating, you’ll be sure to make your garden the star of your get-together. Why not spend your retirement in Cyprus?