Five Tips for Buying Your Armenian Home

One life event that should forever stand out is the moment you get the key to your own Armenian home. As demand for real estate in Armenia grows, here are some tips to help you with your house hunt from a real estate broker's point of view.

Live or Visit?

The first step to buying real estate in Armenia is to focus on your purpose. Will you be moving and living in it? Will you be visiting and staying 5 weeks each year? 

Do you want to retire in this home or do you want to rent it out for additional income? Everyone's situation is different. 

Fortunately, Yerevan has options that will suit everybody's needs.

Location, Location, Location

Some people like to grab their cappuccino on their way to work. Some people like the peaceful fields and mountains. While Armenia nurtures all lifestyles, you will have to select the location of your real estate investment carefully.

Study the neighborhood carefully. 

If you are a family with kids, you may want to stay away from the busy streets that have cars honking all day.

If you are a student or a young professional, you may want to stay away from the suburbs, as public transportation needs a lot of improvement.

Due to the growing number of cars in the city, proximity to your work or school should be a priority to minimize commute. 

If you want to buy as an investment, study the market of rentals in the neighborhood along with the quality of tenants. Verify with the municipality about possible developments or construction plans nearby. 

Remember that although you can renovate or tear down a house, you cannot move land. Therefore, choose your location wisely.

Financial Capacity

Nobody likes losing time. Avoid doing that mistake by validating your financial capacity prior to meeting with your real estate agent or starting your search. Armenia has more than 30 banks. Most banks offer mortgages to residents only. Proving your financial capacity with income coming from a foreign country makes the process lengthy and more complicated. Interest rates are around 10%. 

If you can get a loan at a lower interest rate or if you can buy your home without borrowing money, you will avoid a lot of hassle.

Do not forget to calculate monthly costs such as electricity, gas and often, maintenance fees in newer projects. 

Newer Vs. Older Construction

One of the great things about Yerevan is its inventory of both older and newer construction properties. Although the city only holds a handful of buildings left from the 19th century, you will find many stone buildings built between the 1930s and 1950s. These are called "Stalinakan". They are usually 4 floors with high ceilings and no elevators.

Between the 1960s and 1980s, many monolith buildings were built, especially in regions surrounding the city center as the construction of Yerevan's metro began. Many of these buildings were built with an estimated life span of 50 - 60 years as they were built to temporarily lodge its workers and their families coming from far.

In the 2000s, a lot of new construction projects emerged. Some were fully built and delivered, while others still stand half-complete today. One fear buyers have of buying an apartment before it's built is the risk of never seeing the project finished.

Therefore, it is extremely important to do a background check on the builder and to verify the quality of its previously completed projects. 

Today, some of the contractors and developers with a proven reputation sell out apartments of their project before construction even begins. 

Buying Process

Armenia is ranked 13th in the world when it comes to registering a property. Chances are that the country you live in now has a lengthier process. 

First, a real estate broker who fully understands your needs will show you on average between 10 - 20 homes that match your criteria. After you have visited them and have chosen the one closer to your heart, an offer is made.

With an accepted offer, the titles have to be verified to make sure there is no lean or debt attached to the property.

Although it is not an accepted practice, I always insist that my clients hire a home inspector to examine the house. 

After the green light is given, the final agreement needs to be signed at the notary's office. 

Finally, before the keys are exchanged, the land needs to be registered under the new homeowner's name at the State Cadastre.

You will now ask yourself: What about the payment?

A few methods exist; among which wire transferring or exchanging the amount in cash through a third party are most common. 

If you ask me, the best way would be to use an escrow. Some brokers hold an escrow account to make the process easier for their clients. 

Finally, remember that the transaction needs to be completed in Armenia's local currency, the Armenian dram (AMD).

The process takes on average 7 days. To avoid frustration and time wasted, make sure to deal with a broker who tells you what documents to prepare before going to the notary.

Real Estate Broker - Hovig Khatcherian
Reach out to him with any questions at [email protected]