I went to France, had one day in the UK and then I was off to Cyprus for three days. I returned to the UK last Wednesday after a long 5 ½ hour flight. Sometimes I cram way too much in!

Anyway... my trip to Cyprus was one of the best I've ever had. Upon boarding the plane at Heathrow, the pilot announced, 'You'll be happy to know that the temperature in Cyprus is 36 degrees.' I couldn't believe my ears! It's so wonderful to fly from a cool country and then get that rush of hot air when you disembark from the plane. I love the heat, the smell and even the way the air feels...

My trip included several meetings with many property professionals. I visit Cyprus for two main reasons:

1. To ask property developers, agents, solicitors and any residents to promote Smart Currency Exchange Limited. There are so many people that buy a property in Cyprus and use a bank rather than a currency specialist. It's very unfortunate that property professions fail to let buyers know they can save thousands of pounds, but for most people...they're focused solely on selling properties and don't really care how much you might save when transferring your money. . .That's what Smart Currency is there for - I love working at a company that I really believe in!

The property professionals I did meet are all very eager to mention Smart to their clients, so it was a very successful trip .

And the other reason for my trip to Cyprus...

2. To get more information for my Cyprus Buying Guide, website, forum and newsletters. I really love property and even more - property in Cyprus. There are so many types of properties, locations and absolutely incredible options to choose from. I really don't know why people decide to buy in locations other than Cyprus! It really is the best.

Sooooo...this is what I have in store for you in this edition of the Cyprus Buying Guide Newsletter:

- The low-down about getting VAT reduced from 15% to 5% for first-time buyers

- The Cost of Cyprus Pounds, by Charles Purdy

- Staying at a hotel/apartment versus a 5 star hotel

- Latest on the Golf Course Go-Ahead in Larnaca

- Cyprus Buying Guide Forum

- Cyprus Buying Guide

I hope you enjoy reading and when you do decide to buy in Cyprus PLEASE remember to contact Smart Currency Exchange so we can help create a currency strategy for you.

Kindest regards ever,

Kim
Cyprus Buying Guide
The Overseas Guides Company
Kim@CyprusBuyingGuide.com

The low-down about getting VAT reduced from 15% to 5% for first-time buyers

I've had several questions on VAT lately and I get the feeling that some Cyprus Agents/Developers are promoting that it's EASY to get the lower rate of VAT when buying in Cyprus... Well, my good friend in Larnca, Marios - an estate agent - explained the following to me:

"There is VAT on all new properties that have building permits registered after the 1st of May 2004. The VAT is charged at 15%. There is no VAT on Resale properties, regardless of when the plans were submitted as the VAT can only be paid once.

With regards the lower rate of VAT, this is applicable on the first property bought, provided that it can be proved that it will be a permanent residence. The procedure of this is that 15% VAT is still paid at the time of purchase however 10% is re-claimable upon issue of Deeds.

However, I re-iterate that this is for the first permanent residence. If the property is then sold on within a 10 year period from initial purchase the 10% rebate is clawed back.

Basically, the VAT is unavoidable in most instances. Our clients would have to prove that they own nothing in the UK and that they are residing in Cyprus."

Cypriot Pound Update

by Smart Currency’s Charles Purdy.

Cypriot £ vs.. sterling

The Cypriot £ remains on course to adopt the Euro in 2008. As such, the movement of the Cypriot £ mirrors that of the Euro and the Euro is flavour of the month. To start with, Euro land is growing at a faster rate economically than the UK. Also, even though UK interest rates were increased by 0.25% this month and Euro lands kept on hold, the market now considers sterling interest rates to be close to their highest possible level.

Euro land is expected to increase interest rates by 0.25% in June with further interest rate rises to follow. This has led to the Cypriot £ vs. sterling rate falling sharply from the highs of 0.87 in January to a current exchange rate around 0.847 inter bank. However, a strong Euro brings problems to Euro land exporters as their exports become more expensive and therefore less competitive. Economic growth could suffer, which would reduce the likelihood of further increases in Euro land interest rates.Never a one way street.

Not a good time to buy Cypriot Pounds, but who knows what tomorrow will bring...

To get a Better-than-Bank go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

Staying at a hotel/apartment versus a 5 star hotel

During my trip last week, there was a HUGE difference in the two hotels I stayed at. The first was Sea 'n Lake Hotel Apartments, located 5 minutes from the Airport in Larnaca. The owner 'Theo' greeted me, took my luggage and walked me to my room. He then said, 'Kim - if you need anything, you give me a shout and I'll take care of you.'

The apartment was huge - with a full kitchen, living room and bedroom with en-suite bathroom. The rooms are all off the pool and the complex is a sand colour with different coloured shutters and doors - all in green, red, blue... There is a little bar and a kitchen to order burgers or sandwiches and a couple sitting areas inside and around the pool. Anyway - the place was cute.

The rooms are not furnished to a high level - it's quite simple and the decor is nothing to rave about....HOWEVER it was clean and the service was incredible.

When I went to the bar to have my glass of wine (after my 4 ½ hour flight), I was met by Theo who sat down with me to chat about life. As soon as he saw me, he yelled out, 'Hey Kim - how are you!'

The following morning, I was met by the many holiday tenants - all saying 'Good morning' and of course, Theo came up to me and said, 'How did you sleep Kim ? '

Theo and the staff could not do enough for me... I felt like a princess... And the great thing is that the hotel/apartment cost me only CY£20.00/night.

The next evening - in stark contrast - I stayed at the Aeneas 5 Star Hotel (I'm not spelling it correctly - it's across from Nissi Beach...) A friend had a connection to get me a night for free so I wasn't going to turn the opportunity down. I jumped at the chance to live in luxury. Well....

The staff were all from Eastern Europe (not that I have anything against Eastern Europe...I just expected to see Cypriots as I was in Cyprus) and I've never seen such horrible service in my entire life. Okay - they weren't nasty to me, however they were nasty to each other. All I heard was 'Do this...' 'Do That...' There were no smiles, no nice feelings and I certainly didn't feel as if I was in Cyprus. In fact - I could have been anywhere in the world.

The hotel itself was beautiful - I think they have the largest swimming pool in Europe...You leave your front room and can exit right into the pool... It's weaved around the whole complex. The breakfast offering was to DIE for - it had everything. And the work out/swimming pool area was very nice...

All in all, it should have been a great hotel, but not one person said 'hi' to me and I felt uncomfortable.

So...the next night I decided to go back to Theo's.... I did have the option to stay at the 5 star again, but guess what? I chose not to... !

Golf Course Go-Ahead in Larnaca

I'm sad to report that it still has not been officially approved. I don't know what the government officials are doing. And I think that it's really unfortunate how may people have purchased because the various developers have said : 'Don't worry, we'll get the official approval next month' ... and they've been saying that for over a year now.

Once the golf course starts it's going to take years for it to complete. I wonder if the people that are buying now to let out these properties will be able to get tenants? My concern is that it will be difficult to market a property that is somewhat in the middle of nowhere, with no golf course...Anyway, the latest is that they have some sort of irrigation or water problem that is holding things up - I'll let you know if I hear any more.

Cyprus Buying Guide Forum

http://www.overseasguidescompany.com/phpBB2/viewtopic.php?t=143

Posted: Sat Mar 17, 2007 7:17 pm Post subject: Kalavasos

Hi any one any info on the development at Kalavasos, have researched the area and it seems lovely, lots to see and do and explore. I was wondering how it would be from a letting point of view, it is mid way between Limasol and Larnaca

http://www.overseasguidescompany.com/phpBB2/viewtopic.php?t=143

Do you know anything about Kalavasos? If so, please visit this post and respond!

Otherwise, check out the Cyprus Buying Guide Forum at:

http://www.overseasguidescompany.com/phpBB2/index.php?c=3

Get the Cyprus Buying Guide

As I write this, I've received several testimonials from Cyprus Buying Guide readers...This is what they say:

"The Guide is invaluable, is very informative and a must if you want to avoid the pitfalls of buying property in Cyprus. Thank you Kim, Kind regards Brian Parsons"

"I found the guide very useful, it contained a lot of good advice. I now feel much more confident about the whole process of buying in Cyprus. Definitely worth the money." Joe McGuire

"Very helpful in gathering information and assisting in our purchase of a penthouse on 5th May 2007" Dave Richie

"As first time property investors in Cyprus, we have found the Cyprus Buying Guide has offered great, simple advice, which will potentially save us thousands of pounds. Having originally only been exposed to large marketing companies, Kim has put us in touch with a local estate agent, who offers the same properties at significantly lower prices. Kim has also gone out of her way to offer additional advice, with a speedy response to eMails and lots of helpful hits and tips. Thanks for all your efforts. Mel & Andy Appleyard.

Get the Guide: www.CyprusBuyingGuide.com/guide.htm

Okay - have a GREAT week and weekend and I'll be in touch soon.

Kim
Cyprus Buying Guide
The Overseas Guides Company Limited.
mailto:Kim@OverseasGuidesCompany.com