Dear %$firstname$%,

Hey – how are you? Happy holidays!

It seems like ages since I did my last newsletter – do I say that every time I write to you? Any way, I returned to the UK from my last trip to Cyprus last week. I went for a few days to attend some meetings and the weather was wonderful. During the day it was sunny and around 22 degrees and at night it cooled off, but didn’t get cold.

On this trip, I stayed at the Hilltop Hotel in Pissouri – yes, it was my second trip to Pissouri. Oh-my-gosh – you just wouldn’t believe the view. For CY£25/night for a studio I had the best view in Cyprus. With two sliding glass doors leading onto a patio, I overlooked the entire coast and WOW, was it spectacular. The room was clean and had a full kitchen, but nothing classy. During the night it rained once and I heard drips coming from the ceiling, so that was a bit of an issue…but the view definitely made up for it!

On every visit, I try to do something new – this time, I went to see Tomb of the Kings in Paphos. Believe it or not, after all my visits I’ve never stopped off to see these particular ruins. I hate to admit this, but for over a year, I thought that ‘Tomb of the Kings,’ was simply a road with good bars and restaurants (especially that Irish Bar!)…I had no idea that there were ruins (I’m sure other people made the same mistake).

Overall, they were quite impressive although I couldn’t help but think that the tombs were bakers ovens. I took loads of pictures, however I can’t find my lead that connects my camera to the PC…when I do, I’ll send you some photo’s. Have you been to the Tomb of the Kings?

Otherwise, I went to a series of meetings with various property professionals. I also met a couple Cyprus Buying Guide readers…I met a lovely woman, Angela, that has purchased a property in a village outside Paphos and was back to Cyprus to look for another investment property. It was great to hear her plans and chat with someone that is taking action and going after what they want. It takes a lot of courage and faith to buy property for investment!

So…now as I write this, there are only 5 days left to Christmas. I’ve purchased all my presents, ordered my turkey, and have cleaned the house… I haven’t been feeling well since I returned from Cyprus, so I’m looking forward to using this time to RELAX. I’m not flying anywhere, I’m not going anywhere on xmas day nor am I doing much between Christmas and New Year. For New Years I’m going to a wine bar for a 6-course meal, music and dancing with 10 friends – that should be fun!

I have not contemplated my resolutions as of yet...have you? Perhaps you have a resolution to buy land in Cyprus? (hehehe - I hope so as that's what I've written about this month...) I've also included some information about the Cypriot Pound. I'm quite sad that it will be extinct in a couple weeks - it's not even my country, but I feel that a bit of their culture will evaporate due to the adoption of the Euro.

So…I’m going to head home now as I think I need to sleep. I wish you the absolutely BEST festive season. I hope your Christmas is full of love, laughter, kindness, smiles and good food. And I wish you the best New Years ever…

All my best,

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

Buying Land in Cyprus?

People buy all sorts of different properties in Cyprus - depending on their reasons for buying. Many people consider purchasing land in Cyprus – most often with a view to building on the land, but what are the implications of doing so?

The Overseas Guides Company has teamed up with The Law Offices of Louise Zambartas to provide you with some answers. I've asked Louise to shed some light on Cyprus Property Law. Louise is one of the few dual qualified English Solicitor/Cyprus Lawyers on the island, she lives and works in Limassol, Cyprus and I recommend her to anyone looking for a solicitor in Cyprus - she really is a class act.

In this article Louise will carefully examine the special considerations when purchasing land in Cyprus - I hope you find it interesting!

BUYING LAND IN CYPRUS

Every property purchase in Cyprus has individual circumstances which must be taken into account when deciding whether to buy and purchasing land is no exception.

First steps

When you find a suitable plot of land you need to obtain copies of the title deed and topographical plan. You should give copies of these to your lawyer who will:

1. Ensure that the sheet /plan /plot /references on the Title Deed are the same as those on the topographical plan.

2. Look at the topographical plan; and consider its boundaries, shape and location, identify roads, buildings, and other important features.

3. Carry out the encumbrances search.

The Encumbrances Search

The title search is necessary in order to establish that the Title to a plot of land is ‘clean’.

Searches should also be made at the Land Registry and the Town Planning Office.

The searches will establish:

• Whether any town Planning Zones affect the land (see further on zoning below).

• Building Factor: The maximum number of square metres that you are allowed to build expressed as a percentage of the land area.

• Site Coverage: The maximum area of the site that can be occupied by a building’s ground floor expressed as a percentage of the land area.

• Height and number of floors allowed.

• Usage: What type of structures can be built on the site and their use?

Zoning

For planning purposes, Cyprus is divided into various planning zones. The zones determine what can and cannot be done with a piece of land and are: residential, agricultural, animal rearing, industrial, green belt, and tourist.

There are limits placed on what one can build on land within the respective zones. It must be ensured that the land to be purchased is in an appropriate zone for the use planned for that land so that one can be certain that a permit to build on it is likely to be granted.

You could also have the land surveyed by a construction engineer.

If the land is in a restricted zone then there can be a number of consequences:

1. An application for planning permission may be refused.

2. It may prove expensive to get electricity and telephone lines to the land or it may take many years before this can be done.

3. It may not be possible to get water piped to the land with the upshot that water will have to come from tanker deliveries or a borehole.

4. Part of the land my have to be used for roads, pavements and amenity areas.

5. There may be no access to the land or the right-of-way may be insufficient to access or make full use of the property. You can try to claim a right-of-way from adjoining properties but will need to make payment of reasonable compensation to the owners.

6. The ground conditions may make the land unsuitable for building or there could be a seasonal water course running through it; a geological survey can assist.

7. The seashore protection zone can prohibit the building of any structure within 100 metres of the sea.

Multiple Owners

One plot of land with multiple owners, each owing a specified share of land – denoted on their Title Deed – is not uncommon in Cyprus. As a result of the succession laws in place in Cyprus several members of the same family often share ownership of land and it is vital to ensure that all of the owners are prepared to sell the land to you.

You should avoid buying a share in a plot of land unless all of the owners have agreed to the sale or the land can be sub-divided into smaller plots and a Title Deed issued for each of them.

Buying a share in an undivided plot of land is risky because:

1. The Land Registry cannot distinguish which individual part of the plot belongs to the purchaser.

2. If a property is built on an undivided plot, the owner(s) of the other part(s) will automatically become part-owner(s) of that property.

3. The new owners will remain a partner in perpetuity with the owner(s) of the other part(s) of the plot.

4. The purchasers will always need the approval of the other owners to sell, apply for permits and in general for anything they may wish to do with their share of the plot. Such problems can be avoided with detailed contracts between the partners. However, it will remain an informal agreement rather than a formal transaction lodged and recorded at the Land Registry.

If you would like to speak with Louise regarding property law in Cyprus, just drop me an email at mailto:Kim@CyprusBuyingGuide.com and I will gladly arrange for Louise or a member of her team to contact you directly.

Thinking ahead and Cyprus Pound Update...

by Smart Currency’s Charles Purdy.

People often ask me why thinking ahead with currency exchange is so important. I think this is best answered by looking at the extreme values of just two currencies, the Euro and the US$, over the last year and what £100,000 would have bought:

	Best Rate	Received	Worst Rate	Received	Difference between Best and Worst Rate
Euro	1.527	€ 152,700	1.394	€ 139,400	€ 13,700
US Dollar	2.113	$ 211,300	1.932	$ 193,200	$ 18,100

What causes such large differences in the course of a year?

Some are obvious such as the surprise increase in UK interest rates we had in January 2007 or the first run on a UK bank [i.e. Northern Rock] for over a hundred years. These tend to lead to large and very rapid movements.

Others are less obvious. Subtle changes in interest rate expectations or economic performance can lead to smaller changes, but can still result in you getting less than you expected when you come to purchase your currency. If you are on a tight budget this could be very painful.

You cannot defy gravity with exchange rates and if you need to do something quickly then you need to work in a narrow range of possible exchange rates. Smart Currency Exchange can still save you money by watching the market for you - there are always better times to buy or sell, even when time is short.

If you open a currency account with Smart Currency Exchange early, it immediately increases your options significantly through their expertise and their ability to secure an exchange rate that works for your budget. So, if you haven't already done so, make a New Year's resolution to open a currency account with Smart Currency Exchange as soon as possible.

Currency Rates and Comments:

Sterling has made small but steady gains against most currencies apart from the US$. UK economic news has been mixed with pressure on house prices and sales volume countered by a surge in production price inflation. The latter means that the market has become unsure on future cuts in UK interest rates. The central banks of the UK, US and Euro land agreed a loan package in an attempt to add liquidity to a credit market that was/is in danger of grinding to a halt. Still uncertain times and an uncertain future for sterling.

The Cypriot £, which is pegged to the € (still the preferred currency when compared to the US$ or sterling) sits at Cy.£0.813/£1 inter bank , and inflation is also of concern to the European Central Bank. Any cuts in € interest rates are very unlikely short to medium term. But clearly the credit crunch is having an affect on Euro land as the ECB were part of the consortium noted above. Euro land cannot be immune to the slowing down elsewhere. They may not have the overhang of highly priced properties throughout Euro land but businesses need to export and, if elsewhere is contracting and the strong € makes these exports less competitive, then the € will suffer.

Please note that as of the 1st January 2008 the € will become the official currency of Cyprus. The fixed exchange rate is €1=Cy.£ 0.585274

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

In Closing...

Not much from me this month...but LOADS to come next month. We have so many plans for the website, newsletter, the Cyprus Buying Guide and we're actually planning on doing some educational seminars in the new year, so watch this space.

And if you haven't purchased the New and Improved 2007/2008 Cyprus Buying Guide, please get it today. By doing so, you can set yourself up for the New Year to successfully buy a wonderful property in the best darn country in the Med!

I'll shut up now.

Have an exceptional Christmas and the happiest New Year possible!

With love,

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