|
| Cyprus Buying Guide Newsletter |
|
||
| How has your new year started? I spent the 31st at home watching the festivities over the TV while drinking a cup of tea. At the age of 34 I just couldn’t be bothered to go out. Am I sad? Last week, however, I went home to see my family in Rochester NY. It was GREAT to see friends/family, find out that I’m going to be an auntie (my sister-in-law is pregnant), and enjoy my mom and Victors cooking. It was -16 degrees and the whole area was completely covered with snow. I saw cousins, grandparents, uncle’s…and really chilled out. Also – get this! One of my cousins is getting fairly famous in America. He’s in a band that is featured in two computer games (Guitar Hero & Rock Band) and due to the popularity of the computer game his band has gotten huge recognition. While at home I called him up and he was spending the weekend with Lynyrd Skynyrd (Lynyrd sings ‘sweet home Alabama,’ ‘Free Bird,’ etc). His band is called Bang Camero… I’m so proud of him! Anyway…what about Cyprus? Well – not much is going on. During this time of year quite a bit shuts down and very little seems to happen. Last week I received around 10 emails about a Disneyland type amusement park that the Russians want to build in Cyprus. The concept sounds very exciting yet I can’t help but wonder how it will ever manifest. The Cypriot community have been talking about various marina’s, golf courses, etc for years that never seem to happen, so the chances of a huge amusement park does make me wonder. Otherwise, if you’ve been following the O’Dwyer case (lyingbuilder.com) the parties involved went to court recently however it got postponed to the 30th of April. The judge was given information stating that O’Dwyer was video recording the case and the judge wasn’t too happy. The case involves a guy that is accusing a developer from assaulting him over a property dispute. It seems like it’s been going on for ages… And what about the ‘Cyprus Problem?’ It’s same ole, same ole…Various parties keep talking! The Foreign Secretary David Miliband met UN Special Envoy Alexander Downer recently. Downer updated the Foreign Secretary on the progress that has been made in the talks between the leaders. They discussed the next steps, including the plan to move on to the property issue next week. Let's hope something pushes things forward! Other than that, there’s not much to report. Property sales are slow, but there are certainly several people still buying. Over the last couple months there have been 11 Cyprus Buying Guide readers that we’ve assisted to find a property for…(When I say that, what I mean is we put our readers in touch with an outstanding agent in Cyprus and then they decided to buy. We, the CBG, don’t sell property ourselves). So…that’s
about it. I’m in the office quite a bit now so give me a ring
if you want to chat about Cyprus. You can reach me or one of my colleagues
on 0207 898 0549. Have an excellent month and take care. Kim |
||
The Cyprus Property Market – where is it headed in 2009?Now that 2008 is behind us, we have the New Year that lies ahead to think and speculate about. Lately, the million dollar question that I’m most often asked is, ‘what’s in store for the Cyprus property market going forward?’ To be frank, I don’t know. Nobody knows what’s going to happen as world markets struggle to regain some sort of financial stability. Heck – if you believe the ancient Mayan predications, the world is going to end in 2012, so what difference does it make anyway? Not that I believe that…! Depending on your source of information, you’ll have overly optimistic reports detailing a slow start to the New Year with a ‘strong’ increase in interest in March – these reports will also outline how the Russians will save the day. Or, you may read reports about how the entire Cyprus property market is on course to self implode. From a buyer’s perspective I predict - or should I say ‘speculate’ - that 2009 will be an excellent year in which to pick up property bargains. However, those bargains will be achieved at far greater risk to the buyer. Due to the oversupply of properties on the market (from developers, agents and private vendors) and the reduced demand on property (especially from the Brits), property organisations are desperate to make sales. Desperation combined with aggressive salesmanship is not a good combination! Over the past 4 years or so many Cypriots & ex-pats decided to climb onto the property bandwagon. There’s a joke in Cyprus that anyone with a piece of land calls themselves a property developer. I don’t think I’d be far off the mark to say that there are more property companies in Cyprus than there are restaurants. Sadly, in this current climate, many will not survive. With the dramatically reduced demand for property, many agents and developers are going to go under – indeed, many already have. Those that do not go bust may be ‘forced’ into less than ethical practises to get sales. The Cyprus property market was always dodgy to begin with and, unless the credit crunch abates or the Russians and other markets replace previous demand from the Brits, it’s going to get far worse. When buying an off-plan property today, there is a real risk that the developer may not finish the build. If this happens, the buyers within the development will have to form a committee to find another builder to finish it – this can be a huge problem and cost an enormous amount of time and money. More than that; if your property does get completed, you’ll then have to wait an average of 10 to 12 years for title deeds. So…if you’re thinking of buying in Cyprus, who do you buy from? What do you buy? How do you avoid the risk of paying money and not ending up with a property? If my mother asked me about buying a property in Cyprus, this is the advice I would give her. Find the newest resale property that you like, with a reputable agent, make sure it has title deeds (a difficult task in itself), negotiate hard on the price and, when it comes time to pay, move all your money through a solicitor’s account. If the agent goes under, your money is reasonably safe with a solicitor and, when buying a resale property, you know there actually IS a completed property at the end of the deal! Or alternatively buy land and only build through someone who comes highly recommended. Demand to meet previous clients and only pay on completion of certain building milestones, not at predetermined dates. Make sure there is a completion clause in your contract upfront and demand penalty costs from the builder if he falls behind on the completion date. Please let me know if we can help or put you in touch with reputable people. Numerous trips to the island and constant contact with people building and buying property mean that we really do have a good idea as to who is good and who is not. Just phone on 0207 898 0549 or fill in the form on the link below and we will contact you to have a chat: |
||
Sterling and the Euro in these tough timesby Smart Currency’s Charles Purdy.I am often asked where I see Sterling going to against the Euro and the likely timescales. And my answer is: “The more I know about the foreign currency market the more I realise I know very little about the foreign currency market!” (This is me paraphrasing a former head of the International Monetary Fund) Take for example the recent 6% rise of sterling against the Euro (going from €1.03/ £1 up to €1.10/£1 ) in only one week. The claim made in the newspapers was that the market was finally pricing in the significant problems in Euro land. I, however, suspect that the real reason for the 6% change comes down to a large amount of people betting that sterling would weaken enough so that £1 would equal 1 euro. Those that held out for the £1 = 1 euro lost as it never happened…and when everyone heads for an exit at the same time it’s possible to see the aforementioned 6% movement. But no one can be 100% sure what the real reason was. What does this mean for normal people like you and me? I think it means that you should apply a lot of common sense and set very realistic budgets. Budgets need to be based on attainable exchange rates and it will benefit you to work with currency experts such as ourselves. We will act as a sounding board and use the mechanisms available to secure appropriate exchange rates on your behalf over the required period. Don’t try and make sense of what is happening in the medium term because no one has any clear idea where any currency is heading relative to another. Keep it simple and allow us to keep an expert eye on the situation on your behalf. We’ve assisted thousands of people to save anywhere from £50 to £20,000 by thinking Smart. Give us a call to find out just how much we can save you. To read the latest on Serling and the Euro go to: http://www.CyprusBuyingGuide.com/Currency220109.htm
Why
overseas property buyers lose money... This 10-page educational report outlines:
And just a couple remarks about the report from our readers...
To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm To get a Better-than-Bank
rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
|
||
Buying Land in CyprusWe all know that the credit crunch has had a detrimental effect on the property market, both in the UK and abroad. As mentioned earlier in this newsletter, Cyprus has not been excluded from this and you now need to be very canny when buying property. However, strange as it may seem, there could not be a better time to purchase land for investment or to build your home in Cyprus. The economic downturn has meant fewer UK expats buying at the moment and this increases the likelihood of you getting a more favourable price. In order to make a profit today you need to be sure that you are not paying too much…and that’s where land becomes a wise investment. You may not be buying as an investment – you may be buying a property on which to live - but sometimes life throws us a curve ball and you may have to sell at some stage. Let it rather be at a profit rather than at a loss. Once a building permit for land has been approved by the town planners the plot becomes more desirable and increases in value. Due to Planning Department efficiency in Cyprus, a planning permit will take 3 to 6 months. With a bit of forward planning i.e. applying for a license for a borehole, swimming pool, basement, assisted building or business, one can maximise the value of the land. As an investment, land in Cyprus has performed above inflation since 2003 at a rate of 14% to 30% PLUS per annum, depending on location and size of the investment. The benefits of buying land do not end here. When purchasing land to build your home, you - the land owner - are in full control of your project. You save money both by not having to pay VAT on the land purchase and Transfer Fees on the construction. And you do not have to wait indefinitely for your Title Deeds as this step has been secured by the land purchase. Buying land in Cyprus means that you obtain a Title Deed immediately and the land is Freehold. Once your home is built you simply upgrade the Title Deed to include your home. For as little €65,000 one can invest in a private plot of land of over 2,500sqm, with all services available, within walking distance of amenities, ready to build your dream home on, surrounded by natural beauty, serenity and pure country air… More priceless than a diamond? Like a diamond this land will be yours for generations to come, secured by the Title Deed. But, unlike a diamond, you can build your home on it, plant your orchard, grow your own vegetables, keep your pets or livestock and entertain your friends and family. When looking at the scenario in reverse, buying in a development means that you will pay VAT on the whole project (giving you less property for your money). And when you finally get your Title Deed (and that can take years) you will have to pay additional Transfer Fees on the contractual price of the development. Here are a few prices for you to check out: In the heights of Peyia, 3000sqm, Price €340,000 The Sea Caves location, 2500sqm, Price €430,000 Tala. 4350sqm, Price €850,000 Tranquil Polis, 5000sqm Price €210,000 Plots in Polemi, 2,500sqm Prices from €65,000 Interested? We have a wonderful property
professional on Cyprus that can help with your property search and all
other aspects of your property journey, be it a home for your own use
or an investment purchase. Please phone me on 0207 898 0549 or enter
the form on: |
||
Top Tip : Problems with lawyers
| ||
Rent or advertise a rental property in Cyprus Do you have a holiday home in Cyprus that
you want to rent out? OR Before recommending the site to you, I did a bit of background research… The company has been around since 1999, and have grown continuously since then - by an amazing 100% in each of the last 4 years! Over 17,000 owners advertise over 28,000 properties on the site and they have over 1.5 million visitors to the site every month. I’ve been informed that HolidayLettings.co.uk
also have an excellent reputation for telephone customer service provided
by real people in their Oxford, UK office. And looking at their stats,
last Thursday, the 8th January, over 75,000 unique visitors came to
the site and between them generated over 1 million hits. |
||
| Cyprus Property Buying & Investment Guide
If you haven't already purchased our excellent FULL Guide...why not get a copy today? The completely educational guide covers the start to finish process of buying a property in Cyprus. Every step is outlined starting with the initial idea to b.uy in Cyprus all the way through to areas, how to b.uy lan.d, investment options and many top tips. This guide is for anyone thinking about or currently in the process of buying property or lan.d in Cyprus. In the course of three years our Guide has been graded a 9 out of 10 and we’ve received huge amounts of positive feedback. There’s a money-back guar.antee if you don’t like the Guide so there’s no risk in buying one – please get yourself a copy to ensure you know what to do and what not to do when buying in Cyprus. More information about the Guide got to: http://www.CyprusBuyingGuide.com/guide.htm
|
||
|
That's it for this month. I'll probably visit Cyprus near the end of February or in March, so if you'd like to meet up let me know if you'll be around. I can't wait for my glass of wine and the smell of the Med. air! I just want to see the sun... Have a great month... Kim |
