How are you?

Holy smokes…I was suppose to stay in Cyprus until today, however unexpectedly I had to return to the UK due to some work issues. Anyway – I managed to spend 10 days in the wonderful sun and it was absolutely incredible.

Over the 10 days, I jotted down various observations, notes, etc and I thought I’d share some of them with you:

- There are a huge number of trendy shops, café’s, bars and restaurants going up in EVERY town and city. I went to Mello in Kapparis, Vanilla in Ayia Napa, a new Italian called Mare e Monti in Paphos and walked past several new places on the Limassol sea board. Also – in Paralimni there is a great restaurant called Cava on the main road in…it’s not a new restaurant, but I thought I’d mention it as it’s really good.

- I’ve been officially promised that the golf course near Larnaca is truly starting this summer! I must admit that I personally will not be convinced until I see work starting…

- The Limassol bypass is finished. In the past, if you drove from Paphos to Larnaca you had to drive through a series of about 9 roundabouts. Well, there is a very nice flyover now and it reduces the travel time in a BIG way.

- There is a very nice new mall in Nicosia (next to the new Ikea) – from the highway I noticed Zara, Carrefour (grocery store), and a Cineplex. I went to Nicosia specifically to walk across the border at Ledra Street, so I didn’t check out the mall. I’ll save that for a rainy day. Speaking of malls – there is also a new mall going up in Paphos, near the stadium…And speaking of the stadium, Simply Red is playing there on the 7th June!

- I was amazed to see a very large M&S Home store and a Wagamama’s in Nicosia. Cyprus truly is becoming a country that offers everything. If you haven’t been to a Wagamama’s it’s a noodle bar that has taken London by storm - I absolutely love it!

- I noticed 3 new fur shops in Limassol. When I first saw fur coats in Limassol, I couldn’t understand why people would buy them. I was then informed that Limassol is full of Russians…

- The property market is very quiet, mainly at the moment. Due to the UK credit crunch and the terrible Euro exchange rate, many Brits have put their plans on hold to buy in Cyprus. HOWEVER, due to the fact that the market is slow, there are some HUGE deals – if you want to buy a re-sale or even a new-build there are many people eager to sell for a very good price. At the moment Cyprus is definitely a buyers market.

- The water park in Ayia Napa is OUTSTANDING. Okay – I’m not a huge fan of water parks. I think this stems from being a kid – I grew up in the 80’s and spent hours on my hair… As a kid I refused to get my hair wet and thus I shied away from pools, water parks, etc. Now that I’m a bit older and less self conscious, I took the plunge. And boy…I couldn’t be more impressed. I went with 5 friends and we had an absolute blast. If you get a chance to hit the park, go on Atlantis – it’s a ride that has a three seated raft. You start off in a tunnel twisting and turning and eventually come out and go over the falls. It’s exceptional – for both the young and old!

- Accommodation – I stayed in a villa in Ayia Thekla, Lordos Beach Hotel in Larnaca, a B&B in Pissouri and the Aquamare in Paphos. HANDS DOWN, the Aquamare was exceptional. The rooms were nice PLUS, for no extra cost, you can use the sauna, steam room, gym, Jacuzzi and indoor pool. There’s a spa that provides every treatment you can imagine. If you’re interested in viewing properties in Paphos and want to stay in the Aquamare, I have a VERY good connection who can get discounted rates. Email me if you’re interested.

- The weather: Overall, it was actually very pleasant. During the day it wasn’t too hot – for the most part I was in a dress and felt comfortable. And I didn’t get too hot while lying in the sun. And the evenings I had a large comfy sweater that kept the chill off. I’ve been to Cyprus every month of the year and I must say that I really like May and October/November best. You can sleep at night without the air-conditioning and it’s not sweltering!

I have loads more that I would love to write about. I met with several Cyprus Buying Guide readers which is always VERY interesting. I heard some great stories and a few that were less than great. Cyprus is a great place and you really can have a good property experience but for Pete’s sake, please do your homework. There are several agents, developers and marketing companies that are appalling – they use hard sales tactics, take your money and you never hear from them again.

There are also many exceptional agents and developers…it’s just a case of researching, asking around and working with people that you trust and that have good reputations. If you’re interested in buying a property in Cyprus, please fill out my form and we’ll be in touch to help you out.

http://www.cyprusbuyingguide.com/requirementsform.htm

And if you are just starting out, please buy the Cyprus Buying Guide as it will seriously help to put you on the right track. We recently received the following feedback:

“Can I just take this opportunity to show my appreciation for the help you have given me in buying my first property abroad. On receiving the information you sent to me I was impressed, not only with the quality of the actual guide but, of the information therein. I seriously do not think I would have had the confidence to go out there and actually buy had it not been for yourselves. The attention to detail was second to none. I took the guide with me and referred to it frequently as reassurance of things being done at the right time by the right people! I would definitely recommend you to anyone considering buying abroad. You have been a great help. Thanks again. Mark Welch.”

And you can get more information on the Cyprus Buying Guide at: http://www.cyprusbuyingguide.com/guide.htm

Okay – in this newsletter I have an update on Airlines, electricity bills, and water (or the lack of it), in Cyprus. There is also an update on the Euro and the situation with exchange rates from Charles Purdy (Smart Currency)…and in the Legal corner I’ve outlined a conversation I had with Louis Zambartas (a solicitor in Cyprus) about transfer fees. I've also included details of a nice development in Polis and good news on income taxes...

Have a GREAT month and please get in touch with me if you’d like help on your journey to buy a property in Cyprus.

Kind regards,

Kim

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

Update on Airlines, Electricity and Water in Cyprus

The following updates are from Jackie Nicholls - an expat living in Cyprus. Jackie works with me on the Cyprus Buying Guide and I'm sure you'll hear much more from her. It's great to have someone that actually lives in Cyprus working with us!

Airlines

After much exposure in the media, budget airline Easyjet touched down on its maiden flight to Paphos. One hundred and fifty-five passengers arrived on the first flight, which was followed by two more - without any delays!

Easyjet will be flying into Paphos airport 20 times a week, from either Gatwick or Manchester.

Could this herald a new chapter for visitors from the UK, as Paphos becomes the 103rd destination for the airline?

By the way, Cyprus Airways have at last confirmed that, from 1st June 2008, they will be introducing e-ticketing for all European flights.

And … the Russians are coming to Paphos as airline operations from Moscow have been licensed to land five times a week.

The upgraded Paphos Airport is due to be finished this November, with Larnaca airport to follow soon afterwards. And I can testify that the Larnaca airport is well on its way – when I flew in and out last week it was a hive of activity with cranes, diggers, cement trucks and many construction workers.

How much for electricity?!!!

Cyprus is currently suffering from the highest electricity prices in the whole of Europe and these are destined to increase still further.

There was a whopping 42.6% increase at the end of 2006 and a further 6% increase is expected over the next three years.

Some good news though: Unlike last year, when temperatures reached 50 degrees, power cuts aren’t expected this summer. Not even in heat wave conditions –this owing to upgrades at the island’s chief power station.

What - no water?

Recent rainfall was welcome, but it is too late for the island’s dams. Water cuts commenced across Cyprus in April and only hospitals will be spared under the implementation plan. Hotels will not have water cuts enforced, but supplies will be reduced.

Plans for a local floating desalination unit are still on the agenda, but in the meantime, 8 million tons of water has and will be provided from Greece to the island by sea via tankers.

So what happens to all the property owners’ swimming pools? It is, and always has been, forbidden to fill swimming pools via a hose. The law is that you are “supposed” to get a tanker round to top up your pool when needed. But no one does this – that is, until this year!

Water Authorities have now issued notices stating that it is strictly forbidden to get rid of the dust by hosing down patios, to wash cars, to use automatic irrigation systems for gardens, plus in future all pool top-ups have to be done via a mobile tanker.

The impact?

Higher water bills for everyone – and a fine of up to 1,000 euros if you are caught disobeying the law! There is no escape – water bills are being monitored, and if they are the same (or more) than last year home owners will no doubt be in trouble!

An average sized swimming pool looses between 2-3 metric tons of water a week in the height of summer, sometimes more, due to evaporation. Already, those with water tankers are cashing in. An unsuspecting ex-pat was recently charged 130 Euros just to top up his pool! The going rate at the moment (expected to increase as it gets hotter) is between 15 and 25 euros per metric ton. The luxury of a swimming pool, or the desire for a lush garden is certainly going to hit the pocket hard this year.

Some areas across the island are already on severe water restrictions. Regular supply cuts every Monday, Wednesday and Friday now are not uncommon.

If the previous President had not stopped the building of the desalination plants that were planned the residents of Cyprus would not be in this mess.

Do you have thoughts on this? If so, I’d love to hear them. Send me an email ;) or post something on the Forum:

http://www.cbg-forum.com

Opportunities when you least expect them

by Smart Currency’s Charles Purdy.

The normal reaction when times get hard is to keep your head down and minimise any risks you may have - a sensible thought process. But why is Abranovich so wealthy? And when did the Rothschild dynasty make their money? The answer is they made their money when times were very tough and they had the courage to buy top class assets at reduced prices.

How does this logic apply to buying your overseas property? The key principle to understand here is that there will be some “keen” sellers who will accept much lower prices than a year ago. It is now a buyers market rather than a sellers market. This “keenness” can arise for a number of reasons which to be honest shouldn’t really interest you. The key is to identify quickly who are “keen” sellers: they will want cash right now and so then you start negotiating hard. Even though sterling has been weak you may find that, with the right opportunity, you pay less in sterling terms for your property purchase than a year ago.

Clearly you will need to have a good reason for buying the property, for example you are retiring in a year and will be emigrating. A lot could happen in that year and the opportunity may evaporate. The credit crunch could be resolved, confidence could return to the market and lo and behold: it is a sellers’ market again!

To read the latest on Currency go to: http://www.CyprusBuyingGuide.com/Currency220508.htm

Why overseas property buyers lose money...
...and how you can avoid it!

This 10-page educational report outlines:

• Case Study: When Property Buyer, Mr Reed, Purchased an Overseas Property, he Made Three Mistakes that Cost Him £10,256...learn how you can avoid them...
  
  
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• Ways to safeguard yourself against adverse fluctuations in exchange rates (or in other words, helping you to keep your money in your pocket)
  
  
• The entire process of moving money from the UK to any overseas location, so that you're armed with all the knowledge you need to make intelligent decisions about your money
  
  
• How you can ultimately save £100’s and £1000’s so that you have ample money to buy furniture and white goods…
  
  
• More case studies of people that lost money due to foreign currency strengthening against the pound, so that you learn from other peoples mistakes rather than your own!
  

And just a couple remarks about the report from our readers...

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"I have read and absorbed the information in the stories outlining the mistakes which the uninitiated can make when transferring currency. It is very illuminating and essential that any one,like myself, who is in the process of buying an overseas property should be aware of. I would go so far as to say that every agent selling overseas properties should be compelled to advise their prospective purchasers that it is paramount that they use a currency expert such as yourselves. Regards, Eric Thomas"

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
or call Carl on 08081 630 102 freephone.

Property in Polis

Last month I highlighted a project in Kiti near Larnaca. This month I’m back on the west side: I’ve located a nice little development on the Northwest coast in Polis. If you’ve never been to Polis, I urge you to take a day trip to view the town, beach, points of interest and scenery.

The actual town of Polis is very small, with cobbled streets and some excellent restaurants and boutiques. The town centre is set back from the sea and is quiet, slow and peaceful. When people ask me what my favourite location is, I often say that I love all areas for different reasons. I love Polis because it’s not built up (not yet, at least), the air is fresh, the sea views spectacular and overall it’s a quiet place.

Despite my exploits in Ayia Napa and fun times at clubs/bars/restaurants across the island, I actually prefer a nice quiet dinner, a few drinks and a long walk along the beach. And, if I had to choose the best place to do that, it would be in Polis or Latchi.

So…this month’s development is from a small developer in Polis. I really like this project so much as there are only 7 apartments on offer, it’s only 5 minute walk into town and it’s set in a quiet cul de sac.

The properties adjoin a lovely green area and you can see Chrysocholis Bay from the 1st and 2nd floors.

If you’re thinking of retiring to Cyprus and are concerned about mobility, the complex has a lift and the project is disabled-friendly with the option available for roll-in shower instead of a bath.

Plans include a large communal roof garden overlooking the sea and the development also includes a communal pool with showers and changing facilities. There are also store rooms and covered parking.

The price for these properties starts at 179,400.00 euros (GBP 143,520 exchange rate as at 23rd May 2008).

And if you’re looking to buy in Cyprus for investment or investment/lifestyle there are some good reasons to consider Polis:

• Outstanding growth area
• New marina in Polis
• 2 new golf courses approved
• New motorway from Paphos (airport)
• Emerging resort
• The area is beautiful – you have mountains, sea and greenery
• Maintaining the traditional Cypriot charm
• Nearby Akamas Peninsula and Aphrodites Baths

And getting down to brass tacks on the financial side…mortgages are available with the following terms:

• 20% Deposit
• 80% paid over the year in staged payments of 5% to 20%
• 1 year grace period on mortgage, with nothing to pay until 1 year after completion.

And this month the developer has offered a very special deal for Cyprus Buying Guide readers: Air conditioning is included in the price!

If you’re interested in hearing more about this development or any developments in Cyprus, please email me at mailto:Kim@CyprusBuyingGuide.com or fill out our property form at:
http://www.cyprusbuyingguide.com/requirementsform.htm

Working towards the dream……..

As the proverb says ‘work will win where wishy washy wishes won’t! Truth is, dreams have to be worked at… and worked out! We dream great dreams, recurring dreams, day dreams, dream of a new life or some particular hobby or interest; we dream of achieving great things, dream of the future and sometimes our dreams even turn to nightmares!

However, dreams and work are two sides of the same coin: the dream is the engine, but work is the fuel to drive that engine forward. The dream usually reveals the final destination and the perfect scenario; but without working to make it happen, the dream often remains just that – a dream!

The good news is that dreams can come true and nightmares can be avoided if we apply ourselves. We need to think about things like Investments, Pensions, Employment and Estate Planning – and the great news is that the financial planners that we work with have already done the HARD WORK FOR US!! They can simply and easily work with us to make the very best decisions for living our chosen dream in the UK and beyond by considering areas such as:

Income requirements:
How to assess, maintain and increase income levels to build a great long term future

Current investments:
How to gain and maximise income from current investments, including your current residence

Pension review and Advice:
How to maximise income and investment potential through Pensions

Estate Planning:
How to protect assets through Trust Formation, Will Preparation & Estate Planning

I really think this could be of tremendous help to you – yes, you may have worked out your sums as to the property but there is SO much more you could be doing, as I am learning. If you would like me to introduce you to my recommended IFA, please go to: http://www.CyprusBuyingGuide.com/resources.htm

Transfer tax issues and how they might impact you

Transfer Fees in Cyprus

Louise and I had a great chat about Transfer Fee’s over a Sushi Salad in an Art Café in Limassol. I might add that there is a GREAT restaurant near the castle in Limassol – they serve excellent salads and sandwiches. It’s often booked up so you need to make a reservation, but it’s well worth it!

Anyway, back to Transfer Fees. When you buy a property in Cyprus, you will eventually get your title deeds (hopefully!). With off-plan properties, I’m told that it’s now taking 7 to 11 years to get them. With re-sale properties, it can be as quick as a month.

When the title deeds are ready, you need to pay tax based on what the government values your property at, NOT TO BE CONFUSED with how much you actually pay for your property. This means that it is impossible for you to know what bracket you’re going to fall into with absolute certainty.

The reason that the government chooses the value comes down to the fact that many people pay for a property in ‘under-the –table’ money and state that the property costs, say, £100,000 rather than £150,000.

Stating this, it’s not uncommon that you will go to the Tax Office prepared to pay the value you think your property is and find that the government values it in a higher tax bracket.

Currently, this is how the transfer tax is valued (in Euros):
Up to 85,430 you’re charged 3%
Between 85,431 and 170,860 you’re charged 5%
And over 170,860 you’re charged 8%

All transfer fees need to be paid in CASH or bankers draft.

BIG NOTE: Some things you’ll want to keep in mind. You can refute the Government’s valuation, but it can take time and be costly. It’s important to understand that you do have the right to fight it. Furthermore…you can choose not to pay it and forgo getting your title deeds. That is not an option that most people would want to take, but it is an option.

Also – if you are planning on selling your property eventually…you capital gain is based on the Government’s valuation rather than what you paid for it. SO – if the government values your property for more, when you sell you pay capital gains on the profit between the value and the selling price…not between what you paid and what it sells for. Did that make sense? Anyway – what I’m trying to say is that you may actually save money in the long run if the Government values your property higher than what you paid for it – it means that the profit you make is theoretically less….!.

If you have any legal questions, concerns or want to talk with one of my lawyer friends in Cyprus, please fill out our resource form at:

http://www.cyprusbuyingguide.com/resources.htm

Closing

Before I sign off for this month, I have some great news for anyone earning an income under GBP 15,400 in Cyprus!

The Government of Cyprus has increased an individual’s personal income tax allowance to the equivalent of CYP11,400 for the year 2008.

What does this mean? In effect, anyone with a low income or a GBP pension up to GBP £15,400 will pay NO INCOME TAX in Cyprus for 2008 at current rates.

So…that’s it for this month. I wish you the very best and please get in touch if you’d like to chat about property in Cyprus!

Kind regards,

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