Happy New Year!

So…how has the New Year started for you? Have you made your resolutions – perhaps you’ve decided that this is the year that you’ll buy a property in Cyprus? Or perhaps your decision to buy hinges on matters that will happen in 2 to 5 years time?

No matter what your situation is…if you want to buy a property in Cyprus, I hope I can help you… Whether you need motivation, education, good people to contact in your search for property or perhaps an answer to a question, I’ll endeavour to try my best to offer you assistance.

Many incredible things happened in 2007 – I created an updated version to the Cyprus Buying Guide, launched a more informative website, hired a few people to assist readers and met many people in the UK (at property shows) or in Cyprus (for a glass of wine). I received an incredible letter from one of my readers:

“Dear Kim, I started my search for a Cyprus property online. Your website was by far the most informative and interesting. I then decided to buy your Guide which became a bible to me. And upon my request for help locating a property, you not only introduced me to the most professional and helpful property agent…but you kept in touch ensuring my journey went as smooth as possible. At every stage I knew that I could count on your Guide or just contact you or one of your associates for assistance. Further – I saved £4,568 by using your recommended currency company, Smart Currency Exchange, over moving money through my bank. You are a godsend and I truly hope I can offer you a glass of wine when you’re next in Cyprus. Kind regards, Sue Turner.”

Wonderful words – eh?

So…What’s been happening in Cyprus? Well…it was great when I visited in December… And aside from the upcoming presidential election, the Cypriots changed from the Cyprus Pound to the Euro on January 1st. I’ve mentioned many times that there was going to be an issue of rounding up…Rather than take the exact exchange from CY£ to Euro, hundreds of businesses have merely doubled the Cypriot rate or double it AND rounded up to the closest even number - read below to find out more…

There have also been cases of counterfeit 100 euro bills circulating. I don’t think it’s going to be a massive issue but due to the fact that many people don’t know the bills intimately, some fraudsters are taking advantage.

Apart from that, Cyprus is still sunny, full of good food, warm during the day and the best place on earth to live (in my opinion)!

As usual I have an update on the currency exchange rates, to give you an idea as to how many euros a pound will buy you along with a brief article on the rounding issue, a question that was posted on the forum about power showers and a few notes about how I can help you…

Happy reading,

Kim
Cyprus Buying Guide

Kim@CyprusBuyingGuide.com

Has the cost of living instantly increased in Cyprus?

Despite the fact that it was deemed illegal to round prices in Cyprus, around 40% of companies have converted CY£’s to Euros and then rounded up, increasing the costs of goods on offer. (Figures released recently from the Cyprus Consumer Association)

The price of everyday items such as coffee, bread, water and milk could cost the consumer an additional €85 (£50) a month due to shops rounding prices up. Since 1st January the Association has named and shamed 210 companies that have illegally taken advantage of the currency changeover. These figures include 77 restaurants, cafes and snack bars, 17 bakeries, 10 souvlaki outlets, 4 dry cleaners, 37 hairdressers and 8 kiosks that added anything from 5 euro cents to €1.71 (£1.00) to their prices.

The Barbers and hair salons named and shamed appear to have taken whatever the price was in Cyprus pounds and doubled it in euros. For example £3 becomes €6 instead of €5.13, and £5 becomes €10 instead of €8.50, thus the higher the price of the item previously, the higher the increase.

And if this is happening with coffee and milk, what is happening concerning the price of property? I haven’t heard any reports yet, but doubling a 200,000 CY£ property and sticking a Euro sign in front of it will not be a good thing. I would be interested to hear your views…have you heard anything about property prices? If so, please drop me an email at:

mailto:Kim@CyprusBuyingGuide.com

The Cost of Buying Euros - A currency update

by Smart Currency’s Charles Purdy.

Sterling isn’t as friendless as it has been. Still not the 'belle of the ball ' but at least the occasional glimmer of interest. Sterling’s movement has been more influenced by what was happening elsewhere rather than here in the UK. Still significant problems given the parlous state of the UK economy and the Bank of England has a difficult balancing act between fighting inflation and helping the economy. The market still expects the BOE to reduce interest rates to help the economy but the BOE needs to use UK interest rates to fight inflation.

The housing market continues to suffer and the retail performance over Christmas was very mixed. Hopefully sterling seems to have found a base against most currencies but my major fear is that something similar to Northern Rock comes out of the woodwork and knocks the stuffing out of sterling again! Overall I would always err on the side of caution and, at the very least, sort out some of your currency requirements whether buying or selling sterling.

The first chinks are showing in the €’s armour, which is sitting at €1.343/£1 inter bank. Firstly, the head of the Luxembourg Central Bank made a statement that the policy towards euro interest rates needed to be loosened. This statement was quickly withdrawn but I think most would concur that it showed common sense rather than blind faith. Secondly, the Euro land Finance Ministers have started complaining publicly about the strength of the euro and how it is having a significant negative affect on their respective countries economies.

Euro land’s growth forecasts are being pulled back from close to 3% to nearer 1.5%. Doesn’t sound much but is a serious change and may well lead to the European Central Bank changing their view on Euro land interest rates. The Euro land Finance Ministers seemed to have pinned their hopes on the US avoiding recession. Not a great hope and not a great sign of confidence in their own economies to go it alone without the support of the US! We are in for turbulent times.

Sterling gained some ground against the higher yielding currencies. Nothing major but, given that the Australian economy had some good news, it may indicate a softening in the attitude and downward pressure on sterling.

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

Update on Flights to Cyprus

I'm happy to announce that EasyJet (http://easyjet.com/en/book/index.asp) now flies from Gatwick and Manchester to Paphos, Cyprus. Many people have been crying out for a discount air carrier to take people to the Island. Due to the fact that Cyprus is a long-ish flight, many discount operators shied away from flying there. Further, I was told that there was a bit of a monopoly going on with British Airways... Well, EasyJet is going to Paphos...I wonder when they'll fly into Larnaca? I'll keep you posted!

Also - Monarch has new flights that are starting before the Summer. Check them out at: http://www.flymonarch.com/cnt/destinations/cyprus-flights.asp I also noticed that they have a 'bargin of the day' where they're offering one-way flights for £71.00. I flew Monarch last year and thought they were okay. You need to tell them you want to be fed when you book - otherwise you can buy a meal on the plane. If I remember correctly, they gave out free water and coffee/tea, but you have to pay for anything else. Further, the leg room was not good. I think you have the option to pay more for more leg room. I think that's ridiculous - people that are tall have to pay more....Don't get me started! I'll go off on a rant.

To get more information on airlines and other stuff, check out my links page at:

http://www.cyprusbuyingguide.com/links.htm#airlines

Should I pay to get a pressurised water system in my new property?

QUESTION
My developer has informed me that he is about to install the water tank and asked if I would like to have a water pressurised system installed at the same time. The cost will be close to £700 Cy.

I know that the pressure in some houses here in the UK is such that if someone takes a shower upstairs and someone downstairs decides to turn on the tap, it can result in screams emanating from the bathroom as the shower dries up!

We are having a two bedroom, one bathroom bungalow and I am wondering if it is necessary for this item to be fitted. Also, once we take up residence and find it is, can we have it fitted at a later time?

Any advice?

ANSWER (posted on the Forum)
Wait and see if you really need it, the pressure varies from region to region, you can have one put in later, we were quoted CYP£450 last summer but decided to live with it! Hope this helps.

Nick

If you’re interested in posting a question yourself…or perhaps answering someone else’s question, please go to our Overseas Guides Company Form at:

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

How can I help you to buy a property in Cyprus?

Buying a property in Cyprus can be exciting, fun and eventually very rewarding…but you’ll want to make sure that you know what you’re doing! If you’re serious about buying in Cyprus, please purchase the Cyprus Buying Guide – it comes with a money back guarantee if you’re not satisfied. Everyone that has ever read the guide and reported back to me said that it’s helped them immensely. To get the Guide, go to: http://www.CyprusBuyingGuide.com/guide.htm

And what about finding a property in Cyprus…? I’ve met a huge number of developers and even more estate agents! There are loads of people that can help you but you’ll want to find someone that is going to provide you with what you really want. If you’d like me to introduce you to some of my friends and contacts in the property world, please fill out my property form and I’ll give you ring to discuss your requirements: http://www.cyprusbuyingguide.com/requirementsform.htm

And if you haven’t already taken a look at the Cyprus Buying Guide revamped website, please go to: www.CyprusBuyingGuide.com
There’s information on the contract of sale, money issues, financing and a whole bunch of other things!

And finally…if you have a question or perhaps some answers, please check out the Cyprus Buying Guide Form to read and/or post some questions and answers. Please go to: http://www.cbg-forum.com/

Closing

Well…that’s it for this month, but keep your eyes open for our new and improved future format coming next month – I hope! We’re going to include more information in future newsletters including legal, financial, and property information.

If you need any help, please give me or one of the Overseas Guides Company representatives a ring. If you need an answer to a question, help in finding a good contact in Cyprus or would like to purchase the Cyprus Buying Guide, call us on 0207 898 0549.

Have a great month…and please let me know when you’re going to be in Cyprus. I’m planning my next trip for late February.

Big smiles,

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