How’s it going?

Before I get on with my usual monthly newsletter, I want to know if you can help me.

I write articles every month for the Paphos Post, Cyprus Mail, Grapevine, Scoop and a variety of other magazines and newspapers in Cyprus. The feedback I get from the media (and readers) is that it’s great to hear from someone willing to tell people the truth and help property buyers to make educated decisions.

Stating that, a few editors have asked me to write about case stories where I’ve actually helped prevent people from making mistakes.

Readers often send me glowing reports about the full Cyprus Buying Guide and the fact they saved money, by negotiating the sale price down, by using Smart Currency Exchange or for other reasons. But I don’t have any good, ‘meaty’ success stories to hand where my information has seriously impacted people.

It is possible that I offer good tips and solid information that is helpful but not really life altering! From my perspective, if I can help just one person to make a more informed decision and avoid risks/save money, I’m happy…

But I’d truly like to hear your thoughts. Have I, or any of the information I’ve sent you, made an impact on your decisions or outcomes? Please let me know by sending an email to: mailto:Kim@CyprusBuyingGuide.com

Right – just a few things that I thought you might want to know:

The Government have confirmed that dual pricing will stay in place until 31st December 2008. It was due to be euros only from end of September - the reason given is that people are having difficulty with the euro.

And this is interesting - The tax office will now ONLY allow the price on the sale contract to be put towards any Capital Gains Tax - even if Land Registry have valued it higher and charged accordingly.

So, in other words, if your sale contract shows say CYP150,000 and Land Registry revalue it at CYP200,000 you will only be allowed CYP150,000 as the allowance towards any Capital Gains Tax - not CYP200,000! In the words of my solicitor contact, "the tax office are having their cake and eating it!" It's totally wrong and you can appeal - but believe me you will get nowhere so it's really not worth it. (I used CYP as most contracts originally will be in CYP’s)

The good news is that it’s still very nice and warm in Cyprus! It’s around 25 degrees or higher during the day and a bit cooler in the evenings…it’s actually perfect now. And with the new Paphos airport opening in October/November perhaps now is a great time to consider a break!

I’ve got loads of good stuff for you this month, so I hope you enjoy the newsletter. And, as I requested at the beginning, please sent me a note (even if it’s a quickie) to let me know if the Cyprus Buying Guide, my colleagues or my emailed information has been of help to you.

Big huge smiles,

Kim

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

Researching Areas in Cyprus to Buy a Property

Several years ago I sold and purchased a home in the UK. One condition of selling was that I moved out within one month of the purchase. Due to the fact that my move-in date was three months later, I agreed and moved into a friends house for the interim. Sadly, the sellers decided to pull out and I was ‘forced’ to buy the first property available to get my own space and save a friendship! After a few months with friends, I had definitely overstayed my welcome.

The property I purchased was a new build on a brand new estate and from the face value, it seemed okay. The house was nice, the lawn was perfectly green and although the whole neighbourhood was new, it looked respectable.

Well – once I moved in, I discovered that although the train line ended well before my property, the trains sided next to it. At 4am every morning I woke to the sound of revving engines and my husband coughing to exhaust fumes. The busy road beyond my hedges in the back garden wasn’t a worry until road works commenced for over a year. It was impossible to sit in my garden as passer bys blared music and shot apple cores out their window at me. The final straw was the calibre of neighbours that moved into properties near mine. Each week the police were called for domestic violence, drug issues or arguments akin to those heard on Jerry Springer.

Because of time pressures I failed to adequately research the area and thus purchased a property that was not suitable. Moral of the story – take things slow and make sure that you research various factors that will affect your quality of life!

When buying in Cyprus, many people visit the island for a week or perhaps two before buying. Ideally, the best plan of action would be to rent in Cyprus for several months to get an idea of what suits you best. Failing that, you can avoid my mistakes by considering and research key elements that may impact your quality of life. The best thing you can do is to consider what you want prior to viewing areas so that you know what to look for. It’s also advisable to spend time in the area of your choice at different times and consider one or many of the following:

Noise Levels
In Cyprus you’ll be hard pressed to hear the revving of a train, however if you’re near a main road there will be general traffic noise. Further, Cyprus is home to many boy-racers that think it’s cool to race and screech their cars noisily when most are asleep in bed. I’ve also experienced a few restless nights in a Villa by the sea from fishers going out to set their nets. Also, consider the flight path – does it go over your property or are there plans in the future to increase air traffic that might impact your property? Finally, quiet day-time coffee shops often turn into lively night clubs, so it’s very important to visit areas in the evening.

Proximity to Places of Interest
When in Cyprus will you be walking or driving and what do you prefer to do? Would you like a decent grocery store on your doorstep? Are you interested in slow walks to an authentic village taverna? How about the ability to stroll up to the beach or the option of bumbling along to a pub? What about places that you may need to visit often – schools, medical facilities, golf courses, the hair dresser, a gym? In Cyprus, there are some areas that have very little in the immediate area – perhaps a kiosk, yet other areas have everything. Consider what would be best for you so that you can keep and eye out when visiting areas.

Terrain
When my in-laws moved overseas they rented prior to taking possession of their new build. The place that they rented was located on the side of a hill and at face value it looked awesome. However, it caused my in-laws a huge issue when walking the dog or bringing the groceries from the car into the house. The hills were just too steep for them to handle and taking the dog for a stroll became an unwanted endurance test.

Temperature
In Cyprus, the temperature does vary between regions and it’s definitely cooler in the hills. Valleys are often stifling hot and muggy during the summer yet the hills often get a bit of a breeze. Properties that are in-land near Nicosia are substantially warmer than those on the coast. Ask around when you view areas – everyone loves to talk about the weather!

Neighbourhood
Various areas of Cyprus attract different ethnic groups. Paphos is famous for housing a huge number of Brits whereas Limassol is know for its Russian population. Many buyers are interested in areas away from tourist spots that have a large population of Cypriots. Others want to live in communities quite similar to what they’re accustomed to in Britain. Both extremes are available in Cyprus. Another factor to consider in Cyprus is the transient and/or inherent lack of people on some developments. Many property companies sold huge portions of properties to buy-to-let investors. Are you happy to live in an area with holiday makers? And when properties are not let out, are you okay with the lack of neighbours? (this might be a good thing!)

Toilet Paper Concerns
Given the option, I would prefer to own a property that allows me to flush toilet paper down the drain however this isn’t a common option in Cyprus. From what developers have told me, it’s possible to request that new builds are created with specific drains that will allow this to happen. The only caveat is that the build must be on a mains line as opposed to a connection to a septic tank.

There are many other factors that may affect your quality of life. Pull on past likes and dislikes, talk to people that have already purchased a property in Cyprus and take time to think about what you really, really want. The more time you take in preparation, the better your chances are for finding an area that truly fits your needs.

For help finding a property simply fill out the form at: http://www.cyprusbuyingguide.com/requirementsform.htm

How Much will Euros Cost You (or in other words, how many Euros will you get for your £££'s)

by Smart Currency’s Charles Purdy.

Latest on Sterling and the Euro
In a roller-coaster week just gone, sterling rose late and closed on Friday stronger against both the euro and the US$. Developments globally as well as domestically within the financial sector made for extremely tough market conditions and an uncertain business climate. Lloyds and HBOS merged last week which may bring the loss of thousands of jobs but a necessary life-line to a lender with a huge share of the UK mortgage market. The Bank of England had voted 8 to 1 to keep interest rates on hold earlier in the month. One member, Mr. Blanchflower, voting for a cut from the current 5%. The balancing act between combating high inflation and encouraging business growth is still a major issue.

Mixed news from European markets and the events elsewhere made for an up-and-down week for the euro. Speculation of a cut in interest rates increased with the European Central Bank (ECB) confirming that its main focus remains on controlling inflation. How well the Eurozone avoids the fall-out of the credit crunch and maintains some of its momentum over the last year will be evident over the coming weeks. As only in the past few has it actually shown signs of being affected by what is a global crisis.

Why be Smart?
We are living in a very strange world at this moment in time. Who could have thought so much money could be lost by so few people who are supposedly so intelligent. To be honest it doesn’t surprise me because for many years I think the financial centres have lost all sense of reality and are full of ruthless people only interested in their own gain.

That is why Smart is so focused on supplying a win-win service to their clients. Clearly we make money but the number of times I have had a client thank me for saving them money is too may to count. One client told me we had saved him £20,000 which was wonderful. If he hadn’t dealt with us the £20,000 would have been sitting in some banks profits with more than likely a hefty slice paid in commission to a greedy trader.

That is why Smart does not pay its traders commission. It keeps them focused on customer service and working as a team rather than focused on maximising their own income from the next trade. This is why we receive so many wonderful testimonials and this is why we will be here for a very very long time.

If you want to save money and enjoy the experience then please give us a call on 0808 163 0102 or get a live quote right now:

http://www.SmartCurrencyExchange.com/smartsquotation.htm

Or...if you'd just like a bit of information on how the whole process of buying and transferring money overseas works, please read our report at: http://www.smartcurrencyexchange.com/freereport.htm

"Getting a place in Cyprus without Paying..."

Okay - perhaps the title is a bit misleading but a friend of mine came up with an interesting idea. What do you think about the idea of 'house swapping'? Unbelievably there are quite a few ex-pats in Cyprus that want to move back to the UK and some are finding it hard to sell. Similarly, many UK people want to get the heck out of here and due to the market have had to put their plans on hold.

What if we could find a way for you to talk with someone that might want to exchange their house in Cyprus for your house in the UK?

Let me know if you think it's a feasible idea and I'll start to ask around and see if I can find someone to spread the idea.

Kim@CyprusBuyingGuide.com

When you move overseas, how much money will you earn each month - £800, £1,000 or more?

It’s a great time to analyse your financial situation prior to moving abroad. For the most part, you’re in the correct frame of mind as you’ll perhaps be considering the potential sale of your old property and how to fund the new property. Also, to buy a new home there’s usually an element of cash required – will you use money from a savings account, pull out an investment or decide to take out a loan? And what about your pensions or investment portfolios – how are they going to factor into the whole scheme of things?

The key element to consider – other than raising enough money to buy your overseas property – is the money you plan to generate as income once you have moved. You could have £800, £1,000 or perhaps much more to live off per month? The question is this – how do you know that you’re going to get the maximum possible income each month? How will you find out about the tax implications? How will you know which tax regime is best for you to adopt? How will you know that you’re setting up the purchase in the best manner to ensure the best financial resolution? And what do you do about your status in the UK? I’ll stop the questions now – I’m sure you get my drift…!

The answer is easy – talk to an expert that specialises in helping overseas property buyers to get the most income while paying the least tax. It makes sense doesn’t it?

Sadly, I’ve met many people that say they only wished they spoke to a finance expert before moving. Once having made the move they are unable to go back and change various elements that seriously affect their overall income.

Experts in finance can assist you to find the best mortgage (UK, Overseas or Off-shore) in the best currency at the most favourable rate. They can help you to determine the most favourable purchase options to reduce purchase tax, help you with the correct procedure to eliminate capital gains or inheritance tax and assist you with ways for you to invest your funds safely so that there is (hopefully) a never-ending pot that will support you throughout your later years.

People buying overseas often make three catastrophic mistakes: 1. They fail to get an independent lawyer. 2. They don’t know about specialist currency exchange companies like Smart Currency Exchange, and 3. They neglect to really look at their future financial income.

In the past, people depended on the banks for advice – today, people are actually wondering if their bank will be around in the next few months. They’ve become impersonal, unfriendly and provide a very limited choice of services and products, all of which add to their income – but is it necessarily best for YOURS? Why get a mortgage at the rate of 6.5% at bank XYZ when you can get one for 5.8% at ABC? And what if there is a mortgage better than the 5.8% you have been offered?

How about pensions or savings accounts? Why get one where your return is 4% when you can get one around 7.5%?

My point is this: banks are no longer competitive and it’s highly probable that there are other products from other institutions that will provide you with better options and ultimately allow you to have more money in your pocket. So why take the risk of not understanding your whole financial position and looking at all the options available to you?

We at The Overseas Guides Company have a great holistic financial planning company that we recommend our readers contact. They specifically assist people buying overseas property and have access to hundreds of specialists that can help you with every financial facet of your upcoming journey.

Just email me with your phone number and a good time to ring you and I’ll call to discuss further.

Kim@OverseasGuidesCompany.com

Top Tip – Don’t Let Your Air Con Make Life Hotter for You!

If you’ve just purchased a property yet haven’t installed your air conditioners OR you haven’t purchased yet, this is something you’ll want to consider. A Cyprus Buying Guide reader sent in the following:

Something that I had not thought of before, yet struck me yesterday, was giving consideration to where air conditioning units are to be positioned for new build properties.

In Cyprus air con is a MUST as you well know. At my house, the external air con units are positioned each side of the balcony as there was no option of a central unit.

When I go inside and have the air con on its beautiful and cool. HOWEVER, when I go out on the balcony, boy, it’s hot with all the warm air being blown outside from each side of the balcony. Also the noise of the units is a real turn-off. This is something people should consider.

A Taste of Cyprus - “That’s Cyprus for You”

A Cyprus Buying Guide reader sent me such a funny yet typical story about an outing he went on in Cyprus. Things like this are what make Cyprus such a special place.

“Last week I went on a trip out to Limassol organised by Pissouri Residents Association. There were 22 members on the coach. On the return journey the driver, without any comment to the organisers, left the motorway. We thought he had received advanced warning of an accident or something. Oh no! He drove without a word to the General Hospital, parked the coach and went inside for 20 minutes. He then returned and drove the remainder of the journey to Pissouri. It turned out that his Mum was in the hospital, due for an operation the next day, and he just wanted to see how she was!

As we say many times over each day, that’s Cyprus for you!”

Go to: http://www.cbg-forum.com and post your own stories

Learning Greek - Linkword Languages

Here is a very interesting website with a good demonstration available before you decide whether to purchase. Language courses can be purchased for different levels for very reasonable prices. Courses are very simply constructed. I have tried the PC version which was very entertaining and educational. I managed to learn few sentences in less than 5 minutes!

This is really worth looking at if you would like to enhance your language knowledge. Just follow the link below, click on the Greek flag and then follow the demo. (Let me know what you think!)

Languages

In the end...

In last months newsletter I mentioned a really good insurance company. I've had a great response from people who have since received quotes from them and just wanted to give you the opportunity to receive you own quote from them. Just click on: Insurance Quote

Happy autumn and I hope you have an Indian Summer rather than an autumn!! Please keep in touch and let me know if I can help you.

Kim

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