IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

General questions & discussions on Cyprus property related matters
laneywilliams
Posts: 3
Joined: 13 Jan 2011 21:38

IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by laneywilliams » 14 Jan 2011 20:58

I am thinking of buying an appartment in Cyprus,and am spending a month over there in February to have a look around. I have been researching on the net and reading up on buying in Cyprus, but I am now worried about this problem with getting the tittle deeds. Do you think it would be best if I put buying in Cyprus on hold, and wait to see what happens with this tittle deed saga. The plan was to buy an appartment and enjoy holidays there,and after a few years, sell it, and buy a villa and retire to Cyprus.
There seem to be so many horror stories about at the moment, that I'm not sure now, if this is the right time to be buying in Cyprus.
I would be really greatful for any advice about the property market in Cyprus.
Elaine.



julie
Posts: 10
Joined: 31 Jan 2009 15:15

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by julie » 14 Jan 2011 21:41

The answer can only be NO!.....don't even think about wasting your hard-earned cash by buying anything in Cyprus - especially not something without title deeds. When you come to retire and want to sell the apartment and buy a villa you won't be able to.
Better to save your money and watch the Cyprus property market come tumbling down - then you can buy your villa when you retire if you still want to.

There is such a surplus of property you can rent an apartment very cheaply any time you want to go there in the meantime.

I wish someone had given us this advice.....and that we'd listened.



kade12
Posts: 41
Joined: 07 Nov 2008 19:43

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by kade12 » 15 Jan 2011 11:34

Julie,sorry but totally disagree.NOW is the time to buy.Property here is at an all time low.The title deeds situation will sooner or later be resolved and prices will rise,why wait and pay more.
Any way the title deed situation is not as bad as its made out to be.Of the thousands of properties sold to the British how many do you know have lost their home due to the lack of title deeds.I know of non.
Yes there is an abundance of properties to rent,but why rent if can afford to buy?



julie
Posts: 10
Joined: 31 Jan 2009 15:15

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by julie » 15 Jan 2011 19:48

kade12 wrote:Julie,sorry but totally disagree.NOW is the time to buy.Property here is at an all time low.The title deeds situation will sooner or later be resolved and prices will rise,why wait and pay more.
Any way the title deed situation is not as bad as its made out to be.Of the thousands of properties sold to the British how many do you know have lost their home due to the lack of title deeds.I know of non.
Yes there is an abundance of properties to rent,but why rent if can afford to buy?
I can only assume that you are in some way involved in the sale of property in Cyprus or profit from it in some way ;-)
Prices are clearly not at an all time low - they're simply lower than they were in 2007 (at the peak of an unrealistic (crooked developer & bank - driven) bubble) and given the number of empty properties / uncompleted developments / properties for sale there is still a long way to go until property prices in tourist areas reach the bottom.

There is about as much chance of the Cypriot government resolving the title deeds mess as there is them re-unifying Cyprus - there are simply too many vested interests involved and corruption is endemic.

In answer to the question why rent if you can afford to buy - the answer is simple - it's much cheaper. In a falling or non-rising market, there is no reason to purchase a holiday home in a foreign country if you don't intend to live there for a large part of the year. If someone is still working - they may make it out to Cyprus for 4 weeks per year. They could rent an apartment for 4 weeks / year for less than 1000 euros at present. That wouldn't even pay for the maintenance & bills on a property they owned in Cyprus......and that's without all the hassle or mortgage interest (if they have one) and the loss of value if the market continues to fall.

But I can understand those who make their living from selling property in Cyprus (or who have a property they wish to sell) trying to put an optimistic slant on it.



kade12
Posts: 41
Joined: 07 Nov 2008 19:43

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by kade12 » 16 Jan 2011 14:07

Julie i do NOT have an interest in selling property here.
What i meant by an "all time low"is that in my opinion property will rise in value this year and will not get any lower.
Yes there are a multitude of static uncompleted developments but these are sites that developers have put on hold untill the market picks up.Do not know where you live but go on a walk around your nieghberhood and see how many for sale signs there are on completed property.I have done that for nearly two hours on my Sunday morning walk and counted just five in the Trimithousa,Mesogi,Messa Chorio area.
You say ''corruption is endemic" whether you are right or wrong in this matter the fact is that it is in the INTEREST OF THE POWERS THAT BE"to resolve the title deed situation.So i believe they will..
The vast majority of ex pats here are here thanks to the long term rise in the value of property and you say renting is better than buying.It is for the landlord. I have seen many a wealthy landlord but vever a wealthy tennant.
I suppose we look at things differently...My glass is half full,and yours is,,,,,,well regards.



laneywilliams
Posts: 3
Joined: 13 Jan 2011 21:38

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by laneywilliams » 19 Jan 2011 16:23

Thanks Julie and Kade12 for your response to my question. I am coming over to Cyprus in a couple of weeks for a month, so I shall look around and see what is on offer, but I think maybe it might be best to see how the property market goes this year, and see if the title deeds issue is resolved.
The dream has always been to retire to Cyprus,but due to family commitments it will be another couple of years until we are able to pack up and leave. So we thought buying an appartment and spending winters and as much time as we could in Cyprus would be a good idea, to see if the dream is every thing we hoped for.
Would hate to make the wrong choice though, as we are retired, so funds are tight until we sell our house here in England.
I think I might play it safe, and only think about buying if the title deeds are in place.
I shall continue to do my research and hopefuly buy in the near future.
I would be glad of other peoples thoughts on this matter. :-?



MHarpen
Posts: 3
Joined: 10 Jan 2011 00:14

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by MHarpen » 19 Jan 2011 20:15

Laney,

Following your dream is a good thing. But don't be blinkered by it!

Buying in Cyprus at the moment is not a good idea. Those who say that the market has steadied and will not fall any more are living in dreamland. Sit tight, go over to Cyprus and rent for the next couple of years and get a feel for the place on your holidays. I guarantee you property will be 50% cheaper in 2 years time. There are thousands of incomplete developments. Even with the completed developments people are struggling to pay their mortgage. Deeds is a massive issue out here. Banks are massively exposed to developers/ property. Re-mortgaging of the land is standard by developers, so if they go under the bank will come after you...even if you own the place outright!

All this will take time to play out. The Government have only the Banks / Developers best interest. Buyers are just left to deal with the consequences. Until this changes then the property market is doomed!!
Last edited by MHarpen on 25 Jan 2011 22:55, edited 1 time in total.



kade12
Posts: 41
Joined: 07 Nov 2008 19:43

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by kade12 » 20 Jan 2011 12:42

Mr Harpen.."property will be 50% cheaper in 2 years time"? :lol: :lol: :lol: Anyway at the very worst you are perfectly safe buying anything that has title deeds.



MHarpen
Posts: 3
Joined: 10 Jan 2011 00:14

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by MHarpen » 20 Jan 2011 16:55

Sadly most apartments in the Paphos area are already down 30 - 40% from peak! You obviously own property there and like most property owners, you are in denial. Banks are in denial, developers are in denial. Buyers are now seeing the light that's why purchases of property are down by 90%.

Once developers start going bust and the properties are repossessed in their thousands by the banks, we will see what's going to happen. Same in Spain, banks are holding onto repossessions in order to stop the flood of property onto the market driving down prices. Spanish banks are now being told to get rid. Banks holding onto property think this is an asset they control. It's when banks holding that asset and that asset starts to fall in price drags the value of banks shares down and they themselves collapse. Cyprus is not far behind!

But of course it's your home and not an investment as it should be. No need to worry if you have no plans to sell. Good property in good locations will probably only see 30% drops in the next year or so. Identikit apartments in dubious locations will fall much much worse, as I'm finding out!

But of course if you think property is going to rise in value this year...I hold my hat off to you for being so positive, or is it delusional?



kade12
Posts: 41
Joined: 07 Nov 2008 19:43

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by kade12 » 22 Jan 2011 11:19

Interesting reply MHarpen.Lets put it in our diaries to contact each other in one years time and see who got it right or who was nearer the mark.



crystal
Posts: 8
Joined: 08 Nov 2009 20:43

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by crystal » 05 Feb 2011 16:31

Elaine,
If I was you, I would buy a villa with title deeds,We had an apartment, which we were lucky to sell with no deeds then we bought a villa. This was before it all came out about developers mortgages and our buyer had cash.
We jumped from one fire to another not realising a bomb was about to go off in the Cyprus property market, when buyers found out they were trapped as there are developers mortgages outstanding before they signed the contract.

Hold on and you will find a lot of properties that are being sold very cheaply as owners want to return to the UK. Forget the apartment as you will pay a fortune in fees, and its not cheap to sell in Cyprus. Also the communal fees and the problems that come with apartments are a pain, as some don't pay , and then others do.

I still think Cyprus is a good place to be, make sure you get a place that has been issued with deeds, and make sure you get a solicitor, Nigel can give you the details of Stelios who attends the Proprty in Cyprus Action Support Group meeting and gives advice to buyers.

I would not rent, throwing good money away. you can find your property with deeds, I do know of homes that have the deeds. You can post on the forums when you are ready, and I am sure you will find something that suits your budget with title deeds.

I am caught in a situation, but it does not stop me saying yes it is a good time to buy, bargains to be had, but make sure you get a good lawyer and make sure it has the deeds. I know Stelios would tell you to walk away if he thought there was a problem.

My advice go for the villa and forget the apartment , we did that but with hindsight , we should have gone for the villa , and we would have saved on fees.

Good luck, its still a great place.

I have no connection with the property market Nigel knows who I am.



Nigel Howarth
Site Admin
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Location: Erimi, Limassol, Cyprus
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Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by Nigel Howarth » 09 Feb 2011 18:51

Hi Elaine,

If you are seriously thinking about buying property here, I have just published a short guide that you can find at http://www.news.cyprus-property-buyers. ... dments.pdf

Buy something that already has it's Title Deeds - it's just too risky at the moment to buy anything else.

And I always recommend that people rent before they buy - so they can get to know the island and decide if they want to live here permanently.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

laneywilliams
Posts: 3
Joined: 13 Jan 2011 21:38

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by laneywilliams » 09 Feb 2011 20:05

Thanks to every one for their advice. I am in Cyprus at the moment and having a look around, but I think I will wait and see what happens to the property market. I think that maybe it would be best for me to rent and see if Cyprus is every thing I hoped it would be. I will continue to do my research and thank you Nigel for your guild to buying property, I shall look forward to reading it. I will only buy if the right property comes along and it has title deeds. I would hate to think my dream could turn into my worst nightmare, so I will take things slowly and see what happens.
Thanks to every one for your help.
Elaine.



thedesignboy
Posts: 16
Joined: 22 Apr 2009 00:33
Location: Northern Ireland, Land of Simple Times

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by thedesignboy » 15 Feb 2011 19:17

That question is kind of like asking: should I stab my self in the eye, I've found a few extra eyes and was wondering if I need the one I have...

I'd say from reading anything here, most people have had bad experiences. There most likely is deals to be had, but seriously, seriously...?

Rent one. It's not an investment. Enjoy your cash in a cash tight time.



MHarpen
Posts: 3
Joined: 10 Jan 2011 00:14

Re: IS NOW THE RIGHT TIME TO BE BUYING IN CYPRUS?

Post by MHarpen » 02 Mar 2011 14:46

kade12 wrote:Interesting reply MHarpen.Lets put it in our diaries to contact each other in one years time and see who got it right or who was nearer the mark.

Kade, not even one year but the below paragraph from Nigels story points out what is happening. Yes it might rebound....but I doubt it.

"The housing market is actually a series of sub-markets. The biggest division is between the holiday-second home areas and the five main towns where most Cypriots live. The available house price indices refer to the domestic rather than the second home market. House prices in tourist areas are difficult to generalise about, but prices in these market sectors have been much more volatile than in the urban areas of the country: rising more in the boom but now falling much faster. Local experts suggest that prices in these areas have dropped by approximately 20–25% for good quality/ good locations, 30–35% for good quality/ secondary locations, and 40–50% for bad quality/ secondary locations"



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