Hello from Yorkshire

[TommyB]

Hi Everyone,
I have just joined and thought I would introduce myself.
I own an apartment in the Famagusta area and am potentially looking to upgrade to a villa or the like.
Like most I'm a tad worried about the economy in Cyprus and if it's a good idea or the best time and way forward.
I currently have my apartment up for sale as I wanted to release the capitol to part fund the purchase.
I have received an offer far below the asking price, no surprise there then...........
Just wondered poeples views on the time to buy/sell in the forseeable.

Reading through the forum posts I would also like to thank the admin team and members for the advice and support they have provided to fellow members. Looks like a friendly place.


TommyB

[Nigel Howarth]

Hi TommyB and welcome to the forum.

Property prices are depressed at the moment and probably 40% down from their peak in the tourist areas; now is not a good time to sell.

I published an article 10 days ago showing how the prices have changed since the start of 2010 according to RICS - Have property prices reached rock bottom? and they've probably got a further 10% to fall in the Famagusta area according to Pavlos Loizou, who was the driving force behind the RICS index.

It's difficult to say how long it will be before the market recovers. As you point out, there are problems with the economy, and this (amongst other things) has resulted in a drop in sales. Unemployment has reached a record 11% - although not as bad as Spain, it's unheard of in Cyprus and has resulted in great uncertainty about the future.

Another issue that banks are very reluctant to hand out mortgages as they have no money to lend. The Bank of Cyprus and the Popular Bank should get a bailout loan from Europe, but this will only be enough to meet their capital requirements - it doesn't mean they will have more money to lend.

We'll have to see how things develop during the second half of the year, but I cannot see things improving until next year or the year after.

Regards,

[Pantheman]

Hello and welcome TommyB,

I think you may have just answered your own question with the offer you had. As Nigel says now is NOT a good time to sell but it is a GOOD time to buy. It is all relative, if you wish to buy at a low price, then you must expect to get a low price for your too.

offers coming in are ridiculous in many cases to say the least, they are trying it on, and hey, you never know the other persons desperation.

As an example, I have has offers on 3 properties, priced 220k, 180k, and 200k. offers received respectively, were 160k, 125k and 125k.

Regardless to say they were not accepted, but the buyers think they are doing you a favour.

The price you sell for must suit you, you have to understand you will be taking a hit selling now, but as you are looking to buy it is not all bad, because in effect you pass on that hit yourself!

Is your property in the free areas of Famagusta?? if so, you will have more chance to sell.

Good luck all the same.

[TommyB]

Thanks Nigel/Pantheman for the reply's.
I saw the article, very informative thank you, that was one of the main reasons for my reservations. I have been looking to upgrade for a while but the prices were so high it was out of my reach.
My property is in the free area of Famagusta and I understand that taking a hit on the sale would be repaid thricefold should I upgrade to something around three times the value so not all is bad as you guys state.
I'm in the furtunate position that I do not need to raise finance in Cyprus so the banking situation is, if anything in my favour.
Nonetheless It is sad that such a small independant state who's economy was stable to a certain extent has changed so dramatically over the last 6 or 7 years. I remember unemloyment being at an all time high in the UK when I left school and today's current job situation is deflating to say the least, never mind the young Cypriot's who's future employment outlook is bleak.
My (and most other folks) dilemma is yes the prices are down 40% ish dependant on where you look but will they fall even further like Spain did???
Who's to know eh, crystal ball.......an all that. I suppose I will just have to keep a close eye on the market.
Thanks again for your input.
TommyB

[Nigel Howarth]

I suppose I will just have to keep a close eye on the market.

I publish the monthly sales figures in Cyprus Property News - and also the RICS (Cyprus) Property Price Index, which is produced quarterly.

If you want to keep an eye on the market, sign up to receive my daily news feeds or weekly news summaries on my Registration Page - it's a free service and you can cancel your registration whenever you want.

Regards,

[Pantheman]

TommyB, may I PM you?

[TommyB]

I suppose I will just have to keep a close eye on the market.

I publish the monthly sales figures in Cyprus Property News - and also the RICS (Cyprus) Property Price Index, which is produced quarterly.

If you want to keep an eye on the market, sign up to receive my daily news feeds or weekly news summaries on my Registration Page - it's a free service and you can cancel your registration whenever you want.

Regards,

Thank you Nigel, I have read some very interesting information on the site, I will register

[TommyB]

TommyB, may I PM you?

Pantheman, of course you may.