Archives: 2008 March

Cyprus entered the Euro in January 2008 and Cyprus banks now offer loans and mortgages in euros at interest rates set by the European Central Bank.

On 26 March, The President of the European Central Bank, Jean-Claude Trichet, dashed hopes of a cut in European interest rates any time soon.

He was speaking after a meeting of the Bank’s Governing Council which left the ECB’s key rate unchanged at 4%, as expected. Mr Trichet gave a firm indication that the bank is likely to keep interest rates unchanged for some to time to come.

The Cyprus Informer says “it is not a great time to buy off plan right now with the build in of big commissions and VAT which have to unwind. That might not unwind by appreciation over the next 2 years or so as the Cyprus market currently comes off boom if you wanted to sell quite quickly. But looking for the right Re-Sale where the seller realises that current off plan prices include commission/VAT and he/she must discount the asking price below current off plan prices to get a sale. A good property in that situation has some margin in more difficult times. And make sure that you get your Title Deeds with your Resale.  No chance on Off Plan !!.

Grapevine Magazine on Cancellation Fees

“There was shock amongst developers when, for the first time, Paphos District Court ordered a property company to reimburse a British couple monies they were obliged to pay when they sold a house without Title Deeds. The homeowners were never issued Title Deeds and when they decided to sell on their property, had to pay the developer thousands of Euros to be released from a contract to give them the right to make the re-sale. The ruling could set a precedent for other similar cases.”

Royal Institution of Chartered Surveyors on Cyprus House Prices

The Cyprus Informer has launched two new information and knowledge based web sites.

The first is Cyprus Gardening.  We hope that those readers of The Cyprus Informer who have an interest in gardening in Cyprus will find the articles useful.

The second is a “new venture”. It is called “here is a man that can…! Paphos” .  It is a local database where you can find trade services to do those repairs and other emergencies and the local people providing professional services.  Again we hope that our readers in Paphos will find this site the place to go for that information. 

This article can help a Cyprus property buyer decide if a price asked is realistic and guides new Cyprus property buyers to the Re-Sale Market and what to pay. It also looks at the position of Cyprus property sellers and how they can price to sell.

The problems for The Brits with the Cyprus property market are not solely to do with the euro/gbp exchange rate.  Nor is it just to do with the over supply of houses in the market.  Where did the figure of 11,000 unsold houses come from that is quoted on the Cyprus forums? In my view it has also a lot to do with pricing. I know, rather obvious really but there are some interesting pointers in what Antonis Loizou had to say………and also some condundrums.

People will always wish to live in a climate as Cyprus is lucky to have.

 Image courtesy of http://www.cyprus-lodgehomes.com/

So what do UK Investors know most about that the others do not?  Mobile and Lodge Homes is the answer.  There are many, many holiday and semi residential sites across the UK.  Spain and France have been “invaded” by the mobile home Brits but not Cyprus.  The cost of land and residences in Cyprus has increased as the euro has strengthened.  But mobile homes are still affordable and plots can be rented long term. The potential for low cost but high yield holiday lets on mobile homes is excellent  and for the right location the Cyprus Tourist Organisation will grant licences.