Investment scope in Cyprus(Southern)

[albert]

Hello,
Anyone on here has any experience of investing in the Southern half of Cyprus. I'm led to believe that there is a great chance of making good profits in the next 5 or so years. Or is this just "Sales" talk?
Good luck
Albert

 

[alexander]

Hi Albert,
I am interested in Cyprus too. I read the following recently, but does it apply to private landlords, and what are these controls? Do they apply to multiple residences?
Am struggling to find answers!
"An agreement has been signed with the European Union which stipulates that the acquisition of secondary residences by European Union citizens remains subjected to controls until 31st December 2007"
Thank you
Alexander

 

[Lysos]

Derek, take your badly writen advertising copy elsewhere.

Alexander, December 2007 is long past.

Albert, "led to believe" - by whom ?. Sales agents !. Get over there and see for yourself. I'm a regular visitor and the market is dead in the water. Thousands of job losses in the construction sector, developments on hold, cancelled or just left unfinished. Some builders trying to sell unfinished properties (so you can personalise - yeah, right !). Latest site hoarding I saw didn't say the usual "Coming Soon", but "Project Under Consideration" !. Visitor numbers conservatively estimated to be down 50% this year. Cypriot business owners are very greedy and think they are immune from the economic realities; this season they will learn the hard way. Fact - there are tens of thousands of unsold properties, new & resale; fact - Cyprus is expensive. Fact - it is not a year round destination; fact - even in good times, actual (as opposed to agents' promised) returns will barely cover running costs, never mind mortgages.
However, for a cash buyer looking for a scond home/lfestyle choice the next year or so will proffer lots of opportunities; there are numerous desperate sellers there who bought off-plan, without even visiting the island, on the basis of agents promising (verbally, of course, never in writing) that rentals cover mortgages, you can flip for a profit etc. I know of innumerable rsales that have been on the market for 18 monts or more. Cyprus is so reluctant to face reality it will be the last to recover, and even that term is relative. Whatever the tourist authorities might say the Russian market is tiny and their economy is in recession as well, with the rouble down 30%. Britain is still the main market, but British holidaymakers are asking themselves if all I want is a family holiday in the sun, why pay 2,3 or even 4 times as much to fly to Cyprus compared to getting to Spain, Portugal etc. & then get ripped off ?. The Cypriots are doing lasting damage to their tourist industry by blatant overcharging; the only businesses doing well are the all-inclusive hotels, which do nothing for the local economy.

Before buying in Cyprus or anywhere, do a paper exercise costing a 2 week holiday for a family of four, say; you mght be surprised by the results. Include everything, including entertainment - for example on my last trip to Paphos in February a 20 minute trip on a speed boat was .....wait for it......€30 per adult !!!. 'Special price' 3 course evening meal in a typical tacky tourist cafe - €19 per person without drinks !. Get that calculator working.

 

[Veronica]

There is a trick to getting cheaper boat trips.
Just wait until the boat is due to go out. As they are so often well under capacity you can then barter and get half price trips.
As for the cost of meals stay aways from the typical tacky tourist places.
Go to the tavernas where the locals eat. The food is better and much cheaper.

 

[Lysos]

Pippin,

Your sensible tips don't alter the underlying economic situation in Cyprus. Aldso, the majority of tourists stay in tourist areas, don't have a car (another expense) and so don't have much choice about where they eat.

 

[Veronica]

Pippin,

Your sensible tips don't alter the underlying economic situation in Cyprus. Aldso, the majority of tourists stay in tourist areas, don't have a car (another expense) and so don't have much choice about where they eat.

I absolutely agree with everything you have said about the economic situation Lysos, which is why it infuriates me when agents and developers still tell people that there is still good investment potential here. As i have said so many times to people, the time for investment is over. If someone is looking living here full time then there are bargains to be had in resale properties but now is not the time to invest.
I have nothing to gain by telling people this as I sell properties here and of course off plan is better for me as far as commission is concerend but I want happy customers who will become my friends, not unhappy people who want my hide because I sold them an overpriced property.
The other thing which gets me mad is agents who tell people there are plenty of jobs here just to get a sale. With the current climate jobs are hard to find so anyone who needs to work needs to be sure they have a job before they make the move.

See once again I shoot myself i nthe foot by putting people off coming here but I would not want to be responsible for anyone getting into financial difficulties because I have told them it is all wonderful over here.

 

[Lysos]

Commendable honesty, Pippin.