Off Plan In Cyprus - Still Worth It??

[susieV3]

Hi

Considering an off plan apartment in Cyprus (South),love the Country & may retire there eventually..........bit concerned about all the negative feedback..have been there myself about 6 times, had good look around.....re-sales much cheaper......not sure they are selling well.......is rental income not so good now then?? (mine would be in 1 years time for rent)

There is alot of building still going on!.......so will the Euro in 2008 help or hinder property owners in Cyprus????.........is it worth me buying at all??.....with a view to eventually going there to retire.........have some Cypriot friends I have spoken to.....they are not sure, although the new Marina will eventually be built + new Golf courses..........

IS IT WORTH IT??.......will RENTAL pay mort???.......would I get a realistic return if I bought from a large, well known developer, who deals with the rentals as well???..............done lots of homework & visiting there again soon..........any advice from ex-pats who have done this already, and living in Cyprus??...any advice (only from those who are not developers, estate agents or the such please!!!!!!!!!)

Look forward to hearing comments off those with true experience!

Thanks

Sue
x

 

[grumpy001]

Hello Sue,
I will declare my interest, I sell property in the South, New & resale. However I believe we give an honest opinion.

Firstly with respect to the rental market, it is a bit suppressed for long term rentals (as evidenced by the amount of empty property) and the cahnces are that if you borrowed 75-80% of the propertys value as a mortgage you would almost cover your mortgage with income. a mortgage of 50% should be covered, so its about level of committment and the purpose of the purchase. Holiday rentals can bring in more income but also require more work and management so do your sums.

Developers rent back schemes are not always what they seem. Frankly I feel that the initial purchase price is inflated to make sure they can guarantee you a rental for a period. Lets be perfectly honest. You get nothing for nothing. If it looks too good to be true then it probably is!!

Many New builds and Offplans are good value as you are selecting a prime location, a property with warrantys, the property can be personalised according to the contract. newest materials and designs used and several other advantages. You can locate at new infrastructure builds (marinas, golf courses etc).

But remember resales in Cyprus are never really more that 45-60 minutes away from all major centres and facilities, they will be tried and tested, snags will be ironed out, they may already be part of a successful rental complex so income is possible. Gardens and surrounding areas will be mature and in their finished state, so a site probably wont jump up next door etc.

Basially its horses for courses, most important is what you actually want the property for, where you want it, when you want it. So take the opportunity to take time out, sit down and write down what you want, what you need, what you can afford and talk to a couple of people to see what they come up with.

regards
Grumpy

 

[J J Cyprus]

I live in Cyprus

HI

I moved to Cyprus over a year ago and will try to answer some of your questions.

We came out 16 months previous to us moving out and bought a property off plan strickly for buy to let purposes, the developers were great at the time and promised us the earth. Once they got our money they are really not interested. We have learn't that Cyprus is an Island where most of locals are only interested in money they think the English have got a never ending supply and don't care how they get it off us. Mind you I have got some good Cypriot friends so there is some exception to this.

Firstly, long term rentals is really not the way to go with a property over here especially if your covering a mortgage, the reason for this is because the wages here are so low, us working class cannot afford to pay high prices to rent properties hence there is an awfull lot of propeties lying empty. I myself curently rent my home and struggled to find a owner that didn't have a mortgage just wanted the property lived in whilst his investment grew, hence my rent is reasonable.

If I'd know now back when I first deceide to Invest my money in Cyprus I would have done things a lot differently, firstly I would not have signed up on a guarenteed rental scheme, as what they pay me does not even cover my mortgage which I didn't know before I signed up. Secondly to be honest I wouldn't have bought a property here, the resale market is terrible due to the high level of new builds, most of my friends that live here rent and say that they would never buy a property in Cyprus and those of my friends that have retired and bought there house wish they hadn't and are now looking to sell. The build quality is so poor and the prices are far too high, the most used word by developers when advertising properties for sale is luxury, I suppose thay can't really say, well average concrete square properties for sale with no imagination used at all. There freezing in the winter and boiling in the summer due to no installation at all used.

My advice is to spend some quality time over here first get to know the island, coming on holiday for one or two weeks is not enough, talk to the locals the ex-pats approx 4 months would give you a better insite of the place and then make up your mind, don't just buy because there are so many people saying that Cyprus is a good investment as in my opinion it is not..

My husband and I own our own business over here and are tied into rental contracts etc with mjor financial losses to pull out, if this wasn't the case I think we would have moved on by now, maybe in the future we will. This island in beautifull I don't doubt that one bit, but there are more negatives than positives at the moment so for now my future is unknown.

Thanks for reading my moan I got alot off my chest. Hope this is of some use to you.

Regards

J J

 

[susieV3]

Cyprus property - is it worth it?

Hi thanks for your reply, only thing I have been told is that new properties rent better than older......do you agree??

Susie V3

Hello Sue,
I will declare my interest, I sell property in the South, New & resale. However I believe we give an honest opinion.

Firstly with respect to the rental market, it is a bit suppressed for long term rentals (as evidenced by the amount of empty property) and the cahnces are that if you borrowed 75-80% of the propertys value as a mortgage you would almost cover your mortgage with income. a mortgage of 50% should be covered, so its about level of committment and the purpose of the purchase. Holiday rentals can bring in more income but also require more work and management so do your sums.

Developers rent back schemes are not always what they seem. Frankly I feel that the initial purchase price is inflated to make sure they can guarantee you a rental for a period. Lets be perfectly honest. You get nothing for nothing. If it looks too good to be true then it probably is!!

Many New builds and Offplans are good value as you are selecting a prime location, a property with warrantys, the property can be personalised according to the contract. newest materials and designs used and several other advantages. You can locate at new infrastructure builds (marinas, golf courses etc).

But remember resales in Cyprus are never really more that 45-60 minutes away from all major centres and facilities, they will be tried and tested, snags will be ironed out, they may already be part of a successful rental complex so income is possible. Gardens and surrounding areas will be mature and in their finished state, so a site probably wont jump up next door etc.

Basially its horses for courses, most important is what you actually want the property for, where you want it, when you want it. So take the opportunity to take time out, sit down and write down what you want, what you need, what you can afford and talk to a couple of people to see what they come up with.

regards
Grumpy

 

[grumpy001]

Rental very much depends upon several different issues.

Whether it is for long term rentals or holiday lets,
The location can be important as too can the size, design etc. With so many propertys available to rent, the market can be depressed so tenants have a real choice.

Let us know what type of rentals you propose and several people will give their opinions.

I like many of the new and off plan propertys as design and finish can be tailored to your requirements (subject to a solicitor doing the relevant searches/advice etc). My sister just purchased one at Peyia with a wonderful view of the marina and was able to have several alterations included in the contract.

So a lot is about research and personal requirements in a property, and to be realistic when working out your proposed rental incomes. Tend to err on the side of safety.

 

[susieV3]

Cyprus Property - Is It Worth It??

Hi JJ

WOW.........thanks for the in-depth reply.........mmmm not what I want to hear, but need the honesty..thanks!

I have been to Paphos about 4 times, had a Cypriot boyfriend, driven around the island alot alone, so I have made myself aware of the areas....I have previously gone independent & gone direct to a developer, about to buy an off plan apt but lost it as I didnt pay res fee fast enough, BUT as this was non-refundable i wasn't going to rush, unfortunately the one I wanted got sold, but hey, that one not meant to be.........

I know there are SO many dodgey developers & that the Cypriots just want your cash! (saying that, I too have Cypriot friends, who have been nothing but good to me).

Can I ask if you bought an off plan property??..........I too plan to (maybe) buy off plan t rent & eventually live there.........after reading your message though will have to have another think maybe..???) I am comming to Cyprus Nov 24th (only for 5 days) on an Inspection trip with Leptos (I know they are huge, so I could be a number only!, but comming out with a friend from UK who sells International Property).

Do you think that the Marina's, airport expansions, cheaper flight comming in will help???..........do you think property values will not go up in 2008 when the Euro arrives?????..sorry, trying to get something positive I suppose.......
Has your business done well over there?? (I also have a small business, but IF i did eventualy move to Cyprus may want to start something out there).

I would probably look for short term rentals, after comments I have had would consider doing the bookings myself, maybe via a website (have spoken to few Englich people with properties there that do this..getting very mixed comments)...I do have a database of Uk based people who I could contact with a view to renting out a porperty if I get one.........

Any further honest comments would be appreciated.........thanks alot.

Susie V

HI

I moved to Cyprus over a year ago and will try to answer some of your questions.

We came out 16 months previous to us moving out and bought a property off plan strickly for buy to let purposes, the developers were great at the time and promised us the earth. Once they got our money they are really not interested. We have learn't that Cyprus is an Island where most of locals are only interested in money they think the English have got a never ending supply and don't care how they get it off us. Mind you I have got some good Cypriot friends so there is some exception to this.

Firstly, long term rentals is really not the way to go with a property over here especially if your covering a mortgage, the reason for this is because the wages here are so low, us working class cannot afford to pay high prices to rent properties hence there is an awfull lot of propeties lying empty. I myself curently rent my home and struggled to find a owner that didn't have a mortgage just wanted the property lived in whilst his investment grew, hence my rent is reasonable.

If I'd know now back when I first deceide to Invest my money in Cyprus I would have done things a lot differently, firstly I would not have signed up on a guarenteed rental scheme, as what they pay me does not even cover my mortgage which I didn't know before I signed up. Secondly to be honest I wouldn't have bought a property here, the resale market is terrible due to the high level of new builds, most of my friends that live here rent and say that they would never buy a property in Cyprus and those of my friends that have retired and bought there house wish they hadn't and are now looking to sell. The build quality is so poor and the prices are far too high, the most used word by developers when advertising properties for sale is luxury, I suppose thay can't really say, well average concrete square properties for sale with no imagination used at all. There freezing in the winter and boiling in the summer due to no installation at all used.

My advice is to spend some quality time over here first get to know the island, coming on holiday for one or two weeks is not enough, talk to the locals the ex-pats approx 4 months would give you a better insite of the place and then make up your mind, don't just buy because there are so many people saying that Cyprus is a good investment as in my opinion it is not..

My husband and I own our own business over here and are tied into rental contracts etc with mjor financial losses to pull out, if this wasn't the case I think we would have moved on by now, maybe in the future we will. This island in beautifull I don't doubt that one bit, but there are more negatives than positives at the moment so for now my future is unknown.

Thanks for reading my moan I got alot off my chest. Hope this is of some use to you.

Regards

J J

 

[J J Cyprus]

Cyprus Property

Hi Susie

Yes the property was bought off plan and if you intend to buy here off plan is a good idea as long as you are prepared for it not to be ready on time as an awfull lot of the developements run late in completing.

At the moment Cyprus is an enemy to itself. What I have learned from friends that own bars, restaurants & hotels is that the Cyprus Govenrment are not marketing the island, they are not encouraging the airlines to bring in flights and tourism is certainly on the downward scale. Almost every business that relies on the tourists has seen at least a 30% reduction on there takings compared with previous years. We are all hoping that the extension on the airports will help, flights are very expensive to come to Cyprus and limited. Cheaper flights would definatly help and I know companies like easyjet are trying to come to Cyprus so if they do that should be a bonus to us all.

Short term rentals is the way to go if you market your property well, I have a friend here that owns a 2 bedroom apartment in Kapparis, Paralimni area and he has had that occupied for 26 weeks this season so it proves that it can be done. There are lots of websites you can place your properties on and some only for a very small annual fee.

I think the euro will definatly change the market for the better or worse who knows, with that one its just a guessing game i'm affraid and until it happens in January nobody will know for sure. The only thing that I can say is that when the Euro came into countries like Spain the economy changed for the worse, everything got more expensive so going on that, if you still want to buy in Cyprus purchase before the 1st January 2008.

My business is going ok, like most things its either a feast or a famon but luckly for me my business does not rely on tourism.

At the end of the day the decission is yours, gather all your information, make a plan, decide what you want the property for and what type of property your after, be aware that your in it for the long term as should your financials change theres no selling fast. Once you've found something that ticks all your boxes then and only then sign on the dotted line, if you have any doubts in the back of your mind walk away. I believe that things are meant to be and things happen for a reason so for you if its meant to be its meant to be.

Good luck in your search, hope it all works out for you and if you have anymore questions you want honest answers for just let me know.

Best regards

JJ

 

[susieV3]

Cyprus Property - Still worth it?

Hi JJ

I agree with you about Cyprus being its own enemy, think greed sometimes clouds their judgement.....

Thanks for the info..totally agree, I fly out on 24th Nov, so we will see if I find anything..if I cant then I may not bother and will wait to see what happens after Jan 2008 with Euro!..are you in Paphos??......maybe I could meet to say hi/pick your brains??!..understand if you don't have time.........
Would rather ask someone like you than a developer! lol!

I also believe that sometimes things will happen if they are meant to be.......

Thanks again for your intelligent feedback.
look forward to hearing from you.

susie V

Hi Susie

Yes the property was bought off plan and if you intend to buy here off plan is a good idea as long as you are prepared for it not to be ready on time as an awfull lot of the developements run late in completing.

At the moment Cyprus is an enemy to itself. What I have learned from friends that own bars, restaurants & hotels is that the Cyprus Govenrment are not marketing the island, they are not encouraging the airlines to bring in flights and tourism is certainly on the downward scale. Almost every business that relies on the tourists has seen at least a 30% reduction on there takings compared with previous years. We are all hoping that the extension on the airports will help, flights are very expensive to come to Cyprus and limited. Cheaper flights would definatly help and I know companies like easyjet are trying to come to Cyprus so if they do that should be a bonus to us all.

Short term rentals is the way to go if you market your property well, I have a friend here that owns a 2 bedroom apartment in Kapparis, Paralimni area and he has had that occupied for 26 weeks this season so it proves that it can be done. There are lots of websites you can place your properties on and some only for a very small annual fee.

I think the euro will definatly change the market for the better or worse who knows, with that one its just a guessing game i'm affraid and until it happens in January nobody will know for sure. The only thing that I can say is that when the Euro came into countries like Spain the economy changed for the worse, everything got more expensive so going on that, if you still want to buy in Cyprus purchase before the 1st January 2008.

My business is going ok, like most things its either a feast or a famon but luckly for me my business does not rely on tourism.

At the end of the day the decission is yours, gather all your information, make a plan, decide what you want the property for and what type of property your after, be aware that your in it for the long term as should your financials change theres no selling fast. Once you've found something that ticks all your boxes then and only then sign on the dotted line, if you have any doubts in the back of your mind walk away. I believe that things are meant to be and things happen for a reason so for you if its meant to be its meant to be.

Good luck in your search, hope it all works out for you and if you have anymore questions you want honest answers for just let me know.

Best regards

JJ

 

[J J Cyprus]

No sorry Susie I am not based in Pafos I am on the East Coast of the Island but if there is anything else I can help with don't hesitate to let me know.

Take care hope it all works out for you.

JJ

 

[Seth]

Hi, I'm Seth...new to hear and planning to close on my first Cyprus Property January 08

My research on Real Estate in Cyprus is leading me to believe otherwise, as to the growth of the island... The considerable investment of the government in Agai Napa and surrounding areas is quite a phenomenon. The coming Golf courses (3 planned now?) The new planned yacht marina and golf courses will change the type of visitors: With the added amenities and the upgrade of the airport to EU standards more growth is certainly planned on.

Suggestions for your property search: Check comps(real values of recent homes with similar build/features and area) that you are buying in!

Don't blindly trust a salesperson: Trust, but verify.

Get it in writing, and don't sign on the dotted line until all of the promised items are listed. I've had to walk out of a closing or two for that reason.

An honest question for anyone you speak with or work with is "How are you being paid in this transaction?" If you can't figure out how, it's probably on your dime.

Sorry if this is all elementary stuff, no offense intended.

Seth.

 

[grumpy001]

Given all the different arguements which could go on and on, its often worth remembering that when we buy in Cyprus it is for a different lifestyle to the UK one, and we have to establish what we want from a property, and for that sue you will have to be a bit more specific about your requirements if you want more specific answers.

 

[glyn]

resale market in paralimi

Any info on how the resale market is going at the moment as I have two apartments which i intend to sell after jan , as the price will surely go up due to the euro
any info appreciated
plus I have had no problems with my cyprus developer , good guy
thanks Glyn

 

[grumpy001]

Hello Glyn,

The market is the market, it comes and goes! Although the general trend is robust to strong, it very much depends upon how many people are coming in to buy (especially holiday type apartments),a lot depends upon the area, the complex etc etc. The Euro being adopted is not a guarantee for the price to go up relative to the pound so beware on that one!

Where are you apartments, how old are they, what is the current use, how many bedrooms do they have?

We can arrange a valuation if you are thinking of selling and would be delighted to do so.

 

[distant dreamer]

We work with an excellent local agent in Cyprus who are very helpful in answering queries you may have and can show you a selection of properties on viewing trips if you wish. Please have a look at our website to see what's currently available Keith Ashton International - Overseas Properties for Sale, International Property Sales

 

[grumpy001]

Or better still, talk to a company who specialises in the area New Home in Cyprus - independent property agent

Cheers

 

[Paul]

Thought this may be of interest - News from XL Airways - To meet increased demand they will be running additional budget flights to Cyprus from Luton next summer. Always worth taking significant note of current and future flight costs when considering investment...

 

[Aegean]

Thought this may be of interest - News from XL Airways - To meet increased demand they will be running additional budget flights to Cyprus from Luton next summer. Always worth taking significant note of current and future flight costs when considering investment...

Great news - More Brits flying into the South to go to the North to Holiday or Buy.

 

[Nigel Howarth]

any advice from ex-pats who have done this already, and living in Cyprus??...any advice (only from those who are not developers, estate agents or the such please!!!!!!!!!)

Hi Sue,

Forget the short-term holiday market – there are too many properties chasing too few holiday makers; focus on the long-term market (one year or more). Look at apartments in residential areas that are relatively central, not densely developed with apartments, reasonably quiet and close to local amenities such as schools, shops, etc. And avoid buying an apartment in a block with shops on the ground floor. Budget on spending around 175,000 sterling for a 3 bedroom 150 sqm apartment.

I've been contacted by a number of people who are desperate to sell holiday homes. The advertising blurb promised the 14% ROI - the reality is something completely different!

Do not bank on getting more than 4% - 6& gross on your investment. Out of this you'll need to pay communal fees, management fees, breakages, repairs, redecoration, utility bills, etc.

The Bank of Cyprus tightened the purse strings last year in the run-up to the island's adoption of the Euro. The maximum mortgage you can expect from a bank in Cyprus is 60%.

I've only just found this forum & registered. If you need more information about buying property here, Google my name - Nigel Howarth - I'm number 1 in their rankings.

Take care & do a bit more independent research before taking the plunge.

Regards,

Nigel Howarth

 

[Gashead]

Recent reports suggest about 4.7% return so it's better as a buy to use, just avoid the chavvy areas like Paralimni and Protaras.

 

[Veronica]

Be very careful if considering buying from one of the larger developers.
Their prices tend to be very inflated and the quality of their building is generally quite poor.
Spend some time looking around, but do not be tempted to come over on cheap inspection flights with developers or the larger agents. You will be babysat for the time you are here and they will use hard sell to try to coerce you into signing a contract before you leave the island.
These agents also charge in some case as much as 15%commission so guess who pays that in t he end.
We sell property in the Paphos district, have a website, and offer money back
for anyone who buys through us. There are several other companies who work i nthe same way as this is a much fairer way, giving people more flexiblity and the chance to speak to more than one agent. The money back usually covers the cost of your trip over.
So if you are seriously considering buying try to find a company who offers this rather than cheap flights, that way you do not end up paying for people who only want cheap holidays and have no intention whatsoever of buying.
As for promises from developers that buy to let will pay for itself, I am afraid that those times are in the past.
There is a glut of rental property with many remaining empty for long periods.
The current strength of the euro against sterling means that fewer people are coming to Cyprus than in the last few years. This means that many resale properties are being dropped in price by owners who are desperate to sell.
Ooops sorry i seem to have rambled on somewhat so I will shut up for now