What does the economic situation mean for us?

[mslambs]

hi,

as the title says what does the economic situation mean for us with mortgages and property in Cyprus? Assume propertys will devalue but by how much? any impact on mortgages etc?

Just wondered what views are

Thanks
M

 

[Veronica]

Yes IMO property prices will drop but only time will tell by how much.
Once the first shock has subsided I think that there will be a renewed in foreigners buying property when prices drop. However I don't see that being any time soon.

Cyprus will no longer be a place for foreigners to stash money in high interest accounts and the country will have to find other ways to bring money into the country.
Once the gas starts to come in things will improve provided it is managed properly. This is many years off though.

In the short term businesses will close, developers will collapse and it would not surprise me if we start to hear of suicides.

A big change will be that young Cypriots who have degrees etc etc and have turned their noses up at jobs which they feel beneath them will now have to be realistic and take whatever work they can.
In the last couple of decades the young people of Cyprus have been spoilt and think the world owes them a living. This will now have to stop.
I think the influx of Eastern Europeans will now slow down, if not cease completely as young cypriots are forced to get off their backsides and work.

Just my personal thoughts on the situation.

 

[mslambs]

What a horrible situation for such a beautiful country. I realky hope the country and people pull through.

Selfishly im worried about our title deeds, we dont have them yet and im wondering whether we will get them if the developer goes bust.

 

[Veronica]

Incidentally who is your developer? You don't have to say if you don't want.

 

[mslambs]

Pafillia - I know they are in the last stage of getting a division permit to then apply for the deeds but obviously slightly worried now!

Thank you for your responses and I do hope you WILL BE OK THROUGH THIS

 

[mslambs]

sorry didn't mean for the capitals, didn't realise I had turned them on!!

 

[Veronica]

Hmm, I am sorry to say that there have been rumblings for some time about their liquidity, but then there have been rumblings about several companies and they are all still around. Fingers crossed. One thing I will say is that Pafilia are better than many others at actually getting people their title deeds.

We should be ok but we have business money in a savings account and apparently savings accounts cannot be touched even small ones under 100k. So the problem there is what are we supposed to do when the VAT man wants his money and we are not allowed to touch our own money to pay him with

 

[mslambs]

Thanks, lets hope both Pafilia and your company keep going and also that Cyprus doesn't lose its tourism that it relies on

 

[Lysos]

Totally concur with Pippin that young Cypriots had it too good for too long. The majority of staff in hotels, bars, restaurants, kiosks and supermarkets are not Cypriot and even if the Cypriots are now willing to do these jobs the incumbents are not going to give them up. Lots of businesses will close or be drastically reduced in size

Personally, in the long term I think Cyprus would be better off leaving the Eurozone & going back to the C£.

The financial services sector was the main earner driving the economy & that has now disappeared overnight. Tourism cannot make up the shortfall. So, the 'bailout' is only a temporary solution as the Country has no way of repaying the loan, and is still head in the sand with regard to the over paid public sector.

On a different note, what chance of Cyprus Airways surviving the year ?.

 

[Veronica]

On a different note, what chance of Cyprus Airways surviving the year ?.

Zilch IMO:typical::typical:

 

[bluu46]

Title Deeds

Pippin, reference Title Deeds and your remarks reference Banks and Developers. I purchased an apartment with a friend in 2005, through Paschali and the Hellenic Bank with the contract signing in 2007 and still awaiting Title Deeds. What is the timescale in receiving Deeds...?

 

[Veronica]

That depends very much on whether the developer has finished the whole project and applied for the final certificate.
If the project is finished and IF there are no problems such as alterations which are not on the plans etc then the developer should apply for the final certificate which is the start of the process of getting the deeds.
You should ask your lawyer (providing you didn't use the developers pet lawyer)
to look into the situation and see at what stage it is.

 

[Veronica]

I've just heard that a Chinese airline and a middle eastern airline are both interested in purchasing Cyprus Airways.

 

[bluu46]

Developer

Hi Pippin and thanks for your reply. Initially we were recommended, and unbeknown to ourselves, the same lawyer as the developer and we all know the implications...!!! When it was known, we immediately switched to an independent lawyer for the completion of the contract sale. The development has been completed for some years now but still no sign of the Title Deeds being issued and I assumed this was because of the many thousands backlog.
Are there still concerns about developers mortgaging the land, bankruptcy and the owners being responsible for the debt of the developer....?

 

[Veronica]

Some of the better developers do not owe money on the land by the time a development is finished as they pay off any loan on the land as the units in the development are sold. However some of the more unscrupulous, greedy developers used it to buy more land with thinking that the boom would last forever.

 

[aaronlove]

I think it will only be for people who want to buy a house. Those who have a large number of real estate may lack of liquidity. The government may control to ensure market stability.