i am just wondering, is buying in cyprus a good investment. i have bought 2 properties their, and was wondering to know what is the general capital appreciation over a year. i have bought a 2 bedroomed apartment in peyia valley and a 2 bedroomed in paphos. are they in top areas, for the rental market and for the selling market. also, apart from the letting agents, where do you go to let your property, so you dont have to pay their fees
is buying property in cyprus a good investment.
- Thread starter the king
- Start date
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gordongekko
Guest
Is it not a bit late asking this question seen as you already own 2 properties there.
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gordongekko
Guest
if you use the search facility you will find some treads on the subject including one you started last month
http://www.askaboutmoney.com/showthread.php?t=28790&highlight=cyprus
http://www.askaboutmoney.com/showthread.php?t=28790&highlight=cyprus
i am for real, i have also done my research and i am asking you if you think i might make a few bob,if you dont know anything, its no big deal. anybody, else thats reading these threads might be able to enlighten me,id really appreciate it. im just like any ordinary person trying to provide for my wife and family. so, id like to leave it to the other people who see these threads rather than you. your not much help.
Well ill try what I can. If you have only put a booking deposit drag it out long enough until you have done your research and are happy. If its non refundable it may still be worth looking at taking the hit if the numbers dont stack up.
If you have a say10% deposit down and you research looks grim then you have tough decisions.
If you are all signed, sealed and delivered so to speak all you can do is get cracking and ensure you get it tenanted asap.
5% return on capital does not sound like much esp with interest rates further rising and obviously you would rely on 100% tenancy to break even...
Remember the overheads of: legal fees, Fitout, your own time, rental fees,sales agent fees, sales legal fees, advertising, CGTs, stamp taxes and non tenanted time all have to be dedcucted from any appreciation. You would want to have very good capital appreciation to ensure any form of profit.
Apologies for the initial reaction, like Clubman was take aback.
If you have a say10% deposit down and you research looks grim then you have tough decisions.
If you are all signed, sealed and delivered so to speak all you can do is get cracking and ensure you get it tenanted asap.
5% return on capital does not sound like much esp with interest rates further rising and obviously you would rely on 100% tenancy to break even...
Remember the overheads of: legal fees, Fitout, your own time, rental fees,sales agent fees, sales legal fees, advertising, CGTs, stamp taxes and non tenanted time all have to be dedcucted from any appreciation. You would want to have very good capital appreciation to ensure any form of profit.
Apologies for the initial reaction, like Clubman was take aback.
ill tough it out, im an old dog for the hard road. seeing were back on track.can these countries not do what ireland has done with its propert market and have prices going through the roof in maybe a few years or so. im not a dreamer,so could this be a possibility some time.
Anything's possible but I'd suspect the likelihood of Cyprus experiencing a property boom anytime soon is fairly slim.
House prices in Ireland, Spain, US, UK, Australia, South Africa and other places around the world have recently shot up mainly because of external factors. Excess global liquidity and lack of faith in the stock markets which caused money to pour into other assests is probably one of the main reason. Central banks all around the world are now paying attention to the inflation caused by the excess liquidity so it's pretty unlikely that we'll see similar things happening in the short to medium term.
You need to ask yourself what can Cyprus offer that other countries can't and whether it could be a catalyst for a boom there. I don't know much about the market there but I was under the impression that it's heavily dependant on tourism which will not be helped by rising oil prices (and hence higher travel costs) and increasing pollution in the Mediteranean.
House prices in Ireland, Spain, US, UK, Australia, South Africa and other places around the world have recently shot up mainly because of external factors. Excess global liquidity and lack of faith in the stock markets which caused money to pour into other assests is probably one of the main reason. Central banks all around the world are now paying attention to the inflation caused by the excess liquidity so it's pretty unlikely that we'll see similar things happening in the short to medium term.
You need to ask yourself what can Cyprus offer that other countries can't and whether it could be a catalyst for a boom there. I don't know much about the market there but I was under the impression that it's heavily dependant on tourism which will not be helped by rising oil prices (and hence higher travel costs) and increasing pollution in the Mediteranean.
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Guest112
Guest
OK I'll put you out of your misery, here goes.............
You need to be extremely careful buying property in Cyprus.
The main issues relate to the quality of the build, the title deeds issue
and the general absence of protection for buyers. The country is awash with second hand houses for sale and they're not being sold. Prices rose dramatically three years ago but have been stagmant ever since. Rental yields are miserable and expect to struggle to find a taker. The property market is flat as can be.
Quality
The quality of construction in Cyprus is quite poor. The typical construction is a reinforcced concrete frame which is "filled in" using a very narrow red breeze block. A bit of plaster is slapped on both sides and thats it. No insulation what so ever. Its cheap to build in this way but the buildings dont last. Most are ready for knocking after 30 years.
Dampness is a huge problem and many houses dont even have a damp proof course. you need to know what you are buying.
Title Deeds
This is the single biggest problem in Cyprus. 99% of new homes are sold without title deeds and it takes up to 8 years to obtain them.
Again you need to thread very carefully. Delays with title deeds can arise for many reasons. Genuine reasons such as backlog at the land registry is
one however there are other reasons for delay. The developer might have a mortgage on the land and go bust ! (really messy) or the developer might have had no planning permission or he might not have built in accordance with the planning permission OR something else.
Get a top class lawyer to represent you and keep on asking him questions until you're happy.
Location
Peyia was once a lovely sleepy village built on a hill with sweeping views of the Med. Not any more, every square metre is built on now and in my oppinion spoiled. Theres a huge amount of 2nd hand houses for sale and to rent in Peyia. As a location its a bit too far from Paphos centre and the facilities havent yet caught up. There is also a water problem in the village. Best areas in my oppinion are Chlorakas, Kissonerga and Coral Bay.
Locally, Peyia is known as little Brittain for obvious reasons.
I hope this helps.
You need to be extremely careful buying property in Cyprus.
The main issues relate to the quality of the build, the title deeds issue
and the general absence of protection for buyers. The country is awash with second hand houses for sale and they're not being sold. Prices rose dramatically three years ago but have been stagmant ever since. Rental yields are miserable and expect to struggle to find a taker. The property market is flat as can be.
Quality
The quality of construction in Cyprus is quite poor. The typical construction is a reinforcced concrete frame which is "filled in" using a very narrow red breeze block. A bit of plaster is slapped on both sides and thats it. No insulation what so ever. Its cheap to build in this way but the buildings dont last. Most are ready for knocking after 30 years.
Dampness is a huge problem and many houses dont even have a damp proof course. you need to know what you are buying.
Title Deeds
This is the single biggest problem in Cyprus. 99% of new homes are sold without title deeds and it takes up to 8 years to obtain them.
Again you need to thread very carefully. Delays with title deeds can arise for many reasons. Genuine reasons such as backlog at the land registry is
one however there are other reasons for delay. The developer might have a mortgage on the land and go bust ! (really messy) or the developer might have had no planning permission or he might not have built in accordance with the planning permission OR something else.
Get a top class lawyer to represent you and keep on asking him questions until you're happy.
Location
Peyia was once a lovely sleepy village built on a hill with sweeping views of the Med. Not any more, every square metre is built on now and in my oppinion spoiled. Theres a huge amount of 2nd hand houses for sale and to rent in Peyia. As a location its a bit too far from Paphos centre and the facilities havent yet caught up. There is also a water problem in the village. Best areas in my oppinion are Chlorakas, Kissonerga and Coral Bay.
Locally, Peyia is known as little Brittain for obvious reasons.
I hope this helps.