Am I Too Late for investment in Cyprus?, - Page 6

Nigel Howarth · #51 29-02-2008, 10:31 PM

Quote:

Originally Posted by PyramidJames

I am talking to a local overseas sales company who are offering me a 1 bed apartment in larnaca/Limissol for £140.000 off plan to be completed in 2010; they are predicting I will see a 20-30% return over the next 3-5 years. They are also telling me I will cover my mortgage payments over the next 3-5 years from rental income.

They'll probably tell you that pigs can fly, if it helps them achieve a sale!

There is huge oversupply here at the moment - one advertising company has more than 20,000 properties on its books - that's more than a years supply.

You don't stand a cat in hells chance of covering your mortgage payments. And forget about selling it in 3 - 5 years time, remember there are 20,000 other people queueing in front of you waiting to sell.

Cheers,

Journo · #52 05-03-2008, 12:15 AM

Quote:

Originally Posted by PyramidJames

I am looking to invest in Southern Cyrus, I am purely looking to make money on the property not use it for a holiday home, I am considering a 1/2 bed apartment, is there still money to be made if I buy now or have I missed the boat???. I am talking to a local overseas sales company who are offering me a 1 bed apartment in larnaca/Limissol for £140.000 off plan to be completed in 2010;

If you are buying off plan you will need to check progress personally on at leat a monthly basis. Ideally you need someone to oversea it weekly and report back to you.

The price you've been quoted for a 1 bed apartment is excessive - unless it's absolutely huge and has its own roof pool/jacuzzi, or something similar that is at least two and a half times the current value.

With regard to location: Foreign investment in property is currently growing at a higher rate in Larnaka than any other area in Cyprus [but to some extent that is due to Larnaka 'catching up' with other towns].

And with regard to type/size of property: young Cypriots are now buying 2-bed apartments when they get married instead of the traditional detached house, simply because the houses are outside their budget. 2-bed is also probably the easiest to let.

But I think you seriously need to look at other agents for price guidelines!

martinos · #53 27-03-2008, 01:16 PM

Quote:

Originally Posted by andre

Hey Guys,
Having recently been out in Cyprus on holiday, I?ve looked at the possibility of buying property, mainly as a buy to let, but also looking at this as an investment for retirement.
There seems to be a huge boom out there right now, with properties being built everywhere - but prices are also well on the way up - so I?m not sure if we've missed the boat, so to speak, as just a year ago prices were a lot lower.
To cut a long story short, we've found a 3 bed villa, with a pool, about 300m from a beach, and in a popular tourist location. Similar nearby villas are being rented out at peak season for a fat wad of cash. Some quick sums suggest the rental income will pay somewhere around 80% of the mortgage costs after I?ve put down a deposit (my calcs are assuming it will be empty for about 6 months of the year) .

I love the location, and the country, and could really see myself living out there when I chose to retire, and this seems a great way to buy a retirement home over the next 15 years or so.
Interested to here any comments from people who have already done this and failed or succeeded..
Any related advice much appreciated.
Regards
Andre

ANDRE
TAKE MY WORD FOR IT
U ARE THE LUCKY ONE
WAIT FOR A YEAR AND U LL BUY HALF PRICE
ALL DEVELOPERS ARE BEGGING NOW
LOTS OF SUPPLY AND NO DEMAND
NO DEMAND

AS I SAID, BANKS ARE PUSHY TO DEVELOPERS, ONE WAY OR THE OTHER AFTER A WHILE THEY LL START DISCOUNTS
GIVE IT A YEAR

PyramidJames · #54 27-03-2008, 01:23 PM

Hello

You Suggest Waiting A Year And The Prices Will Come Down, How Can You Be So Sure. I Am Looking To Invest But I Am Concern About The Timing.

Coming From The Uk Its Allready Really Hard Because Whats Happened To The Euro.

Nigel Howarth · #55 27-03-2008, 01:39 PM

Quote:

Originally Posted by PyramidJames

You Suggest Waiting A Year And The Prices Will Come Down, How Can You Be So Sure.

One of the leading property pundits hear has predicted that property prices will fall by around 10% this year. (The only EU countries where property prices rose last year were Malta & Cyprus).

He also predicted that the number of Brits buying property here will drop by around 20% this year.

There's also a new study out "Cyprus Economy & the Real Estate Market: Analysis of the 2002-2007 period & prospects for 2008-2012".

Cheers,

Nigel Howarth · #56 27-03-2008, 01:44 PM

Quote:

Originally Posted by Journo

The price you've been quoted for a 1 bed apartment is excessive

I was contacted a couple of weeks ago by someone who been offered an off-plan studio apartment in Linopetra (the industrial area on the Limassol Highway). It was a snip at only CYP 170,000!!!

Cheers,

Marcos R · #57 01-04-2008, 01:50 PM

Quote:

Originally Posted by Nigel Howarth

They'll probably tell you that pigs can fly, if it helps them achieve a sale!

There is huge oversupply here at the moment - one advertising company has more than 20,000 properties on its books - that's more than a years supply.

You don't stand a cat in hells chance of covering your mortgage payments. And forget about selling it in 3 - 5 years time, remember there are 20,000 other people queueing in front of you waiting to sell.

Cheers,

Many thanks for that. I have been speaking to an agency that are selling at the luxurious end in Larnaca. Presumably you would hold the same view. They are claiming that the oil situation, cheap flights to Cyprus, a strong economy and the offer of guaranteed rental income post the finishing of the build in 2010 would be sufficient to make it a good investment.

Do you have any comment on that please?

Marcos R

Marcos R · #58 01-04-2008, 01:51 PM

Quote:

Originally Posted by Nigel Howarth

One of the leading property pundits hear has predicted that property prices will fall by around 10% this year. (The only EU countries where property prices rose last year were Malta & Cyprus).

He also predicted that the number of Brits buying property here will drop by around 20% this year.

There's also a new study out "Cyprus Economy & the Real Estate Market: Analysis of the 2002-2007 period & prospects for 2008-2012".

Cheers,

Please could you let me know how to get a copy of that report please

Nigel Howarth · #59 01-04-2008, 02:31 PM

Quote:

Originally Posted by Marcos R

Please could you let me know how to get a copy of that report please

I've been trying to get my hands on a copy as well. The report was produced by MAP S.Platis on behalf of the Hellenic Bank. I spoke with their MD, Stelios Platis, a few days ago. Unfortunately, the report is confidential - and he would not release it to me.

Regards,

Marcos R · #60 01-04-2008, 07:23 PM

Quote:

Originally Posted by Nigel Howarth

I've been trying to get my hands on a copy as well. The report was produced by MAP S.Platis on behalf of the Hellenic Bank. I spoke with their MD, Stelios Platis, a few days ago. Unfortunately, the report is confidential - and he would not release it to me.

Regards,

Thanks very much Nigel. Another thing, would you go for an off-plan, 2 years to complete property in Larnaca at the high end of the market with a guaranteed rent for one year? Or would you say that the uncertainties in the rental and price market are just too risky. I would be really grateful for your comments.