Am I Too Late for investment in Cyprus?, - Page 7

Nigel Howarth · #61 01-04-2008, 09:15 PM

Hi Marcos,

You need to bear in mind that the guaranteed rental will have been factored into the selling price - so it looks as if you're getting a good where as in fact, you're not. Here are some figures of 'typical' rental yields in the Larnaca area from the 'Global Property Guide'.

In my opinion, there are just too much buy-to-let property on the market at the moment chasing too few holidaymakers. Of course, that may change in a couple of years time when (hopefully) the credit-crunch is over and Cyprus is able to attract more holiday-makers.

If you're looking for a buy-to-let investment 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.

What do you mean by 'high-end' - high price? high specification? What part of Larnaca is it?

If you do decide to go ahead, make sure you get independent legal advice from a competent lawyer. They'll need to ensure that the land on which the property is being built is not mortgaged and that all the required Planning & Building permits have been issued for its construction.

Cheers,

misch.chief · #62 04-04-2008, 03:14 PM

You are never too late for investment in property - if anything, now Cyprus property is looking to build better crafted and more luxurious properties.

Nigel Howarth · #63 04-04-2008, 03:27 PM

Quote:

Originally Posted by misch.chief

You are never too late for investment in property - if anything, now Cyprus property is looking to build better crafted and more luxurious properties.

Let's face it misch.chief - the quality of some of the 'luxury property' being thrown up at moment leaves a lot to be desired!

It always amazes me that some investors don't even bother to visit the island to see what they're getting for their money.

There are still some good investments here - if you know what you're doing.

Cheers,

Gina Alexiou · #64 08-04-2008, 02:35 PM

You could buy in Liopetri on a 100% mortgage and part with just 5000 euros which will be your reservation fee. A 2 bedroom maisonette that completes in September 2008 and the great thing is that it comes fully furnished and you have an 18 month grace period before you start making any payments. Think about it, i have bought one purely for investment. I will sell it before i make a single payment on it.

Lysos · #65 08-04-2008, 09:53 PM

"I will sell it before I make a single payment on it". Don't think so !.

PyramidJames · #66 09-04-2008, 11:18 AM

I have to aggree with Lysos, how do you predict you will sell the property before you make a single morgage payment when there are thousands of properties for sale all over the country?

Nigel Howarth · #67 09-04-2008, 12:55 PM

Hi James,

I also agree with Lysos.

I've been contacted by a number of people who bought from a company in Paphos District using a similar 'incentive'.

According to its sales brochure, this company said that investors “only have to invest 30% of the selling price, then the property is put back on the market before the next 60% is due and the property is sold at retail price.”

I believe that some 1,500 apartments have been sold to date. With this scheme the company calculated that investors would make a 78.3% return in 9-12 months!

Some people have bought multiple units. I had a chap from Saudi contact me who bought 10 and was urgently looking for someone to take them on - at cost.

As you might guess, people are finding that the apartments cannot be sold and they have taken out mortgages to pay for the damn things. Some who have had to risk their UK homes on the mortgage are in financial distress, others who cannot pay are in breach of contract and are being taken to court.

They are not happy bunnies!

PyramidJames · #68 09-04-2008, 01:52 PM

I Have A Agent Now Who Is Trying To Sell Me A 1 Bedroom Apartment In Limissol Fully Furnished For £140.000, He Is Trying To Convince Me That Once This Is Finished The Rental Income Will Outway The Morgage, I Find This Very Difficult To Believe As They Must Be 100s Of Properties In Cyprus Up For Rent. He Is Saying Because This Property Is Of Such A High Standard They Will Be A Demand???

I Feel £140k Is Far To High.

Any Thoughts

Lysos · #69 09-04-2008, 02:43 PM

PJ,

He's taking the proverbial !. IF you could get a tenant, the rent might pay the mortgage - if you'd put down £100,000 deposit !.

A simple search will show you just how many properties are available and the rents being asked (always negotiable).

Nigel Howarth · #70 09-04-2008, 03:30 PM

Quote:

Originally Posted by PyramidJames

I Find This Very Difficult To Believe

I'm not surprised! It's a load of tosh!