# property prices



## gdennett (Sep 15, 2008)

Hi,

Is there anyone who can give me a steer on current property price trends; is the property market still positive or has it come off the boil so to speak? I'm looking at buying a property in Kiti, just outside Larnaca. Although the developer and agents seem to be confident, I am seeking an independent view.

Many thanks,

Graham


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## Paul Fletcher (Sep 12, 2008)

*Hi Graham*



gdennett said:


> Hi,
> 
> Is there anyone who can give me a steer on current property price trends; is the property market still positive or has it come off the boil so to speak? I'm looking at buying a property in Kiti, just outside Larnaca. Although the developer and agents seem to be confident, I am seeking an independent view.
> 
> ...


There has certainly been a slow down in the property market in Cyprus, mainly due to the performance of stirling against the euro for British people wanting to move out to cyprus to escape the weather.
However it is far from doom and gloom out here.
There is a small, but rapidly growing market for eastern europeans and russians moving to Cyprus and whilst some of the larger developers and agents are having hard times and having to streamline their operations, some of the smaller independent developers and agents are thriving, with the emphasis seeming to be towards design and build or off plan, rather than resalses.
The resale market has slowed down quite a bit and there is a lot of property out there. 
Some holiday let type properties are being advertised for sale for a lot less than they were 12 months ago, however my advice would be to make sure you,ve done your homework about the area you,ve chosen, with regard to selling it in the future.
My wife and I bought off plan out at Anarita, near Paphos airport 18 months ago and are currently renting in Chloraka for the next month or so untill its ready.
We moved out to Cyprus 3 months ago, have both found jobs and have not regretted it for a minute.
Good luck with your move and if I can be of any help let me know

Paul


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## gdennett (Sep 15, 2008)

Paul,

Many thanks for your prompt reply. 

Has Cyprus got UK style estate agents or similar for re-sales or are they handled mainly through developers?

Also, out of interest, have you learnt to speak Greek? if so did it help you in your employment search. What sort of work have you obtained (if it is not too much of a personal question)

Thanks


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## Veronica (Apr 5, 2008)

gdennett said:


> Paul,
> 
> Many thanks for your prompt reply.
> 
> ...


developers will only handle the resale of properties they have built and then they tend to not push them at all preferring to push people towards their off plan properties.
There are many agents who handle resale properties.

regards Veronica


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## Paul Fletcher (Sep 12, 2008)

*Hi Graham*



gdennett said:


> Paul,
> 
> Many thanks for your prompt reply.
> 
> ...


Developers tend to consentrate on selling their own new build properties and would be reluctant to sell re-sales unless its their own builds.


Any particular reason you fancy the Lanaca area? Have you been their on holiday or have you got family or work prospects out there.

My wife and I did do a 20 week Greek course before coming to Cyprus and the little we absorbed has been usefull in gaining employment, but not essential as the majority of Cypriots speak good english, but it does depend on what work your looking for and would certainly be an advantage if your looking for work in the leisure/tourism industry.

Hope this helps

Kind Regards

Paul


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## gdennett (Sep 15, 2008)

Paul, 

Thanks once again.

We are in the process of buying off-plan in Kiti through Morphus Investments having had a holiday there and investigated the developments taking place in the Larnaca area.

I am rather cautious hence my questions, not too late to get out if needed to! 

I have recently been made redundant so looking to use the lump sum compensation to assist in our pipe dream of owning a home abroad. Also looking to retrain in the financial services area (as a IFA). The view is to spend 1.5 years in Cyprus and then move back to England and rent the Cyprus appartment out. 

regards,

Graham


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## bailey44 (Jul 18, 2008)

Paul,

Sorry to butt in this conversation, however you said you where living in Chlorakas as the moment, can you give me advice as to what the area is like? We have looked around but another persons view is also a advantage. 

thanks
Bev


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## Paul Fletcher (Sep 12, 2008)

*Hi Graham*



gdennett said:


> Paul,
> 
> Thanks once again.
> 
> ...


I had a quick look at your development in Kiti, on the Morpheus Investments property website, very swanky (loved the little virtual tour).
As to whether its a sound investment, bearing in mind your plan to rent out the property and return to the UK after 1.5 years, I'm not completely convinced.
Do you have any sort of guarantee'd rental agreement built into your contract (check with your lawyer)
I would have thought that the new golf course would initially be a big drawer, but long term rentals will require other things, like local amenities, nice beaches and places to meet up/things to do.
Are you planning to do your training in Cyprus or Uk and what sort of work did you do before you were unfortunately made redundant (if its not too much of a personal question).
I don't know what the employment prospects are for an english independant financial advisor in the Larnaca area, but from what I can gather this sector seems to be a cypriot stronghold.
I am seeing my financial advisor next week and will try to find out more details for you.

Speak soon

Paul


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## Paul Fletcher (Sep 12, 2008)

*Hiya Bev*



bailey44 said:


> Paul,
> 
> Sorry to butt in this conversation, however you said you where living in Chlorakas as the moment, can you give me advice as to what the area is like? We have looked around but another persons view is also a advantage.
> 
> ...


Chlorakas is a great place to base yourself, being 5 mins drive down the tomb of the kings road to the hustle and bustle of Paphos, but also having its own small centre with shops, pubs, supermarket and even a computer sales and repair centre.
We are actually in an area called Melanos, which I think is like a district of Chloraka.
If we had known about the area prior to buying in Anarita, we would have definately thought about buying a property their (my wife is a bit of a towny and thinks that Anarita may be a bit rural, hills, fields, goats, you know the sort of thing)
Don't know if your in Cyprus at the moment, but if you want to meet up give me a shout and I'll show you round

Happy Hunting

Paul


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## bailey44 (Jul 18, 2008)

Hiya Paul, 

I'm back home in raining uk, got back few days ago. we did ahave a look around the village and i think it suits us perfect. Do you know anything about local school. We are moving out summer next year so got some time yet but always good to start looking i reckon. We will be out again some time soon so will be great to hook up and get some local info. 

Which estate agents do you work for ?? 

Bev


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## gdennett (Sep 15, 2008)

Paul,

No there is no guarantee'd rental with this development although Morphus do have a rental arm to draw on. I'm hoping there is going to be the demand from the new golf course and of cause the improvements to the Larnaca region itself (Marina etc) to cover 15-18 wks per year. I guess I'm really after the holiday lets rather than long term occupation.

In terms of the training, I was going to do this in the UK before I came out so that at least I have it behind me when I return to the UK. I'm not expecting any real employment from the qualifications in Cyprus but if anything was available in that field then I would be open to offers!

I was a Project Manager but working on research programmes in the defence industry (quite a specialist area to get alternative employment as I'm finding). Unfortunately I have no building or IT experience. 

Out of interest, I attended the Property Invester Show at ExCel today, there seemed to be quite a lot of representation of Cyprus and re-assuringly all gave similar views regarding property price inflation expectations, rental coverage etc. More than interesting was the Northern Cyprus coverage and the percieved better relationship between the 2 halves since the new PM was elected. Is this how it is seen in the South?

Best wishes,

Graham


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## Veronica (Apr 5, 2008)

gdennett said:


> Paul,
> 
> No there is no guarantee'd rental with this development although Morphus do have a rental arm to draw on. I'm hoping there is going to be the demand from the new golf course and of cause the improvements to the Larnaca region itself (Marina etc) to cover 15-18 wks per year. I guess I'm really after the holiday lets rather than long term occupation.
> 
> ...



These property exhibtions will tell you exactly what you want to hear.
They want you to buy so they will paint a rosy picture about everything.
Research as much as you can then make your decision based on your gut feelings and not what some investment gurus or developers or agents tell you.
I sell property in Cyprus and at this time my advice is dont buy for investment unless you can afford to wait for a good few years to reap the benefits. Dont believe what you are told about the rental market as no one can guarantee you anything and certainly dont believe the rosy pictures that people are trying to paint about the north, south issue. It is far from being solved.
I believe that everyone should be told the truth so that they can make sound judgements, if it loses me business so be it. Unfortunately not everyone in the real estate business feels the same, they will tell you just what they think you need to hear in order to sell you something.
Veronica


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## gdennett (Sep 15, 2008)

Veronica

Many thanks for your input. With an unbiased hat on, is there still the demand for properties from UK clients or has the market from this standpoint slowed. If it has, has the influx from Russia clients etc made up this differance or do you only deal with UK?

regards,

Graham


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## Veronica (Apr 5, 2008)

gdennett said:


> Veronica
> 
> Many thanks for your input. With an unbiased hat on, is there still the demand for properties from UK clients or has the market from this standpoint slowed. If it has, has the influx from Russia clients etc made up this differance or do you only deal with UK?
> 
> ...


There is certainly still a demand for properties from UK clients but with the present economic climate most are finding that they have to lower their sights considerably as to what their budget will buy for them.
We are getting far more enquiries for long term rental from those who want to try Cyprus out before committing themselves to purchasing. This is probably a very good idea if they have their money invested wisely as Sterling is so weak agaisnt the euro at the moment.
We are getting increasingly more enquiries from Eastern European countries and have recently sold a very nice villa to a family from Romania.

Veronica


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## Paul Fletcher (Sep 12, 2008)

*Hiya Bev*



bailey44 said:


> Hiya Paul,
> 
> I'm back home in raining uk, got back few days ago. we did ahave a look around the village and i think it suits us perfect. Do you know anything about local school. We are moving out summer next year so got some time yet but always good to start looking i reckon. We will be out again some time soon so will be great to hook up and get some local info.
> 
> ...


I will send you my contact details in a PM, don't want to get my fingers slapped by the moderators for touting for business.

speak soon

Paul


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## gdennett (Sep 15, 2008)

Veronica,

Is there any particular reason for them to lower their sights considerably, is it cash buyers or those with mortgage requirements? I guess if the £:€ was more typical (1.4) the buyer could buy a €175k property for his £125k against €156k now (1.25 exchange) for the same outlay.

However, I have been told that the weak £ is good in the long term if you buy via a mortgage, although the deposit is about 12% more to find initially (1.4 vs 1.25 £:€), overall when the £ returns to more historical levels the remaining morgage is lower. ie;

With £:€ @ 1.25
Total purchase = €156.25€ (£125k)
Initial deposit say €31.25k = £25k 
Mortgage say €125k = £100k 

say in 3 yrs time when £:€ is 1.4
Mortgage €125k = £89.3k

so although the initial deposit is £2.7k more (against 1.4 exchange rate), the 
mortgage is now £10.7k less than the original value - net gain of £8k (assuming the £:€ rates as above). 

Does this hold together?

Also I guess if one was to long term rent for a year, then if property prices are increasing at an annual rate of 12% (is this correct?), and the Euro returned to more normal levels (1.4) you are no better off (1.25-1.4=12% increase) - apart from peace of mind regarding the commitement to buy.

Food for thought or contrediction - both welcome.

Graham


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