# property market



## photogirl (Oct 14, 2008)

does anyone have a good idea of what the property market is doing out in cyrus, as much of the world is in depression with market standstills, is it best to wait to buy in cyprus, any opinions welcome


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## Veronica (Apr 5, 2008)

photogirl said:


> does anyone have a good idea of what the property market is doing out in cyrus, as much of the world is in depression with market standstills, is it best to wait to buy in cyprus, any opinions welcome


The best buys at the moment are resales where Brits are returning th the UK as they will take offers while they get such good rates for euros agaisnt the pound.
The problem is if anyone needs a mortgage as the banks are being very cagey about giving mortgages at the moment.
some people have had mortgages approved, paid their deposits andthen the banks have changed their minds and withdrawn the mortgages.
The concensus of opinion is that the banks are stalling wherever they can to see which way things are going to go with the economy, how the developers are putting pressure on the banks to lighten up as the economy depends to a a very extent on the housing markets.

Regards Veronica


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## grumpy (Nov 10, 2007)

One of the major problems with resales in particular is that many banks simply wont provide mortgages, those who will are few and far between. Most resales still have a cancellation clause in the original purchase agreements, so that has to be repaid as well as any outstanding mortgage.

There are certainly bargains around for cash buyers and with the exchange rate so poor, it can be a plus to a British owner who is selling.

There is still an active market, it has however slowed down seriously but as yet prices stayed buoyant. 



Veronica said:


> The best buys at the moment are resales where Brits are returning th the UK as they will take offers while they get such good rates for euros agaisnt the pound.
> The problem is if anyone needs a mortgage as the banks are being very cagey about giving mortgages at the moment.
> some people have had mortgages approved, paid their deposits andthen the banks have changed their minds and withdrawn the mortgages.
> The concensus of opinion is that the banks are stalling wherever they can to see which way things are going to go with the economy, how the developers are putting pressure on the banks to lighten up as the economy depends to a a very extent on the housing markets.
> ...


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## Veronica (Apr 5, 2008)

grumpy said:


> One of the major problems with resales in particular is that many banks simply wont provide mortgages, those who will are few and far between. Most resales still have a cancellation clause in the original purchase agreements, so that has to be repaid as well as any outstanding mortgage.
> 
> There are certainly bargains around for cash buyers and with the exchange rate so poor, it can be a plus to a British owner who is selling.
> 
> There is still an active market, it has however slowed down seriously but as yet prices stayed buoyant.


I agree that prices are still buoyant for new builds but that is because the developers are playing at being ostriches with their heads in the sand.
They refuse to see that the market has slowed down considerably and if they keep raising their prices in the way they have done in the past they will kill the market. I recieve updates on an almost daily basis from developers and it amazes me how many times prices have been put up on complexes that have long since been completed but units still remain on them. It is time the developers saw sense and reduced prices on unsold units instead of putting them up.
This practice is making the market look more buoyant than it is in reality.


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## grumpy (Nov 10, 2007)

One of the main reasons for this is the developers often give a mortgage guarantee to the banks so a mortgage is easier to obtain, these properties are more easily purchased and they still want to charge a premium. I agree many of them are overpriced anyway and there needs to be a general market realignment with reality.

I have just been to see a 2 beddy apartment by a particular developer in Universal that was bought blind by a UK couple (?) in June for €229,000 the real value and the maximumthey can expect currently is €160000ish.



Veronica said:


> I agree that prices are still buoyant for new builds but that is because the developers are playing at being ostriches with their heads in the sand.
> They refuse to see that the market has slowed down considerably and if they keep raising their prices in the way they have done in the past they will kill the market. I recieve updates on an almost daily basis from developers and it amazes me how many times prices have been put up on complexes that have long since been completed but units still remain on them. It is time the developers saw sense and reduced prices on unsold units instead of putting them up.
> This practice is making the market look more buoyant than it is in reality.


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## Veronica (Apr 5, 2008)

grumpy said:


> One of the main reasons for this is the developers often give a mortgage guarantee to the banks so a mortgage is easier to obtain, these properties are more easily purchased and they still want to charge a premium. I agree many of them are overpriced anyway and there needs to be a general market realignment with reality.
> 
> I have just been to see a 2 beddy apartment by a particular developer in Universal that was bought blind by a UK couple (?) in June for €229,000 the real value and the maximumthey can expect currently is €160000ish, fot that type of money I can get them much more property for their money.


That proves that far too many Brits leave their brains behind at the airports when they come to buy. I can well imagine which developer that would be.
Yes you can get vey nice 2 bed apartments for far less but some developers are greedy.


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## grumpy (Nov 10, 2007)

Some of the largest developers have left a trail of destruction financially. My clients have come to me for a genuine appraisal as the developers wont help at all. The mortgage payments are too heavy now and they cannot get any details of cancellations etc. They are going to lose a bundle if they do manage to sell. Often people dont wait to get to Cyp to leave the brains behind, these poor people bought blind from the UK. (why wont they ever learn).

Some commissions have been too high and unrealistic, I am aware of a coupleof large 'agents' who were charging fees of up to 18%. So a €100000 property becomes €118000, so it means that even in a flowing buoyant market with loads of buyers, it will take ages to recoup the commissions, let alone profits.



Veronica said:


> That proves that far too many Brits leave their brains behind at the airports when they come to buy. I can well imagine which developer that would be.
> Yes you can get vey nice 2 bed apartments for far less but some developers are greedy.


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## photogirl (Oct 14, 2008)

this is all very interesting, so is it best to wait to buy then? or perhaps make sure you buy at a realistic market value. i must say a 2 bedded appartment for 229000 euros sounds way over the top to me, considering the prices i have seen.

its not going to get like the market did in spain where far too many places were built and in the end demand dropped and people couldn't re-sell is it?


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## Veronica (Apr 5, 2008)

photogirl said:


> this is all very interesting, so is it best to wait to buy then? or perhaps make sure you buy at a realistic market value. i must say a 2 bedded appartment for 229000 euros sounds way over the top to me, considering the prices i have seen.
> 
> its not going to get like the market did in spain where far too many places were built and in the end demand dropped and people couldn't re-sell is it?


Yes 229k is way over the top, but many brits allow themselves to be bamboozled by slick salesmen and dont take t ime to look around.
As for whether Cyprus is going to become like Spain, many developers have put a halt on plans for unstarted developements while they try to sell what they have already built. There has been a significant downturn in applications for planning permission for new projects too.
People are realsing that they need to sell what is already built before starting on new projects.


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## BabsM (May 24, 2008)

Wow €230k for a 2 bed apartment.. that's a lot. It sounds OTT to me unless its something special! Prices are much lower than that in the Larnaca area. 

Who knows what is going to happen with the property market. There are people in trouble and needing to sell heree in Cyprus, just like in the UK. I have seen a few properties advertised in the Larnaca area at what can pnly be described as silly prices. If you can find a bargain and buy without borrowing then why not do it now? If you need to borrow then I'd wait and see what happens.


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## grumpy (Nov 10, 2007)

Yes 229 is way over the top, however the slick sales tactics of UK based salesmen (hopefully now a dying breed) for the large companies rarely reflect the real price of a property. The clients will either lose money short term, hold on for good few years to break even (paying an IO mortgage), or simply have to walk away. The developer is less than helpful and really does not care. Many people on this forum could have offered far better for substantially less.

However the problem remains for them. How do they dispose of it?

Many developers as stated have had to change plans and many have laid off dozens of staff (including people working 25-30 years), and the building will slow down substantially until the current stock is sold (as per Victoria). I believe after that we will see a resumption, but of better quality and value for money properties, a different clientelle and so on.

You can find a bargain if you look, distress sales will happen more frequently, however whether all developers will allow the contracts to be cancelled without penalty and start issueing title deeds to make it easier for independant funding, remains to be seen.


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## BabsM (May 24, 2008)

That is sad. I feel sorry for those who have got caught. Sadly there are some bad developers out there. The whole situtation just demonstrates the importance of thinking carefully before committing. 

Too often one hears of people buying the first property they like without looking around and sometimes without even seeing the property. I saw a set of emails a while back on another site where someone had bought land in the Larnaca area based on photos and sales literature.. Sadly these did not mention the cowsheds less than 100 metres away on the other side of the hill. The person didn't find out until they went to view months later.


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## photogirl (Oct 14, 2008)

BabsM said:


> Wow €230k for a 2 bed apartment.. that's a lot. It sounds OTT to me unless its something special! Prices are much lower than that in the Larnaca area.
> 
> Who knows what is going to happen with the property market. There are people in trouble and needing to sell heree in Cyprus, just like in the UK. I have seen a few properties advertised in the Larnaca area at what can pnly be described as silly prices. If you can find a bargain and buy without borrowing then why not do it now? If you need to borrow then I'd wait and see what happens.


thanks thats great advice!


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## photogirl (Oct 14, 2008)

Veronica said:


> Yes 229k is way over the top, but many brits allow themselves to be bamboozled by slick salesmen and dont take t ime to look around.
> As for whether Cyprus is going to become like Spain, many developers have put a halt on plans for unstarted developements while they try to sell what they have already built. There has been a significant downturn in applications for planning permission for new projects too.
> People are realsing that they need to sell what is already built before starting on new projects.


is there a lot of property out there that is not selling then? as if so that will affect the price of property, when demand is down, property prices canot be maintained and have to tumble. thats what has happened here in the Uk, but not because people don't need houses, but that the banks won't lend, and property prices have been unrealistically high for too long. i presume that cyprus may suffer from the same malady, with the banks paralysing the market by not lending.


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## Veronica (Apr 5, 2008)

photogirl said:


> is there a lot of property out there that is not selling then? as if so that will affect the price of property, when demand is down, property prices canot be maintained and have to tumble. thats what has happened here in the Uk, but not because people don't need houses, but that the banks won't lend, and property prices have been unrealistically high for too long. i presume that cyprus may suffer from the same malady, with the banks paralysing the market by not lending.


The property market is very slow here at the moment with a lot of properties (especially apartments) remaining unsold.
There are bargains to be had for anyone who has the money available without needing to take out a loan if they are happy to go for a resale.
Many expats for one reason or another are returning to the Uk or they have holdiay homes which they can no longer afford the upkeep of due to economic circumstances. Because of the weak pound against the Euro many such owners are happy to consider offers if they are intending to move the money back to the UK.
As for banks giving mortgages, the bigger a downpayment one has the better chance of getting a mortgage but even then you need to fight hard for one.
I would advise anyone who is considering buying to try to organise their finances before coming over so that they are not wasting their time looking for a property only to be turned down for the finance.
Our sources are saying that the situation will start to improve in the second half of this year so lets hope they are right.

regards Veronica


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## photogirl (Oct 14, 2008)

Veronica said:


> The property market is very slow here at the moment with a lot of properties (especially apartments) remaining unsold.
> There are bargains to be had for anyone who has the money available without needing to take out a loan if they are happy to go for a resale.
> Many expats for one reason or another are returning to the Uk or they have holdiay homes which they can no longer afford the upkeep of due to economic circumstances. Because of the weak pound against the Euro many such owners are happy to consider offers if they are intending to move the money back to the UK.
> As for banks giving mortgages, the bigger a downpayment one has the better chance of getting a mortgage but even then you need to fight hard for one.
> ...


i rang my mortgage company today inthe uk, and they told me it was taking them up to 24 hours to return calls about new mortgages, because there has been a surge in people applying for them, so maybe things are about to start looking up here, and people are becoming more confident here now about buying. i don't think cyprus is likely to suffer as much as here as it is an Island and therefor sought after, certainly loads of people in the uk want to get out and move somewhere like that.


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## grumpy (Nov 10, 2007)

Good morning photogirl,
A couple of things come to mind initially, such as who is your mortgage company in the UK?
Could it also be the case that the mortgages being applied for are many of the existing customers with purchases already committed to and who have so rudely had the facility withdrawn and/or offered at crazy conditions over here?


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