# Morgtage repayments



## dplees (Oct 21, 2008)

I have already posted on this forum regarding a one bedroom property that I purchased in the St George Hills development, Paphos. 

I think i may have been very naive, I bought the property off plan (20k Deposit), however I have already had a morgtage aproved and the developer is drawing down from this at different stages - is this common practise?

Second and final question - does anyone think I will get out of this one alive - ie get my money back?

Many thanks

David

PS I have been told that the tip will be removed.


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## Veronica (Apr 5, 2008)

dplees said:


> I have already posted on this forum regarding a one bedroom property that I purchased in the St George Hills development, Paphos.
> 
> I think i may have been very naive, I bought the property off plan (20k Deposit), however I have already had a morgtage aproved and the developer is drawing down from this at different stages - is this common practise?
> 
> ...


It is the normal practice for payments to be made to developers at vaious stages of construction.
I assume you have given power of attorney to your solicitor to make the payments when the developer requests them.
If you solicitor does his or her job correctly they should ensure that each stage of build has been completed before making the next payment.

As for whether you will get your money back I would say that in the present state of the property market you should not expect a quick turn around as property sales are declining due to the current economic climate.
However if you can hang on for two or three years, by which time hopefully the quarry will be removed and the area cleaned up you may be able to sell, possibly even for a small profit. One problem though is that so many people buy off plan because the stage payments seem so attractive that the resale market is slow to move.
In the meantime I would recommend thinking about letting your apartment out long term rather trying to make a quick killing in holiday lets. The area is not great for holiday rentals and you would probably find the place would be empty most of the time but there is an increasing number of people looking for long term rentals with few owners renting out long term.
I do hope that things work out for you, and please feel free to contact me if I can advise you in any way.

Regards
Veronica


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## dplees (Oct 21, 2008)

Thanks Veronica, what you say is very useful. The skip will be removed once the development is complete in 2010 and I hope that you are right about recovering my out goings. I know it is a long way off, but whats the best way to go about getting a long term let? That does seem very attractive and less hassle. Would you also be able to give me an indication of letting rates for a good 1 bedroom property? I would like to know that my mortgage would be paid.
Many thanks




Veronica said:


> It is the normal practice for payments to be made to developers at vaious stages of construction.
> I assume you have given power of attorney to your solicitor to make the payments when the developer requests them.
> If you solicitor does his or her job correctly they should ensure that each stage of build has been completed before making the next payment.
> 
> ...


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## dplees (Oct 21, 2008)

Sorry Veronica,

It's me again, I cant sleep. Could you tell me if it is possible for me to give my property back to the developer? I just want to cut my losses. My concern is the mortgage, what would happen to that?

Many thanks




Veronica said:


> It is the normal practice for payments to be made to developers at vaious stages of construction.
> I assume you have given power of attorney to your solicitor to make the payments when the developer requests them.
> If you solicitor does his or her job correctly they should ensure that each stage of build has been completed before making the next payment.
> 
> ...


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## Veronica (Apr 5, 2008)

dplees said:


> Sorry Veronica,
> 
> It's me again, I cant sleep. Could you tell me if it is possible for me to give my property back to the developer? I just want to cut my losses. My concern is the mortgage, what would happen to that?
> 
> Many thanks


You could ask the developer to sell it for you.
As the complex is sold out they may be happy to do that.
If all you want is to recover your losses if you tell them that they would probably sell it for a more than you paid and keep the difference. At least that way there is something in it for them and they will be more likely to do it for you. 
However I would be more inclined to split the difference with them so that at least you have a bit of something to show for it. One thing you need to be careful of is some developers are very crafty when reselling and will tell clients they got less than they did and keep the whole ammount of the profit so you need to make sure that your solicitor sees the contract of sale for the new purchaser so they know how much it has been sold for and you need to make certain that any contract you sign giving the developer power of attorney to sell it for you is very clear about the fact that profit will be split 50/50 or whatever is agreed between you.

As for the mortgage that should be paid off once the property has been resold.
Your solicitor would handle all that for you.
If you decide to keep it and rent it out you could possibly get around €500 per month at the present rate.

Regards Veronica


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## john_seage (Nov 23, 2008)

*looking on the positive side*

As an owner of 3 units a St George Hills I can understand how you are feeling, I suggest you look at the more postive side.

Remember it is location that counts, also Thomson Holidays are keen to market the units at St George Hills and have issued a letter of intent to do so.

News of the new road links which will make St George more accessable and the new marinas planned all looks good for the future.

When plans were accepted for the new marina I understand that the 400 plus moorings were sold overnight, this suggest that there is a good future at Cyprus.

Hope this make you sleep better.


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## chrissie (Feb 20, 2008)

dplees said:


> I have already posted on this forum regarding a one bedroom property that I purchased in the St George Hills development, Paphos.
> 
> I think i may have been very naive, I bought the property off plan (20k Deposit), however I have already had a morgtage aproved and the developer is drawing down from this at different stages - is this common practise?
> Second and final question - does anyone think I will get out of this one alive - ie get my money back?
> ...


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## john_seage (Nov 23, 2008)

will you recover your deposit?. Let me know the details of the the unit you own and if you are prepared to sell I may be interested in adding the unit to the 3 current ones I own, subject to the price being the same as the deposit. J Seage


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## Veronica (Apr 5, 2008)

john_seage said:


> will you recover your deposit?. Let me know the details of the the unit you own and if you are prepared to sell I may be interested in adding the unit to the 3 current ones I own, subject to the price being the same as the deposit. J Seage


Which St George Hills development hav you bought at?
There are 2
One is St Georges Hills which is being built by Leptos and is situated in Chloraka.
The other is St George Hills which is an Alpha Panareti Development and is situated on the outskirts of Tremithousa.
Which roads are you saying they will benefit from?
Veronica


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## dplees (Oct 21, 2008)

john_seage said:


> will you recover your deposit?. Let me know the details of the the unit you own and if you are prepared to sell I may be interested in adding the unit to the 3 current ones I own, subject to the price being the same as the deposit. J Seage



Hi John,

The apartment is an Alpha Panareti Development and is situated on the outskirts of Tremithousa, it is Selena 2A and has its own garden and looks out to a pool and faces the direction of the coast. The company offers a swiss franc interest only mortgage at 2%, which works out to about £170 a month (I gather it shouldn't be too difficult to cover this with a long term let).

Kind regards

David


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## john_seage (Nov 23, 2008)

I am unsure as to the swiss interest rate at 2%, my information is that it is actualy nearer 3.85% the maths are quite complicated.

I suggest you contact Alpa Panareti to get the latest rate, as I have property at St george hills I would be delighted at 2%

J Seage


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## dplees (Oct 21, 2008)

john_seage said:


> I am unsure as to the swiss interest rate at 2%, my information is that it is actualy nearer 3.85% the maths are quite complicated.
> 
> I suggest you contact Alpa Panareti to get the latest rate, as I have property at St george hills I would be delighted at 2%
> 
> J Seage


Hi John,
This is from the sales site and it looks like the mortgage rate is 2.75%
St George Hills Resort - Cyprus

Investment Information

Amazing payment terms of 5% - 5% - 5% deposits over 6 months.
Swiss Mortgages available through developer with 2.75% interest rate.
CYP £10,000 Tax FREE earnings per year and 20% after. 
Only 5% tax on retirees after the CYP £10,000 allowance. 
No Inheritance Tax.


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## Veronica (Apr 5, 2008)

dplees said:


> Hi John,
> This is from the sales site and it looks like the mortgage rate is 2.75%
> St George Hills Resort - Cyprus
> 
> ...



The 2.75% is the base rate from the Swiss Banks but on top of that there is Cypriot banks margin which could be 2 or 3%.
Also bank interest rates are rising in Cyprus, in fact they have gone up quite a bit this last month. So unless your mortgage is capped it could well go up.
Also the bank which Alpha Panareti bank with and I assume you have your mortage with is the Alpha bank and that bank is having some major problems at the moment. Our information is that the bank has overstretched itself with loans and is being held back by the Central Bank of Cyprus from giving mortgages for the time being.
We have a client who has been waiting for 3 or 4 months for their mortgage to be sanctioned and they are now told it will the new year before they get it. Luckily the developer they are buying from is happy to wait as long it takes as they recommended the bank to them so they know it is not the clients fault.
I beleive it does not mean that they are actually in trouble as they have large assetts but the central bank caps lending to 25% of a banks assetts and the Alpha bank have overstepped that mark.
Dont take my word for it as my information may not be completely accurate but this is what we were told yesterday by a director of one of the most respected developers in Paphos.
Veronica


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## Dave Route (Dec 26, 2008)

HI
I have a freind wanting to buy on St George Hills. can you help. The developer is unhelfull and charging really high on this distressed request.


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## Dave Route (Dec 26, 2008)

*Buy apartment*

Hi
If you wish to sell any of those apartments, please reply to me . Thanks . I am online today and every day also call anytime.


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## grumpy (Nov 10, 2007)

Dave, there are several other complexes available often with better locations, and better prices. If you are a cash buyer you will be able to have a nice discount negotiated. 



Dave Route said:


> Hi
> If you wish to sell any of those apartments, please reply to me . Thanks . I am online today and every day also call anytime.


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## grumpy (Nov 10, 2007)

I just hadanother quick shufty at the AP website as linked, I love the description of "Secluded Beach". ???At Aphrodites Rock, yeah sure????? It implies that all these beautiful areas are on the doorstep, but in reality they are miles away and nothing to do with the complex they are selling.

Not all UK based sites are bunkum some just prefer UK hosting for one reason or another.

I am in the process of moving my hosting over here, and I would have to say the company in Cyprus have been great however the UK based firm are proving a bit difficult to deal with, but we'll get there.

Happy new year to all viewers.



Veronica said:


> Grumpy is absolutely right. There are other complexes with just as many facilites and often in far better positions. No matter what AP say about the messy quarry/tip that complex overlooks it will not be moved once the complex is finished.
> These developers are great at making promises they cannot keep so anyone buying there is going to have that awful mess to look out on for many years to come.
> Also those apartments are overpriced for their location.
> 
> ...


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## Dave Route (Dec 26, 2008)

Thank you Veronica and Grumpy. Noted and believe you. The attractive thing these guys did in the UK for AP was to ensure that you were safe going in and no fear of rip off apart from hi price (duly noted). These guys also pay me as an advisor to my friends families and clients.I am an investment advisor. This was deemed investment due to the small deposit structure that was offered and that the whole thing was set up in a hype at the time , whereas they promised all sorts of rental and growth(typical developer)
However, one client/friend is stuck on the site...but he is flexible if I can find him another. There is a long story to it, as he beleived that he had purchased this in 2006 , but his deposit was mislaid. Any help to solve this situation appreciated. Any alternatives with gym sauna shops restaurants bars with panoramic sea views, and decent builders with title deeds etc would be considered. Pref distressed sales for people unable to complete. Thanks Grumpy and Veronica.


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## Dave Route (Dec 26, 2008)

Hi Guys
Thanks for all your advice. I am new to the site and finding it hard to log on as I messed up my password twice by not realising it was case sensitive, so I have to refer to an old email all the time to put in numeric password...not to go on too much, please email me any suggestions you have to help me find an apartment on a complex in a nice area 2 bed 2 bath panaoramic sea views same as Tremithousa top floor sun terrace, bars restaurants gym/suana etc 

pref a distressed price to entice the client as he liked the area when he visited, but prob didn't see the rubbish dump.

please be quick....discounted would help a lot as this guy has cash

Thanks Dave


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## Veronica (Apr 5, 2008)

Dave Route said:


> Thank you Veronica and Grumpy. Noted and believe you. The attractive thing these guys did in the UK for AP was to ensure that you were safe going in and no fear of rip off apart from hi price (duly noted). These guys also pay me as an advisor to my friends families and clients.I am an investment advisor. This was deemed investment due to the small deposit structure that was offered and that the whole thing was set up in a hype at the time , whereas they promised all sorts of rental and growth(typical developer)
> However, one client/friend is stuck on the site...but he is flexible if I can find him another. There is a long story to it, as he beleived that he had purchased this in 2006 , but his deposit was mislaid. Any help to solve this situation appreciated. Any alternatives with gym sauna shops restaurants bars with panoramic sea views, and decent builders with title deeds etc would be considered. Pref distressed sales for people unable to complete. Thanks Grumpy and Veronica.



You can totally forget title deeds with any new properties.
It takes years for title deeds to issued even assuming the developer has no debts on the land. Any complexes with the sort of facilities you are talkingabout are going to be newer ones and will certainly not have title deeds available for a number of years.
veronica


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## Dave Route (Dec 26, 2008)

*My Email address*

Hi
As i said, very new to the site and PC , so forgot my email address...here 

Thanks

Dave


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## Dave Route (Dec 26, 2008)

OK, i should have realised that, then safe developers only. any resale considered as long as new or spectacular


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## grumpy (Nov 10, 2007)

As far as investment is concerned, its an easy and disposable word that is still bandied around by many without realising the implications it has. Yes there is the opportunity to invest in bricks and mortar, however in the short term capital growth and rental income are not high, but the fact that the funds are tied up in a tangible asset is helpful, hence the reason that the title deeds are so important.

Like V, I would steer away from the large developers, with all sorts of fancy facilities (who actually uses a gym or sauna on holiday) (and many of these facilities do not come to fruition). I would select a property with the written undertaking in the purchase contract for no borrowings on the property, and with the undertaking to promptly produce title deeds, even if this takes 5 or so years at least you have clear title in the meantime.

Most of the larger hotels have health clubs and saunas etc so joining one of these will be far cheaper. One of the other considerations you have is the communal charges you pay. If you have a complex with all the toys, your fees will be excessively high. You are better with manageable charges and freedom to go where you wish. 


Independant solicitors etc are a must.


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## Dave Route (Dec 26, 2008)

thanks for the advice...dave


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## Gregs_sea_view (Dec 30, 2008)

All,

And especially Dave, 

I assume you purchased at St George Hills because you wanted a better standard of development than the usual run of the mill apartments? 
I too have a 1 bed apartment in the Galatea block.
Don't press the panic button just yet! 

The Thompson letter of intent referred to sounds very interesting, and I am confident that by the time the development is complete you will have a nice little earner.

Anybody else agree ?

Regards

Greg


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## john_seage (Nov 23, 2008)

Gregs_sea_view said:


> All,
> 
> And especially Dave,
> 
> ...


Hi Greg,

Yes I agree it is good to know a fellow invester who has a positive point of view, which is sadly lacking at this point in time. Well done.

No doubt you will have noticed that the interest rate has increased on your and our mortgages at St George Hills, an email just recieved from Alpha Bank informs me that the ACTUAL RATE which is higher than the letter you may or may not have recieved from them recently is infact 4.20%.

J Seage


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## Gregs_sea_view (Dec 30, 2008)

John,

Yes had the letter, and it does state the banks mark up.

We purchased as a long term investment, and I am not overly concerned just yet about the re-payments being covered by the rental income, although that would be nice!

I am concerned about the exchange rates, and how this would affect purchasers with a swiss franc mortgage, as the property would be sold in Euro's. But as I say we are in for the long haul.

Where did you hear about Thompsons letter of intent ?

Also the if you go to buildprogress dot com you can see the latest photos of the development. I will post the url if you or anyone else cant find st george hills page.

Regards

Greg


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## Veronica (Apr 5, 2008)

Gregs_sea_view said:


> John,
> 
> Yes had the letter, and it does state the banks mark up.
> 
> ...


Having driven past the development several times lately I can tell y ou that the pictures of the build progress dotn show the full extent of the build. There is much more completed than shown on those pics.


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## john_seage (Nov 23, 2008)

Veronica said:


> Having driven past the development several times lately I can tell y ou that the pictures of the build progress dotn show the full extent of the build. There is much more completed than shown on those pics.


Ref the Thomson letter of intent.

I understand the elevation; humidity and offshore winds were deciding factor in their offer. 

However I personally have not had sight of this letter but believe that Alpha Panareti were the recipients.

I have seen the website showing images of the development and my wife takes regular visits to Pathos supposedly to check on the building progress?

John Seage


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## Veronica (Apr 5, 2008)

Sorry guys I am closing this thread now. Everything that can be said about the complex has been said many times over and the thread is now being used for advertising. 
Anyone who has a property to sell on this or any other complex please use the FOR SALE section.


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