[scozzy]

Hi,

I work for a developer- first off, but I have been working in international property for 7 years now.

40% deposits- yes that is what the CBC are requesting, however Pafilia are offering 20% deposits still, so 80% LTV. We do not overvalue our properties to achieve this, we use a bank with whom we have a long standing relationship. In certain cases we can even split this 20% over the period of build.

I know what you're thinking- "That doesn't matter, the market will still see reduced demand due to the usual 40% deposits.". You are correct, but only over the OCtober to December Period (where 60% of sales happen). If you don't remember, the CBC have done this every year for the last 4. However, the amount has been risen to 30%, not 40%. The reason they do this is to protect prices, not harm them!
Basically, by holding back speculative demand from short term investors buying before the euro comes in; protects the property market from growing unsustainably.

IN CONCLUSION- Not only is the 40% deposit a temporary affair, and we have seen such moves in the past- but it is there to protect the market from a crash. Expect the minimum deposit to be reduced within the first few months of next year. The move is to HOLD DEMAND from increasing rediculously, not LOWER it. I sell property in Cyprus, and I would be a very, very, very, rich man if I could broker 5-10% deposits.

The title deeds problem- isn't so much a problem. They are going to change the system soon- however...

The developer I work for separate teh titel deed so that when a client signs the contract of sale they have 'specific performance' on a section of land equivalent to their share of the development. The developer then, (us) never see the title deed, as they are sent straight to the purchaser, when completed in 3-5 years.

Some developers have been known to hold on to Title deeds in order to borrow funds to pay for their next development. You will hear horror stories because, admittedly it has happened- in every country in the world. It is very rare in Cyprus. I recently heard of a tale where *$%s Estates were involved in such a scandal. But let me be clear; you will face this worry wherever you decide to buy.
My advice (aside from 'buy from me') is to get a trusted solicitor, not related to the developer, and ensure they check that the contract specifies a specific 'title number' that you are purchasing along with the property, otherwise you are paying for a neatly piled bunch of building materials, that one day you may have to move to make way for a road. This is rare though, and in the most part, buying from a large developer with a UK office is totally safe.