North Cyprus Property Hotspot 2007!!

[opitzalex]

Northern Cyprus market Drivers

Economy

Northern Cyprus is now enjoying a stable period bringing in increasing FDI. Current Land and Building cost are significantly lower than those of Southern Cyprus.

In Jan 2008 Southern Cyprus will enter the Euro zone and we would expect the market to enjoy an increase of around 19% plus normal; inflation.

Public sector consumption has grown from 4.2 per cent between 1990-2000, to 11.8 per cent in 2005, stimulating further investment and worldwide property investor confidence. Government investment in the economy grew from 3.4 per cent in 2000 to 16.1 per cent in 2005. Not to be outdone, private investment has kept pace with a leap from 2.7 per cent in 2000 to 15 per cent in 2005.

The GDP for 2006 was around £2.2 billion ($4.54 billion). The Northern Cyprus government is aiming for 7 per cent growth in the economy in 2007.
The GDP growth rates of the TRNC economy in 2001-2005 have been 5.4%, 6.9%, 11.4%, 15.4% and 10.6% against 4.1%, 2.1%, 1.9%, 3.8% and 3.9% in the Republic of Cyprus.[18] This growth has been buoyed by the relative stability of the Turkish Lira and a boom in the education and construction sectors.



Tourism

Northern Cyprus is enjoying a massive boost to its holiday visitors since access was granted between South and North

Political Stability

Although the area has had its troubles the partition is now offering free access and stability in the area appears to be in place
As Turkey moves toward the EU the stability of the area will be assured

Factors

The Price differential between North & South must reduce.
The South’s entry to the Euro zone will drive their price up
Therefore the Land & Build Prices in Northern Cyprus must appreciate.

In 2004, the EU alone invested £175.4 million (€259 million) in Northern Cyprus to facilitate trade and development and strengthen its economic ties to the EU.

[PETE881]

Thanks opizalex for a great no-nonsense Investment focussed report !

P

[Christos]

Originally Posted by opitzalex

Northern Cyprus market Drivers

Economy

Northern Cyprus is now enjoying a stable period bringing in increasing FDI. Current Land and Building cost are significantly lower than those of Southern Cyprus.

In Jan 2008 Southern Cyprus will enter the Euro zone and we would expect the market to enjoy an increase of around 19% plus normal; inflation.

Public sector consumption has grown from 4.2 per cent between 1990-2000, to 11.8 per cent in 2005, stimulating further investment and worldwide property investor confidence. Government investment in the economy grew from 3.4 per cent in 2000 to 16.1 per cent in 2005. Not to be outdone, private investment has kept pace with a leap from 2.7 per cent in 2000 to 15 per cent in 2005.

The GDP for 2006 was around £2.2 billion ($4.54 billion). The Northern Cyprus government is aiming for 7 per cent growth in the economy in 2007.
The GDP growth rates of the TRNC economy in 2001-2005 have been 5.4%, 6.9%, 11.4%, 15.4% and 10.6% against 4.1%, 2.1%, 1.9%, 3.8% and 3.9% in the Republic of Cyprus.[18] This growth has been buoyed by the relative stability of the Turkish Lira and a boom in the education and construction sectors.



Tourism

Northern Cyprus is enjoying a massive boost to its holiday visitors since access was granted between South and North

Political Stability

Although the area has had its troubles the partition is now offering free access and stability in the area appears to be in place
As Turkey moves toward the EU the stability of the area will be assured

Factors

The Price differential between North & South must reduce.
The South’s entry to the Euro zone will drive their price up
Therefore the Land & Build Prices in Northern Cyprus must appreciate.

In 2004, the EU alone invested £175.4 million (€259 million) in Northern Cyprus to facilitate trade and development and strengthen its economic ties to the EU.

Hi

for those who have not heard of us, we are Simon and Vikki and we are based in the UK.

Our parents purchased a property in the TRNC over 3 years ago and to date have nothing to show for their maney, just a very large loan for £150,000 that they (in failing health) are struggling to pay on their meagre pensions.

We are hoping that this group will be able to lead or advise those as to the possible pitfalls that may occur when purchasing in Northern Cyprus

The country is truly beautiful and the people also, but there are many unscrupulous characters lurking including Developers, Estate Agents and more worringly even Lawyers

We work closly with "The Home Buyers Pressure Group"

who have loads of very important information on their site.


All we ask is for true stories (that can be backed with documentry evidence if required) good or bad, also nominations for "Good and Bad Guys" again with evidence should it be needed.

We look forward to welcoming you

and if we can help 1 person

NOT TO MAKE THE SAME MISTAKES AS OUR PARENTS

we will have succeeded.

we also now have a bulletin board

I copied this from another forum from a member called victoria's loss I think it might be helpful for some.

[deedee1]

Hi all,

This is VICTORIAS LOSS WEBB SITE INFORMATION!!

She posts her info everywhere as her parents had lots of problems in NC yes- But there are issues like this no matter what country you buy into!!

Their is now a north cyprus property legislation department set up to deal with these problems and issues accordingly!!

BUT I WILL STRESS AS I ALWAYS DO ABOUT THE IMPORTANT ADVISE WHEN BUYING PROPERTY ABROAD- BE CAREFUL AND DO THE FOLLOWING TO MINIMISE THE RISKS:

1- SEEK GOOD PROFESSIONAL "INDEPENDANT" LEGAL ADVISE BEFORE BUYING ANYTHING! DO NOT GO WITH A LAWYER OR SOLICITOR THAT IS RECOMMENDED TO YOU BUY THE DEVELOPERS OR AGENTS- AS THIS CAN LEAD TO COMPLICATIONS!!!

2- DO NOT FEEL PRESSURISED TO SIGN OR HAND OVER MONEY STRAIGHT AWAY BBY AGENTS/DEVELOPERS- TAKE YOUR TIME, DO NOT DO ANYTHING IN HASTE, DO NOT FALL FOR AGENTS TRICKS i.e "this is the last one left, the prices go up tomorrow, i have someone else intyerested!!
DONT WORRY- AS THERES LOTS OF CHOICE OUT THERE ANYWAY- ANOTHER 100 WILL BE AVAILABLE TOMORROW!!

3-ENSURE THAT THE PROPERTY HAS ALL THE BUILDING PERMITS, PLANNING CONSENTS ETC BEFORE YOU BUY- GET PROOF OF DOCUMENTATION FIRST- DO NOT BELIEVE WHAT YOU ARE TOLD!!

4- DO YOUR OWN RESEARCH ALSO- DO NOT TRUST EVERYTHING YOUR TOLD, DO NOT SIGN OR HAND OVER ANY MONEY UNTIL YOU KNOW ALL THE FACTS AND HAVE SOUGHT LEGAL ADVISE AND ARE AWARE OF ANY PITFALLS, PROBLEMS!!

5- GET EVERYTHING CONFORMED IN WRITING AS VERBAL AGREEMENTS MEAN NOTHING AND ARE NOT LEGALLY VALID. MAKE COPIES OF EVERYTHING AND SAVE ALL DOCUMENTATIONS AND CORRESPONDANCE via post,e-mail etc!!

6- ENSURE THAT EVERYTHING THAT IS AGREED WITHIN THE PRICE IS STIPULATED WITHIN THE CINTRAC AND APPENDICS!

7- ONLY PAY YOUR STAGE PAYMENTS WHEN DOCUMENTATION IS PROVIDED AND YOU ARE INSTRUCTED TO DO SO BY YOUR SOLICITOR!!

---------------------------------------

ALOT OF PEOPLE OFTEN LEAVE THEIR BRAINS ON THE PLANE WHEN THEY GO ABROAD- JUST LIKE ANYWHERE ELSE IN THE WORLD!!!
DO WHAT YOU WOULD DO IF YOU WERE BUYING IN THE UK i.e-legal advise, land registry search, building permits licences valid, stage payments to be paid at stages of completness supported by documented proof and pictures etc!!

DO NOT RUSH AND TRUST YOUR INSTINCTS, DO NOT FEEL PRESSURISED OR BULLIED INTO BUYING!!

TAKE CARE- LOOK AFTER NO 1 -PROTECT YOURSELF!!!!

AS PEOPLE ARE ALWAYS NICE AND SEEM TRUSTWORTHY WHEN THEY WANT YOUR MONEY!!!!! BUT ONCE THEY HAVE IT THEIR ATTITUDES SOON CHANGE!!!!

[opitzalex]

It is very true that Northern Cyprus is a minefield. There was an article in the Sunday times about a couple that has bought from a doggy developer called “Aga marketed by a British agency called “Unwin Estate Agents” and basically have gotten a half build villa with no electricity or water and human excrement in the corners. On top of that they have sold the same property twice.
Google minefield and Sunday times, Cyprus and you’ll see the article.

Basically they got stitched up all the way and no have to fight to get their initial investment back.
All I can really say to this is, firstly it could have happened to anyone of us and secondly these kinds of stories happen all over the world on a daily basis.
Doesn’t matter what country you looking to buy property there are always cowboys that will try to rip you off. For example Spain was renowned for it; however it didn’t stop people buying properties out there. The question is why not?
Well the property market is undervalued at the moment and there is strong growth to be made in the foreseeable future. So it’s an ideal property investment opportunity.

What you need to do when buying property abroad is DO YOU DUE DILLIGENCE!!!!!!

Main points look for: track history, transparency of company, i.e. Financials, Addresses., nearby developments enabling you to compare to see if you getting value for money and not over paying. Exit strategies, and after services, i.e. management of the development after completion, hidden costs, clauses in the Contract,

Northern Cyprus is an amazing place to live, have a holiday or just own a investment property check the market drivers that i have listed earlier on.
All you need to do is find a decent developer , Agent, or just built proeprty for the right price that suits you.
I am working for a global developer and we have successfully acieved 5 developments till now and have just launched a development in Northern Cyprus, Famagusta. We are a Uk based developer that sources opportunites globally and capitalisees on their potential. Simple as that, building a property is not rocket science!!!!! However give your money to someone that has done it before.

[PETE881]

Its always sad to hear stories of sales that did not work out. However North Cyprus is as bad (and good) as everywhere else in the world. I could list dozens of such cases in the South of the Island who were ripped off by Greek developers (mainly Russians actually which is why the UK press doesnt catch on to it so much). And lets not forget all those horror stories from Spain and Portugal !!! Its everywhere and anyone considering purchasing should be aware that this could happen to them whether they buy in South Cyprus, Italy, Australia or WHEREVER !!!

Funny how we only hear the unfortunate stories of those one or two people who have had bad experiences, and never the hundreds of others who are happily retired and resident on the island right as i type this note !!! ... food for thought ! .

[PETE881]

Here's an interesting article...

Filed in Property News for North Cyprus » North Cyprus Property will continue to be a Great Investment in 2007
North Cyprus Property will continue to be a Great Investment in 2007

North Cyprus is one of the most exciting markets in Europe for predicted property price growth in the medium term, and because politically speaking things started moving incredibly quickly at the end of 2006, 2007 could be one of the last years for investors to bank land and properties at seriously below market prices.

Naturally discussing the political situation in Northern Cyprus one has to be incredibly sensitive – but at the same time to avoid highlighting the very real fact that North Cyprus property will continue to be a great investment in 2007 would be wrong…so we hope we achieve a balance in this report on the 2007 prospects for the real estate market in Northern Cyprus.

In 2006 certain significant events occurred that suggest that a permanent solution to the property dispute across the whole of Cyprus could be resolved as early as 2007. Firstly the High Court in London ruled that a Greek Cypriot court had no jurisdiction in North Cyprus and they also ruled in favour of a British family keeping former Greek Cypriot property that they had bought, taken over and redeveloped in Northern Cyprus. Secondly the Northern Cyprus Property Commission which was established in TRNC in 2005 ruled that a former Greek Cypriot owner of properties in the North of the island should be paid compensation by Turkey for loss of access to their property and this ruling was upheld by the European Court of Human Rights.

Both of these events suggest that over the medium term any Greek Cypriots who have direct claim to properties in North Cyprus will be able to apply for compensation from the Turkish government for loss of use of their properties. While this will not solve the issue for Turkish Cypriots who lost land and real estate in Southern Cyprus it could well put to bed the long running concern over what could happen to resolve disputed property cases in the North.

Naturally this will remove all fear that has been instilled in people that if they buy property in North Cyprus they could be evicted from it or have to pay compensation to former owners for the use of it.

It’s a very real fact that the High Court ruling resulted in a resurgence of serious property investment interest in Northern Cyprus from British investors which immediately boosted property prices, and it’s a very real fact that Turkey’s offer to open ports and airports to Greek Cypriot traffic in return for the opening of Ercan airport in Northern Cyprus to direct flights is a step closer to expanding the tourism industry in the North upon which a great deal of property investors will rely for rental income in the future.

Cyprus Turkish Airways have just applied to the British government to be allowed direct flights from London to Ercan and a ruling is expected on this request in 2007 with most confident that a ruling will be positive and result in a bumper summer in 2007 for North Cyprus’s travel and tourism economic sector.

The Turkish Cypriot government have put before parliament a change to inheritance tax rules in North Cyprus that should see IHT drop from 25% to 1% in 2007 in a bid to encourage greater foreign direct investment into real estate. Add to this the fact that property companies in the North are now self-financing mortgage arrangements for customers and that it is now possible to establish a limited company in North Cyprus with 100% foreign ownership through which an individual can own multiple property units and parcels of land and you begin to get the picture that things are moving so incredibly fast towards boosting TRNC’s FDI which will in turn see property and land prices rapidly increasing.

In real terms property is still at least a third of the price in the North compared to the South and there is so much of North Cyprus that remains untouched. The east – west corridor from Tatlisu to Lapta has been heavily targeted for development but that leaves about 90% of the rest of North Cyprus untouched. In a bid to protect the nation from excessive building the government have just put a blanket ban on all new building permissions for multiple housing developments while they reassess which areas are nearing saturation and which are ripe for further development. The ban will be lifted in January 2007 and developers will be given tight guidelines about what they can and cannot do. Furthermore, environmentally speaking the government have finally realised that they cannot market mucky beaches and landfill sites that were formally attractive ravines to holiday makers. A huge operation is underway using public and private funds as well as military assistance to clean up North Cyprus and it is staggering to see how much positive action is occurring so fast.

Finally it seems North Cyprus has awoken from its own reverie and realised that it has so much tourism potential and possibility as an attractive second home or retirement destination and it is consistently and actively doing all it can to improve the nation both physically and in terms of its attraction for investment.

Property investors considering North Cyprus have so many angles of approach. They can land bank parcels of land, they can invest into tourism projects such as one that is seeking investment in 2007 which is a pre 1974 title deed luxury beach front hotel project, they can commission developers to construct properties that they then market, they can buy one off apartments to let to the huge international student population in North Cyprus, they can buy villas to rent out privately to tourists, they can purchase and renovate traditional properties or they can even purchase commercial or residential stock suitable for letting out or leasing to local demand or they can buy off plan and flip on to other investors of property purchasers.

North Cyprus has to be one of the most dynamic countries in Europe right now in terms of the efforts it is making to transform its country into one of the most exciting places to invest and one of the most attractive places to live or holiday and we truly, wholeheartedly believe that North Cyprus property will continue to be a great investment in 2007 and beyond.

[Christos]

Can you give us the source for the article Pete?

Thx

[romulus]

Whatever your point of view some facts remain:

1. Cyprus is an EU country
2. The self-proclaimed TRNC is not
3. The UN has formally condemned the Turkish invasion and will never recognize TRNC as a political entity

There are reasons for the above that transcend some of the historical revisionism we have witnessed in this thread.

If TRNC were ever to enter the EU it would only ever be with the full agreement of the Cypriot government which means probably never or at least not in our lifetimes.

This means that TRNC will always be a militarized area, with far inferior economic development compared to Cyprus.

You may aswell buy property in Baghdad.

[opitzalex]

well if you check the statistics, it will inform you that Baghdad despite having al the military presence is one of the most dangerous places on earth. We are seeing more civilians being killed then soldiers.

Well not in TRNC.

TRNC is statistically one of the safest places in the world, with the lowest crime rates in Europe.

So next time you want to post something please keep your emotions out of it and stick to the current facts. Its not the 1970s anymore, get over it,!!! we are just talking about property here.