Can i still make money in Southern Cyrpus

[sonia36]

Hi Nigel

The developers are offering free cars?? wow - they must be getting desperate. And 25,000 properties for sale sounds like an enormous amount.. i know when I bought there in 2003 there was a fair bit of new build going on around Limassol but I guess it must have really taken off since I was last there.

Im not planning on selling any time in the near future.. in fact I do hope to move to Cyprus permanantly one day but at the moment its a question of trying to clear off outstanding debts in the UK before I can even consider it... plus of course there is the small matter of what I would actually do when I got to Cyprus employment wise.

I have a place in Bulgaria which I purchased 2 years ago off plan and has just been completed - what a nightmare that has turned out to be - it makes my Cyprus experience seem a piece of cake. Although the price has risen around £10k over the last 2 years there is no resale market whatsoever and the rental market is completely saturated. I have absolutely no bookings/interest for this year (including from friends and family who will not be persuaded to go because the flights are so expensive!).

And as for guaranteed rental - no-one should be taken in by this - I was guaranteed a rental return of at least 15% on my Bulgarian property - now the company cant even find me one rental let alone 15% worth!!

[Nigel Howarth]

Hi Sonia,

The 25,000 is just from one company - I hate to think how many there are in total.

Many people have been duped into buying off-plan holiday homes with the 'promise' that they could flip and make a decent return. A chap living in the middle east who bought five apartments contacted me a couple of weeks ago desperate to sell.

There is a lot of resale property around at the moment. But the agencies are more interested in promoting off-plan. One pundit here believes some agencies receive as much as 15% from the developers by way of commission, so there's little incentive for them to promote resales on which they receive just 5%. (Also, a number of the agencies are in partnership with the developers and helping to fund the construction).

Have you tried promoting your property on one of the many holiday home rental web-sites? I also came across a good site with information and advice for those renting property - Lay My Hat.

Cheers,

[katharinestavrinou]

Hi All
I rent my apartment in Agia Napa by the week in the summer and can rent it by the week for what I pay on my mortgage in a month. In a summer I pay off my mortgage, and can use the apartment for myself in the spring, fall, and winter. It is 50 square meters, has a clear title deed, is fully furnished, and is selling for 50,000 cyprus pounds.

[katharinestavrinou]

I still stand by the idea that resale is the answer to a good property investment in Cyprus. I bought in Cyprus because I had lived there for 20 years, before moving to Norway, and a part of me will always belong there. But I chose to buy in Agia Napa and to buy a resale because the risks are fewer and there are many advantages- resales may come with a clear title deed, will probably have mature and finished landscaping and pool, and so on, and resales are apt to be positioned closer to the sea and town, since much land close to the sea has already been built and newer developments are typically further out or exorbitantly priced. Besides, I didn't have the money for a hugely expensive outlay.

I decided to rent my apartment this spring and adverstised with holidaylettings in the uk. I have found a really first rate manager who takes care of everything on the cyprus side for me- I can really recommend him to anyone who is interested, and he charges just about 150 Cyprus pounds for a year of management- I made that back in my first week's rent. I got something like 40 requests in the first week after I posted my apartment, and ended up renting it for the whole summer to one party, for enough to pay most of my mortgage for the year. Then just yesterday I got a request for 6 months from May to October 2009, which would more than pay my mortgage for the year.

I haven't decided to do about this latest request, since I am thinking of selling the apartment- my son is getting ready to go to college and I could use the lump sum. Still, if I don't get the price I want, I think that renting is not difficult in Cyprus and can pay the mortgage. My advice- don't pay so much for a place that you can't cover the mortgage or that you will be hurting if prices stop rising. Other than that, think about places you would like to be yourself, places you can let easily, and good rental management services.

[christop]

Hi i do not know who, and where you are all being offered these 1 bed flats from, im buying several 1-2 bed apts in livadhia Larnaka, from 52000cyp and 10% deposits???
good luck

[grumpy001]

We have studios, 1 and 2 bedrooms in Peyie for reasonable prices, if you look around and ask the right people you will find what you are looking for.
Peyia disabled access property Marina Complex, Unobstructed views. for sale

[katharinestavrinou]

I just booked two parties into my apartment for September. My online rental service is really good, and my apartment management is fantastic. I had not thought about renting when I first bought, but since I couldn't get to Cyprus I decided on this. I have now made the entire mortgage for the year. We are now thinking we will plan our trips to Cyprus around our bookings, and let the flat pay for itself and more.

[Davey50]

PyramidJames,
Property sales here are on their knees!
I should know as I've been trying to sell for nearly 2 years!
The price you have been quoted for a new build is way too much in this market. DO NOT BE TEMPTED WITH NEW BUILD
You will be more than likely buy a load of problems and almost certainly will never get your title deeds.

Speak to ex pats who live here and not the fantasists who call themselves property developers. Cyprus is fantasy island as far as making money out of property is concerned...I urge great caution.

[Nigel Howarth]

I agree Davey,

I've just been looking at the Inland Revenue disappointing figures for tax receipts resulting from property sales. No wonder the Government here wants to sell some of the gold reserve.

Cheers,

[pragueproperty]

Cyrpus is really good investment area. Many new investors build up their lives with in short span of time. How can i know is i am also one of the person who have the previous experience. I have many apartments and properties for buy and rent with less prices. If you are interested call me plz i will be always for you..

property investment