Ropuk network

[feisty1]

Hi Has anyone very bought through this company and if so what has been your experience. Please see below information from their website. Would like to hear your views, thank you.


The website states " Buying “Off-Plan” is the most productive way to buy property for the investor in countries that are experiencing good rises in property prices. The earlier an investor buys a property on a newly released development the better, because this gives them the maximum amount of time between purchase and completion of the development. Within this period, often 3 years, the property will increase in value and on completion the investor has a brand new property ready to sell or rent, but it was purchased at a price well below the current market value. This gives the investor good potential Capital Appreciation. When you link Buying “Off-Plan” with “Gearing” (using someone else's money to fund your investment), Low deposits and in some cases no drawdown payments during the build, then the investment becomes even more beneficial. Talk to your advisers about Buying Off-Plan and Gearing, we have an exclusive packaged investment that you will find difficult to match anywhere."

[Lysos]

feisty,

Please, please do some rearch !. Lots of it !. Off-plan purchasing is a disaster area in today's market, not just in Cyprus where there are thousands of unsold new & resale properties, but in most places. UK, for example, big developers are putting new developments on hold and laying off thousands of staff. In Carlisle a new development of 40 luxury flats - not one sold and prices now cut by £100,000 - still no buyers !!!.

[feisty1]

thanks for your reply, on their website they say "Overseas property purchase is a serious investment. The ROPUK NETWORK is made up of qualified financial advisers who are in the best place to help with your buying decision. The ROPUK NETWORK only promote fully researched developments in suitable investment markets for our investment clients.

Just thought this might be a bit safer as they are UK based using advisers

[Lysos]

feisty, That's all just agent speak. They will say anything to sell property; I'm a qualified financial advisor (really) - so what ?. That doesn't alter the fundamentals of the marketplace. Steer well clear of off-plan anywhere. If you still really want to buy somewhere then buy a resale. Ideally, off some poor unfortunate who believed the hype & bought off -plan, and now finds the rentals DON'T cover the mortgage and everyone in the same development is trying to sell and can't. Just check out recent auctions in UK for repossessed city centre flats bought off-plan, and now selling for half the original price.

At the latest auction in Cyprus not one sale !. I also know of resales in Cyprus that have been on the market for more than 2 years. Stop reading sales blurb and do some real research.

Forgot to add, what does a UK based adviser know about the market in Cyprus ?.

[Gashead]

Feisty if you're new to this game I would suggest going through traditional routes such as a mortgage on a resale. Look at what is available locally, calculate the m2 rate and see if the place you like is reasonable in comparison and then get a mortgage. That way you can't go much further wrong than any of us regardless of our experience.

Generally new build isn't a good idea in Cyprus at the moment but then again if the price is right why not? We bought a lovely place off plan 2 years ago, it's 3 months away from being completed and to date we've paid 20% and have deferred our mortgage for another 12 months. We like the other completed units in the complex and in 2 years have probably made 20% on the property and will probably get 5% yield by letting it when we don't use it. Very average returns but a lovely property in a country where the banks (allegedly) don't check how many other mortgages you have.

[buyerone]

Don't let others scare you out on making what could be a good investment. The overseas property market is full of poor quality companies who will do anything to sell a property, but there are those who sign up to the AIPP and are working hard to help clients through the buying process.

Looking on the ROPUK website, they have won the award for the Best IFA Partnership Programme, as voted by the Overseas Professionals Magazine. (IFA - Independant Finacial Advisers).

It would appear that ROPUK are genuine and reading their about us, they were set up becuase of the proplems thier own clients had faced.

There is always a risk when buying property, and it depends on what you want it for; investment, holiday home or a mix. It can't do any harm to speak to the company and make your own mind up.

[Olly]

Hey Feisty.1

The real estate markets generally are in rapid decline across the globe and, therefore, an awful lot of developers in trouble. Probably the safest path to securing your money en route to an off-plan purchase is to only accept a contract where your funds are placed in Escrow until closing of the purchase.

Developers that follow this practice have usually sufficient funds to cover land purchase, infrastructure & construction without having to dip into client down payments.

Equally, be sure to choose your market with both eyes wide-open. If you're seeking a home for private use & lifestyle, but with occasional rental income to assist or cover overheads and taking a long-term investment view (5-7 years), it's not quite so relevant whether the market is up or in decline. That's not to say it isn't an important factor, of course it is. Just so long as you're well aware of these issues before you stick your hard earned cash down as a deposit.

Further 'useful & unbiased' info Google Global Property Guide. In particular read their latest News Bulletin covering the world real estate markets will enlighten you to the cold hard facts of today's weak markets.

Best of good fortune to you whatever & wherever you choose to buy...

Olly

[UK IFA]

ROPUK is made up predominantly of UK Mortgage Advisers, not fully qualified IFA's like they like to advertise.
The commissions they pay to these people are huge and according to their website, "their top salespeople earned in excess of £100,000 in one month".
This is a threat to UK Financial Services and the FSA should look at their dealings and the 'advice' given by its Agents.
As an IFA, I declined to join them as I was not impressed by the masses of Mortgage Advisers they were recruiting and who were giving 'FINANCIAL ADVICE' to their Clients on Overseas Property Purchase as investments.
Question: What does a UK based Mortgage Adviser know about overseas investment, probably a little less than an IFA and the FSA prevent us from recommending in this area.
If you have already purchased, contact the FSA and raise some questions about the 'advice' given by your supposed Financial Adviser.

[Pippin]

As has already been asked, how can a UK company advise people on purchasing oveseas?
Every country has its own problems and peculiarities and unless you are actually based in a country you cannot accurately advise people on purchasing properties.
Also ask yourself how much over the odds you would be paying for a property if Ropuk agents are earning such huge amounts of money. Who do you think pays these commissions in the long run? It is the gullible buyer who is stung with extra cost to cover these commissions.
I would recommend that in the current economic climate purchasers go for either resales or properties that are close to completion. At least then you know that the project will be completed.
Also do not believe developers who tell you that you can cover your mortgage by renting your property. There is a huge glut of rental property in Cyprus and many owners are struggling to pay their mortgages because they believe the developers and agents hype.
I sell property in Cyprus and always tell my clients if they need to cover their mortgage by rental income they should forget the idea of buying. It has lost me sales but I do not want to be responsible for anyone getting into financial difficulties.
Veronica

[Nigel Howarth]

Hi feisty,

As others have already said, it's absolutely essential that you do your own independent research before investing in overseas property - be it in Cyprus or anywhere else.

Currently, the market for jet-to-let holiday homes is dead - there are just too many properties chasing too few holiday makers. Some local estate agents will give you a 30% discount on new properties if you haggle. You also need to bear in mind that some of the overseas marketing companies receive 15% sales commission.

Unless you have an outstanding property in a prime location - forget renting it out. If you take a look at the 'Global Property Guide' you'll see that average rental yields in Cyprus were 4.7% in 2006 - and if all you've got is a run-of-the-mill holiday apartment or villa, the chances of you achieving that figure are zero.

You'll have a better chance of earning money if you buy in the residential areas of Limassol or Nicosia where there's always a strong demand from long-term rentals. But even then you'll not make a fortune or cover your mortgage repayments.

Cheers,