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Property Value

Posted by al78 - Created: 9 years ago
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6 replies (Showing replies: 1 to 6)

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Posted by PPREMA - 4 years ago

 

I agree with most of what is being said.

I invested in a 2 bedroom apartment near the UN buffer zone in Paralimni. And now i will live to regret it.

First i agreed to rent it 3 times to some Bulgarians. Especially 2 Bulgarian couples and it has been a disaster.

Like other comments on this page, parties almost every day, big dog without my consents. Late payment of rent and i will pass on the details. I only heard of what was going on because neighbor who succeeded to contact me directly. And it took a while for the agency to go and check. I had to insist so that one of them was bothered to check.

And reluctantly they decided to evict them. Then I changed agency and they rented to another Bulgarian couple who just after 2 months in the property decided not to pay anymore. As the agency could not evict them (due to these EU rules), they finally cut off the electrics and the days after the couple vanished and apparently ran away to Bulgaria (as the agency discovered they had over debts), even leaving a starving dog in the garden. But the agency had to pay the electrics amounting to over 600 euros with the deposit.

So now I can only rent for the summer time. And I agree on the fact the rent does not cover the mortgage payment and management fees, refuse fees and so on  even If I would find some decent tenants to rent for 12 months.

I would not recommend anybody to invest in Cyprus. The market will stay as it is for long years especially if there is still no agreement found for reconciliation of both parts (Turkish and Greek Cypriots).

 Patricia

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Posted by Nigel Howarth - 9 years ago

Hi,

Do not by an apartment hoping that your rental income will cover your mortgage - it will not.

On Friday, I attended the launch of the new RICS Cyprus (Royal Institute of Chartered Surveyors) Property Price Index. Rental yields are poor: see http://www.news.cyprus-property-buyers.com/2010/01/29/rics-cyprus-property-price-index-published/id=003359

If you do decide to buy, get yourself an independent lawyer - do not use the lawyer introduced/recommended by the developer or the agent. The British High Commission in Nicosia publishes a list of English-speaking lawyers that you can find at: http://www.news.cyprus-property-buyers.com/2009/11/23/finding-lawyers-in-cyprus/id=002254

Regards,

Nigel


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Posted by R&M-666296 - 9 years ago

Perhaps too bear in mind that holiday letting is illegal without certification from the CTO.

Their first requirements are that it is a detached property and you hold the title deeds, you are also required to pay tax on their calculated rental income (at 3%pa) whether it is actually let or not.

There are insurance issues too.

The law is largely flaunted it seems, which is why holiday parties often disturb the residents of apartment blocks, but it is the law.

Best to do some detailed research perhaps and consider the (very short) list of lawyers on the FCO website, the last entry, as Z is at the end of the alphabet, is continually referenced and recommended on the many Cyprus forums.

http://ukincyprus.fco.gov.uk/en/help-for-british-nationals/when-things-go-wrong/if-you-need-lawyer/list-local-lawyers and follow the link on the right.

R.


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Posted by George Price - 9 years ago

Hi,

I agree with abfab if you have to rely on buy-to-let income to purchase the property don't do it. We had very similar experience to abfab, we bought our 2 bed appartment for future retirement and were pursuaded to rent it out on a fully managed basis as we live in the UK. Our experience was eactly like abfab, 2 young east european tenants with impeccable references, in permanent work and looking for Cypriot citizenship, late night parties, noise, bottles etc bing thrown from the balcony. We also strongly suspect that more than the 2 tenants were living there sharing the rental cost.

The rental agency denied there was a problem until a deputation of appartment and neighbours confronted the agency and the tenants were removed and we could then assess the damage, much of it hidden. The tenants also walked away without opaying the electricity, water or council tax charges.

We are still trying to sort it out, the rental agency told us they are on the case, but we are still chasing the agency 2 months on.

Reading other experiences on this forum, it seems to be the norm that renters walk away usually not paying the last one or two month rent which is their deposit amount.

Only rent to people you know.

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Posted by johnners-660966 - 9 years ago

Hi Al78,

Think this through and plan what you want to do very carefully. Don't believe everything a developer tells you about the property and its value in the future, all they want to do is sell it. Likewise any agent is looking for their commission they're not concerned about the building or you once the deal is completed.

If you decide to buy then you can hammer down the price and get a good deal. To then rent it out could be difficult because anyone wanting to rent knows the market is awash with properties and they can hammer down the rental price too. It's likely that if you can buy and only you use the apartment it will work out more economical than renting it out when you're not using it. After all you need to take into account wear and tear of all the white goods and furniture, plus any service charges etc. Making a profit to build savings for your eventual full time move here could be difficult.

If you do decide to buy make sure you get independent advice DO NOT use anyone recommended by the developer or agent.

Johnners

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Posted by abfab-689786 - 9 years ago

Hi,

We bought a 2 bedroomed penthouse apartment in Ayia Napa around five years ago, older building but really beautiful inside - huge balcony with sea views in all directions. Decided to use it only for ourselves for holidays (as we couldn't bear to have it damanged )until we retired here which we have done now. Don't be fooled by property developers trying to sell you a property with the sales pitch that you will have no trouble renting it out. There is more property around to rent in Cyprus than people wanting to rent, either short or long term, and a lot of people have come unstuck and left with financial problems as they fell into this trap.

Your apartment would need to be in a highly desirable area and then there is no guarantee that you would find anyone who would want to rent it out from you.

You may be lucky.... we bought a bungalow in a village and were lucky enough to rent our apartment out last summer through an estate agent (who took 800 euros in commission for basically doing nothing that we couldn't do ourselves!) We were left to collect the rent and deal with any problems afterwards. Our girls also left early without paying us for the electricity bill.... and left the apartment in a terrible state which is taking us a lot of time to fix. Also the neighbours in the block told us we were lucky to be left with anything in our flat, as there were noisy parties going on most nights with plates and rubbish being tossed from the apartment into the street below! This was despite the estate agency seemingly having "vetted and referenced" them.

OK - we have been told we were lucky to get it rented out last year, as tourism has gone down so much and we reckon we did make some money from the apartment last year despite the damage, but was it really worth the hassle and the risk of damage to the property? I would welcome everyone else's views on this, and whether the property market in Cyprus has recovered enough now for us to risk selling, or should we try to clean it up and try to rent it out again this year?

Good luck Al78, but if you could afford to buy now without the need to rent out and just use it for yourselves for holidays with a view to retiring here eventually, that might be your best bet. You should be able to pick up a real bargain at the moment and yes, I believe in a couple of years the property market will have recovered sufficiently enough for whatever you buy to have held its value and gone up enough for you to be able to move upmarket if you wanted to.

Play safe - if you can't afford to buy the apartment without renting it out - don't do it..... as I said before - there is an abundance of properties for rent here lying empty.