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Title deeds

Posted by Andyp-695384 - Created: 9 years ago
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8 replies (Showing replies: 1 to 8)

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Posted by Nigel Howarth - 9 years ago

Regarding my typing skills - I get a lot of practice :-)

Cheers,

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Posted by Andyp-695384 - 9 years ago

I see it was nearer 11mins.

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Posted by Andyp-695384 - 9 years ago

Evening Nigel.

Now I am concerned even more. Although relieved to hear I am not losing the plot. Bad enough potentially having to pay off someone elses debt without losing my savings as well.

Compliments on your typing skills,this took 20 mins.

Regards

Andyp

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Posted by Nigel Howarth - 9 years ago

Hi Andy,

You are no being dim at all.

The property market here has all but collapsed and it seems just a matter of time before the economy follows.

There are strong indications that the banks have been rescheduling developers' loans to prevent them having to be classified as 'non-performing'. Last year the Central Bank issued a directive to the commercial banks asking them to be notified of any "fictitious loan restructuring".

In the UK, the state guarantees title to your property - that is not the case in Cyprus. Hence the problem of people facing the threat of losing their homes in Cyprus if their developer has mortgaged the land and subsequently goes belly-up or the banks foreclose on their loan.

Given the current lack of sales, developers are not getting the inflow of money to service their debts. And some have already gone bankrupt.

The American news networks have now picked up on this problem (I published an article a bit earlier including a video report by Nicole Itano from the Boston-based international news service GlobalPost).

Regards,

Nigel

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Posted by Andyp-695384 - 9 years ago

Am I being a bit dim here?

Having read a fair bit recently from your publications and the CPAG the debt outstanding to banks,who don't seem to bothered about being paid back by developers,due to the title situation, I am wondering whether one of them will come unstuck. Very similar to Bradford and Bingley and Northern Rock in that they had very large property debts which led to their collapse. Only difference being that we "property owners",me included,could ultimately be responsible for the developers debt but also lose our money which is on deposit with cyprus banks as there is ,as far as I am aware,no bank guarantee sheme as is in the uk.

So to add insult to injury potentially we are responsible for devlopers/bankers greed and debt through our "mortgaged" homes and in addition our bank deposits are also at risk for the same reason. Never thought it would happen to B and B,NR,HBOS or RBS and these were big institutions.

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Posted by Nigel Howarth - 9 years ago

The tidal wave has already hit Cyprus. Property sales to non-Cypriots fell last year by 73% compared to 2008 - in Famagusta district they fell by 90%.

Sales so far this year are even worse - only 146 properties were sold to non-Cypriots during January and February compared to 160 a year ago - and 1,135 during January and February in 2008.

Revenue from tourism, direct and indirect taxation are also down. The budget deficit predicted for this year is 7% - in spite of the austerity measures being introduced by the government.

'As you sow, so shall you reap'

Cheers,

Nigel


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Posted by Andyp-695384 - 9 years ago

Very interesting Nigel.

What I do not understand is how so many ordinary people can see the tidal wave heading for Cyprus but The Government can't. I don't think the export of potatoes or bananas to the EU will help! Without the property and tourist industry they are stuffed.

Regards

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Posted by Nigel Howarth - 9 years ago

All I can say Andy is that if Cyprus doesn't resolve its property problems it isn't going to have a property industry.

You can read my view of the situation in the Cyprus Mail at http://www.cyprus-mail.com/letters/can-cyprus-golden-goose-be-resurrected/20100117

Cheers,

Nigel