House Prices
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 Posted: Tue Nov 09, 2004 11:12 am |
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| Judge Mental |
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| Location: West Sussex UK |
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In the UK the housing market is virtually at a standstill with anyone wanting to sell having to take a substantial drop in asking price; what is the housing market doing in Cyprus? 
If it is still roaring ahead in Cyprus, most UK retirees (like us) will have a huge gap between what we can get for our property here and what we can buy there and find it impossible to move there!!  
Chris
ps - I know that some will say "Good riddance", but we love the place and want to immerse ourselves in the culture, not just become part of the ex-pat scene which we are not especially keen on. |
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Last edited by Judge Mental on Wed Nov 10, 2004 12:52 am; edited 1 time in total |
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| Posted: Tue Nov 09, 2004 4:32 pm |
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| devil |
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| Joined: 08 Nov 2004 |
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The Cyprus property market is a paradox: increased supply, lower demand but increased prices. To understand this, one has to look at the Stock Market collapse 2 or 3 years ago.
In the second half of the 1990s, speculators were buying anything on the stock market and prices rose rapidly. On the promise of quick and easy profits, they enticed the naive "investors" to follow their example and many such put everything they had and much of what they didn't have into the market. The CSI index rose to dizzying heights, about 900, when the speculators saw that further investment was slowing down and got out, fast. The index dropped to under 100 within months (it is still under 80). The speculators (and stockbrokers) made a 3-6-fold profit on their original investment, while the poor ordinary investors were left with almost nothing.
The speculators were left with a mint of money on their hands but weren't satisfied with just 2 or 3 % interest from a bank, so they invested in land and immoveable property. They pulled down, renovated and built like fury, mostly flashy but cheap construction, cutting as many corners as possible. They put a lot of this property on the market at very exaggerated prices, selling mainly offshore to buyers who thought they were getting a bargain. Ordinary house owners, saw the "value" of their own property apparently rise and started to ask ridiculous prices if they had property to put on the market. And so a second bubble is slowly getting larger with more and more property on the market at exaggerated prices. This bubble will collapse at some time in the future, just as the stock market collapsed and, in general, the same people will profit, at the cost of those people who innocently bought their houses at an inflated price.
These same people are now hedging their bets by buying property in N. Cyprus at a relatively low price.
If this sounds cynical, this is not intended. I have had no vested interest in either bubble, as I bought my house long before even the stock market bubble. It is now theoretically worth the double what I paid for it, but I enter its value in my portfolio at the price I paid for it, less amortisation, but it is not for sale.
My advice is wait until the bubble bursts before contemplating buying property here. You will probably save 30% or more, even much more, on a property. |
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| Posted: Tue Nov 09, 2004 11:22 pm |
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| Piratis |
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| Quote: |
| increased supply, lower demand but increased prices. |
I was never involved in the stock market, and I never bought immoveable property. What I know from first hand experience is that the demand is not lower.
Also, some developers in Cyprus are constructing houses for decades, and have built a reputation that they wouldn't risk to destroy by building bad quality houses. You just need to know from where you buying from.
| Quote: |
| These same people are now hedging their bets by buying property in N. Cyprus at a relatively low price. |
These people are simply buying stolen property. As is always the case what is stolen is sold cheaper. |
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Last edited by Piratis on Wed Nov 10, 2004 1:34 am; edited 1 time in total |
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| Posted: Wed Nov 10, 2004 12:52 am |
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| Judge Mental |
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| Joined: 20 Oct 2004 |
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| Location: West Sussex UK |
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I don't want to get into the N.Cyprus issue - we are not interested in buying there in the slightest.
I am concerned to hear the view about the newer houses being cheap but flashy; contrast that with the later view that the developers won't want to risk their reputations....where does that leave me I wonder?
We prefer to buy a house that is already built and has been lived in as we take the view that any problems will have been ironed out by the owners, and we prefer to be able to see and touch what we are buying.
My wife wants to buy an old house that has been or could be renovated, whereas I prefer a property built post-1988 so it is in theory earthquake-resistant. We also want something on fairly level ground as we have heard so many stories of houses built on hillsides that have collapsed due to subsidence.
As regards prices, if the British market is suffering (and it is big time) will this not impact on the house market in Cyprus seeing as so many Brits make up the majority of the overseas buyers? |
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| Posted: Wed Nov 10, 2004 1:33 am |
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| Piratis |
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| Quote: |
| I am concerned to hear the view about the newer houses being cheap but flashy; contrast that with the later view that the developers won't want to risk their reputations....where does that leave me I wonder? |
Not all developers have a good reputation. Some of these companies were created in the last couple of years to take advantage of the construction boom. You have to be very careful with those (that doesn't mean of course that all of them are bad).
On the other hand there are companies that have been doing business for several decades and managed to build a good reputation. |
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| Posted: Wed Nov 10, 2004 1:38 am |
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| Judge Mental |
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a few names would be helpful?  |
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| Posted: Sat Nov 20, 2004 9:50 am |
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| Svetlana |
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Hi Judge Mental
Developers tend to be 'regional', if you care to say which locations you are considering I'm sure someone will offer an opinion - either on or off line.
Lana |
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| Posted: Mon Nov 29, 2004 11:09 pm |
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| Judge Mental |
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| Joined: 20 Oct 2004 |
| Posts: 47 |
| Location: West Sussex UK |
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| We spent last week in Cyprus, enjoyed the weather (NOT)!! Anyone know of Rino Constructors Ltd based in Kolossi? |
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| Posted: Thu Dec 30, 2004 9:34 pm |
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| Old Soldier |
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These same people are now hedging their bets by buying property in N. Cyprus at a relatively low price.
*************************************************************
Disputed property in North Cyprus should not be sold to foreigners. This is a sore point for many and I offer my apologies for bringing it up.
All property in the North and South should be returned to the rightful owners as part of reparations for the 1974 war.
In the event the property cannot be returned to the rightful owner then the Government of Cyprus and the Motherlands should pay them a fair market value price.
Just my opinion
God Bless
Old Soldier |
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| Posted: Thu Dec 30, 2004 9:39 pm |
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| brother |
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| Joined: 27 Sep 2004 |
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| Location: Cyprus/U.K |
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| That is the right opinion, and maybe that will happen. |
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