Cyprus-Forum.com

[mccharmer]

Hi There

I hope yor are in good health. My name is Waseem and this is, just a quick courtesy email. I work for a UK based company called *, whom also have several offices in Cyprus. The primary reason for this correspondence is, if we could if at all possible build a strategic partnership to help promote property developments within Cyprus which can offer upto 75% returns on capital outlay within 1 year.

We currently have 1 brand new deveopment,based in Larnaca, Cyprus, 15 minutes from Larnaca International Airport.

This is an ideal 'flip' opportunity for the sophisticated investor, the tried and tested concept we use is as follows:

CY£1000 Reservation Fee (this takes the property off the market)
30% of Selling Price Initial Deposit (payable within 30 days of reservation)

60% of Selling Price 12 months or after 75% build complete. (This is usually when the property is resold, and profit released)

10% or balance of Selling Price On delivery of property


For our investor clients we place their property back on the market after nine months or two to three months before 75% build complete. Once sold they receive back their initial deposit plus the profit made less deductions for sales commissions etc. (Usually 5% of sales price) The net result is that the client will realize anywhere between 50-75% return on their investment in a relatively short time frame.

Should the client not want to sell the property but go on to take delivery of it then we can arrange a 70% mortgage for them, this is usually with a leading Cypriot Bank and their rates are currently 2.5% above LIBOR for terms of 10 -25 years.

Example:

Apartment Selling Price CYP50,000

Client reserves CYP1,000

Initial Deposit 30%, CYP14,000

Legal Fees 500

Stamp Duty 75 (So total initial Investment is 15,575CYP)

Property put on market after 9-12 months

Property re-sold at new market price CYP65,000

Profit (59,500 - 45000) CYP15,000

Less sales comm. of 5% (CYP3,250)

Cancellation/admin Fees ( CYP500)

Net Profit CYP11,250 (0r 72.2% Return on Investment with 16 Months!)



To be honest most of our 'Offplan' developments are geared with this approach and are solely targeted at Buy to Sell or Flip investors. When it comes to resales in 12 months + we then target the Buy to Let investor or large pension funds.



If the investor decides not to opt for the option of resell, then he/she can retain the property, and usually we can get good rental yields of between 8-10% for a fixed number of years.



If you would like to help me promote this development or any of our future developments to fellow investors or would like to know more then I would love to hear from you.



Thanks

Waseem

*Edited by Admin
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[coredump]

Is there any insurance company in Cyprus which can provide "rent guarantee insurance"? I tried to find one before, contacted several companies. All of them answered that they do not provide such type of insurance.

http://www.arla.co.uk/info/insurance.htm#5

5. Rent Guarantee Insurance

These policies are invaluable for most landlords. As a tax deductible premium this will guarantee you receive the rent you are expecting from your property regardless of your tenants personal circumstances, ability or willingness to pay the rent.

If you have a mortgage on the property or have calculated your rental income verses your outgoings this will ensure you do receive your rent. Most such policies will include the legal expenses, as detailed above. You will receive your rent and the legal fees to obtain vacant possession will be covered.

Policies will usually guarantee your rental for a fixed period, typically 6 or 12 months. Some policies will provide additional cover once you have obtained vacant possession until you are able to re-let your policy.

There were over 150,000 possession hearings in 2001 in relation to the 2.7m lets that took place the risk is relatively small but if you need to have your rent on a regular and guaranteed basis this insurance should be a high priority.

The costs vary from a fixed cost policy or are commonly rated as a percentage of the annual rental figure, typically 3-4%.

[Svetlana]

Hi Waseem

'75% return on investment' If it sounds to good to be true it probably is.

I have watched similar schemes in Paphos; it is hard to sell part completed properties. Also, when a block of apartments all come onto the market at once, as investors offload, it is impossible to find enough buyers If your company really believed it could achieve anything like a 75% return, it would be buying them itself.

I notice you are claiming equity growth of 30% in 9 months (40% pa)!! My friend, this is just not achievable, given the downturn in the UK property market (where most buyers come from) and the unfavourable exchange rates.

Do you really believe anyone wil achieve rental returns of 10% when the industry norms are 5-6%? Will anyone really pay £5000pa for a small 2 bedroom apartment in Larnaca?

If you have evidence that in the current market you can achieve your claims, show us and I will be prepared to 'eat my words'.

I have been investing in Cyprus property too long to believe over optimistic claims - I have heard them all before!

Sorry to rain on your parade, Waseem, but others might accept your claims at face value.

Lana

[devil]

Moderator: this is not only a commercial ad, and has no place here, it is a scam.

The initial investment 50,570 + the interest on the initial deposit and charges, say, 750 = 51,325

IF (and it's a big if) it is sold at 65,000, the gross profit is 13,675, which is a 26.6% return on your investment, not 72.2%, out of which you have to pay legal fees, land registry fees, transfer fees. This assumes there are no overcharges during construction (almost inevitable) and you find a sucker to purchase it. If you do not find a buyer immediately, as is often the case, you will probably have to drop the price to no-profit or even loss levels.

Consider: if the scheme is as wonderful as the promoters pretend, why would they not want to keep the profit for themselves? They are out to find milch cows, IMHO.

Caveat emptor!