Cyprus-Forum.com

[purdey]

I think they are far from idiots, in fact there are not many in the world that are as shrewd as Cypriots in business.

[CBBB]

I think they are far from idiots, in fact there are not many in the world that are as shrewd as Cypriots in business.

Rhat is probably why wingnut sounds rather bitter and twisted!

[Wingnut]

hmm no, not at all bitter and twisted...

in fact, very happily married with two great kids, financially independant and with great health... whats to be bitter about ? life is great !

im just incredulous that the cyps never thought a crash could happen here, when real estate has been grossly overvalued for the last 3-4 years. families have gone into terrific amounts of debt to buy overpriced homes, and will be trapped in debt slavery for years to come... this is the sad thing... personally i am benefitting from the real estate collapse, but thats another story.

so no bitterness at all.

purdey i do not know if we are shrewd business men. i doubt it. i think we're just as idiotic as everyone else. maybe more so. we have just ridden a wave of easy money. now the tide has gone out, we will see who will survive...

the best businessmen i ever saw were jews

armenians are not far behind them

[purdey]

You seem to have it all ! I have the extra of been a Jew with some Cypriot thrown in for good measure. We drive a hard bargain but I still highly rate Cypriots.

[Sega]

Property market at risk from unsold houses
First Published: 21/07/2009 08:58:54
Stockwatch

The drop in property demand pushed the number of unsold flats and houses sharply up and developers decided to make discounts that reach 30% for fear that worse days will follow. Big developers such Aristo determined a new phase in the market, where discounts are direct and not indirect.

“In the first half of the year, developers tried to attract buyers with gifts such as free air-conditioning etc. In the second half, they couldn’t bear the pressure of the economic crisis and decided to cut property prices”, Chairman of Real Estate Agents’ Association, Solomon Kourouklides told StockWatch.

Certain market circles support that the timing of the big discounts is attributable to the conviction that worse days are to follow after September, when the size of the problem in the tourist sector is reflected. “The property market will sink to the bottom after September. Areas such as free Famagusta, Avgorou, Dasaki Achnas, Xylofagou, Tersefanou and the seaside areas of Paphos might be under strong pressures’, evaluator, Antonis Loizou said.

According to Mr. Loizou, the main reason for the drop in prices is the low demand and the developers’ attempt to pay the cancellation debts of many buyers – mostly British – who cannot pay off their debts and return their purchases.

Sales Representative of Cybarco, Alexandros Sinka explained that the large number of unsold flats and houses are a burden for a developer due to the maintenance cost. “As time goes by and there is a large number of unsold flats and houses, the possibilities for their sale are minimized due to wear and tear”, he said.

Mr. Sinka also linked the discounts to the strategy that a developer adopts in order to increase the Company’s capital adequacy during the tough period of the economic crisis.

Property valuator, Haris Timotheou from “Danos Consultants and Valuators, stressed that this period is a knife that cuts both ways for the developers.

“On the one hand, the land developers try to minimize the loss from the market freezing and push prices down, while on the other they have a significant number of indisposed properties that if they remain unsold, they will be loss-making for themselves”, he said.

Mr. Timotheou agreed that the problem affects the seaside areas such as Protaras, Pissouri and Paphos, however, the cities might run the risk too if the market does not recover soon.

Chairman of Land Developers’ Association, Lakis Tofarides wondered how can one offer discounts of 30% without giving the impression that the prices formerly were unjustifiably high.

“The base cost of the developers’ material does not allow such discounts. Only in specialized cases such as tourist areas like Paphos, Protaras and Tersefanou, where houses of 100 sq. meters were built for non-Cypriots exclusively, justify such discounts.

A general acknowledgement is that those discounts indicate significant declines in the offer prices and might signal further discounts. Chairman of the Valuators’ Association, Charalambos Petrides agreed that prices in non-competitive properties suffer a decline of up to 30%. He clarified that even though prices remain stable in Nicosia and Limassol, the prices in properties of secondary importance fall 5%.

Mr. Kourouklides anticipates that property prices will continue to be under pressure in the second half of the year, while this decline might expand to cities but mildly.

Found this compelling article which might help Cyprus move away from any recession. Basically it stated that if foreigners bought property over 300,000 in Cyprus they would be given a residency permit.

[pissouri]

Personally I believe its the big developers we should be worried about going tits up, rather than the small ones. Due to the fact that the big developers where more able to get huge mortgages.

[Get Real!]

Personally I believe its the big developers we should be worried about going tits up, rather than the small ones. Due to the fact that the big developers where more able to get huge mortgages.

Do developers get mortgages or commercial loans?

[pissouri]

Personally I believe its the big developers we should be worried about going tits up, rather than the small ones. Due to the fact that the big developers where more able to get huge mortgages.

:? Do developers get mortgages or commercial loans?

what is the difference, it's just wording

[Get Real!]

Personally I believe its the big developers we should be worried about going tits up, rather than the small ones. Due to the fact that the big developers where more able to get huge mortgages.

Do developers get mortgages or commercial loans?

what is the difference, it's just wording

Everything is different!

From the repayment terms, to the interest rates, to tax issues... everything!

[pissouri]

Personally I believe its the big developers we should be worried about going tits up, rather than the small ones. Due to the fact that the big developers where more able to get huge mortgages.

:? Do developers get mortgages or commercial loans?

what is the difference, it's just wording

Everything is different!

From the repayment terms, to the interest rates, to tax issues... everything!

So whats the point of this thread, the terminolgy or developers mortgaging/commercial loaning the land and properties they are selling????