Cyprus-Forum.com

[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 IF THEY GO TITS UP, WILL THE INTEREST RATE, PAYMENT TERMS OR TAX ISSUES MAKE ANY DIFFERNCE???

[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!

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

In Cyprus, the developers and the bankers are often one and the same!

They have no problems “agreeing” to postpone repayments of loans for a year or two until the house market bounces back!

In the meantime, buyers and especially foreign ones who are used to things going by the book, are wondering how these guys can survive without offering bargains…

That’s the beauty of the closely knit Cypriot community!

[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????

In Cyprus, the developers and the bankers are often one and the same!

They have no problems “agreeing” to postpone repayments of loans for a year or two until the house market bounces back!

In the meantime, buyers and especially foreign ones who are used to things going by the book, are wondering how these guys can survive without offering bargains… :lol:

That’s the beauty of the closely knit Cypriot community!

AS THEY SAY 'GET REAL'

FOR THE LAST 2 YEARS BANKS HAVE BEEN INCLUDING THE TOXIC DEBTS IN THEIR PROFIT AND LOSS. HOWEVER THE BANKING RATING SYSTEM HAS COME DOWN ON THE BANKS TO REMOVE THESE DEBTORS FROM THEIR P & L AND MARK THEM AS TOXIC DEBTS, THUS THE 30% DISCOUNTS ETC. AND THE BANKS CHASING THE DEVLOPERS FOR PAYMENTS

[Z4]

Talking of interest rates. What are the interest rates from the Banks at the moment?

Say 50k loan on a 120k property?

[Milo]

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????

In Cyprus, the developers and the bankers are often one and the same!

They have no problems “agreeing” to postpone repayments of loans for a year or two until the house market bounces back!

In the meantime, buyers and especially foreign ones who are used to things going by the book, are wondering how these guys can survive without offering bargains…

That’s the beauty of the closely knit Cypriot community!

Soon then the Wan...sorry Bankers will be the Developers as THEY will become the owners of all the properties with Developer mortgages/loans or whatever on them, NOT the actual purchaser.

Surely postponing what could be approx €4 billion (many say much more) for a 'year or two' will make some start to panic, and start calling them in. As seems to have happened with toxic debts ALL over the EU. And Cyprus will be immune to all of this? I hope you are right.

Our Developers are small, but the best, they did a great job looked after us and still do AND handed over Title Deeds straight away. Just shows that it can be done, and its all just posturing from the rest. And a continuing money spinner which is the REAL reason.

3 Bed Villa here in the East unsold now being offered at €154k just over £90k cyp, over €100k drop in 8 months, thats a property crash. Others to sell must compete. Developers are getting property back from insolvent buyers too, adding to their woes.

Its becoming worse and unless new buyers are sort out Banks will imho be unable to sit on ALL that unpaid debt.

[Wingnut]

chant the magic mantra :

REAL ESTATE IS A FUNCTION OF RENT !
REAL ESTATE IS A FUNCTION OF RENT !
REAL ESTATE IS A FUNCTION OF RENT !

and so on.

rental yields here are pitifully low, which means prices will come (are coming?) crashing down to earth in the next 2-4 years.

[CBBB]

Rental yields have always been low, it's been like that for the 35 years I have been here, so I don't see it changing.

[Nikitas]

There is also the factor of the Euro and the immediate comparison it yields between competing real estate markets. It is utterly ridiculous to see one Cyprus apartment in Yermasoya sell for the same price as a classic farm house with 4 acres of land in Abruzzo national park!

Cypriot developers should by law be required to tour some areas of the Med, ie south France, Italy, Spain, the Adriatic coast and see what they are competing with. Acutally all people involved with tourism should do the same.

[Tim Drayton]

There is also the factor of the Euro and the immediate comparison it yields between competing real estate markets. It is utterly ridiculous to see one Cyprus apartment in Yermasoya sell for the same price as a classic farm house with 4 acres of land in Abruzzo national park!

Cypriot developers should by law be required to tour some areas of the Med, ie south France, Italy, Spain, the Adriatic coast and see what they are competing with. Acutally all people involved with tourism should do the same.

The point is that they do sell at that price, Nikitas, all be it a little more slowly than before. It is all a question of supply and demand. The property markets in places like Paphos and Protaras were based almost entirely on selling to British buyers, who have vanished now that the Neo-Liberal so-called miracle has imploded in that country. Places like Limassol and Nicosia have vibrant, diversified economies and this creates demand for property from a differnt clientele. The property market in Limassol is certainly facing a slow-down, but it is nothing like the total collapse that is being experienced in the western and eastern fringes of the government controlled areas.

[Wingnut]

CBB
exactly, because property prices were very low before 2004. now prices must come into line with the historically low yields. therfore we will see a crash. you are actually using your brain a bit now instead of just throwing slurs around. its called a debate - fun, isnt it ? you might learn something too !

Tim
It's still early for Limassol. wait and see, it will affect us here too. actually it has already -lots of empty property unsold, and rents coming down