Cyprus-Forum.com

[Get Real!]

I saw a street of 50 + finished ones near Kapparis two years ago that are still unsold.

But Kapparis is a holiday area next to the beach so it is expected that holiday homes will suffer first and the most because they are a luxury.

[Mik]

I saw a street of 50 + finished ones near Kapparis two years ago that are still unsold.

But Kapparis is a holiday area next to the beach so it is expected that holiday homes will suffer first and the most because they are a luxury.

How many complexes in the last 10 years have been built for any other purpose than "Holiday Home's" or places for people to retire from other countries? I fitted a fire alarm at a spa in a nice place in Larnaca district, it was gonna be popular as they were building a golf course right next door! It don't look to good now.....

[Get Real!]

I saw a street of 50 + finished ones near Kapparis two years ago that are still unsold.

But Kapparis is a holiday area next to the beach so it is expected that holiday homes will suffer first and the most because they are a luxury.

How many complexes in the last 10 years have been built for any other purpose than "Holiday Home's" or places for people to retire from other countries? I fitted a fire alarm at a spa in a nice place in Larnaca district, it was gonna be popular as they were building a golf course right next door! It don't look to good now.....

Mik, the backbone of the Cyprus housing market is NOT the holiday villas around the beaches but the inland normal homes sought by newly married Cypriot couples predominantly in Nicosia and Limassol suburbs.

[supporttheunderdog]

one of the problems is the property bubble which blew up on the expectations that foreigners would continue to buy in places like Paphos area, Limassol Seafront, etc., which led to inflated prices, particularly in those areas. Perhaps a dose of price-reality will kick in.

[Get Real!]

The tourist areas are PEANUTS compared to what is being built and sold in Nicosia and Limassol suburbs.

But I can understand those who spend all their time in tourist areas thinking that they know Cyprus and that it’s a “holiday island” when most of the population of Cyprus is nowhere near a beach!

It’s like a French person spending a few hours in Dover by the seaside and assuming that England is a holiday island resort!

[appel]

"Cyprus is different".

You people are delusional if you believe this, it's denial. Cyprus is not different, it's the same as everyone else, bound to economic reality, just as we're all bound to gravity.

Things are going to get worse, much worse. Realize what's going to happen when unemployment rises to 30%, or 40%. You think nothing bad will happen? Things are going to get bad bad bad. This harsh reality is going to take a few months to materialize.

http://www.youtube.com/watch?feature=pl ... l_kKra8Fts

Actually Appel, Cyprus is different.

Facts:
Banks in Cyprus are broke
People/businesses most likely will not be able to get loans for economic expansion for many years 4/5 maybe.

I'm sorry, but did you just make my case?

My point is exactly that, who will be able to buy a home in the next years when the banking system in Cyprus is so bankrupt that it won't be able to offer any new home loans to people?

What happens when people can't get a loan to buy a house? Demand plummets. What happens when demand plummets? Prices plummet. Easy debt = high demand = high prices. Hard debt = low demand = low prices. People have to realize how the credit based economy works and how it affects prices.

And now that peoples savings (deposits) have been nearly wiped out, there are few people that can afford to buy homes.

[Get Real!]

Facts:
[b]Banks in Cyprus are broke

I'm sorry, but did you just make my case?

My point is exactly that, who will be able to buy a home in the next years when the banking system in Cyprus is so bankrupt that it won't be able to offer any new home loans to people?

You should both give it a rest because neither one of you know what you’re talking about!

[Paphitis]

"Cyprus is different".

You people are delusional if you believe this, it's denial. Cyprus is not different, it's the same as everyone else, bound to economic reality, just as we're all bound to gravity.

Things are going to get worse, much worse. Realize what's going to happen when unemployment rises to 30%, or 40%. You think nothing bad will happen? Things are going to get bad bad bad. This harsh reality is going to take a few months to materialize.

http://www.youtube.com/watch?feature=pl ... l_kKra8Fts

Actually Appel, Cyprus is different.

Facts:
Banks in Cyprus are broke
People/businesses most likely will not be able to get loans for economic expansion for many years 4/5 maybe.

I'm sorry, but did you just make my case?

My point is exactly that, who will be able to buy a home in the next years when the banking system in Cyprus is so bankrupt that it won't be able to offer any new home loans to people?

What happens when people can't get a loan to buy a house? Demand plummets. What happens when demand plummets? Prices plummet. Easy debt = high demand = high prices. Hard debt = low demand = low prices. People have to realize how the credit based economy works and how it affects prices.

And now that peoples savings (deposits) have been nearly wiped out, there are few people that can afford to buy homes.

What everyone is trying to tell you is that 95% of a Cypriots will not sell their land or homes so it does not really matter much. If anything, what you say might be true for Holiday Homes and new Estates which are usually bought by foreigners.

[Tim Drayton]

There are thousands of empty properties waiting to be sold in Cyprus. I saw a street of 50 + finished ones near Kapparis two years ago that are still unsold. The local agency that was selling some of them closed down last year. Many new developments were funded with borrowed money (hence the title deed scandal). How long will the developer be able to service his loan? The banks need the cash so how long before they take possession and put them up for auction at market prices rather than the silly money the developer is asking but can't sell them for?

On the other hand, there is a lot of new residential development in the area of Limassol where I live (Agios Athanasios), and I notice that everything here finds a buyer eventually, even if it takes 2-3 years.

According to this Cyprus Mail report values in some areas were going to fall up to 40% before the current bank crisis. Nicosia and Limassol were the least affected. We will have to wait and see how the property buying Russians in Limassol react to recent events, I was under the impression that many would leave Cyprus, (hope I'm wrong).

http://www.cyprus-mail.com/association- ... t/20130221

That is a forecast by one company, PIMCO, and, according to the article, the Cyprus Association of Valuers and Property Consultants disputes its findings.

[Tim Drayton]

"Cyprus is different".

You people are delusional if you believe this, it's denial. Cyprus is not different, it's the same as everyone else, bound to economic reality, just as we're all bound to gravity.

Things are going to get worse, much worse. Realize what's going to happen when unemployment rises to 30%, or 40%. You think nothing bad will happen? Things are going to get bad bad bad. This harsh reality is going to take a few months to materialize.

http://www.youtube.com/watch?feature=pl ... l_kKra8Fts

Actually Appel, Cyprus is different.

Facts:
Banks in Cyprus are broke
People/businesses most likely will not be able to get loans for economic expansion for many years 4/5 maybe.

I'm sorry, but did you just make my case?

My point is exactly that, who will be able to buy a home in the next years when the banking system in Cyprus is so bankrupt that it won't be able to offer any new home loans to people?

What happens when people can't get a loan to buy a house? Demand plummets. What happens when demand plummets? Prices plummet. Easy debt = high demand = high prices. Hard debt = low demand = low prices. People have to realize how the credit based economy works and how it affects prices.

And now that peoples savings (deposits) have been nearly wiped out, there are few people that can afford to buy homes.

I am sure you are a very well intentioned person, but you have to understand that Cyprus is not Iceland, and the crisis here will follow a different course. There is a lot of demand from abroad for property in Cyprus and even if people's savings here had been "nearly wiped out" (which is not really true, either, as deposits of under 100,000 euro have not been touched, and larger deposit holders will lose a part but not all of their money), this does not apply to potential buyers in other countries. If property prices and the cost of living fall sufficiently, we could well see a fresh inflow of British retirees settling on the island.