Cyprus-Forum.com

[Oceanside50]

"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.

Read about Cyprus' second tier banking system, that already exists with institutions and mechanisms that have been in place for close to 40 years...

I do agree with you that from past experience, anyone tht is unemployed, which the unemployment rate in Cyprus could probably reach 20%, will be hard or next to impossible to get a loan from any bank....what does one do?....Like I said Cyprus will most likely be running a deficit fairly soon, and the refugee system of dispersing money could be used to fund small business ventures or specific ventures such as agriculture....if anyone knows why this will not work at least give some reasons..

[supporttheunderdog]

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!

Then you don't know Dover that well......but I know what you mean. I am in a normal residential area - further inland than Tim. Round here many projects are for apartment blocks - three or four floors high, some terraced "town houses" .or single houses.

[kurupetos]

yeh but someone whos selling desperately.....

Who cares? It's usually foreigners that try to sell during recession.

[kurupetos]

This is what I said in the "your banks are toast" thread:

You'll see massive asset price deflation, and lots of people will be "under water", meaning they owe more than they own. The banks that own mortgages will start to see lots of defaults, and collateral will be insufficient.

It will hit you guys real soon that a lot of people owe more than they own. This will result in increased number of bankruptcies, but even more the "will to pay" will decrease as people realize they are paying a debt that seems insurmountable. Also, going bankrupt will almost seem like a "way out". The banks will get a lot of homes into their "arms" very soon, as people cannot pay. House prices will plummet which further increases this problem.

I don't have any loans. What does that mean smartboy?

[kurupetos]

Do I, and most Cypriots, care if the value of their property goes down?

We are talking about our homes that we are not trying to sell, so what does their value have to do with it?

[kurupetos]

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.

Excellent! Now I will be able to buy one for peanuts. God bless troika.

[Jerry]

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.

Excellent! Now I will be able to buy one for peanuts. God bless troika.

No, no you are not allowed. Only foreigners live in the holiday areas.


Perhaps it would be better to study facts rather than speculate. It’s interesting to note that between 2005 and 2008 47% of property sales were to overseas buyers.

http://www.news.cyprus-property-buyers. ... id=0010310

http://www.news.cyprus-property-buyers. ... id=0014472

Oh, and to those Cypriots who may be thinking of packing their buckets and spades for the idyllic holiday resort of Dover – forget it, it’s the busiest ferry terminal in the world.