Cyprus-Forum.com

[Paphitis]

The VAT thing is irrelevant; property is worth what people are prepared to pay for it. When VAT was introduced, 'non-VAT properties rose in 'value' - well rose in price as they were now being compared in the Property Market with VAT properties

Yes thanks for this Svetlana.

I can see that prices of resale properties would rise because of the VAT.

At the end of the day, he can buy resale or new, but only with a ready title. That is what I am telling him anyway.

Prices seem incredibly inflated. I also told him to not look at any pricing. Some of the properties have been on market for months even years.

[Paphitis]

It's nonsensical to tell "him" not to buy new just to avoid VAT because buying resale might be more expensive even without VAT. In the end, you have to buy the house you want which you can afford. If you cannot afford to buy, then don't. If you want to play games and speculate then you need to know a lot more than you do so what's the point of advising "him" not to buy in Cyprus if you claim to not know much about buying property in Cyprus in the first place?

Please ignore my previous post.

Yes I can see how VAT can inflate resale prices. In the end it is irrelevant. Ready Titles however are another pitfall when buying from some developers like Aristo.

My relative is almost clueless. I'm most certainly out of touch with recent developments and prices.

Even most of our family in Cyprus is out of touch because most have not bought in years.

There are many pitfalls unfortunately. It is not a straightforward process and that is what I found some years ago. I could actually see how some people could easily get themselves in trouble and why many just give up.

Seems quite sad that the most sound advice seems to come from a Brit which BillC mentioned earlier.

http://www.cyprus-property-buyers.com/intro/about.htm

My transaction some years ago went smooth but thinking back, there were instances where it could have gone bad and I am glad I didn't buy some of the properties I looked at.

Anyway, I am just trying to help my relative.

I myself find myself in a similar situation because I am looking at some properties in Greece, on the internet for now. And yes, I am pretty clueless, scared and weary. I have not even managed to find a locally based agent which gives me a warm cosy gut feel.

So, I have registered with US Based Real Estate Agents in NYC with whom we are related, who market Greek Property in America. They have my trust and seem to do it the "American" way which I can identify with better.

But still, it would be nice to have a second opinion. These properties are worth quite a bit.

And yes, I do know they are probably not sound investments but that is not really the main purpose of it, but at the same time, none of us want to lose money. The situation in both Cyprus and Greece does not inspire much confidence for people like us in the Diaspora of US/AUS and so forth.

[GreekIslandGirl]

The VAT thing is irrelevant; property is worth what people are prepared to pay for it. When VAT was introduced, 'non-VAT properties rose in 'value' - well rose in price as they were now being compared in the Property Market with VAT properties

Thanks Lana - my point exactly - these guys don't have a clue. So many different ways to get ripped-off but they see "VAT" and would rather pay more for the same thing simply because it says "Vat exempt" and they think they have a bargain.

[GreekIslandGirl]

Oh OK, paphitis. Just seen your last two posts. See you've got it now (I think it was stud who misled you).

P.S. I haven't seen any major price drops in property in Greece over the last 2 years. Corfu/Kerkyra remains the most expensive place in Europe. Most Greeks own a ruin or two (long-forgotten inheritance) but trying to get them to part with it for (ephemeral) money at this point in time is a non-starter as my British friends have found.

Greek estate agents are the least pushy in the whole world. You have to beg them to show you stuff and even then, they usually tell you to go and have a look if you happen to be passing by - they don't tend to take you. As for Internet inquiries, they don't take them seriously as they get bombarded by so many "hopefuls" and "wishfuls" who want a piece of the finest place on earth but don't have the resources. You're best going there and dealing in person.

[Paphitis]

Oh OK, paphitis. Just seen your last two posts. See you've got it now (I think it was stud who misled you).

P.S. I haven't seen any major price drops in property in Greece over the last 2 years. Corfu/Kerkyra remains the most expensive place in Europe. Most Greeks own a ruin or two (long-forgotten inheritance) but trying to get them to part with it for (ephemeral) money at this point in time is a non-starter as my British friends have found.

Greek estate agents are the least pushy in the whole world. You have to beg them to show you stuff and even then, they usually tell you to go and have a look if you happen to be passing by - they don't tend to take you. As for Internet inquiries, they don't take them seriously as they get bombarded by so many "hopefuls" and "wishfuls" who want a piece of the finest place on earth but don't have the resources. You're best going there and dealing in person.

I don't mind the pushy sales pitches. To me, an Agent who always follows up and tries to maximize their business and sales is professional.

It is the unscrupulous ones which I don't like. There are quite a few in a market pitched towards "wealthy" foreigners.

I usually follow up on any emails or messages with phone calls, but only if interested. When you speak to them, most do go out of their way.

Our search is in the advance stages now. We have found a property we are interested in through the American connection. A new build house circa 2009 on the coast with its own private beach but slightly elevated somewhere on the Ionian Coast. We have already made an ambit offer since the house has not been sold.

It has some history, due to who the current owner is.

They have been very nice and offered a weeks free accommodation in said house but in September. I won't be able to go, but the Minister of Warfare is in Cyprus with the kids and will fly out and spend a week at this wonderful place. If she's happy then we will get serious.

But by geez there are a lot of things we don't know. For example, we don't know what additional charges or taxes we will be up for.

I presume we will need to pay Purchase price + VAT
Transfer Fees
There is probably an IPT (because of Troika)
Possibly some additionals

Do you know what these charges might be?

[supporttheunderdog]

Oh OK, paphitis. Just seen your last two posts. See you've got it now (I think it was stud who misled you).

P.S. I haven't seen any major price drops in property in Greece over the last 2 years. Corfu/Kerkyra remains the most expensive place in Europe. Most Greeks own a ruin or two (long-forgotten inheritance) but trying to get them to part with it for (ephemeral) money at this point in time is a non-starter as my British friends have found.

Greek estate agents are the least pushy in the whole world. You have to beg them to show you stuff and even then, they usually tell you to go and have a look if you happen to be passing by - they don't tend to take you. As for Internet inquiries, they don't take them seriously as they get bombarded by so many "hopefuls" and "wishfuls" who want a piece of the finest place on earth but don't have the resources. You're best going there and dealing in person.

I don't mind the pushy sales pitches. To me, an Agent who always follows up and tries to maximize their business and sales is professional.

It is the unscrupulous ones which I don't like. There are quite a few in a market pitched towards "wealthy" foreigners.

I usually follow up on any emails or messages with phone calls, but only if interested. When you speak to them, most do go out of their way.

Our search is in the advance stages now. We have found a property we are interested in through the American connection. A new build house circa 2009 on the coast with its own private beach but slightly elevated somewhere on the Ionian Coast. We have already made an ambit offer since the house has not been sold.

It has some history, due to who the current owner is.

They have been very nice and offered a weeks free accommodation in said house but in September. I won't be able to go, but the Minister of Warfare is in Cyprus with the kids and will fly out and spend a week at this wonderful place. If she's happy then we will get serious.

But by geez there are a lot of things we don't know. For example, we don't know what additional charges or taxes we will be up for.

I presume we will need to pay Purchase price + VAT
Transfer Fees
There is probably an IPT (because of Troika)
Possibly some additionals

Do you know what these charges might be?

What did I say that was misleading or are you trying to have another dig?

[Paphitis]

STUD, are you addressing me or Oracle?

I'm not interested in having a dig in any case. Didn't think your comment was misleading either.

[Svetlana]

You will not pay VAT if the property is a resale.
Transfer Fees are only paid if the property has its Title Deeds and are based on the sale price, although the Revenue Department reserve the right to revalue your property when assessing the Fees.
Lawyers Fees and disboursements.
Survey usually 1% of property price.

[Svetlana]

Oh, and in theory, IPT has always been with us, its just that most people never paid it!

[Paphitis]

You will not pay VAT if the property is a resale.
Transfer Fees are only paid if the property has its Title Deeds and are based on the sale price, although the Revenue Department reserve the right to revalue your property when assessing the Fees.
Lawyers Fees and disboursements.
Survey usually 1% of property price.

Great Lana!

I was asking about Greece? Is it the same there?