The beautiful Place of Cyprus is a fantastic location to go on holiday on the other hand in this online video I will give you 10 causes why I think you should not devote in its Authentic Estate.
#Cyprusrealestate#
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GG
on said
I appreciate your voice outside the chorus (most forums or blogs on Cyprus property are dominated by parties like estate agents, solicitors, … with a clear conflict of interest).
I am trying to look at investment properties (i.e. for rental) and I have just started my research, some of your points look too pessimistic while others are realistic. My points:
(a) the 19% VAT. Only on new properties and de facto if you purchase just one property, the first 200sqm (which is not small) where the utility bill is on your name you can reduce the VAT to 5% and even if you hold the property for less than 10 years the pro-rata discount is substantial; If bought through incorporated company then you have to charge VAT on rent which is a bummer for non commercial property.
(b) on second hand properties, the property transfer tax works on a sliding scale and by splitting the ownership of the property with your partner on bigger properties you end up paying between 3% to 5.5%. This is not too far away from current UK/Irish stamp duties.
(c) you forgot to mention that for properties built before 2000 Cyprus has rent control and a de facto loss of ownership if rented out so they should be avoided at all costs if investing, however for properties built after 1/1/2000 the sector is very lightly regulated compared to the UK one or even worse to the Irish one. In this case the regulation is very much the same as it was in Ireland pre-2004: almost total freedom of contract. This is very important for strong property rights and when dealing with tenants, they know they cannot run to some pro-tenant state body, they have to respect the contract or they are out.
(d) for free contracts, I have been told by Cypriots that, since access to commercial courts is also difficult for tenants (they have to put money up front, same as landlords!), evictions of non paying or anti-social tenants (the scourge of landlords) are usually quickly enforced by cutting utilities and avoiding the expensive and long legal route. Is it true that this "process" is quite common?
(e) Sorry to say, but the political risk of Turkey causing military issues in the South is just too small to be considered, especially after Cyprus entered the EU and with two big British military bases in the South (one shared with the USA military as well!) , the retaliation would be massive and it would be the death knell of North Cyprus and probably even for the current Turkish government: it does not make any strategic sense for Turkey.
(f) For me the real political risk is the rampant corruption of Cyprus politicians that could affect the rule of law like (1) reduction of private property rights in the future like it is happening now in the UK for BTL properties (2) the creation of wealth taxes on properties on the island for a quick cash grab (soon to happen in the UK). I would like your view on this.
(g) Low Birth rate in Cyprus in the past 10 years was compensated by immigration, there is obviously a risk if this is not going to hold for the next 10 years
(h) The title deeds problem can be massively reduced by hiring a competent and INDEPENDENT solicitor (not the one suggested by estate agent or developer)
(i) Cyprus debt/GDP nowadays is a little bit higher than EU average and lower than UK, France, Italy, Spain and especially Greece. They dealt pretty well with the Covid situation and if they manage to restart growth, in 4-5 years it will reach EU average levels.
(j) Your comparison with Malta makes sense, but since I have made no research on Malta I cannot opine.
(k) rental yields, they are very low if you purchase the overpriced holiday houses that BuySell Cyprus or other estate agents targeting foreigners have in their books. I would avoid these properties as investments, very small upside and almost negative rental yield. In my opinion the only people making money on these properties are the developers and the estate agents. As a buyer once you have competent and independent solicitor assistance, you would go to foreclosure sites or to market places like Bazaraki to pick and choose from a much wider set of properties priced to market or below and filter out the ones with title or planning problems.
(m) in my opinion turnkey properties have relatively little price upside like you said, so an investor has to get its hands dirty on improvements. It is a very active investment, not passive from abroad.
My questions:
– Have you got any suggestions about independent market places for properties in Cyprus not linked to estate agents?
– Is there a rent-a-room scheme in Cyprus? If you just have lodgers in Cyprus and they start to cause problems, can you just show them the door at short notice like in the UK or Ireland?
– In my opinion there are opportunities in doer uppers, however I do not know much about costs/timeframes of planning permissions in Cyprus or for which kind of improvements planning is needed (for example in some countries as long as you use licensed contractors, no structural elements are touched and area not increased, there are exemptions). Would you be able to provide some pointers on this matter?
Next Gen Scan
on said
It seems to me that the Turkish side is more interesting. It is cheap, low taxes. Unfortunately, the Greek side is EU communism.
Jash Bhurjee
on said
Hey I have been looking to invest in a business in Cyprus as I have been looking to have another base where I can shift to.
How do you think Cyprus would be? I am planning to work with Millwood kane international in order for me to settle in Cyprus. Have you heard of the company?
ionut bratanov
on said
Hi, I also interested in buying property în CY for personal use, but I think most important thinks are the quality of the all real estate în general, the heating, the cost of utilities, internet, winter în CY. Sure, if you analize the property as investment it's not so important, but for personal use is important all the other thinks. Thank you.
Riccardo
on said
Hi, overall agree with you but some points need to know the market better.
You're right, Cyprus is not cheap at all, inexplicably, because the land is expensive. For example, outskirts of Nicosia, you can pay 200k € for a 550sqm plot. In a better area, you can go to pay until 450k €, just the plot.
I disagree when you talked about political crisis (they'll never unify) and the consequence of the pricing down (ex. Larnaca).
Anyway, a recap of my thought:
1) Yes.
2) It's true, Cypriots like to build their own house. For this reason, for investment, you have to buy property in the tourist market, not domestic.
3) Disagree. Rents doubled in the last 5 years. You can buy good apt and rent them out for 4/5% ROI gross.
4) It's not Cyprus to be pro-tenant, it is Europe in general. Anyway, they are trying to balance it better.
5) I didn't know that. I'm eu citizen.
6) Disagree as above. Moreover, as long as buy with Title Deeds.
7) If you buy a property without Title Deeds you are assuming your risk, of course. If you buy a property without a Solicitor you are assuming your risk. Said that, there are some cases where you could buy a property without it, expecially in the touristic areas. But you have to go deeper.
8) Birth rate is basically in line with South EU and Western countries. It is the same of Greece, Italy, Spain, Malta and so on. Europe Uniion is 1.5
9) You're right, Cyprus is not cheap at all.
10) Disagree. You mentioned Paphos just because there are a lot of UK people so you could, fairly, feel safer. But the "bad political" risks would concern whole island. On this view, maybe, the best place could be Limassol, but I'm not sure anyway.
My final thought: Cyprus is good for investments? It isn't compared other places. Touristic market though, is not so bad.
Thanks for your video.
Orhan Tevfik
on said
Is this video another insulting campaign of the Turkish side by the Greeks??
Alfie Dowdell
on said
Very informative video Giorgio 👍You mentioned non-EU owners cannot rent out properties in Cyprus. As the UK is no longer part of the EU, can UK owners not rent out their properties in Cyprus anymore? Or is there an exception?
Jeffrey
on said
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George Evangel
on said
I thought this was Tom Hanks
Andreas Savva
on said
Do UK owners have exemption in being able to rent their property out?
Mark Blumenthal
on said
It's good that there is vat 19%, keeps speculators away, and in the hands of locals. Also good that, non EU can't rent. I agree with that. And prices down with reunification? No way…see Germany….West vs East
Smusy K
on said
I own property in cyprus which I rent and all I can truly say is, I wish I never had them, I don't mean to sound ungrateful but the laws protect the tenant, e.g tenants don't pay rent you can't kick them out although the laws have finally changed in favor of the landlord, and then there's damages/maintenance & taxes which frankly are ridiculous.
Sdvd
on said
Thank you for your thoughts actually i was going to immigrate to Cyprus with an investment program. My reason of investing is to get a permanent residence and later EU passport and the investment minimum is 100 thousand euros so it's lower compared with other countries. Do you think it's still worth doing it or whether you have other better options of getting permanent residence? In fac6i don't think the island should be unified and become all turkish as tyrkey has the aggressive policy of invading its neighbour's territories. Anyways i would be thankful if you could answer my question
Alan Coomer
on said
Point 2 there is a good market for used property to none cyprus persons
Alan Coomer
on said
You have to look long term in Cyprus but beware of corruption
Melvs Modebar
on said
if any of what you said was true then why in the richest country united states in 2009 the housung market collapse .none of the contributing factors you claim in Cyprus existed in the US. The fact is some make bad investments from what i see from your 1950s backround you must be one of those bad investors
Andrew Howard
on said
Hi, great video. Very informative I had no idea about the tithe deeds problem. Would you say Tenerife is a safer bet on buying property?
Ho Lee Fuk
on said
Even if property in Cyprus may be a dumpster fire, the tax savings from running a business from there & PR may be worth its weight in gold. Treat it like a once off tax writeoff and use it for lifestyle purposes may be the only value out of it.
Alexia Maria Kyriacou
on said
I’m from Cyprus
Alexia Maria Kyriacou
on said
Thank u I’m so happy that I’m from Cyprus
Urs Rieger
on said
One of the best videos about property. Short & concise. Many thanks.
Nicola Bicola
on said
Great video and very informative. Thank you.
We holiday in Cyprus every year. My husband is half Cypriot and we are looking to buy a villa in Paphos, hopefully in the next 1-2 years. I think we may need your help in purchasing a property over there! 😆
👍👌✌
on said
Point-8 low birth rate 1.3 banayomu Greek Cypriot bir better than Greece , Greece birth rate is1.1 can't erection like TURKS to multiple there population. Since 1928 to Date Greek population increase about 4 million 1928 population was 6.2 million. 1920 population of 10.4 million. If anybody looking apartmant or villa just visit Turkey , property's are very very reasonable price less then half the Cyprus, value. Also lots of places to see and visit.
ACD IVR
on said
Hi Georgio,thanks for a very informative video series,I am considering a move to Cyprus to operate my online business under the non Dom program and I was possibly planning to buy real estate there and rent it out whilst I travel to other locations (after I have stayed them minimum 60 days in Cyprus),from your video I certainly think I will just rent in Cyprus unless a very well priced bargain bolt hole becomes available which makes sense vs paying around €200 a month for a small 1bd studio or maybe 2 bedroom place.Following up from this, I have a long term interest in maybe retiring in Portugal under their NHR program after Cyprus to get access to the mainland Europe and the Schengen area ,with this in mind as a UK citizen I am considering investing in birmingham in the uk first and acquiring a few refurb and rent out properties via a limited company using the BRRR method ,do you think this would be a better strategy or maybe buying real estate in Portugal to cosmetically improve then flip or rent out maybe on the silver coast could be a better strategy for ROI and long term profitability as I plan to live longer term in Portugal/ Europe rather than the uk please ?
tersana corp
on said
Interesting point on Paphos, can you be more specific as to what kind of property you are likely to buy in Paphos, both for yourself and as an investment : )
Alexandrina Victoria
on said
Hello! Great video! Thank you so much!
I intend to sale my apartment in Romania 🇷🇴 and buy a studio or one bedroom apartment and live there, in Cyprus: Peyia / Paphos, so I have to pay like 5 % or 19 % in taxes?
I believe that buysell website, are good in helping me finding a property with property title.
So, because you know about, what it will be the total costs? On top of the property? Like + taxes, lawyer, etc..
I haven't contact anybody yet from buysell, because my apartment is still on the market waiting for a buyer.
Thanks so much! Ina.
Alex Tikhomirov
on said
"A lot of Russians have bought in Limassol, so… Pathos is a safer place to buy" lol 🙂
3DHDcat
on said
Title deeds have caused big issue, house built in 06 to this day no title deeds and makes life difficult
Four degrees parallax
on said
Hi which in order would you choose and why to live 123 Canary islands Crete or Balearics?
Light Quran
on said
I watched a group of videos for you and I admire the way of explaining ideas. My question is what are the best countries to invest and work in your opinion in 2021 for small investors?
Andre Kesarisingh
on said
Im in the UK I wanted to retire in Cyprus in 10 yearsor so and love larnaca. I wonder if in 10 years time the situation may be better. I'm not a fan of paphos. I may be tempted to rent an apartment if this situation does not change. I did once own a property in larnaca, Oroklini sold it many years ago in 2006 i agree with your points completely. Is there a chance Cyprus will unite after so long?
Andreas Savva
on said
Complete rubbish, this guy doesn’t know what he is talking about.
Laith B
on said
Amazing videos you do….high quality content thank you.
Kapitalhirsch
on said
Non-dom don’t pay taxes on rent.
If Google/Facebook move from irland to cyprus everthing changes!
John Guilgood
on said
Unless you are from the UK, and have extended family already in Cyprus, don't bother. If you really want the low crime rates, there are many other islands to choose from in the Med. The property market is so fragile and biased, unless you have big money it will not work. The public debt is now 3 times GDP, the banks are now no more than asset strippers, and no foreigner is allowed to make good business there- you will be hounded into bankruptcy. Corruption is endemic. Its a HUGE no-no.
Med med
on said
What about north cyprus?in 1 word good or bad?
Andy Weber
on said
Hi Giorgio, what's your take on North Cyprus?