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Cyprus Property Blog by Cleo

Buying Property in Cyprus is a great investment choice and we discuss various aspects.

Cyprus Property Market's Slow Path To Recovery

I have been working in the Cyprus property market for close to a decade now and have watched how the affairs in many segments of this country are conducted....things tend to take a while!  The whole system moves as slowly as you can imagine.  That was alright for awhile and accepted it as island living - the kind of lifestyle that comes from being born and raised or have resided in a holiday like atmosphere for a long time.  I accepted it for many years and never felt anger toward the politicians who I thought made wrong decisions and steered Cyprus in the wrong direction economically. However, when I saw how the previous Cypriot president delayed the bailout and played games with Cyprus's future it became frustrating to watch.  He borrowed from Russia and delayed the inevitable bailout with the EU and eventually just paid forward a problem that spiraled out of control. Many things could have been done earlier on to first identify the issues and begin talking about solutions but instead most were in denial.

At the same time everyone began to recognize what many of the expats on the island that had been trying to sell their home already knew - that the housing market was at a stand still. Other countries were already working out plans to resolve their financial and housing problems and had clear plans.  Although the politics, people and regions varied for all that were experiencing problems the main causes which were bad lending practices by the banks and over inflated home prices were similar worldwide. In Cyprus we only need to look at the UK and the USA to see the things that we needed to do to resolve our problems.

Cyprus and the Parliament must move forward and stop delaying the process of recovery. However, they continue to delay what is unavoidable as seen in the recent delay of the foreclosure process. The under performing loans will not just go away and the borrowers will not be able to come up with the funds required to right their unfortunate circumstances.

I believe that the foreclosure process must begin now. It will take time to deplete the inventory that is presently available.  The process needs to start and there is no need to reinvent the wheel, just adopt any existing foreclosure process such as the one used in the U.S. that has seen millions of homes change hands and provide millions with ownership of affordable properties through short sales and foreclosures. As a licensed real estate agent in Virginia I have seen first hand how short sales and foreclosures have declined year by year and the housing market slowing bouncing back.

Maybe the government can help some people that have actually been taken advantage by the system, developers or other people who have continued to make an effort to pay their loans.  The banks need to go after the non performing loans immediately and just like banks in other places get out of the property ownership business. 

 

Published Wednesday, February 18, 2015 5:32 PM by Cleo Shahateet

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Maximus decimus said:

I have lived in cyprus since late last year. Not quite 60 and now retired.most of my working life has centred around property development and sales, both residential and commercial, solely in the UK.

I don't hold any formal qualifications I do however have a wealth of experience coupled with 35 years of married bliss to a greek cypriot family via my stunningly beautiful wife. This means that countless weddings, christenings, engagements, family get togethers etc etc etc have given me an insight as to the way the islanders (and my 5 children) view matters.

I understand how the Cypriots think..They will shaft you and smile while they do it, property isn't worth anywhere near the enormous asking prices, how can it be? Every corner has a Horafi  ( bldg plot) hundreds of shops are empty and the average salary isn't enough to support a family, that's if you even have a job. Over half of all the bank loans made are non performing. No one pays the rent or mortgage and the recent list published in the papers shows that even the tax collection system doesn't work WTF !!!talk about third world.

If anyone thinks things will improve at some point forget it. People blame the "crisis "

How about this, there isn't one. This is reality and I assure you it's going to get worse. The crisis meant no one could borrow money. You were all in debt anyway so why borrow more.

February 28, 2015 10:41 PM

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Cyprus Property is Hot! Now more than ever. There are over 20 million northern Europeans (European baby boomers) that have retired in the last few years which is a great number and many will be British. Many have been waiting for the financial crisis to past before they make the move to Cyprus. With warm weather, low crime rate, low cost of living in Cyprus and English speaking population, do you think Cyprus will have enough properties for every one?

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