nick says...

Cyprus outperforming most other markets?

I came across the below news release courtesy of The Move Channel today, and thought I would buzz it out as it's a really positive note to end the week on, for those of us who have already invested in Cyprus. 

This news release confirms everything I have been saying for the past two years and also suggests that there's still a long way to go before Cyprus comes off the investor map.

The Royal Institution of Chartered Surveyors European Housing Review 2008 has described Cyprus as ‘a rare case of a country shrugging off the gloom.'

Experts have said that Cyprus is a solid bet for international investors as its price rises seem to be accelerating.

Reasons behind the booming property market include Cyprus double-taxation agreement with the UK, which entices numerous investors drawn by the tax advantages of not having to pay tax in both their home country and investment country.

Cyprus also has a legal system based on the British model, far less volatility than other emerging markets, a high standard of living, good medical facilities and a very low crime rate, sitting at just one sixth of the European average.

With an increasing ex-pat community of British retires and the upgrading of Larnaca and Paphos airports making travel easier, the future bodes well for Cyprus following it joining the Euro currency in 2008.

James Fleure of Buy Abroad said, "Cyprus is a perfect overseas destination for those looking to take advantage of owning a property abroad.

"This steady yet performing market is attractive to those who are looking to have all the benefits of owning abroad.

"Cyprus' is one of the safest markets around with a steady increase of up to 15 per cent per year on property.

"Emerging markets with dramatic price increases often fall far short on good solid infrastructures.

"Cyprus is a safe bet and with significant increases to property each year is still probably one of the best areas in the Mediterranean to invest in," Mr Fleure added.

In addition to the above comments, I personally believe that there will be a second tier of growth in Cyprus at the end of 2009 that coincides with the opening of the new airport terminal, and budget airlines scheduling more cheaper flights to the island.  Plus of course, in the longer term, there is the extraction of the oil that was recently discovered off the Southern Coast.  This will bring people, business, and wealth to the island and fuel the economy in years to come.

So the outlook for Cyprus continues to be very bright, both in the short and long term, which is always reassuring for investors.

This is me at Aphroditie's Temple.

I am heading off to Cyprus again myself in September and leading a group of investors around the island, educating them along the way.  If you would be interested in joining my guided tour, then please feel free to drop me an email at nick.tadd@4wallsandaceiling.com.

I will also be doing a presentation about the benefits of investing in Southern Cyprus at my networking event on Sunday 21st September in Milton Keynes.  Please - click here - to register your seat.

Otherwise if you would like a complimentary copy of my e-book "making money while the sun shines" please e-mail me at nick.tadd@4wallsandaceiling.com

 

Have a great weekend!

What the FT had to say about Cyprus

If you are a regular reader of my blog, you will know that I have been banging on about Cyprus for the past 18 months, promoting it as a top investment opportunity.  I myself have made a lot of money over there through my own investments.

It seems that the Financial Times agrees with me, albeit 18 months late!  However, better late than never.  What is really rewarding is that their article vindicates my own philosophy about investing in Cyprus.  That is:  location, quality, and a unique proposition are the criteria your investment must meet to enjoy the greatest returns.

The article suggests that the luxury end of the market  will prove to be the most profitable, so proximity to golf courses, spas, and leisure amenities are paramount.

To read the Financial Times article in full, please click here.

How many more great articles like this are you going to read before you get involved? Please e-mail me at nick.tadd@4wallsandaceiling.com for more information on investing in Cyprus 

"firm upward course" for the Cypriot tourism industry.

4wallsandaceiling.com Newsletter

Nick says...

Having just come back from Cyprus you can see what they are driving at.

Owners of investment properties in Cyprus could find they enjoy better than expected rental income during the coming winter.

The Association of Cyprus Travel Agents (Acta), Cyprus Tourism Organisation and the Ministry of Tourism have been working together to attract more visitors to the island, reports the Cyprus Mail.

Akis Kelepeshis, president of Acta, told the trade group's annual general meeting that there were already signs that those efforts were paying off and that 2008 would be the start of a "firm upward course" for the Cypriot tourism industry.

He added: "The efforts made this year for increasing numbers in the winter season 2008-09 appear to be bearing fruit."

The news, which could mean that owners of rental property in Cyprus enjoy good levels of occupancy during usually quiet months, comes just days after an increase in the number Britons booking holidays to the Mediterranean island was reported.

Travel website lastminute.com revealed that bookings for June breaks to Cyprus were up 32 per cent on the corresponding period in 2007.

For a copy of our e-book about investing in Cyprus, please click here.

WOW! SOUTHERN CYPRUS DUBBED "THE HOLY GRAIL OF INTERNATIONAL PROPERTY INVESTMENT"!

WOW!  SOUTHERN CYPRUS DUBBED "THE HOLY GRAIL OF INTERNATIONAL PROPERTY INVESTMENT"!

Dear Fellow Investor,

We've just returned from one of our most successful-ever viewing trips to Larnaca.  We had a number of valued clients join us over there for a few days to view our developments in the Larnaca area, including sites at Pervolia (where we have our penthouse), Kiti, Pyla, and Mazatos. Our clients were able to see with their own eyes all the economic drivers that are fuelling the country (and their investment). 

"Thanks for being such wonderful hosts.  I had a ball and learnt so much.  I am really happy with my investment". - Joy Webber, South London

   

Cyprus road trip group photo June 2008

First of all, the flight over there was full to bursting - always a good sign!  On arrival, we were greeted by perfect holiday weather of 30 degrees with a light breeze.  While we collected our luggage, it was interesting to note that the Arrivals Board showed flights arriving from places as diverse as Manchester, Prague, Jeddah, Bahrain, Paris, etc.  For centuries, Cyprus has been a melting-pot of cultures, and this tradition is clearly continuing as the island becomes a major holiday destination for many different nationalities!   The number of different languages being spoken in the Arrivals Hall was something akin to the Tower of Babel! 

New motorways whisked us to our delightful hotel in Pervolia.  On the way, we were able to see that the new international airport terminal is well under way with its construction, consolidating Larnaca's position as the main gateway onto the island.  The Cypriot government has a strategic tourism plan in place, to grow tourism over the next few years.  This includes increasing traffic through the airport from 2 million to 9 million, and the facilities to handle this increase in people are currently being built.  You may also have seen the "Love Cyprus" advertising campaign which is currently running on T.V. here in the U.K.  (www.visitcyprus.com). The Cypriot government have just commissioned the international Cypriot tennis player, Marcus Bhagdatis, to act as the "face" of Cyprus to increase awareness of the island as a holiday destination.  Marcus will be fronting a number of new advertisements and campaigns.

At our hotel, we happened to meet a chap who works for Total Oil.  He (along with a number of colleagues) has been brought in to supervise getting the infrastructure in place to start getting the oil out.  He told us that the oil reserves are sizeable and that many people are being brought to the island to help work on the project.  They are either buying or renting apartments.  The Scandinavian oil company, ProSafe, has already moved its headquarters to Larnaca, and brought 1300 staff with it.  There is a severe shortage of QUALITY accommodation in the Larnaca area, which has always been Cyprus' business hub, but is now been up-graded to a holiday resort area.  This is fantastic news for those of us who have invested there, as the proximity to the airport always increases occupancy, both for corporate lets and holiday lets - of which you have the option of both in Larnaca.

Over the next few days, we took our clients around the area to see our developments. Entry level into Cyprus starts from as little as £6K, which you won't find here in the U.K.  With 30% capital growth predicted, this is SERIOUS leverage of a small amount of money!

We showed our clients the site of the new David Lloyd Olympic Village, the new 5 star Grove Star Spa Resort (both at Mazatos), the site of the new mini-Marina at Pervolia, and the new coast road linking Larnaca, Pervolia, and Mazatos.  All this development subscribes to the golden rule of I.C.I - investment, communication, and infrastructure!  These are the vital ingredients that fuel any investment and if you adhere to them, you minimise your risk and reduce speculative elements.

As far as we are concerned, Cyprus (the Larnaca area particularly) ticks all the investment boxes and we have been promoting it as an investment destination for the past eighteen months and investing heavily there ourselves.  Many people tried to question our judgement and say that Cyprus wasn't anything special.

It was therefore particularly interesting to note on our return, that one of the U.K.'s most high profile property investors and marketeers, Andy Shaw, has just send out a broadcast stating that he now considers Cyprus to be "the Holy Grail of international property investment"!   Andy has a database of thousands of investors and now he is promoting Cyprus to them, the secret is out!  Cyprus was also just on the front cover of "A Place In The Sun" magazine, so you can't get more mainstream than that.  However, we at 4 Walls and a Ceiling, recognised the benefits of Cyprus over 18 months ago!!  What's more, we identified "where" in Cyprus - Larnaca - and we have been proved correct in this, as Larnaca has enjoyed the most significant gains.

When somebody says "invest in Cyprus" - you should ask "where in Cyprus?". If they give you a town, ask "where in that town?".  If they give a development, ask "why that development?".

Do not be sold on just a development alone.  You need to be convinced on why that development, why that town, and why that area.

If you want to know the difference between investing in Paphos, Limassol, Nicosia, Larnaca, Famagusta, Parallimni, Protaras, Aiya Napa etc. then speak to us at 4 Walls and A Ceiling and we will break down the pros and cons of all these places, as we have been involved in Cyprus for a number of years and have the experience to do this.

Whilst it's great that Andy Shaw has acknowledged Cyprus, albeit a couple of years late, he's not the only one.  The sports entrepreneur, David Lloyd, is also investing heavily on the island, building the David Lloyd Olympic Village - a major sports training facility for athletes that will operate year-round thanks to Cyprus' 340 days of sunshine per year. Meanwhile, Harvard University has identified Cyprus as a centre of educational excellence, and is investing in new educational faculties there.  This is creating awareness in the lucrative American market and there is talk of direct flights to Cyprus from the U.S.

If you would be interested in having a free, no obligation personal telephone consultation with our very own tame Cypriot property expert, Nick Tadd (as seen on the BBC 2 programme "The Truth About Property"), then please email nick.tadd@4wallsandaceiling.com.

Please note:  we do not employ any "hard sell" tactics.  We don't need to. Cyprus speaks for itself.  If you see that, you will want to get involved.  If you don't, you won't.  Simple as that.

Meanwhile, on the home front, we are still being bombarded with so-called "no money down" deals.  Indeed, one famous property marketeer is inciting 100 investors to pay £350.00 each to obtain the latest "no money down" deal structure.  That's a cool £35,000 to him!  However, the proof will be in the pudding whether these unsuspecting people will actually be able to bring to fruition what he tells them.  We're pretty certain that most of these deal structures, because they are so flawed, rarely amount to anything - but the people promoting them make a lot of money along the way, even though you don't.

For novice investors in particular, it is very confusing as one person is saying they can do "no money down", and we are telling them otherwise.  At the end of the day, you must decide who to trust.

Since April 2008, it is our opinion that there are now no legitimate ways to do "no money down" deals here in the U.K. with the current mortgage products, and taking into account Council of Mortgage Lenders and Law Society Guidelines.

To this end, we have joined forces with our friends at Property Traders to bring you the truth about "no money down" deals and to bring into sharp focus the dangers of doing them, not only from a legal standpoint, but also from a tax perspective; something that is always overlooked by novice investors.

This is an unbiased, independent report exposing the serious tax and legal implications of doing deals in this format and it will answer all your questions about whether you should be entertaining these deal structures.  There are issues here which no one else will tell you and YOU NEED TO KNOW THEM.  There is no need to be confused any longer.

For further information, or to purchase your report for £29.99, please click here:



We at 4 Walls and A Ceiling have a deserved reputation for always giving you the best possible advice and property intelligence.  As you can see from above, we started promoting Cyprus 18 months before Andy Shaw. Our investors will subsequently have made far more significant gains, as they started earlier.

Unlike most other companies, we have been warning our clients of the dangers of doing "no money down" deals for several months now.  Yet people still believe it when someone tells them that they have found a way to fudge the system.   No doubt, you will be asked to use their solicitor and broker.  Ask yourself "why"? If the deal is legitimate, you should be able to use any broker and solicitor you choose, as transparency is a pre-requisite of any legitimate property transaction.

The bottom line is ... if you are not disclosing the incentive and/or discount to the lender, it is tantamount to mortgage fraud.

Our report dissects all these latest "no money down" systems and exposes their flaws and also flags up the legal and tax implications.  If you are found to have done one of these fraudulent transactions, you can end up with a prison sentence and owing the Taxman thousands of ££££££'s.

Before entertaining doing one of these deals, you need to read our report.

For further details click here

It's worth noting that many of these deal structures require two sets of solicitors, exhorbitant bridging fees, etc.  That is most certainly NOT "no money down".

If you read our report, you will be convinced that it is now not possible to do it here in the U.K. - NO MATTER WHAT ANYONE ELSE MAY TELL YOU.

You can buy our report for £29.99 at the following link: please click here



Please do not waste your money on reservation fees, valuations, solicitors fees etc. This report will explain why and tell you the legal and tax implications of what you are contemplating doing.  The entity trying to sell you a "no money down" deal will never tell you these facts or be able to answer your questions about them.

However, if you are going to do one of these questionable deal structures, please at least be aware of the legal and tax implications and make provision for them.  In property, if something goes wrong, it is YOU that carries the can as you signed the mortgage agreement. And don't let anyone tell you otherwise.

So, to summarise, Cyprus is currently looking a lot more attractive as an investment destination than the U.K.  With big guns like Andy Shaw promoting it, you need to get going quickly before too many people get wind of it.  The biggest gains are made whilst it's a "best kept secret".  Now Andy Shaw has dubbed it the "holy grail" of international investments, the secret is well and truly out and every man and his dog will be investing over there, which again will fuel the market, as demand increases.

If you would be interested in having a free, no obligation personal telephone consultation with our very own tame Cypriot property expert, Nick Tadd (as seen on the BBC 2 programme "The Truth About Property"), then please email nick.tadd@4wallsandaceiling.com. 

Please note:  we do not employ any "hard sell" tactics.  We don't need to. Cyprus speaks for itself.  If you see that, you will want to get involved.  If you don't, you won't.  Simple as that.

We offer viewing trips from £149.00 per person.  Unlike other companies, who will tell you that you do not need to go and see your investment as "it is just a grey box that makes you money", we do not advocate that you buy any investment unseen.  We actively encourage you to go and see your prospective property.  After all, when you buy a new car, you test drive several different models.  When you buy a mobile phone, you check out several different types.  When you buy a new pair of shoes, you try on several different pairs.  Therefore, when you make a property investment (where there is a lot more money involved), we encourage you to understand it from every angle.  It could be financial ruin not to!!  So, if Cyprus sounds of interest to you, get in touch with us, and get yourself over there as soon as possible to see it with your own eyes and get an understanding of what the island has to offer your prospective tenants/clients.  You can buy property by science and maths, but there is also an emotive element that should be considered.    After all, if you would not want to rent/live/holiday there, then probably other people might feel the same! 

With its spectacular scenery and enviable climate, it's no wonder that Aphrodite, Goddess of Love, chose Cyprus as her playground in ancient times.  Since then, mere mortals have been discovering this 'land fit for Gods' for themselves!.  Maybe it's your turn now!



For a copy of our e-book about investing in Cyprus, please click here.

Swissport to provide services at 2 Cyprus airports

Swissport to provide services at 2 Cyprus airports

4wallsandaceiling.com Newsletter

I found this document on the internet yesterday, again it really lends creadence to the islands USP's for investment.

For those of you who have not yet invested in Cyprus but are thinking about it, why not give me a call on 0800 0141859 and I'll talk you through it.

Alternatively we have produced an e-book which will guide you through the ins and outs.

Click here to get your up-dated 2008 guide to investing in Cyprus

Swissport International has obtained the licences (for a period of 7 years) to provide ground services at Larnaca and Paphos airports on Cyprus, together with its partners G.A.P. Vassilopoulos and Cyprus Airways. The new operations are scheduled to commence on May 15. Swissport continues to expand. The world’s leading provider of airport ground handling services will soon be adding two new stations on Cyprus to its global operating network. The island is a leading tourist destination that receives over ten million air travellers a year. Around 40 per cent of the flights concerned are charter services, while the remaining 60 per cent are scheduled services operated by various international airlines.

Swissport is now teaming up with two strong local partners – G.A.P. Vassilopoulos and Cyprus Airways – to enter the Cyprus ground handling market, share in the recent substantial growth in travel volumes and position itself as the island’s leading ground services provider. The requisite licences were obtained through an international tender process under which airport authority Hermes Airports Ltd. has enabled two providers to benefit from the liberalisation of the local ground handling market. The total market volume for these two Airports is in the range of some 20’000 flights a year.

The G.A.P. Vassilopoulos Group is already well known to Swissport: the partners have been collaborating since 2005 under a joint venture offering ground handling services in the executive aviation sector together with certain GSA and ticketing functions. G.A.P. Vassilopoulos is a stock exchange-listed firm that is active in the cargo, shipping, hotel and insurance sectors. The company has earned itself a particularly impressive reputation in logistics and tourism, and is greatly looking forward to these new partnership activities.

With home carrier Cyprus Airways as its third member, the new partnership has even brighter prospects of success. While Swissport, as the industry leader, brings its professional ground handling expertise and its extensive international contacts to the venture, G.A.P. Vassilopoulos and Cyprus Airways will contribute their strong local roots.

The new ground handling operations are scheduled to commence at both Larnaca and Paphos airports on May 15, in good time for the peak tourist season. The new operation will be headed by Christian Draeger, who will perform this function in parallel to his duties as CEO of Swissport Bulgaria; and its Chief Operating Officer will be Chris Christopoulos, who joins the local management team from Swissport Corporate Development.

Juan Jose Andres Alvez, Senior Vice President and Head of Swissport’s European Ground Handling unit is delighted about this important decision: “ We are very happy about the ground handling liberalization process in Cyprus as well as with the strong partnership, allowing us to further strengthen our position in the South Eastern European market. This important step will enable our customer Airlines to get an excellent and competitive ground handling service for the upcoming summer period.”

Swissport International Ltd., which is owned by Ferrovial, a European infrastructure and service corporation based in Spain, provides ground services for over 70 million passengers and 3.2 million tonnes of cargo a year on behalf of some 650 client companies. With its workforce of around 30 000 personnel, Swissport is active at 187 airports in 43 countries on five continents, and generated consolidated operating revenue of CHF 1.9 billion (EUR 1 266 million or USD 1 583 million) last year.

Revealed: the best places in the world for retirement

Revealed: the best places in the world for retirement

4wallsandaceiling.com Newsletter

Do you feel you’ve had enough of the rat race and want to jet off to a life in the sun? Here are your options

RECORD numbers of Britons are fleeing the country for more appealing climates, lower taxes, more affordable property and fewer traffic jams.

Latest figures from the Office for National Statistics show that 200,000 people left Britain for good last year, and the majority of them were retirees.

However, many of those who live the dream underestimate the financial implications. Many couples retiring to Spain, for example, think they will pay lower tax, only to be hit by a wealth tax of 0.2% to 0.5% of their worldwide assets.

And many couples fail to realise that in Spain and France, unlike in Britain, inheritance tax can be levied on assets passed between a husband and wife – and the rate is 30% on average.
Related Links

    * Pensioners prove it is never too late to emigrate

Today, we reveal the best places in the world to retire, based on eight key financial categories – income tax, inheritance tax, property tax, property costs, ease of gaining residency, healthcare, climate and culture.

The comprehensive research, conducted by the Homebuyer and Property Investor Show, gave the 10 most popular retirement countries a mark out of 10 in each category, to come up with an overall score out of 80.

Cyprus tops the list of destinations because it has an income-tax rate of just 5% on pensions for retired residents, as well as low property prices and no inheritance tax. It also scores highly on related issues such as ease of gaining residency, low property buying and selling costs and benefits for pensioners.

Nick Clark, managing director of Homebuyer Events, said: “Not only does Cyprus offer a warm, sunny climate, it also benefits from favourable taxation and healthcare policies.”

Panama, now infamously the chosen destination of “back from the dead” canoeist John Darwin and his wife Anne, comes a close second. This is largely thanks to its pensionado scheme, which offers attractive discounts for pensioners (see below).

CYPRUS

Southern Cyprus is a four-and-a-half hour flight from Britain. It is favoured by retirees because of its hot, dry summers and mild winters – not to mention its preferential 5% tax rate on pensions.

English is widely spoken and they even drive on the same side of the road as in the UK.

Tax

Retired residents from overseas are taxed on their pensions at the rate of 5% above about €3,417 (£2,554) a year, whether it is a state, company or personal pension. To qualify for the low rate, you must have lived in the country for at least 183 days.

Alternatively, you can pay the normal rates, in which case the first €19,500 is tax free, rising to 30% on €36,301. So the smaller your income, the better off you are under the normal system.

Remember that if you continue to have assets in Britain, such as bank accounts or an investment portfolio, you will still be liable for UK tax on any income, even if you are resident in Cyprus. Many retirees therefore move their assets offshore, and then bring the income into Cyprus, in which case there would be no tax to pay, according to Jonathan Spring-Rice of adviser Towry Law.

British retirees will also be attracted by the fact that Cyprus abolished inheritance tax in 2000. However, to benefit from this, expatriates will have to prove they have severed all links with Britain – and this may not be as easy as you think.

It can take more than five years and involves closing down all accounts and selling all UK property, and cancelling your registration with your doctor and dentist, among other things.

Property costs

Property prices in Cyprus start from about £77,000 – although the island is rapidly catching up with prices in more established retirement hotspots such as France and Spain.

Stamp duty is 0.15% for properties worth up to about £130,000 and 0.2% on more expensive homes, compared with 1% to 4% in Britain.

However, there may be property transfer fees of 3% of the first £65,000 or so, 5% on homes worth between £65,000 and £130,000 and 8% on those valued at more than £130,000.

Ease of gaining residency

Retired EU nationals do not require a visa to move to southern Cyprus, but they do need a temporary residence employment permit that should be applied for on arrival.

Those wanting to buy property must also prove they have adequate income or financial resources to live without working. The minimum requirement is about £8,000 a year.

Healthcare

Now that southern Cyprus has joined the European Union, pensioners from other EU countries are entitled to use the public health system.

However, there are few state residential nursing homes or hospices for the terminally ill on the island, so many people needing long-term care simply return home to Britain.

Click here to get your up-dated 2008 guide to investing in Cyprus

Low Interest Rates Tempt Investors to Cyprus

Low Interest Rates Tempt Investors to Cyprus

4wallsandaceiling.com Newsletter

Source: - Homes Worldwide

Nick Says…

Just goes to show, albeit a year or 2 late, but the maths is on your side. Get in to it now before the “roaring hoards” and you will have bought it for less. Based on that you will always have a marketing “ace” up your sleeve that the late comers will not… you can charge LESS rent than they can and it still will pay for itself.

Interest rate cuts in Cyprus could serve to attract more foreign property buyers to the country, a newspaper has stated.

Cyprus became a member of the single European currency at the beginning of the year, adopting the same rate of interest applied across the eurozone.

This has prompted the Telegraph to speculate that the new rate of four per cent could help enhance the island's appeal as an investment market to foreign buyers.

The newspaper commented: 'Property values there look set to start increasing as more buyers take advantage of the new rates.'

In addition, it said that during the two weeks since Cyprus joined the euro, the currency had 'already' had a positive impact on its economy.

Earlier this week, EU monetary affairs commissioner Joaquin Almunia congratulated the island's population for giving the euro a 'warm welcome' since it entered circulation on New Year's Day.

Click here to get your up-dated 2008 guide to investing in Cyprus
only £4.99

Cyprus high in free market rankings

Cyprus high in free market rankings

4wallsandaceiling.com Newsletter

Source: - Cyprus Mail

Nick Says…

I found this on the internet the other day and it’s powerful stuff, it just goes to show how Cyprus has the wealth and stability to take a chunk of risk out of your investment.

CYPRUS HAS the world’s 22nd freest economy according to an assessment by The Heritage Foundation in Washington and published in the Wall Street Journal yesterday.

More specifically, the island is characterised with a free market economy of 71.3 per cent and is ranked 11th out of 41 countries in the European region, with an overall score higher than the regional average and an above average score in nine of ten ‘economic freedom’ categories.

Coming out on top with 90 per cent are property rights, with the foundation reporting that, “contracts and property rights are enforced effectively. The civil judiciary, including the Supreme Court, is independent constitutionally but not always in practice.

However, intellectual property rights are not adequately protected in the area administered by Turkish Cypriots and real property remains one of the key contested issues.

Monetary freedom is next highest with a score of 85 per cent. “Inflation is relatively low, averaging 2.5 per cent between 2004 and 2006. Relatively stable prices explain most of the monetary freedom score.”

Trade freedom also ranked highly with 81 per cent.

Cyprus bottomed out in the ‘Freedom from Government’ rankings, with a score of 43 per cent.

“Total government expenditures, including consumption and transfer payments, are high. In the most recent year, government spending equalled 43.6 per cent of GDP. For two decades, budget deficits have tended to be around five per cent of GDP, although fiscal consolidation has lowered the deficit more recently.”

In concluding its report on Cyprus, which was one of 157 countries studied, The Heritage Foundation stated: “The economy enjoys world-class property rights and solid investment, monetary, trade, labour, business, and financial freedom. The judiciary is independent.
“The labour market is relatively flexible, with moderate severance packages and unemployment benefits.

“Inflation and average tariff rates are low, although monetary and trade freedom are muted by adherence to the standard EU subsidies of agriculture. The financial market is sound and open to foreign competition.

“High government expenditures are the primary weakness, with total government expenditures amounting to more than two-fifths of GDP.”

Click here to get your up-dated 2008 guide to investing in Cyprus
only £4.99

Live in the UK – Invest in Property Overseas!

Live in the UK – Invest in Property Overseas!

4wallsandaceiling.com Newsletter

Nick Says…

With the current property situation in the UK, anyone wishing to invest their money in the property industry would be wise to watch the situation for a while and see how things change.  It could be that in a few months a bargain or two may surface from properties that currently wouldn’t have much of a return on the investment if you invested in them now.  But that doesn’t mean that you must leave your investment capital sitting idle, it can still be earning money!

Whilst the UK property market is ailing right now, other countries are experiencing growth in the area, and it could be that your investment capital could be put to use on the international real estate stage if you do your research properly.  Although some countries, such as the US, are also showing a downward trend in their property market, there are other countries – Cyprus for example – where property investment is still a viable prospect.

Before putting your capital into overseas property investing however you need to check out the regulations that govern such investments.  If you have a legal adviser, it would be wise to talk to them about any differences in how the investment works overseas compared with the UK property market.  If you plan on buying land with a view to development, then you should look into any legal issues that this will involve.  You should also do a good research audit on the area, and see what makes it a good investment prospect.  It could be that a local person will know more than someone in the UK, so try and get advice from both your own legal counsel and also from someone who lives local to the land you are interested in developing.

One good source of “local” information is the British Embassy in the country where you are planning to invest your money.  They should not only be able to advise you on local laws and regulations, but also give you advice that they’ve learned from other UK investors in the past.   Before signing any official paperwork for an investment overseas project, you should also talk to your tax adviser in the UK to see what your position is on taxation paid on overseas investing.

As the downward property market trend continues in the UK, don’t just watch it in dismay – get your atlas out, do some homework in current overseas property publications and see where your money can be best employed to get the greatest return for the smallest investment.

Click here to get your up-dated 2008 guide to investing in Cyprus
only £4.99

Ombudsman concern at property advice

Ombudsman concern at property advice

4wallsandaceiling.com Newsletter

Source: - Ireland.com

Nick Says…

This is good. Concern over the quality of the companies/people selling investment property… I wish it extended to Property Clubs as well.

The Financial Services Ombudsman Joe Meade expressed concern today at the overseas property investment advice being proffered by some financial advisers.

Over the period July to December 2007, Mr Meade made two awards totalling €55,000 to people who complained about the poor quality of investment advice given on foreign properties.

Mr Meade said he had noted problems in this area in July but noted that confusion and non-declaration of interests were still in evidence.

In case study released today Mr Meade said an investor had sought advice from a company offering investment advice and was advised to purchase it using a deposit of €70,000, or half of the purchase price.

The advisor said it would be possible to sell the property for a profit shortly. However, this did not happen and the investor complained to the Ombudsman that the advice was flawed and the advisor had a conflict of interest as he was also earning a commission as an estate agent from the developer, a fact that was not disclosed to the investor.

When the case was investigated, the Ombudsman found that the advisor was using a business card which on one side showed he was trading as a financial service provider and on the reverse, as an estate agent.

The ombudsman found that the advisor had a "clear conflict of interest" and could not offer independent investment advice on that property.

Although the complainant claimed to have lost €50,000, the Ombudsman found that he was negligent in proceeding with the investment without satisfying himself that the property was correctly valued. As a result, the Ombudsman made a finding of €25,000 against the advisor.

A second payment of €30,000 was made against another property advisor, the details of which were not revealed.

Last year, some 4,374 complaints were made to the Ombudsman, a rise of 15 per cent .

Other complaints to the Ombudsman involved a settlement of €25,000 following a dispute over direct debit payments. Investment advice that was adjudged to be misleading resulted in the award of a settlement of €17,000, the Ombudsman said.