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However, alarm bells started to ring the day Tim signed on the dotted line: “I flew out to the development to sign the contracts and a lot of the promised facilities were either half-finished or not even started.

“I raised my concerns but was told that I if I didn’t go ahead with the transaction then the deal I had would be defunct.”

So he signed. twit.

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“Because Cyprus is part of the EU, they can apply to the British courts for possession orders against the property of Britons to meet debts in Cyprus. This means people can’t simply ignore their debts and hope they go away, as they could conceivably lose their home in the UK as a result.”

oops :)

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It's impossible to relate to the mentality which leads a person to commit to buy not one but two off plan flats in a foreign country, with debt denominated in a third currency.

Maybe they just couldn't find any off plan flats for sale in the UK in 2006.

It sounds like insanity when you write it like that.

I know 1 person who bought off plan in Bulgaria in 2006....they lost £50K+

They say they are waiting for it to "come good" but I'm not even sure they got the keys in the end.

When you take a step back you can see what lunacy it was fuelled by cheap lending and media hype...try stepping back and doing the same with the London bubble B)

Edited by TheCountOfNowhere

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It's impossible to relate to the mentality which leads a person to commit to buy not one but two off plan flats in a foreign country, with debt denominated in a third currency.

Maybe they just couldn't find any off plan flats for sale in the UK in 2006.

Or maybe times were still 'good' enough for some such buyers of 2 offplan apartments abroad, for them to go and upsize to a £500,000 house in the UK in late 2007, now up for sale at £610,000. Wouldn't surprise me at all.

Edited by Venger

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Hi

Last para of article:

"However, Mr Way said these problems shouldn’t put off potential buyers in Cyprus – just make sure you get the legal i’s dotted and t’s crossed before handing over cash, and be wary of non-euro mortgages. He also pointed to the attractions that Cyprus still has for British buyers. In the right spots, the rental market can be practically year-round, flights are easy and cheap from the UK, and Cyprus is a conveniently located EU destination, close to the investment money of the Middle East"

First comment :)

"Rental market in Cyprus is dead, and that goes for all of the island. Flights to Cyprus is 4-5 times as expensive as flights to Spain. To eat and drink out is more expensive than in the UK. The bars and restaurants all over is more or less empty, so dont expect that you will meet other people. Most property buyers has not had their title deeds, and developers used them as guarantees to loans from the banks. Guess who will take their property if the developers goes bankrupt (and they do)?"

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The Cyprus dream becomes a nightmare

Briton Tim Hudgell bought two luxury apartments on the holiday island...now he’s battling banks after it all went horribly wrong

Not another one. :rolleyes:

After a while these stories in the papers just get boring.

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The Cyprus dream becomes a nightmare

Briton Tim Hudgell bought two luxury apartments on the holiday island...now he’s battling banks after it all went horribly wrong

Not another one. :rolleyes:

After a while these stories in the papers just get boring.

Why not some stories about London would be sellers who have upped asking prices by 10% and are patting themselves on the back for being so shrewd by increasing their wealth by 10% overnight.

Edited by billybong

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At the time, thought there was a good chance it was the same Tim H who was trying to sell his house in Aberdeen for £610,000. Had the Rightmove listing saved on my old harddrive/computer.

Looks like some individual investors are reaching settlements with the banks, which is better than the investors just being able to walk away from their decisions.

21st June 2014
Early Settlement for numerous Cyprus "mis-selling" property cases

In the last week we have been contacted by a great number of our existing clients and a great number of puzzled buyers in relation to recent reports in the British and International media concerning the early “settlement” of hundreds of cases related to property purchases in Cyprus, which have largely centered upon Swiss Franc loans.

Concerning any form of settlement, it should be noted that any settlement reached should not necessarily be read as anything more than what it actually is - namely an agreement between the two parties before the Court or out of Court to find a “middle of the way” solution acceptable to both sides.

in full... http://www.judicaregroup.com/news/409-early-settlement-mis-selling

17th July 2014
Cyprus Seminar

...There are in addition of course also a great many purchasers who are being contacted by the Cyprus banks at present in relation to their failures to meet the ever increasing nature of the loan repayments with a view to restructuring/renegotiating existing agreements and/or are possibly feeling pressurised to sign up to these complicated and at times uncertain new financial agreements.

in full... http://www.judicaregroup.com/news/415-cyprus-seminar

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Despite the buyers £109 k off plan purchase becoming a £400K potential claim on his Uk asset bloodbath , the Vi at the end of the article says

However, Mr Way said these problems shouldn’t put off potential buyers in Cyprus – just make sure you get the legal i’s dotted and t’s crossed before handing over cash, and be wary of non-euro mortgages. He also pointed to the attractions that Cyprus still has for British buyers. In the right spots, the rental market can be practically year-round, flights are easy and cheap from the UK, and Cyprus is a conveniently located EU destination, close to the investment money of the Middle East.

:rolleyes:

Like the Borg in Star Trek ... .they are relentless

Edited by Saving For a Space Ship

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Just pointing out how if global monies have a hiccup in the global property casino which has pushed up values a lot at the margin, can have an effect as much as in little Cyprus, perhaps.

Including the London specuvestors at high prices, who themselves are nationals of Singapore living in council-owned apartments.

Cyprus Property News

Lessons from Cyprus economic crash

COUNTRIES can learn lessons from Cyprus’ economic crash and subsequent bailout package in terms of preventing future financial crises, according to a report from Imperial College London last Friday.

Researchers from Imperial College Business School and the University of Cyprus carried out an in-depth analysis of why Cyprus needed to be bailed out to explore what lessons could be learnt from the crisis.


By: Editorial
Published: Sunday 2nd November 2014


[..] {Cyprus} In the lead up to the crash, the Government had also introduced financially unsustainable policies that contributed to the crisis. For example, from 2008 the Government increased social security spending on a range of initiatives such as non-means-tested housing subsidies, which were aimed at helping the elderly on lower incomes cope with rising costs, but also had the unintended consequence of helping those who were better off. Over a period of four years, the debt to GDP ratio rose from 48 per cent to 78 per cent. This caused an unsustainable increase in government deficits in a short period of time.

[..] Demand for real estate from domestic and international buyers from countries such as the UK and Russia rapidly grew, leading to increases in house prices, following the country’s entry in the EU in 2004. {continues}

[..] The researchers say that the housing boom and bust cycle experienced by Cyprus should be a cause for concern in countries such as the UK, where house prices are currently increasing, due to demand from foreign investors. According to the estate agent Savills, ?7 billion of international money was spent on premium London homes in 2013, with just 20 per cent of that spent by UK citizens. Two thirds of the properties bought by international buyers were as investments.

http://www.news.cyprus-property-buyers.com/2014/11/02/lessons-cyprus-economic-crash/id=0040745
Rising London house prices: What we can learn from Cyprus's 2013 economic crash
November 5, 2014


[..]LESSONS TO BE LEARNT
Michaelides believes that there are a number of lessons that governments all over the world can take away from Cyprus's economic crash, both in terms of preventing future crashes and managing them appropriately if they do occur.

“In order to prevent crises of this magnitude standard macroeconomic policy advice applies: keep government deficits under control; ensure strong corporate governance in large banking sectors; beware of volatile capital flows such as large deposits being paid into bank accounts and then being quickly removed, and of rapid increases in house prices,” he said.

http://www.cityam.com/1415191528/rising-london-house-prices-what-capital-can-learn-about-mortgages-cypruss-2013-economic

Those investors everywhere.. just read this on a US housing blog.

JN
November 20, 2014 at 3:24 pm

To residents of the U.S., California seems out-of-sight. To a foreign business person from China or other international destination, California real estate is still a deal … today’s news stat that $1 million plus home sales are up 15%, is testament to monied buyers driving the real estate landscape there. Everyone else is just hanging on! Can’t imagine this will end well for most. Add to that the almost daily news .. today the Regents approved a 5%/ year increase in each of the next 5 years for tuition at the University of California system, an earlier LA Times article that LA needed over a $1 billion to fix streets, and another LA Times article about the age of water mains, and the list goes on and on. Add all that unfunded liability to the already unaffordable housing and high cost of living … it would seem that a perfect storm is brewing somewhere out over the ocean there!

Dipped in and out of a property forums last night re Cyprus. UK investors from 2008-10 patting themselves on the back for Cyprus purchase of properties/units, calculating their returns at £400-£700 pw in high season. Later asking if they can change their Alpha/Alfa (?) bank Swiss mortgages, as looks like they might get expensive. Threads dead in 2013-14. Including this one: http://www.propertytribes.com/anyone-bought-at-grove-spa-in-cyprus-t-1383.html

All in all for Cyprus, whilst some under pressure, get the wider impression too many zombie property holders in Cyprus still having way too much forbearance - and so much anti-repossession feeling (just like UK always.. let young people carry it.. and those who refused to pay high prices... 'they just wanted a home / lock in the HPI')

Swiss Franc loans conference

A 4-day conference to tackle the problem of mis-sold Swiss Franc loans to purchase off-plan properties in Cyprus is to be held in Nicosia and Paphos between 2nd and 5th December.
By: Press Release
Published: Wednesday 12th November 2014

http://www.news.cyprus-property-buyers.com/2014/11/12/swiss-franc-loans-conference-cyprus/id=0041163


Dunn Good says:
November 7, 2014 at 10:21 am

Too late for my wife and I Alpha Bank now have what was left from our house sale and as has been said we cannot afford to appeal the case. The hunting expression is I have heard, ‘Oh look sitting ducks what a bag’. Our loan was in 05 CHF they now want over 3 x on top of what we have paid.

http://www.news.cyprus-property-buyers.com/2014/11/06/mortgage-question-raised-house/id=0040925

http://www.news.cyprus-property-buyers.com/2014/11/06/property-prices-9-6-per-cent/id=0040940

Comments - Peter Davis, defensive line about prices not mattering unless decide to sell (true in one way and will be true for me if I can buy home in UK for value - and not forever be relegated behind older VI and those who chose to outbid me and "didn't know what they were doing / just wanted a home, even at £830,000 with £500K mortgage cause just wanted a home innit, massive victim superior to those who didn't want half million pound mortgage", but not in another for many- would he have cashed out at peak if he knew what he knows now?)

John Swift says:
November 8, 2014 at 2:01 pm

It had to happen, prices will still continue to fall until realistic levels are reached.

It may offend some but you didn’t need to be a genius to know that the bubble had to burst sometime.

You no longer sit in the outdoor snack bar in Tala Square hearing “My house has just gone up umpteen thousands this month”.

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Comments - Peter Davis, defensive line about prices not mattering unless decide to sell

Blimey, I am a rich man and didn't realise it. My £10,000,000 bar of soap has made me rich. I can now borrow against it and live the life of luxury.

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Just pointing out how if global monies have a hiccup in the global property casino which has pushed up values a lot at the margin, can have an effect as much as in little Cyprus, perhaps.

Including the London specuvestors at high prices, who themselves are nationals of Singapore living in council-owned apartments.

Those investors everywhere.. just read this on a US housing blog.

Dipped in and out of a property forums last night re Cyprus. UK investors from 2008-10 patting themselves on the back for Cyprus purchase of properties/units, calculating their returns at £400-£700 pw in high season. Later asking if they can change their Alpha/Alfa (?) bank Swiss mortgages, as looks like they might get expensive. Threads dead in 2013-14. Including this one: http://www.propertytribes.com/anyone-bought-at-grove-spa-in-cyprus-t-1383.html

All in all for Cyprus, whilst some under pressure, get the wider impression too many zombie property holders in Cyprus still having way too much forbearance - and so much anti-repossession feeling (just like UK always.. let young people carry it.. and those who refused to pay high prices... 'they just wanted a home / lock in the HPI')

From the Grove Spa Thread you refer to.

'2 - Official websites from Mr FARRELL and Mrs FAIRHURST were investincyprus which no longer exists, and thegrovesparesort, which is still online, but without any recents news since a long time already. Cyprus phone number doesn't work and email address works but messages sent receive no answers....

3 - Right now only 56 apartments have been sold and 72 are still looking for owners. Spa is not open, same about restaurant and shop. '

And again,another gem

'2 - Does anyone plan to resale or rent to own his apartment (knowing that average price for Kiti, Pervolia, or Mazotos, for a 2 bedroom apartment is maximum 350 €/month before purchase).

3 - Original prices for apartments in Grove Spa were supposed to run from 200.000 to 400.000 € if I caught right details on internet. It now seems that prices are twice cheaper around 120.000 to 180.000 €, due to various economic reasons and because vast majority of apartments are still unsold. If you had to resale your apartments, what would be the price ?'

Edited by Sancho Panza

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