STOP PRESS: Following a full review and doing further research with regards to the situation in Cyprus, we are pleased to report that we believe the market is showing signs of stabilising.  The financial drought is also easing as banks start to lend again.  The maximum loan to value is still 70%.   We are satisfied how our properties are performing over there. We have always believed in specific niche markets, not a generalisation which, to date, has served us well.  So if you would like to discuss how we are managing our investments in Cyprus, then please contact us.

One thing that has come out of our property adventures in Cyprus is the honesty and integrity of the developer we purchased through, Jewel of Cyprus.  When the economic downturn loomed, they had the foresight to start a lettings agency to support their customers and add value to the wonderful service they already offer.  The lettings company has had a successful first season and the bookings continue to come in, even though the season is over.

We have had success with both local lettings and holiday lets, thanks to the support offered by Jewel of Cyprus.  With many developers going bust, reneging on rental guarantees, building poor quality units, and being hard to contact, JOC are a shining light with their high standards of ethical business practices.  We take this opportunity to thank them for everything they have done for us and for always going the extra mile.  Having a trustworthy developer on your side is paramount to investing successfully in Cyprus and we cannot recommend Jewel of Cyprus highly enough.  It has been a genuine pleasure to do business with them.  Thank you to Adam, Soteris, and the team.

There is still an over-supply of "me too", identi-kit apartments in villages where no tourist would ever tread as you cannot get a pint of milk, nevermind shop for groceries, or get a meal.  These properties and areas are to be steered completely away from as you will be very unlikely to find tenants.  We invest in niche properties in areas with great amenities and infrastructure that stand out from the crowd because of a USP.  This strategy continues to serve us well and is the result of a massive amount of due diligence and research, not to mention multiple visits to Cyprus to understand the market there and build a strong team to support us.

Plus, the new multi-million Euro airport opens in November 2009, with increased capacity for up to 9 million passengers per year.

There is this great news to report as well that is set to boost the economy specifically in the Larnaca area: 

A €1 billion private/state consortium is to undertake the biggest infrastructure project ever in Cyprus that will boost the building industry, inject millions of euros into the economy and boost the real estate industry.

The Larnaca marina and port project will involve the building of a 1,000 berth marina, hotels and luxury villas, giving a much needed boost to the Mediterranean island's depressed real estate and construction markets, according to the government's communication Minister Nicos Nicolaides.

You can read the full story >>>> here.

The positive news is that the banks in Cyprus are highly capitalised, and once they start lending again, the market there should stablise.  We may not be through the worst yet, but the sound financial and economic fundamentals as to why we first invested in Cyprus still hold true today.

We do not sell property in Cyprus, only advise on which areas to purchase in and the niche properties that appeal to specific markets.  Please get in touch if you would like further information on our views on investing in Cyprus.

Diversify your portfolio and spread risk with an international investment:

Being the risk-adverse investors that we are, we first built a solid and cash-flow positive property portfolio at home in the U.K. before even thinking about venturing overseas.

In 2006, after much research and due diligence, we came to the conclusion that Cyprus (ROC) was the only international market that we felt confident enough to invest in. (This is Southern Cyprus. We do not advocate North Cyprus as that is an extremely high risk investment as it is a country in occupation and therefore major concerns over land ownership and title).

We have since purchased three properties on the ROC part of the island: a 3 bed penthouse in Pervolia, and two 3 bed villas, one in Pervolia and one in Mazatos. The penthouse has completed and let out straight away on a local let.

Pictured below: Our three bed House in Mazatos, near Larnaca, Southern Cyprus.

View the latest 2009 pictures of our house here.

When searching for our own deals, we occassionally have a small, hand-picked selection of properties available to our clients. As we offer a personal and bespoke service, you will need to contact us for further details and to discuss with us whether these deals suit your investor profile and personal strategy. 

Properties include penthouses, villas and apartments in the Larnaca area. We only offer what we consider to be the best deals to our clients - one that we would buy ourselves (and have done!). . You can take comfort that we ourselves have invested heavily in the island and understand the market there. We return to Cyprus approximately every 6 weeks and you would be very welcome to join us on a viewing trip to see what we have to offer.

An entry level one bed apartment would typically start from £5.5K deposit.

A two bed apartment would typically start from £12K deposit.

A three bed villa would typically start from £18K deposit.

With low-entry level deposits, a stable economy, being the most favourable tax haven in Europe and many other economic drivers supporting the property market, Cyprus is looking like an increasingly attractive investment opportunity to those who are struggling to make things work in the U.K.

Equally important, Cyprus has proven "exit strategies" and a number of rental strategies including holiday lets, local long term lets, and a burgeoning market for corporate lets. Larnaca is the business hub of Cyprus, location of the major international airport, and a year round resort that attracts many different nationalities including Brits, Russians, Germans, and many others. Its diverse cosmopolitan mix is a reflection of its strategic position in the Eastern Mediterranean.

While the island has enjoyed consistent capital growth, this has slowed down in line with the current global economic crises, and therefore Cyprus must be viewed as a mid to long term investment. We strongly deter people from "flipping" to make a quick profit as this is unlikely to work in the current market slow-down.

An international investment also helps spread your risk and brings a little bit of sunshine into your life, and propery portfolio!

IMPORTANT NEWS:

16.02.09 The Statistical Office of the European Communities has predicted that Cyprus will see the strongest growth in population out of all the EU countries by 2060. It said that the number of people living there in the next 50 years should increase by 66 per cent.

Budget airline EasyJet has announced that, from 31st March 2009, it will operate a new service to Larnaca from Gatwick Airport.  Read the full story here.  This is great news for those of us who have invested in the Larnaca area.  With return flights from £83.00 in June, Cyprus is looking an increasingly attractive holiday destination.  The new international airport at Larnaca is the main gateway onto the island, and fully opens in late 2009.  Monarch already operate a very popular service, and, with EasyJet offering new service, flight prices are likely to come down as the market becomes more competitive.

Click here to watch an interview with serial property investor, Jarl Moe, as Vanessa talks to him about the benefits of investing in Southern Cyprus.

Click here to watch a video postcard from Cyprus where Vanessa talks about the importance of "hedging".

Please call Nick for more information on investing overseas, or - click here - to e-mail him.