28 | LETTERS


00 BUSINESS Xxxxxxxxxxxxxxx


YOUR SHOUT


www.opp-connect.com | FEBRUARY 2013 www.opp.org.uk | XXXX 2012 What do you think?


Tell us what you think about the latest news and what you would like discussed by joining our LinkedIn group, tweeting us @oppnews, emailing john.howell@opp-connect.com or writing us a good old- fashioned letter...


Large numbers of foreign investors are noticing the benefi ts of Cyprus Dear Editor,


In Cyprus, we are pleased to note that foreign buyers are returning to our shores – and recent changes should bolster that even further! Figures released [in January] have shown us that property purchase contracts


in favour of overseas buyers have gone up nearly 50% year-on-year, which has to be seen as a good sign. On top of this, our government has changed laws so that foreigners from outside the EU can purchase more than just the one property in the same development. [See opp-connect.com for the story on this – Ed]. I believe that this should attract even more Chinese and Russian buyers (among others) to our shores. We all know that Cyprus is seen as attractive to these markets (developers


from the island apparently took 30 booths at the International Property Expo in Beijing last year!) and I will be interested to see just how many more visa applications go through after these changes. It may not have a massive eff ect, but I will be happy to note any positive changes.


Yours truly, Mr A Savvides, Paphos


Best of the Blogs Too good to be true?


Property purchase contracts in favour of overseas buyers have gone up


nearly 50% year-on-year Want to get away? | Many do... and a lot of them are going to Cyprus


Seeking attractive returns through alternative asset classes always poses dangers if the market is unregulated and there is no consumer redress. Overseas investment property is one of those asset classes where you need


to go in with your eyes open. I am increasingly aware of off -plan overseas hotel rooms being off ered with promises of fantastic potential returns. However, this can be fraught with potential pitfalls without further research.


By Simon Conn www.simonconn.com


Over the many years I have been involved in the overseas property market, I have seen some very slick marketing ploys to encourage clients to purchase an overseas property. These are the top three examples that I have come across and they still seem to be active today. Amazingly, they often seem to be the main reason a sale is made with no further research undertaken, such as independent legal and valuation advice:


Buying via a Pension Plan UK investors are often encouraged by a developer or agent to invest in a new overseas property development by using either a Self Invested Pension Plan (SIPP) or even more sophisticated pension schemes (where available). However, the danger is that no other checks are undertaken on the strength of


the project by the purchasers. For example, checking where it is built, whether all planning permissions etc have been received and other important legal matters have been covered. It is often assumed by prospective purchasers that the Pension Trustees would


have carried out their own research before becoming involved, but sometimes this is not the case and is not necessarily their responsibility.


The TV or Sports Personality How often do you pick up the newspaper, or see on TV, the involvement of a ‘personality’ or company involved in an overseas project? It’s a fairly common occurrence in fact, but of course there is no guarantee that the celebrity or company mentioned has vetted the project. It’s more likely that their agent has signed the promotion contract, without carrying out the necessary research similar to that mentioned above. They probably have never even been there, so why should you be swayed by their endorsement just because they are famous? Without pointing the fi nger at anyone specifi c, there are examples of where


personalities have had their name used in the past as an endorsement and developments have failed. Although they were not personally involved, the celebrity would have no doubt increased the number of purchasers, leading eventually to more potential ‘victims’ when the project fi nally fails.


The Repossession Unfortunately due to the recent world economic crisis, a number of individual properties and developments have been repossessed by banks. These properties are then promoted back to the general market either by the bank directly or via nominated estate agents. However, it is important to understand and research why the property was


repossessed in the fi rst place. Is it because there was genuine hardship and the property was legally built


with all the relevant planning permissions/building licenses? Alternatively is it because it was not a fi nished property, that the requirements were not met, that it was in a poor sales/rental area or even that rentals were not allowed due to local planning rules? If something is too good to be true, then as the saying goes, it normally is. My


advice is, don’t let slick marketing cloud your judgment – take a deep breath and do your research fi rst.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68