CyprusVista

When the property market in Cyprus slows, it’s not just the buyers and sellers which are hit hard. The Republic of Cyprus government has seen its revenue from property taxes drop by 25% in the last year. The government also reported a drop in capital gains tax income, much of which is collected from property sales income.

This may be not such good news for anyone trying to sell their property in Cyprus, but it’s great news for anyone looking to buy. Just as in the UK, it is becoming a buyers’ market in Cyprus, with a wide range of properties on sale at reasonable prices.

However, any drop in asking prices should be offset against the  Home Price Index for 2007, which rose an impressive 16.13% in 2007. So, property prices rose dramatically in 2007, only to dip again in 2008, so owners who bought before 2007 have made gains in the long-term.

To make the most of the buying opportunities in a sluggish property market, you need to be more than a little hard-hearted. Chances are, the best bargains to be had are from those desperate to sell their Cyprus villa or apartment for personal reasons. If you have the cash ready to spend, this ensures you can negotiate a good price, but only if you can hold out against the sob stories.

So, what should you consider when buying a property in Cyprus in 2008? The answers are remarkably similar to what you’d expect to do in the current UK market:

1. Buy quality. Look for good build quality, high ‘kerb appeal’ and a high standard of finishes and fittings. Some Cyprus new-build properties built in the boom years were basic at best, and are hard to sell on. Also, quality properties require less maintenance and are generally easier to let.

2. Avoid overambitious developments. Some Cyprus developments are neither picturesque nor have sufficient infrastructure, so suffer from being deserted in the winter months and suffering power cuts and other amenity problems in the summer. In fact, you may wish to avoid new developments altogether and look for more mature properties in central locations of major tourist areas, where the rental potential might be higher.

3. Stick to a realistic budget. A bargain is only a bargain if you can afford it.

4. Look to the future. Both Paphos and Larnaca airports in south Cyprus are currently being expanded, and in addition, new flights by international carriers have been announced. Cheap flight market leaders easyjet have also touched down, offering bargain flights to Cyprus holiday-makers and residents alike.

With greatly increased passenger numbers already arriving in Cyprus in 2008, and cheap flights to Cyprus offering the possibility of long weekend breaks, investing in a Cyprus property now might be a wise move for the serious property investor.

Popularity: 57% [?]

If you’re a UK holiday-maker looking for a Mediterranean break this year, and you need to keep costs down, North Cyprus is the place for you!

The UK Times Money section recently tipped the Turkish Lira as one of the top five currencies that are a ‘good buy’ at present - and North Cyprus uses the Turkish Lira, not the Euro.

What’s more, prices in North Cyprus are up to a third cheaper than their equivalents in the south, so almost everything you buy costs you less, from a beer to a bus ride. Hotel rates are exceedingly reasonable, and many hotels offer half board as standard, saving you the cost of lunch as well!

North Cyprus has some of the best beaches on the island, where you can relax on golden sands lapped by the warm Mediterranean Sea. Not that you have to sacrifice your creature comforts to find them either; hotels such as the Acapulco Resort Hotel have their own beaches right next to the hotel itself. Just stroll down to the sands, and snooze away the morning on a sun lounger, shaded by a parasol, before indulging in a midday beer or snack. As a hotel guest, you won’t have to pay a beach entry charge either - perfect!

For the best value meals in North Cyprus, you cannot beat a meze. This tasty mix of dishes is a cross between a buffet and Spnaish tapas, and twice as filling when served with a Turkish Cypriot favourite, a kebab! Actually, it’s often more like three or four kebabs, grilled to perfection over a charcoal fire and served piping hot when it’s ready to eat, and not a moment before. Niazi’s Restaurant in Kyrenia have been serving this ‘full kebab’ menu in Cyprus since 1974, and it’s always packed with locals and tourists enjoying sish and doner kebabs.

Beer lovers will also love North Cyprus, and not just because of the low prices. Efes beer is the 8th best selling beer in Europe, and it’s easy to taste why! This golden Pilsner-type beer is smooth and refreshing, and at only 5% alcohol, it’s an ideal cool drink for a hot summer’s day in Cyprus.

So, why not make your money go further this summer - in North Cyprus.

Popularity: 100% [?]