Overseas Property Investment in Cyprus – The Bad

The Legitimate Scam.

Whilst the Cypriot Government appears to be making some genuine strides in reviving the tourism industry and the property investment sector, it still fails to grasp some of the basic principles of marketing. If you rip people off, the bad publicity scares other investors away – make 2000 Euros now but lose 200 000 in the future is the usual Cypriot mantra. Blindly, the government continues to give a tacit nod to some of the shady development practices happening on their watch.

The Cypriot authorities have failed to take any action against the practice of developers retaining the property deeds to a house, even when the buyer has paid the contract in full. The developer then uses these as collateral for another mortgage, safe in the knowledge that if they go bankrupt, or default on payments, it is the buyer that loses their home.

Despite concerns from the European Union about the illegality of the practice, it still continues, and it is estimated that 40 000 people stand to lose their property during the current economic crisis. The Cypriots have not yet grasped the idea that membership of the EU brings responsibilities. They give you money to develop the Island and help to solve the property exchange problem surrounding overseas property investments in Cyprus. The Cypriot Government then has to make sure that it stops some of the more unscrupulous practices.

Death by a Thousand Cuts

The whole system is crazy and leads to a self-destructive spiral. There are many excellent property developers and constructors in Cyprus, but the government continues to tacitly support the con-artists and cheats. Overseas property investment in Cyprus is struggling, and needs inspiration rather than maintaining the out-dated attitude that foreigners are a golden tit.

Sort it out, folks.

The island has a lot going for it. There is a huge potential for attracting foreign property investors to Cyprus, and it has the ability to survive the economic crisis. The climate, the scenery and the lifestyle will always attract foreign property investors, but the steady trickle of bad publicity will lead to death by a thousand cuts.

Photo Courtesy of Dimitri Castrique – http://www.sxc.hu/profile/dimitri_c

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