Q.: We have rising damp in our home and
we demanded from the contractor who has just finished
and delivered the house to us to make good. He came up
with all sorts of excuses including that “our sprinklers
are too close to the walls and the walls get wet and you
should remove the sprinklers”. For us, that means
digging up the grassed garden which will spoil it as
well as a cost of around £800. We do not find this
excuse Mr Loizou as being an acceptable one. What do you
think we can do on this count alone?
Mr & Mrs Paul Scheele
A.: It is a matter of fact my friends. If indeed this is
what is happening, the contractor is right. Check it and
if it is true you do not have necessarily to move the
sprinklers. Each sprinkler has an adjustment and perhaps
you can adjust those sprinkles who might cause this
problem not to water the walls (or place a nylon cover
where the water goes on the wall). If this cannot be
done, yes, you have to remove them in another less
damaging location. I do hope that I save you the £800 –
Watering of walls is not only a cause of dampness, but
you will find after a while that you have to re-render
and paint the walls both internally and externally. So
act now.
A.P. Loizou
Q.: I read your article/letter about Peyia Municipality
doing all sorts of illegalities including the taking
over of the Coral Bay beach and intruding into the
seashore protection zone. We have built some steps on
the edge of our garden and the same authority refuses to
issue the much sought after certificate of final
approval unless we demolish them. Not a major issue I
can assure you, but I get so crossed to have an
authority having two standards. Can I refuse to abide by
their requirement and quote your article as an example?
Jane Phashall
A.: You are quite right feeling crossed and Peyia
Municipality is one of many examples of greed for money
and double standards. Having said that, demolish the
steps, get the certificate of final approval and build
the steps again. It is not proper on my part, to suggest
to you this, but “if in Rome do as the Romans”. What
more can I say. You must secure the certificate even if
you have to demolish the steps. I wish however that
someone who has the patience to sue one local authority
on this/similar circumstance.
A.P. Loizou
Q.: We have two options Mr Loizou either to buy a
property on the beach, or alternative approximately 1000
sq.mts. away from the beach, but offering nice views. It
is not so much a question of price, but we are told that
beach properties have a humidity problem, whereas
properties on hills, away from the beach do not. We must
decide urgently since we have 15 days to decide (our
option is running out).
Nikita & Natassa Cruchefski
A.: Beach properties are a rarety worldwide. In addition
of having a direct beach access, the capital
appreciation of front line beach properties is a certain
expectation, as opposed to other locations. I do
appreciate what you say about the views, but on the
other hand listening to the sea and being able to walk
instead of driving to the beach is a major asset. I do
not think that 1.000 mts. away from the beach will save
you from humidity, but yes, if on a raised ground it
will reduce it. Unless you have a health problem
regarding humidity, in order to be more comfortable,
place ceiling funs in all rooms within the house, as
well as under the pergola in your garden. This will help
a lot. If I were you, I will opt for the beach property.
Humidity is high in Paphos, less in Limassol and even
less at Larnaca and Protaras area. So it is also a
matter of District.
Did I meet the option deadline?
All the best with your decision.
A.P. Loizou
Q.: I know it is difficult for us who came from Germany
where the laws are there and are enforced and the whole
system works, be it rigidly and inhumanly at times. So
it was something for a shock to us that notwithstanding
the laws and regulations in Cyprus, there is no
enforcement at all. Is this the norm Mr Loizou or we
just happed to have such experiences? Love your articles
and we take this opportunity to encourage you to carry
on.
Ralf & Margaret Vismark
A.: We are the project managers of development projects
in Crete (Greece) and we have a most delightful client
Ian Vismark – Are you related?
This apart I can tell you that if Cyprus gets 6 points
out of 10, in terms of law enforcement Greece gets 3 out
of 10 and Italy 2. But you are quite right,
Mediterranean countries are more “easy going” and “…… go
happy lucky” and relaxed about law enforcement, but I do
appreciate your frustration at times. It reminds me of a
U.K. policeman who booked himself because he was driving
over the alcohol limit!! There are extremes, but should
you have a real estate related problem, I can offer you
my opinion how you might meet the unenforceable local
laws.
A.P. Loizou
Q.: We have read a report about a Larnaca restaurant
whose kitchen and standard of hygiene was completely
unacceptable and a danger to public health. Eating out
for us with reasonable prices was one of the pros of
buying a property in Cyprus (in Larnaca). Are the health
standards in Cyprus not enforced?
Garry Glitterson
A.: If there is one thing that I can say with some
certainty is that most restaurants have high standards.
Both the C.T.O. and the health authorities are quite
strict (unlike other authorities) and I can offer you
several examples. But, like everything in life, you have
the good and the bad. My own judgment of standards is
how clean the restaurant’s w.cs. are!! That will give
you an indication on the goings on in the kitchen.
Things are getting better and if I am to compare what
was the standard 5 years ago, I will say “we have done
miracles”, but old habits die hard and we need more
time. I can give you a few examples of U.K. restaurants
with pitiful loos (carpets smell or urine) and this is
in the city of London. Do not regret buying a home in
Cyprus on this count. Just be more careful on the
restaurants you visit. Larnaca is a small place and you
will soon find your way around and the who is who.
A.P. Loizou
Q.: We have met you at Marios kebab house at Pissouri
square and we must say we were very impressed with the
tactful way you handled some young people and how warm
the kebab family welcomed you. Will you go to Marios
again? We have some questions for you, being Pissouri
village permanent residents and you owning a house
there, we feel that we can impose our “neighborliness”
as you say.
Mr & Mrs Ajj. Clark
A.: My dear friends, I cannot remember the event, but
yes Marios is my favorite spot not so much for the “top”
quality food, but for the warm family feeling that it is
given by the whole family, starting from the grandmother
who is very obliging to use her playing cards expertise
to foretell the future, the couple who is hard at work
and the children who add to the whole family atmosphere.
Should you like this sort of thing, I suggest you visit
the place. If you want to have “the treatment” that I
got, but more importantly a new friend, get a new pack
of cards for the grandmother (an easy way to have your
future told for free) a doll for the young daughter and
an innovative calculator for the young boy – one at a
time. Be assured that the family will reciprocate not
only in kind but with genuine friendship – You do
remember the story of the Swiss millionaire that I have
reported 18 months ago, who had a delightful experience
at Pissouri village.
A.P. Loizou
Q.: We live at Paralimni and during summer time we
cannot go literally out of our home due to the constant
traffic jams. We thought when we were buying that this
is a quiet place, something which we looked forward to.
Nobody told us about the noise, the motorbikes and the
horrible traffic. Were we mislead Mr Loizou? We know
that you have a house there and we want to ask you how
do you address this situation?
Thalia & Chriss De Ven
A.: Paralimni area is an excellent choice on your part.
I get letters of complaint that it is too quiet. Avoid
moving around during the hours of 16.30-22.00 hours in
the summer period i.e. July-August. Invest in a B.Q.
motorized gadget and do avoid restaurants etc during
these hours. I can assure you, save this period of the
year (and that, usually at weekends), the other months
are pure paradise (dead-quite). Visit Ayia Napa
restaurants during winter and family restaurants at
Paralimni village. Best steak houses, Italian and local
taverns are in the Paralimni area, whereas Mexican and
Chinese at Ayia Napa. It takes time to get to know who
is who, but your temporary problem apart, can you find a
better beach in the Mediterranean?
A.P. Loizou
Q.: We have to decide whether we will buy a property at
Platres village or on the hills overlooking Limassol. We
love both areas but we cannot afford to buy two houses.
What is your advice please?
Sergei & Natassa Garbof
A.: A most difficult question to answer, as difficult as
is whether I prefer blonds or brunettes!!
My parents home is at Platres and I can assure you that
when I am there I forget all about our Paralimni beach
house. Platres is the top regarding mountain holiday
homes for summer and winter holiday, but not a place
(for me) to live permanently or for long periods. If you
like reading, being alone, long walks and listening to
loud music (winter period) choose Platres. Platres gets
also its fair share of noise during August (primarily
during 1st-20th of August) only. For my taste since I am
not an avid book reader and I am a “party-friends”
person, Platres is to my liking for 2-4 days most. I
suggest go for a downhill walks from the Trooditissa
Monastery to Phini village, also downhill from Troodos
to Platres through the Kalidonia falls and explore the
surrounding villages. Best pork chops in Platres, best
trout at Kakopetria and best steakhouse (surprise) at
Phini village. Best local coffee shop at Kato Platres
and best local home fruit made sweets at Trimiklini
village – You do appreciate my many food related
suggested excursions, but this is my weakness. Do not
forget to invest in a B.Q. If the above is not to your
liking and if your preference is more for a social life,
opt for Limassol.
Did I help or did I confuse you even more?
All the best
A.P. Loizou
Q.: I am aware that you are one of the most respected
valuers of real estate in Cyprus and an ex Chairman of
the Qualified Valuers Association. I had an enquiry the
other day from a friend of mine who has a court case
with a developer and he is suing for damages for delayed
delivery, bad workmanship etc. The fee he was quoted was
£1.500. He was adamant that he was a rib off for a claim
of £30.000 (house value £400.000). What do you think Mr
Loizou I rely on your honest opinion to offer my advice,
having lived here for the last years, but I have no
experience on this.
J&K (name withheld)
A.: Based on the information you gave me this is a very
reasonable fee. Having worked in the U.K. during the
period of 1965-1973 I can assure you that on such court
case occasions, the fee at that time would have been
many times more. A court case needs a lot of preparation
offering data and numerous appearance in Court which
could take a couple of years. If your friend is happy
with the valuer’s qualifications and expertise, this
should be the least of his worries – the reasonable fee
he quoted apart.
A.P. Loizou
Q.: Dear Mr Loizou I cannot understand how I have been
charged £1.200 + V.A.T. for a simple sales contract of
my Larnaca apartment by a local solicitor. Mind you the
apartment is worth around £50.000 and everything is in
order including a title deed. Is this the norm?
Maria Jacob
A.: You are getting me into trouble Maria with 4.000
lawyers in this country. Having said that, no, I think
you are overcharged. A normal fee for a simple sales
contract and for such value should be no more than £500
+ V.AT. But as I always say, ask the fee beforehand and
not after. Should you insist you can apply to the local
law society for advice in order to set the correct fee.
A.P. Loizou
Q.: I have two sons both are studying real estate in the
U.K. I am asked to ask you. My sons want to explore the
possibility to carry out their practice in Cyprus. Do
you think there is room for non Greek speakers in this
country for them to be trained here? This is a personal
letter and I do not expect you to reply to me, but the
only way to approach you is through the Q+A column. Can
I turn to someone else?
(name withheld)
A.: Very difficult to get trained in one of the
professional offices in Cyprus not being Greek speakers.
Your best bet is to apply to the local big developers,
who have a certain wide spectrum of business (names and
addresses given). I know exactly how you feel, since I
had exactly the same problem in the U.K. in 1964. After
graduating in London, the only job available for me was
Newcastle Upon Tyne Municipality. At the time I thought
it was the end of the world. If you have no lack, please
come back to me. We must help the young generation.
A.P. Loizou
Q.: I read regularly your reports Mr Loizou and I have a
copy of your articles saying that estate agents
commissions are tax deductible for capital gains tax
purposes. Yet when we paid the commission to our agent
(name withheld) and having paid £8.000 commission, the
local tax authorities refuse to accept this as a
legitimate deduction. What is the truth about this?
Mary & Chris Lawrence
A.: The only reason I can think off is that your agent
is not a legal-registered one. If you have used such an
agent (illegal cowboys as I choose to call them) then
the tax authorities are right. If your agent is a
registered one (which from the name you have given me it
appears that he is not) you have to pay an added tax of
£1.800.
A.P. Loizou
Q.: Our dear Mr Loizou we have to leave this lovely
island for reasons beyond our wish. We have followed
your writings in this island over the last 4 years
through your answers and articles, and before departing
we wish to express our thanks for helping us out (and
the editor of this lovely paper) and to wish you all the
best to you, your family and of course to your members
of staff.
(name withheld)
A.: My dear friends, I am very sad to lose a couple of
appreciative readers and I do hope that your
circumstances are not serious. I wish you a happy trip
back home and should you feel that I can help out on any
way through this paper I will be here, waiting.
A.P. Loizou
Q.: How right you are Mr Loizou. We have opted to live
in Nicosia and not the seaside towns. Nicosia living is
the best and we do not regret a minute. Nicosia has
“nothing” to do with the tourist and foreign people
flooded seaside/tourist areas. Just a short note to
thank you and to encourage others to read your articles
on this and to give Nicosia a sporting chance.
Aristo & Claire Thomson
A.: Glad to be of service. Many thanks for your
encouraging words.
A.P. Loizou
Q.: We have read your article in the
Greek press regarding the Greek islands and your
comparison with Cyprus. We agree with most of your
points, but we wish to add another disadvantage that the
Greek islands have. The constant Aegean wind. Ιt can
drive you crazy, it never stops and it ruined our 12 day
holiday (2 days without wind). Regarding now the prices
of real estate, we beg to differ. We enquired about a
house close to Mykonos harbor. The asking price was
€10.000/sq.mts.!! Αll the best, Mr Loizou for exploring
other countries as well. Keep expanding your research.
Athos & Helena Papas
A.: You are right about the wind but not to the extent
that you make out. This is one of the problems why wind
power is difficult to implement in Cyprus (no wind).
Regarding now the price you were quoted, what do you
expect? This is the top island, but more important you
choose the top spot (next to the windmills). I hope that
you can afford it my friends. After all, all the
jet-setters are there!!
A.P. Loizou
Q.: We have just moved to Cyprus and we read your
articles and Q+A column every week. With the going ons
in the international real estate we need to keep an
update of our investment here. So, please Mr Loizou,
could you write something about whether Cyprus will be
affected by the European/U.S.A. real estate depression?
On another note we are having difficulty in converting
pounds sterling to Euro. Any simple formula? We are not
as young as we used to be!!
Joanna+Paul Stillberg
A.: Thank you for your comments. I have written an
article on the subject you refer to which has been
published in the Greek press. I will translate it over
the next 2-3 weeks. Regarding now for the conversion
rate, I am sending you by mail two small calculators/convertors.
Do not use it very often, however, since at the end you
will never come to relate the Euros with the cost. All
the best.
A.P. Loizou
Q.: We feel a bit trapped in Cyprus with our home
investment. We bought our property 3 years ago, at a
certain price, newly built. We thought we will sell it
this year and with the capital gains, we were promised
we would have had a comfortable retirement. We are not
wealthy people Mr Loizou and our £250.000 investment is
a lot of money for us, especially when we were expecting
to get £350.000 this year. We realize now that the
resale situation is not so good, interest rates are
going up, inflation also and thus the cost of living is
increasing, the sterling gets weaker and weaker with
relation to the Euro (hence we need more money to live
here) and our U.K. property assets value is going down –
Any ideas how you can help us please?
Y & K – Paphos (name withheld)
A.: What you describe my friends, is a European
phenomenon and Cyprus is not on its own. From what you
say, you were promised a 10% p.a. capital appreciation,
not an unreasonable estimate at the time. Any investment
is unpredictable and in addition to what you describe,
you chose a location (Paphos), which is suffering the
most. As an indication of this situation, the Paphos
developers offer now 10% commission as opposed to other
areas where the commission is 5% (Paralimni area –
negative signs in the horizon 8%). What you say is quite
a correct situation and it is my opinion, based on
European reports, that this state of affairs is expected
to last 2-3 years (but who knows). In my opinion,
depending on your ability to override this situation,
sell your Cyprus property now, before the real dark
clouds affect us seriously. On a positive note, should
you sell your property in Euros, you will get “more”
sterling, whereas with the reduction in prices in the
U.K. you could make a better deal there – Investments
are always insecured, they can go up or down in value. I
always say that this type of investment (especially
stocks) is for those with spare cash. For us, the rest,
keep your cash in the Bank (now deposit rates at 6% +
p.a.) especially if you are reaching retirement age.
I am afraid I cannot come up with another solution other
than to sell now before the situation that you are
experiencing gets (if) worse.
A.P. Loizou
Q.: My friends told me that it is important for me to
become a permanent resident for many reasons, some of
which relate to real estate matters. I have no problem
to live in Cyprus 183 days p.a. (in total) since I do it
anyway, but could you explain to me the advantage of
being so classified?
Jerry Piero
A.: The only advantages that I can think is that:
(a) You can get a 80% loan as opposed to 70% if you are
a permanent resident to acquire real estate.
(b) In terms of Capital Gains Tax, should you sell your
home, you get a £50.000 tax deduction as opposed to
£10.000.
(c) Because of double taxation treaties you will be
taxed at 5% on your U.K. pensions, as opposed to the
22%-40% U.K. tax (that is a major attraction – you can
“live” on the tax saving along).
A.P. Loizou
Q.: I want to submit to you several questions on your
subject, but I am afraid to overextend your hospitality.
Is there a limit on how many questions per person can
make? On another note, is your Q+A column subject to a
fee per Q?
Peter Slide
A.: The Q+A column is free and there is no limit on the
questions, as long as they relate to real estate. It
will depend on how many questions are for me to answer
at the time of your question. I am aware of certain
people wishing to monopolize this column, putting
forward their views through the questions. I have no
problem with this, but a question must be short and to
the point. For this reason on many occasions, I publish
the resume of the question in order to give more people
the chance to participate. Not everything is for money
Peter and the Q+A column is for free (we have to thank
the editor on this also).
A.P. Loizou
Q.: I do appreciate that this is not 100% real estate
related question, but through your answer I can deduct
where your preferences in terms of housing is (and this
will influence to an extent our own choice). So, there
it goes – Where would you like to have your holiday home
in Cyprus Mr Loizou?
Doris & Aris Sharp
A.: I will be as much diplomatic as I can, bearing in
mind our Office activities and our clients in all
Districts.
(a) For bathing I would prefer the Protaras area (the
best beaches in the eastern Med by far).
(b) For stunning views I will go to Pissouri.
(c) For “fresh” winter, fresh air and long walks,
Platres village.
(d) For fun and entertainment I opt for Limassol.
Did I help?
A.P. Loizou
Q.: Crete is for us Mr Loizou. I have a
house in Cyprus but we thought that we need a second
home somewhere abroad. We have visited Crete on several
occasions and we love the place. We are thinking to “buy
and let” but we want to stay ourselves as well at times.
We have tested the local souvla (known there as
antikristo) and the local zivania (called tsikoudia). We
want to repeat our experience on a regular basis, but we
need an income as well. What do you think? Is it a good
idea? Having said that we will not abandon Cyprus
whatever happens. This country is ours as well. Thank
you in anticipation.
Grarry & Johanna
A.: I cannot say that I am an expert in Crete, but we
manage a large development project there and I have had
the chance to taste both. Antikristo is lovely but
nobody can beat our souvla, but tsikoudia is far better
than our zivania. Buy to let in Crete is a problem. You
can only let for periods of over 30 days at a time, not
fractional. They are quite strict there and some people
get even arrested for this (the management of the
property). If you can afford it, Crete can offer you an
alternative holiday place, but bear in mind that few
people speak English and remember that they drive on the
wrong side of the road (the quality of driving apart).
Crete is an upcoming island with a lot of interest from
Russians and Germans and to a similar extent from Brits.
I can give you a few tips where to go and I can tell you
that this island is not as “cheap” as Cyprus is. On the
other hand you have facilities, which we do not have
(marinas, golf courses, good quality restaurants etc).
Prices are around €5.000/sq.m. depending always on
location and quality. Similar costs as Cyprus but better
building quality. As I always say, do not buy a home
necessarily as an income earning investment, because it
does not pay. You “yield” will come from your own
enjoyment and possible capital appreciation (not certain
at this point of time). I feel that Our country, Cyprus,
is better, but, as you can detect, I am a Cypriot, so I
am biased!!
All the best.
A.P. Loizou
www.aloizou.com.cy
www.aloizou.ro
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