Q.: Like everybody we are called upon to pay a refuge collection tax every year. Our home is charged £130 p.a. and just a few yards away a friend of ours with a similar size house is charged at £82 p.a. I have been trying to find out how this is calculated, but I get all sorts of confused answers – Any idea how this tax is calculated Mr Loizou?
(J&K) Laxia Village

A.: I wish I knew! I am experiencing a similar situation. Our Larnaca office is charged double from our Limassol office, notwithstanding the fact that our Limassol office is double in size as premises and staff. Nobody knows since it does not depend on the plot size, on the house size, on the 1.1.80 value, nor on the wealth of the occupiers. This is more of a “coutourou” (off the authority’s head) calculation. We tried once to challenge the Larnaca Municipality, but our solicitor told us that we will be wasting our time. Following his advice and bearing in mind the relatively legal charge (notwithstanding the inconsistancy) we agreed to his suggestion and withdrew our low suit. In short, don’t bother for the £48 p.a. difference. The legal cost and the hustle will cost more – But yes it is irritating.

A.P. Loizou

Q.: We were told that we should paint our home white because it needs less maintenance. Yet, we think that other colors get more stained than white. Any views on this Mr Loizou?
Nicolas & Maggie Jackson

A.: Use the colors you like. White gets more easily dirty from the dust and occasional rain, but it needs less maintenance in terms of repainting. Other more dark colors need painting every 2 years, whereas white every 3 years. An average size house of say 150 sq.mts., will need £1.500 to repaint externally. So your taste apart, it is also a matter of cost.
A.P. Loizou
Q.: How right you are Mr Loizou. Why is the previous Government on the loose bearing in mind the health hazard that it has caused as a result of the water supply situation? We note that the Serbian/Cossovo ex leader is now in the international court of justice. Don’t you think that the previous Government people should be called upon to account for their “inaction”?
Andreas Peter

A.: What a tricky question. Part of the present Government was participating in the last one, the Green Party declares how right it was to object on the desalination(!!), numerous M.Ps. objected to it under local pressure and for their fear of not being elected, ex ministers in fault at the time are placed in important positions being party members, whereas we have not a single apology from anyone – Not even from our friend the ex Limassol Mayor who originally agreed to desalination, subsequently changed his mind and now Limassol in particular has no water. In short there are so many people to blame that I wonder. Political sensitivity in this country is non existent. I answer your semi-political question only because it affects to the extent that it does the real estate market and because it related to a previous article of ours.

A.P. Loizou

A. Dear Mr Louizou,

I have followed with interest recent correspondence in the Cyprus Weekly on the proposal to impose a tax on swimming pools. Agreed the rate of evaporation from pools is enormous and probably accounts for most of the unnecessary waste but tax will do nothing to eliminate this. Pools will still need topping up and back-washing so, whilst the tax may produce a useful income, it will in no way reduce consumption. Surely a fairer and simpler answer is to impose a swingeing price increase on charges for consumption of above say 40 or 50 cubic meters per quarter. This will hit the pockets of all those who waste water and, hopefully, encourage them to cover their swimming pool whilst out of use and think twice before washing cars and patios and watering lawns and gardens.

In passing, how is it that there are so many beautifully clean cars on the roads? I have not washed mine since March!

Yours sincerely,

George Bell
Peyia


A.: This is another option, which I accept, but it will hit harder the larger families who are usually on a low budget. Whatever the tax system one adopts, the pool owners must pay the price until better days come. You are quite right the covering of pools must also be mandatory when not in use, but, then, how one checks this?
Thank you for your participation

A.P. Loizou

Q.: Dear Mr Loizou,

I read all your articles with real interest, especially this one as it touches on one of my own prejudices - I think that Cyprus developers and architects pay too little attention to privacy in designing houses and apartments. Often they could do better without reducing dwelling density (and profit).

In terms of your list of things to consider in buying a home, privacy for the occupant would probably be best considered as a 'Design' feature. I suggest that a thoughtful architect will be able to deliver good value in this regard without compromising the developer's profits. Unfortunately I see little evidence that this matter attracts much attention from the designer.

It is easy to provide real privacy in properties costing €1 million or which are located in the country and it would be difficult to make the homeowner feel comfortable swimming or sunbathing in the nude in more realistically priced urban homes but I think that more careful design could pay dividends in terms of privacy.

I would be interested to hear your views on this matter.

Regards,

David Jones.


A.: I agree with you absolutely. On the other hand, building plots being so small, in this country, creating privacy and without one blocking its own sizes/neighbors view etc could be tricky. Although the architecture is improving, lots of housing projects leave a lot to be desired for, as are disappointing some of the home owners/design houses preferences that are dictated to the architect by the end users.


A.P. Loizou

Q.: With the word economy not in a good shape and with oil prices on an upward path, when do you think that the Cyprus property market will be seriously affected? I fear that so far we have had no serious negative experience as other countries do. I read a report on Athens apartment market as having something like 20.000 vacant apartments in the market for sale and have been so for sometime. You do appreciate Mr Loizou that if we have a serious real estate recession our financial institutions, which are mortgage based in terms of security will have suddenly unsecured debtors with a chain reaction after this. Time to sell you think Mr Loizou?
Louiza Kory

Q.: What you describe is what has happened in the U.S.A. and to an extent in the U.K. This “good” thing was that the U.S.A. was first to be hit, so that Europe had some time to adjust. The situation is not very good and it is evident that the drop in demand is with us. We are experiencing a reduction from the U.K. demand to be in excess now of 20% (U.K. demand covers approximately 70% of the foreign demand) and a 15% reduction from the local market. These rates are increasing as time passes and as the economic situation does not improve. Time to sell? May be it will be better to sell now rather than wait for “better times”. At least short term (say in 6-12 months) I do not expect the market to improve (more likely it will get worse). We have to become very careful and those who have a difficulty in their cash flow due to increasing interest rates etc, must take action now and have their loans etc reschedule. International analysts, project that this state of affairs to last for around 2 years and as you realize, a lot of this depression “mood” that we have, is caused partly by all of us talking about it. So far the Russians are supporting the real estate market (for certain properties only), I will say, worldwide and the developers should aim at this market source, which has an increasing wealth, as well as Ukraine. Our Cyprus luck may be running out this time Louiza.

A.P. Loizou

Q.: We need to replace our home pipes relating to the central heating. We have two choices, either to take up the floors or place the pipes externally. You do appreciate the damage in the first case and the bad appearance in case we opt for the second alternative. What do you think Mr Loizou?
Maria & Stelios Dimas

A.: Difficult to answer without knowing the details. Other things being equal, I will opt for the external installation and try to cover the “ugliness” by tracking. This alternative is less costly, less hassle during the works. If you opt for the first alternative, you will do a lot of damage most likely to other finishes and services (e.g. cold water pipes, electricity pipes etc). It will depend how old is your home and whether it is a high cost house or an ordinary one etc.

A.P. Loizou

Q.: Sir,
I was horrified to read Mr. Loizou’s advice to Mr. & Mrs. Bob Baker concerning barking dogs (Weekly 1-7 August). Quite rightly, he advised them first of all to keep their dogs indoors at night, but then went on to say that their only alternative was to use a collar that gives the dogs an electric shock every time they bark. This is both inhumane and totally unnecessary and will only lead to traumatized dogs. Such collars should be illegal. Would it be considered acceptable to use electric shock treatment to keep your noisy children quiet? Then such treatment should not be used on dogs, who feel pain in exactly the same way as we do. There are alternative types of collar, which give a harmless spray each time the dog barks. These collars work by interrupting the unwanted behaviour without hurting or traumatizing the dogs. They can be obtained at www.dynavet.com. Another alternative would be to seek advice from a professional dog trainer or behavioural expert, of which there are now several in Cyprus. I am not one, but if Mr. & Mrs Baker would like to call me I could give them some contact details for dog trainers.

Wendy Hughes
Marathounda

Α.: Many thanks for your letter. I am passing on your tel. To Mr & Mrs Baker suggesting that they call you.
Regards,
A.P. Loizou

Q.: Dear Mr Loizou, we find your weekly question and answer page useful and interesting and wonder if you would comment on our question regarding probate as follows.

“We are a married couple who now reside permanently in Cyprus. We have purchased a house and we have also made wills in Cyprus. We do not own any other property other than our house in Cyprus.

We have been given to understand that probate can be a very drawn out and expensive process in Cyprus. Our Advocate, who dealt with the house purchase and our wills, has not raised the issue of probate at any stage. At the same time a financial advisor has suggested that we consider creating a limited company, place the house as an asset within the company and avoid any probate issues by the shareholding of either of the directors (my wife and I, with one share each) being transferred to the other in the event of death of either of us.

Having made our wills in Cyprus with each of us leaving our estate to the other (plus the obvious other provisions in the event of us dying within 30 days of each other) we wonder if further action of this nature is either advisable or necessary and would appreciate your view.

Steve & Mae”


Q.: I am not an expert on this but having gone through a number of probate cases, I cannot agree with you that it is expensive. I will say for a single house you will not spend more than €2.500. Presumably being British you are covered by the U.K. law and not the Cypriot law.
With respect now to the shareholding of a Co, you will still have to go exactly the same procedures as if you own the house. You still have to secure letters of administration etc (unless you have blank transfer forms etc – not recommended). On another note you will need to transfer the house to the Co, for which you must pay capital gains and transfer fees (which you get back after 5 years) – If now you are domicile in Cyprus (very difficult to prove) your probate will be governed by the Cyprus law.

A.P. Loizou
 

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