Uk
Cyprus close to resolving long running property title deed fiasco
Home owners in Cyprus who have been affected by the country’s title deed fiasco over many decades are a step closer to the situation being resolved with hopes high of a recovery in the property market. Laws to ensure that title deeds are passed directly to buyers must be in place by the end of this week as demanded by the European Union, the European Central Bank and the International Monetary Fund. Failure to do so would mean that the country will not receive the next instalment of its €500 million euro crisis bailout and it will be welcome news for thousands who still have not received the deeds to their homes that were built years ago. The Council of Ministers has approved a new law which is now on its way through the Cypriot Parliament. Not only will it help those who have never received title deeds it could also be a stimulus to the country’s struggling property market. To help boost real estate investment, the government has unveiled a number of major incentives benefitting buyers and sellers. Anyone buying property in Cyprus from now until the end of 2016 will qualify for a 50% discount on the property Title Deeds transfer fees tax. There will also be no capital gains tax when those who buy in this timescale want to sell in the future, a saving of 20%. Agents are hopeful it will lead to more enquiries from overseas buyers. One, Ideal Homes International, has seen a rise in interest from British buyers. ‘UK buyers are particularly excited about what they can get for their money, given the strength of the pound so far this year,’ said director Chris White. ‘Cyprus' historical relationship with the UK means that there are many aspects of life there that UK buyers feel comfortable with, everything from similar legal systems to driving on the left. Contracts are written in English and everyone speaks English too, which creates a sense of familiarity for UK buyers,’ he explained. He pointed out that people considering retirement in Cyprus are encouraged by the country’s many tax incentives and in particular by the fact that private pensions are taxed at just 5%. The tax environment is also beneficial to those looking to open a business in Cyprus. The property market on the Mediterranean island is improving after years in a downward spiral. According to official figures from the Department of Lands and Surveys, the number of property sales in Cyprus rose by 22% in July when compared with a year earlier. In Paphos, which is very popular with British buyers, the number of sales was 30% higher than in July 2014. But the market does have a lot of recovering to do. The latest Cyprus property index from the Royal Institution of Chartered Surveyors shows that during the second quarter of 2015 the Cyprus economy showed some signs of stability but unemployment remained at a historical high level and given prevailing economic… Continue reading
Homes in good school areas in UK command over £30,000 more
Parents in parts of the UK are willing to pay a premium of £32,000 premiums to move to a property within a desirable school catchment area, new research has found. Almost a third of these parents had to change jobs in order to get their children into the desired school and one in four were forced to ditch their dream home and downsize, according to the study from Santander Mortgages. Overall some 26% of parents with children of a school age have either bought or rented a new property in order to secure an address within their desired school catchment area and paid on average an 18% premium or £32,127 to do so. Some 31% admitted that as a result they ended up moving to an area they did not like, a further 26% said they overstretched themselves, paying more for the property than they could realistically afford and 33% moved to a location that was far away from family or friends. However, the study suggests that the moves made by many of these families are only temporary, with just 22% planning to continue living in the area. Some 45% of those who moved to be within a particular catchment area said they had, or would, move straight back out once their child had secured a place, whilst a further 30% planned to wait until their child finished school. Amongst families who have moved to be within their desired catchment area, 40% said they had sold their previous property and purchased a new one within their chosen area, 41% said they purchased a second home in the catchment area, while 20% secured their desired address by renting a property. This trend looks set to continue as 61% of parents who expect to move home before their children leave school, said that catchment areas will have an impact on where they choose to live. A regional breakdown shows that there are significant variations in the overall proportion of parents moving to be within a catchment area and also in their decision as to whether they buy, rent or look to secure a second property. Overall the North East and London see the highest proportion of parents moving to secure an address within a specific catchment area at 46% whilst Wales has the lowest at 11%. The average premium paid by parents for a property in their desired school catchment area ranges from 8% in Yorkshire and Humberside, to 21% in Scotland and the North East. As a result of higher property prices, London has the highest value premium at £77,113 or 16%. Younger parents are the most likely to purchase or rent a new property to be within a certain catchment area with 46% of those aged 18 to 34 having done so, compared to just 18% of 35 to 54 year-olds. The age of the child also appears to have an impact as 33% of parents who have children aged between four… Continue reading
Prices and sales continue downward in Dubai
Residential property prices in Dubai continued to fall in the third quarter of 2015 continue to decline and sales are also falling, the latest published data shows. The Phidar Dubai Real Estate International Demand Index (REIDI) fell significantly in the first half of the year, which, according to the firm is driven primarily by currency fluctuations. According to Jesse Downs, managing director of Phidar Advisory, there is a lower level of international buyers coming to the market and this is related to currency exchange. She pointed out that in the first half of 2015 the midpoint exchange rates for all currencies included in the REIDI are down against the dollar compared to 2014, except the Chinese Yuan and Hong Kong Dollar. ‘This is not a measure of actual capital flows, but a real time indicator intended to assess the propensity for attracting capital inflows into Dubai real estate,’ she added. Sales volumes for apartments and single family homes were down in July compared to the previous month, but up compared to July 2014. However, Downs said that this is likely due to seasonal travel patterns shifting around the holy month of Ramadan. Overall in the first half of 2015 apartment transaction volumes were up 3% compared to the same period in 2014, but transactions for single family homes, also referred to as villas, were down 3.2% compared to the first half of 2014. Apartment lease rates decreased a nominal 0.4%, while sale prices decreased 2.7%, pushing yields up to 7.4%. Lease rates for single family homes decreased 1.3% and sale prices decreased 2.6%, which pushed yields up to 4.8%. ‘The increase in yield is a positive and necessary trend in Dubai real estate. Especially in the context of global volatility, this is part of a healthy and necessary, market correction,’ Downs said. But she believes that the most significant finding was in a statistical analysis of the relationship between currencies and Dubai real estate prices. ‘Analysis reveals a significant relationship between three key foreign currencies and Dubai real estate prices. Unsurprisingly, the key currencies are the Indian Rupee, the British Pound and Pakistani Rupee. Changes in Dubai property prices appear linked to fluctuation of these currencies. So, currency trends may help us to understand and forecast local property prices,’ she concluded. Continue reading
