If you have ever considered buying a property abroad, many people investigate an ‘off-plan’ apartment or villa and have the beauty of owning a brand new home in their dream country – Well, you will already be aware that typically you would have to find 30% for the down payment to start with, then meet stage payments / installments during the construction period. These payments will be made either from your own funds or from a mortgage… In any case you have to pay the cost of those borrowings or suffer the loss of interest from those savings for a period of 6, or upto 18 months, even 2 years…

New to the Cyprus market and warrants your serious consideration – we are offering a selection of superb apartments and villas in different locations where you can start with just 10% of the purchase price and defer your mortgage until delivery / completion of the property! It truly is a great opportunity – what are you waiting for?..

Here are some further details of payment plans available;

We have 5 projects which are off-plan / under construction, this includes apartments in Kato Paphos, Tala, Anavargos and close to Sea Caves, along with detached villas in Emba with private swimming pools – for these properties you can chose one of 2 absolutely brilliant payment methods.

METHOD 1 – ‘MONTHLY INSTALMENTS & MONEY BACK BONUS SCHEME’
You pay a 10% initial payment. Plus 10% in equal, interest-free monthly installments to the developer… You pay a further 20% on completion & arrange a 60% bank loan, where the stage payments are made during construction… Provided that all the payments are duly paid on time, you will be eligible for a bonus, MONEY BACK SCHEME OF UPTO 10% of the sale price…
Bank loan notes: Important to note that you pay nothing during the construction period until delivery (not even the interest), then you pay interest only installments for upto 5 years and the remainder of the loan period will be a normal repayment structure.

METHOD 2 – ‘NO MORTGAGE PAYMENTS FOR UP TO THE FIRST 4 YEARS’
You pay a 10% initial payment. Plus 10% after 6 months… You pay a further 20% on completion & arrange a 60% bank loan, where stage payments are met during construction… Provided that all the payments are duly paid on time, the DEVELOPER WILL PAY YOUR MORTAGE FOR THE FIRST 2 YEARS (interest only)… Bank loan notes: Again, nothing to pay during the construction period until delivery (not even the interest), the developer will pay the next 2 years interest payments of your bank loan… You can pay interest only for a further 3 years. The remainder of the load period will be the normal repayments structure.

If you don’t want to wait 12 months or so for your property and prefer something ready or nearly completed, then there is a selection of villas and apartments where you can mortgage upto 80%, again rarely found in the overseas market, you usually would be expected to make a 30% contribution from your own funds…

Here are some more details of the payment scheme;

‘BANK LOAN OF UPTO 80% – LOW DEPOSIT’. You pay a 10% initial payment. You pay a further 10% on completion & arrange an 80% bank loan… Bank loan notes: The loan is a one-off payment upon delivery date of the property, and then you can pay interest only installments for upto 5 years. The remainder of the loan period will be the normal repayment structure.

If required, mortgages are arranged with a local bank in Cyprus. The banking system and procedures are very similar to those in the UK. What’s more, is you have the option to borrow the money with a foreign currency loan, although the developer will be paid in Euros, you may chose to have a Sterling loan as your income is in Sterling, or you may decide to borrow the funds in Swiss Francs as the interest rates is much lower – in the region of 2%… The banks in Cyprus are very pleasant to deal with and extremely efficient, please contact us for further information and any questions you may have.

If you are considering an investment in overseas property, you will struggle to beat this package. Invest your savings wisely – were you would usually use all your capital to purchase an apartment or a villa, either outright or with a mortgage. We are suggesting, if you study the figures and chose the best payment method that suits you, perhaps you could afford to buy 2 or more properties?… Say you take the 10% cash back on your first purchase, this will fully furnished and equip 2 places, or sit in the bank to pay your mortgage or ‘x’ months… Then maybe let the developer pay the interest of your mortgage on the second property for 2 years!… With the potential rental income and capital growth, coupled with lower outgoings (remember the developers paying your mortgage), imagine where you could be in 2 years? Doesn’t sound bad to me…

Please click here to see the properties available and more information.
Disclaimer; The details of these special payment methods, any prices, rates, facts and figures are subject to change and are based on information provided by the seller. These details remain subject to verification to the purchaser’s satisfaction from the developer, lawyer or bank.

Although travel may be the common currency of enlightenment, in reality making these journeys can be frustrating and costly when dealing with boundaries and borders of a different kind – money in its various forms. Travellers Cheques and currencies such as the US dollar are accepted across the world in various countries as a medium of exchange from tourists – but this is not universal and the more you travel the more you encounter unfamiliar currencies, banknotes, coins and rates of exchange. Of course, there is always the ubiquitous credit card which seems to be accepted in the remotest mountain village or island – far away from the major cities yet inextricably linked to the global financial ‘nervous system’ that makes the world go round.

For our casual travelling needs, many of us resort to the Bureau de Change or bank in the local High Street, the airport departure lounge – or the money exchange kiosks we find at our holiday destination. A stroll along Nissi Avenue in Agia Napa or the seafronts of Larnaca, Paphos or Limassol will bear testimony to the opportunity for ‘comparison shopping’ when looking to trade your own currency. One of the great ‘ice breakers’ in striking up a conversation with a fellow traveller is the exchange rate at which you bought the local currency! For many years, this has been a familiar part of the experience when travelling to Cyprus. This will change from 1st January 2008 when the country becomes a fully-fledged member of the Euro zone and the Cyprus Pound will have until only 31st January 2008 to remain in circulation. Cyprus, along with Malta, will be joining the existing 13 member countries using the Euro as a single currency.
This means that any Euros you use for trips to countries such as France, Germany, Italy and Greece can be used in Cyprus – without the bother or expense of having to exchange British Pounds for Euros, unless you need more of course!

Apart from affecting the casual traveller, exchange rates have an important impact on others needing to transfer currency. For companies and financial institutions trading in the global economy, the world of international money markets has long been the lifeblood of transnational commerce – but a mystery to most other people!

On a personal level, the movement of larger sums of money invariably takes place when making a major purchase or investment – when buying an apartment or villa for example. Cyprus has long been a hot favourite for British people wishing to buy abroad. For many people the climate is healthier and the way of life more relaxed and less stressful than found in the UK.

Exchange rates play a highly significant part in the process of buying and paying for an overseas property (assuming the purchase capital is held in a different base currency such as British Pounds) and will directly affect the final cost of the property.

Assuming that the vast majority of properties will be priced in the local currency – Euros as from 1st January 2008 in Cyprus – it should be noted that the price of the property is very different to the cost of the property. The “price” of the property will be in the local currency whereas the “cost” of the property will be how much your own currency, as the buyer, will be needed to pay for the property. The exchange rate achieved can be a significant factor in minimising the total costs of the transaction.

Exchange rates move frequently – and can do so by large margins. Most rates move by the second – depending on the supply and demand for each currency. Keeping track of these rapid rate changes needs an in-depth knowledge of the foreign exchange market and hour-by-hour awareness of the trends that drive it.

Rate changes, while less important when buying a small amount of holiday money, can mount up and make a big difference when needing to find a much larger amount to pay for property. For example, for a buyer based in the UK, every 1 cent movement in the Euro (the difference from EUR 1.47 to EUR 1.46 for example) will add or reduce approximately GBP 1,000 to the cost of a property priced at EUR 150,000. Given that the Euro exchange rate moves an average of 3% every month, it is not difficult to see the financial impact that exchange rates can have on an overseas property purchase.

For those permanently living away from the UK, there may be other reasons for transferring currency abroad – mortgage payments or receiving pensions, for example. So awareness about the pros and cons of currency transfer is essential if you want to make the most of your money – and avoid the pitfalls of making the wrong decisions.

High street banks have traditionally been the main suppliers of consumer foreign exchange services. However, there are also a growing number of specialist foreign exchange dealers – currency dealers – providing services to buyers of foreign property. In many cases currency dealers can provide financial, time and administrative advantages compared to the normal branch of a high street bank.

Due to the highly volatile nature of exchange rates it is also good practice to shop around and find out exactly what standard of service various dealers are offering. That way, you are in the best place to make a considered and informed decision about which dealer is best able to work for you. Do so well in advance of knowing that you need to transfer currency to buy a property. The simple process of finding out what they offer, how quickly they can respond and what they will charge gives you the freedom to make the right choice. A reputable dealer will be more than willing to explain what they do and how they work with you to get the best deal from the currency markets.

Contingency planning is key – it costs nothing to register your details and set up an account ready to receive British Pounds for transfer to a Cyprus Pounds account – or Euro account from 1st January 2008. Bear in mind that you will need the right currency for deposits, instalment payments or outright purchase of your property. The process is relatively straightforward and once completed sets you up to receive future transfers of pension payments and other monies.

There are good reasons to consider specialist foreign exchange dealers as an alternative to conventional banks. Specialist brokers tend to focus on this business and have lower overheads and will tend offer more competitive rates for investors changing the larger sums of money involved. In general the more money you convert, the better the rate. Depending on your bank or broker, funds transfer costs between £15 and £40 per transaction. It is advisable to compare the total cost of a currency exchange deal, as some currency dealers do not charge a transfer fee while more than making up for this in the exchange rate they quote.

Depending on your personal needs, you can instruct your dealer to secure a rate the moment it changes to a desired level. If your source capital is in the UK, your dealer can place an order to purchase currency outside London trading hours, which will automatically trigger as soon as the desired rate is achieved. You can study the trend of exchange rate variations – and take your risk in making a decision to go for a particular rate at a given time – but be realistic about the rate you are looking for and be prepared to wait! Considering the savings that can be achieved on a property purchase of substantial value, you can make your calculations and act accordingly.

A facility offered by dealers which is particularly attractive to off-plan investors is the ability to fix an exchange rate – this can be done for up to two years. All you need to do is book an exchange rate and send your dealer a deposit, usually 10% of the contract value. The 90% balance of your currency contract is payable when you wish to have funds transferred overseas.

By their very nature, it is impossible to predict markets with absolute certainty so foreign currency dealers are not regulated to give advice. However, many will gladly provide you with information about prevailing market trends and currency movements. Based on this research, you will find it easier to make your own decision about when to buy. You can pursue the latest currency charts by visiting the websites of various dealers – or signing up to receive daily or weekly e-mail market updates. The Interbank rate is displayed on the internet and on Ceefax – this is the rate at which banks buy and sell from each other. Many websites feature live currency charts for major trading transactions, as well as historical exchange rates. For a current quote on the amount you are looking to exchange for your investment, it is always best to call for an individual quotation.

Depending on who you deal through, you can fix an exchange rate on regular overseas payments for a period of between 6 and 24 months, removing the worry caused by fluctuations in the exchange rate over that period of time. You can also arrange direct debit payments each month and transfer your funds directly to the nominated destination account of your choice.

After booking an exchange rate, you will need to transfer funds to your client account. The easiest and quickest way is by CHAPS of BACS; these are different methods the banks use to transfer funds between themselves. Bear in mind that any cheque deposit will have to clear before funds can be sent.

Once the arrangements have been put in place, currency transfer is a relatively straightforward procedure and should take roughly 2 – 3 days under routine circumstances, although it is always best to check with your dealer on the timelines when you give your instructions. Payments overseas are made easier with an IBAN, (International Bank Account Number), adopted by most countries in Europe, this long alpha numeric code identifies the country, bank, sort code, account number and currency all in one.

As long as the UK remains outside the Euro zone, there will still be the need to go through the hoop of foreign currency exchange when buying a villa or apartment in Cyprus. Prevailing exchange rates with the Euro from 1st January 2008, transaction costs and timing of the transfer will continue to impact on the actual sum of local currency received in Cyprus from a UK Sterling account. That said, being aware of what you can do to make the most of your money – and its transfer value – is half the battle of getting the deal that’s right for you.

As you would expect, a great deal of planning and preparation has gone into making such a significant, historic change to the economic and commercial culture of Cyprus – and the move is intended to further improve the cohesion of trading between countries within the Euro zone.

One immediate impact will be the removal of the transaction charge associated with converting one currency to another. In effect this will make purchasing something in Cyprus as straightforward as buying something in Greece, Italy or Germany for example. Although there are other variables at play in the Cyprus property market – such as the introduction of VAT on land during 2008 – the introduction of the Euro will make it easier for people elsewhere in the Euro zone to buy property. The uncertainty and instability arising from exchange rate fluctuations will be one less factor to worry about! Obviously, the laws of economics still apply and areas enjoying strong demand are likely to see rising prices. That said, the ‘Window of opportunity’ is always open to those prepared to take informed action sooner rather than later…

A key decision was deciding the rate at which the Euro will be substituted for the Cyprus Pound. The Council of the EU confirmed this in July 2007: €1 = £0,585274.

A great deal of planning has gone into making the changeover as effortless as possible for the ordinary consumer. Therefore, from 1st September 2007 through to 30 September 2008 there will be dual display (in Pounds and Euro) of the prices of goods and services. Although the existing currency will be withdrawn from circulation at the end of January 2008, this move is designed to give people familiarity with the relative value of the Euro against the Cyprus Pound.

In anticipation of the adoption of the Euro – and based on the experience of consumers in other Euro zone countries – concern has been expressed about the temptation for some traders to perhaps ‘round up’ prices and profit from what should otherwise be a straightforward conversion from one currency to another. For this reason, the Fair Pricing Code will apply from 10 July 2007 until 10 July 2008. This voluntary code encourages transparency in the pricing of goods and services during the changeover period. All subscribers will be awarded a logo. The commitments under the Code include the avoidance of unjustified price increases, transparency in pricing policies and consumer information and assistance.

Implementation will be officially monitored to ensure that exploitation does not take place. This will be in the form of ‘Euro-Observatories’. The Euro-Observatories are responsible, at regional level, for monitoring the introduction of the euro, the legality of transactions and the transparency of professional practices, for referring citizens to any source of information and for hearing, mediating and providing assistance to citizens in respect of euro changeover issues. The Euro-Observatories are hosted at the District Offices.

On 1 January 2008 the Euro will become the official currency of Cyprus, replacing the Cyprus pound. Euro banknotes and coins will be put into circulation and will become legal tender in the Republic of Cyprus. In parallel, all accounts with banks and cooperative credit institutions that are denominated in pounds will automatically be converted into accounts denominated in Euro, free of charge.

For a period of one month (1 – 31 January 2008) after the adoption of the Euro, banknotes and coins in Cyprus pounds will circulate in parallel with the Euro and will be accepted for payments. All non-cash transactions (such as cheque, card etc.) will be carried out exclusively in Euro. Businesses should give change only in Euro.

After the end of the ‘parallel circulation period’ banks and cooperative credit institutions will exchange banknotes and coins in pounds for banknotes and coins in Euro, free of charge up to a ceiling (£1.000 per customer per transaction for banknotes and £50 for coins). And for deposit, any amount of banknotes and coins in pounds, until 30 June 2008 (six months after the euro adoption date).

The Central Bank of Cyprus will continue to exchange, free of charge, banknotes in pounds for Euro for 10 years after the euro adoption date (until 31 December 2017), and coins in pounds for 2 years after the Euro adoption date (until 31 December 2009).

From 1 February 2007 cash in Cyprus pounds will cease to be legal tender and will not be accepted for payments. All payments will be carried out in Euro.

Although introduction of the Euro is arguably a contentious issue, the motives for so doing are driven by a desire to provide important benefits to the economy as a whole – such as low inflation and interest rates and sound public finances. These conditions are seen by the government as conducive to fostering economic growth, investment and employment to the benefit of citizens.

On a practical level there are other attributes which should assist the realisation of the broader goals. These include the reduction of currency exchange rate risks and costs (especially for traders, students studying abroad, and tourists visiting Cyprus); greater price transparency; easier access to the Euro area capital markets; fostering of foreign investment; reinforcement of the country’s position in the EU.

For further information you can visit the national website for the Euro at www.euro.cy

The Toll Free telephone helpline for the Euro is: 8000 2008

District Offices may also be contacted by telephone for further enquiries:

Nicosia: (00357) 22804152
Limassol: (00357) 25806420
Larnaca: (00357) 24801803
Famagusta: (00357) 23812069
Paphos (00357) 26801105