| Dear Investor,
I spent last week in Cyprus, where the temperatures were close to 35C and the skies clear and blue.
I attended the monthly site meeting at The Grove Spa Resort in Mazotos, Cyprus and had a number of meetings with the banks, contractors, consultants and of course our superb architect Constantinos.
The speed of progress on the site is impressive and also the quality of the work delivered by our prime contractor GCC. I was impressed with the professionalism and focus of all the contractors we are working with and must admit to a feeling of excitement and anticipation about the finished product.
The Larnaca, Limassol and Famagusta Districts of Cyprus have held their own during the credit crunch and we are still seeing good demand. Last week, we signed contracts for a cash sale for 2 apartments at The Grove Spa Resort to a Cypriot businessman who recognises the value of investing in quality real estate as opposed to the vagaries and volatility of stock markets.
Banks
The Bank of Cyprus reduced rates by 100bps last week which will lead other banks to follow suit. Athanasios Orphanides, the US-trained president of the Central Bank is pushing for rates and margins to fall in an effort to increase the money supply.
As a result we are already seeing an improvement in lending and our development company, InvestinCyprus.com Developers has now negotiated a new mortgage product for our clients at around 4%. And we expect a further easing in interest rates this year.
And finally, even when working in Cyprus, it’s still a pleasure. Here we are having lunch with the contractor team after the site meeting last week.
Outlook For The UK Property Market
There have been positive soundings by the Royal Institution of Chartered Surveyors, Rightmove and others pointing to a bottom in the cycle somewhere in the fourth quarter of 2009 or the first quarter of 2010.
The exact “bottom” is irrelevant for property investors as the deals are to be had now, not when the market recovers and every Tom, Dick and Harriet are climbing aboard again buoyed by the press and better mortgage deals.
Distressed Assets
Since we started Distressed Assets last October during the height of the credit crisis and general Armageddon gloom, we have secured some fantastic deals for clients.
I personally exchanged contracts on a large commercial building 3 weeks ago with completion next week. The yield is 15% and the rebuild cost (clearly does not include the cost of the prime city centre land) is 100% greater than the purchase price.
A recent deal for a client from London is:
2 bedroom apartment, Streatham Hill, London
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Purchased for £155,000 |
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Current Market Value 35% above purchase price. |
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Gross yield 8.5% and this property was rented 2 days after completion |
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How Can I Invest In Distressed Property?
You have a number of choices:
- Sign-up For Our FREE Newsletter Distressed Assets Newsletter
If you wish to receive our FREE Distressed Assets newsletter then submit your e-mail address here:
www.uk-property-repossessions.com/exampleproperties
- Discuss Your Strategy and Requirements With A Member Of The Distressed Assets Team
Either Phone Alun on 0151 244 5657 or fill in the form at:
http://www.uk-property-repossessions.com/contactus
- Attend A FREE Distressed Assets Investment Seminar:
“How To Invest Successfully In UK Distressed Assets”
- Liverpool: Tuesday 26th May 2009 – 6.30pm to 8.30pm
- Dublin: Monday 22nd June 2009 – 6.30pm to 8.30pm
- London: Thursday 25th June 2009 – 6.30pm to 8.30pm
Secure Your Place Today By Filling In The Form At:
www.uk-property-repossessions.com/repossession_seminars
Places are limited and will be allocated on a first come first served basis. If you wish to attend the Liverpool event tonight, then phone Alun direct on 0151 244 5657.
Finally
Don’t forget to speak with your accountant regarding the favourable tax breaks announced in the budget if you have owned overseas properties in the holiday market sector. It could be worth many thousands to you.
Best wishes
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