Is this a good idea???

[bloomy]

Hi All

Would like your thoughts on an idea I have...???

My parents live in Pathos (renting for the past year), myself, brother and sister are thinking of buying there current place or another they like and letting them live rent free.
Would be a small investment for us and would save our parents around £7k a year.

The questions are...

Am I right in thinking the min deposit is 30% when getting a mortgage?

Is it a good time to buy, house prices have dropped loads, are they going to drop even more?

Would really appreciate you thoughts

Thanks
Bloomy

[BabsM]

Hi Bloomy,
What a nice thought, wish I was your parent!

Yes, officially the minimum deposit is 30% in Cyprus although there has been some discussion about that changing in the local press. You may also be able to claim back some of the Cypriot VAT if you meet the conditions.

House prices in Cyprus have not really dropped in the Larnaca area, I don't know about Pafos and Limassol. Where prices are lower than you would expect is where foreign owners are desperate to sell and are prepared to accept a low price for a quick sale.

Do your parents already live in Cyprus? Do they want to move to Cyprus? Emigrating is a very big move, very stressful and very disruptive. It is not for everyone. I would not recommend doing it without really serious thought. That said, we love our new life in Cyprus and, if we had our time over, we would emigrate again!

[Veronica]

Hi Bloomy,

House prices on the whole are not dropping in the Paphos area.
If anything off plan are still rising steadily as I get notification most weeks from developers of price rises for properties I have on my books.
Its a constant job updating my website to make sure i have the correct prices.
However with resales it is a different story, mainly because so many Brits cant see past the large developers and havnt yet cottoned onto the fact that resales are far better value for money.
We are however now getting a lot of enquiries from other EU countries now that Cyprus has adopted the Euro so although the British market has slowed down the market in general is fairly stable.
Price are not rising as quickly as they did in the past so short term investment is no longer as lucrative but if you are thinking of buying for your parents to live in it will not be a bad long term investment.
If you are in a financial postion to do this for your parents I would suggest that resale is the best option especially if you are able to buy the one they are living in now at a good price.

Regards
Veronica

[bloomy]

Hi, Thanks for the replies

As I said my parent live in Cyprus at the moment and the house next door has dropped their price at least £40k in the past year trying to sell and still nothing, for long term investment it seems tempting.

Wouldnt consider new build definitely resale for financial reasons

Thanks again

[jeffrey Streets]

I think you need to check with the banks because when I was buying mine the deposit on all banks went up to 40%. I got mine for 30% because it had only just changed and they felt sorry fior me as I was living on bread and water to get the 30% together.
Check with all the banks first.

[Wils & Nance]

Bloomy,
That is so nice to hear.......the kids giving something back !
Your parents deserve it, they must have done a real good job!
Nance