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Mortgage in North Cyprus - How does it work?

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Gul2010



Joined: 31/03/2010
Posts: 36

Message Posted:
06/06/2010 10:00

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Message 1 of 38 in Discussion

Just wondered if anyone knows much about mortgages in north cyprus - is there such thing?If so what deposit would they be looking for - are u able to move into a property without paying the full amount?



Thanks



malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
06/06/2010 11:01

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Message 2 of 38 in Discussion

the way it works is: you buy a property, pay for it in full and a few years later when you get your kocan you discover there is a mortgage on your property. You don't have to do a thing.



sporty


Joined: 06/12/2007
Posts: 685

Message Posted:
06/06/2010 11:31

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Message 3 of 38 in Discussion

some building companies provide their own private mortgage,personally i would avoid buying via a mortgage in NC,i agree at present it is a good time to buy but until things are sorted out over there and financial institutions are more regulated i would pay cash if you can,its better to use equity on a uk mortgage at present if you wish to buy imo. And dont buy offplan if you do buy.



dizzycows


Joined: 12/05/2009
Posts: 2736

Message Posted:
06/06/2010 11:37

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Message 4 of 38 in Discussion

Ask Akfinans Bank, they know all about morgages and how to cheat you out of your money!



Just would not borrow money from any banks of private loans from NC... Only if you want to be a mug....



DONTY


Joined: 07/06/2007
Posts: 534

Message Posted:
06/06/2010 15:06

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Message 5 of 38 in Discussion

Gul



Some builders/developers offer their own loans to help sales. I know of offerings around 10k or 15k deposit on a 50k apartment and interest set at 0.66% per month on the remainder. Its not a mortgage really, its a loan. If you know the interest and its all agreed on a contract it is the builder who is taking the biggest risk as its not the quickest thing to get you out of the apartment once you are in (though they can make life difficult by turning off electric/water etc if you do default).



matula


Joined: 07/07/2008
Posts: 647

Message Posted:
06/06/2010 19:12

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Message 6 of 38 in Discussion

Go to one of the dodgy banks, tell them you want a mortgage on a property you don't necessarily own. (They won't come to check on it) get the cash and do a runner to Turkey! Simple as.



rowlo



Joined: 12/10/2008
Posts: 4796

Message Posted:
06/06/2010 19:23

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Message 7 of 38 in Discussion

forget mortgages , find something you like thats built and in your budget ,then buy it for cash , theres loads of bargains out theyre at all price ranges , most are even furnished ,take your time shop around .



cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
06/06/2010 19:26

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Message 8 of 38 in Discussion

Please read the on going threads about banks then decide if you want to associate with any sort of loan.



Pippie


Joined: 02/12/2009
Posts: 1288

Message Posted:
06/06/2010 20:43

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Message 9 of 38 in Discussion

We spoke to our bank manager a while ago who told us mortgages are not available, only loans.



DONTY


Joined: 07/06/2007
Posts: 534

Message Posted:
06/06/2010 21:01

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Message 10 of 38 in Discussion

rowlo



Some people dont have all the cash but do have a decent income hence the need for loans/mortgages.



cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
06/06/2010 21:33

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Message 11 of 38 in Discussion

donty,



the point being made is if you take out any loan in TRNC having read all the comments on all the forums etc do not return here in 2 years complaining you have been ripped off.



Buy something in your cas budget or forget North cyprus for the foreseeable future. There are too many of us here he got caught out over the last 6 years.



Is there a stronger version of caveat emptor that could be used other than DO NOT!!!



nilmoney


Joined: 29/12/2008
Posts: 122

Message Posted:
06/06/2010 21:44

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Message 12 of 38 in Discussion



Forget it after monitoring this site I would not touch TRNC with a barge pole



If you are still keen on North Cyprus i would just rent



Be very careful you will no doubt be advised to do your "homework" not that that will help!



Good Luck



DONTY


Joined: 07/06/2007
Posts: 534

Message Posted:
06/06/2010 23:19

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Message 13 of 38 in Discussion

cyprusishome



Who has taken out a loan from a builder and been ripped off? How did they get ripped off? Are you confusing your builder taking a loan against your property?



If you take a loan from a builder whilst construction isnt finished you risk losing less cash if they dont complete.



Do remember that some people want to purchase here and dont have the finances in place. Getting finance in the UK is difficult right now. Borrowing from the builder is riskier for the builder than it is for the customer. Obviously you need to check the interest rate and not borrow from someone who has 'mafia' tattooed on his forehead and a pistol hanging out of his waistband!



rowlo



Joined: 12/10/2008
Posts: 4796

Message Posted:
07/06/2010 00:02

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Message 14 of 38 in Discussion

msg10 ,donty im trying to help you here , if you aint got the cash , dont borrow money in trnc , if you need to borrow , release some equity in your home in uk , if you cant afford to buy cash forget it , now im a posotive kinda guy , if you got some spare cash you want to gamble then do it , i did , but if you aint then dont , forget what you earn , i payed 74k in tax last year ,so i have a good income also .



hattikins


Joined: 17/02/2008
Posts: 2793

Message Posted:
07/06/2010 00:09

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Message 15 of 38 in Discussion

Anyone who takes out a mortgage/loan from any TRNC bank at present must be stark staring bonkers or else have lots of money they can afford to lose. Cash purchase only or rent if that is not an option.



rowlo



Joined: 12/10/2008
Posts: 4796

Message Posted:
07/06/2010 00:15

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Message 16 of 38 in Discussion

some sence at last hatti ,



Brinsley


Joined: 04/04/2009
Posts: 6858

Message Posted:
07/06/2010 00:28

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Message 17 of 38 in Discussion

Msg 1

Firstly, find an Advocate that has a Swiss bank account.

Secondly, a developer whose company is registered in the Caymans.

Thirdly, an architect experienced in avant-garde mud brick design.

And lastly, change all your hard earned cash into monopoly money by way of Hasbro, then take your pick of location! Job done and sorted!



Richard



Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
07/06/2010 00:39

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Message 18 of 38 in Discussion

the simple answer after today dont even go there



rowlo



Joined: 12/10/2008
Posts: 4796

Message Posted:
07/06/2010 00:44

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Message 19 of 38 in Discussion

hi lilli , what happened today ?



cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
07/06/2010 08:27

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Message 20 of 38 in Discussion

donty,



you are either having a laugh at the experiences of a lot of people in TRNC or you have a vested interest in selling homes in the country.



alternativley if you are or a friend is thinking of buying you are blind to what you are being told and the laugh will ultimatley be on you.



Good day to you



cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
07/06/2010 09:15

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Message 21 of 38 in Discussion

My advise if you do intend to buy here is , buy a completed property with all services already in place of someone that already have the kocan in their possession, and with the current state of affairs preferably on exchange land.



This is the only way to avoid most of the pitfalls.



Pixie


Joined: 18/03/2009
Posts: 489

Message Posted:
07/06/2010 09:30

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Message 22 of 38 in Discussion

May I offer another point of view?

We live in Nicosia, my parents live in Anittepe which is a turkish titled gorgeous area filled with large homes. My father recommended us to wait as there was an economic crises and the prices of homes would drop. We have been waiting and watching. I have looked at every home that has been put on the market. Instead of dropping the prices have actually increased. I am sorry now that I did not buy when I first came as a home worth 90-100 is now asking for 130-140 000 and some houses that we looked at off plan at 120 000 have now had one come up still incompleted but the owner not able to meet the payments and going for 150,000. When you make an offer they just laugh at you.

The agents I have been looking with are Boray estates, Kumsal emlak and remax. Im sure if you look at their web sites or call them they will also give you the same information that prices are rising as opposed to falling.



Pixie


Joined: 18/03/2009
Posts: 489

Message Posted:
07/06/2010 09:33

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Message 23 of 38 in Discussion

I have asked three banks about loans. Basically you need to put in 25% of the asking price, the property needs to have turkish title deeds and the property needs to be finished and ready to move in. Boray estates knows which bank offers the lowest interest rates.

I found Is bankasi to be ok.

You need to have a maas bordrosu or proof of income, or I think you need to put something up against the loan.

I hope this helps.

We have decided to rent for a while longer.



DONTY


Joined: 07/06/2007
Posts: 534

Message Posted:
07/06/2010 12:40

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Message 24 of 38 in Discussion

cyprusishome



ongoing threads about loans? Yes, where a builder takes a loan against your property NOT where someone has taken a loan from a builder.



you wrote 'you are either having a laugh at the experiences of a lot of people in TRNC'

How many people have had bad experiences taking a loan from a builder to pay for their property? I really want to know some actual fact about how they were ripped off please give me examples?

Would they have been better off giving him all the cash up front or say 10k down and paying the rest over 9 or 10 years? Which option carries the greater risk?



Buying a completed property: There were so many rubbish companies building here a few years ago and some of your poor people bought these poorly constructed houses. You now have your Kocan and can put a lick of paint over the terrible damp you have and flog your problem to some poor other sod. They only find out they bought a lemon when winter comes!



DONTY


Joined: 07/06/2007
Posts: 534

Message Posted:
07/06/2010 12:44

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Message 25 of 38 in Discussion

The companies that remain are either ok or you can google them or look on here and read mile upon mile of info about them, so in some respects you are better off steering clear of someone elses problems and going for a new build from a reputable builder than buying a painted over piece of c**p.



DONTY


Joined: 07/06/2007
Posts: 534

Message Posted:
07/06/2010 12:48

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Message 26 of 38 in Discussion

and im not saying you should borrow from a bank over here. Interest too high.



fiendishpaul


Joined: 18/05/2008
Posts: 1720

Message Posted:
07/06/2010 13:00

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Message 27 of 38 in Discussion

Pixie (message 22)



I have to admit that I have seen little evidence of house prices going up. Houses bought 5 years ago might show a half decent profit but as for anything bought recently, I would suggest that money will have probably been lost.



In fact I received an e-mail from a well known estate agents recently advertising a villa in Lapta/Karsiyaka reduced from 229k to 169k and a friend who bought last year for 115k has recently had to sell for 104k having done about 10k worth of work to the property (he had received offers as low as 85k).



My advice would be to rent and then put the money that you would have spent on a property into the bank and live off the interest. Whilst nothing in the TRNC is risk free, I would suggest that this is the less risky option and of course you have the benefit of being able to finance your lifestyle with little or no impact on your capital.



Just my opinion of course.



Paul



Pixie


Joined: 18/03/2009
Posts: 489

Message Posted:
07/06/2010 13:30

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Message 28 of 38 in Discussion

Well the properties in Anittepe, hamitkoy and dumlupinar are going up- I wish they were going down.



But we will continue renting as you have suggested Paul, because the interest rates are high - too high for us to take out a loan, and high enough that we make a nice return on our money.



Right now we are looking for a nice villa aroung kyrenia or Nicosia. Hopefully we will find one and continue renting...



girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
07/06/2010 14:11

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Message 29 of 38 in Discussion

Pixie

Property in some areas such as Nicosia was built to service a local populations needs and probably not an over supply.Unfortunately for us in Kyrenia ,a massive oversupply of of property has developed in anticipation of people flocking to buy cheap holiday homes. The message has not got through that cheap property is not the sole reason people chose to buy in an area . Kyrenia unlike Nicosia relies on an overseas market which the auction of mortgage properties is only one of many things that have put people off.



If you go into estate agents web sites ,you can see old adverts for developments with the off plan prices few years old and also see newer adverts for resales on the same development. 10-20% reduction .This why so many of us are angry about recent events.Cyprus as a whole seems to have a death wish when it comes to property and tourism, unfortunately our investment is affected accordingly.



Pixie


Joined: 18/03/2009
Posts: 489

Message Posted:
07/06/2010 14:21

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Message 30 of 38 in Discussion

good comment and I agree



Ailletoo


Joined: 24/01/2009
Posts: 1003

Message Posted:
07/06/2010 21:00

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Message 31 of 38 in Discussion

Agree with msg 12.. Rent first and then if you like the place buy.



nareik


Joined: 26/01/2009
Posts: 113

Message Posted:
07/06/2010 21:55

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Message 32 of 38 in Discussion

Message 13



"Obviously you need to check the interest rate and not borrow from someone who has 'mafia' tattooed on his forehead and a pistol hanging out of his waistband!"



That is a very good description of mainstream banks in TRNC, in particular Akfinans Bank and KOOP Bank.



LET THE BUYER BEWARE!



DONTY


Joined: 07/06/2007
Posts: 534

Message Posted:
07/06/2010 22:53

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Message 33 of 38 in Discussion

Msg 32



I agree.

I'm not talking about borrowing from a bank though!



Gul2010



Joined: 31/03/2010
Posts: 36

Message Posted:
09/06/2010 01:36

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Message 34 of 38 in Discussion

Thank you all for your advice it makes sense - luckily have my parents home to live in until we decide whether we will stay/live in Cyprus - to pay it off would be ideal was just curious how it worked as everyone i know has paid upfront and property being so bad in UK wondered what the situation was in Cyprus.



Smity



Joined: 14/09/2009
Posts: 826

Message Posted:
09/06/2010 15:15

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Message 35 of 38 in Discussion

With all the Hype about borrowing money off foriegn banks I agree with Rowlo, release some of the equity in your uk home if possible,or even remortgage then if the worst comes to the worst and you get repossed the house in cyprus is safe simple as that



mikeyCBBR


Joined: 05/01/2009
Posts: 168

Message Posted:
09/06/2010 23:29

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Message 36 of 38 in Discussion

Amonst all the negativity I bought 3 years ago and is still agreat investment pound for pound, there is no where in the world where you can buy a 2 bed villa for 40,000 ( Off plan from a developer) No no wonderthe TRNC ecconomy is not growing as forums like these are make or break for the decision to buy a property.



If you want to make a fast buck or borrow the lot and have no emergency cash in case you dont ret then dont buy.There are many dipsticks on here who have fallen foul of stupid decisions and moan like mad, just ignore them.



I took 2 years of research to come up with TRNC, yes there are risks butresearch , reseach , research, as for a mortgage of loan there are builsers wo will take a deposit and pay over the next 10 years , would I do it if I didnt have the cash, yes



Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
10/06/2010

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Message 37 of 38 in Discussion

Yes, and see how Geoff & Mary Day have been treated by the TRNC legal system afetr being accused of theft by their builder because they refused his demands for money as they demanded he build what he had been paid to do. 2 years of misery and still going. Another reason not to buy property in the TRNC?



girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
10/06/2010 02:47

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Message 38 of 38 in Discussion

mikey

Who built the villas for 40k and where .Have you had any problems since moving in?

Are there any for sale ,and what is the price now they are completed. Seems to be worth a gamble.



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