Chinese property scam arrest

Staff Reporter
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Chinese property scam arrest

Chinese property scam arrestPAPHOS police have announced the arrest of a 43-year-old Greek Cypriot man in connection with on-going investigations in a property scam involving Chinese investors.

Paphos CID Chief, Nikos Tsappis, said that the man was arrested on evidence given by the Chinese and other evidence which suggest that he received €260,000 as a down-payment for a large parcel of land that the group of Chinese were interested in purchasing.

Earlier today a 43 year old man was remanded by the Paphos court for eight days and is facing charges of criminal conspiracy, extorting money under false pretences, and money laundering.

An arrest warrant has also been issued for a second person.

The case came to the attention of the police, when the Chinese woman who had initiated the deal with the suspect realized that he was not the legal owner of the property in question, and who subsequently reported the matter.

Initial investigations conducted by the police show that at least two people from Paphos have initiated deals worth over €300,000 with prospective investors by posing as agents for large property development concerns in Cyprus.

Property Transfer Fees reduction permanent

Nigel Howarth
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Property Transfer Fees reduction permanent

Cyprus' Property Transfer Fee reductions permanentGOOD news for those who applied for the Title Deeds under the provisions of the ‘trapped buyers’ law and who were concerned that they would be unable to benefit from the 50 per cent reduction in their Property Transfer Fees if the transfer did not take place by 31st December 2016 – and everyone else waiting for their deeds.

Earlier today the Finance Ministry announced  that it has lifted the temporary arrangement to reduce Property Transfer Fees by 50 per cent, which was valid until 31st December 2016.

The 50 per cent reduction is now permanent; the law implementing the change, ‘Land and Surveys Department (Fees and Rights) (Amendment) (No. 2) Law’, was passed on 14th July 2016 at a plenary session of the Cyprus parliament.

In its announcement the Finance Ministry said “The above arrangement aims to boost additional growth in the construction industry and attract new investments from both the domestic, and the foreign markets.”

Immovable Property Tax payments

Nigel Howarth
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Immovable Property Tax payments

THE TAX Department will start sending Immovable Property Tax notices to 237,052 taxpayers in September who will find their IPT bills reduced to 25 per cent (a reduction of 75 per cent) of the tax demanded last year, providing they pay by 31st October.

Those choosing to pay from 1st November until 31st December will pay 27.5 per cent of last year’s tax (a reduction of 72.5 per cent), while those who pay after 31st December will face an additional charge of 10 percent on the 27.5 per cent figure.

Once again Immovable Property Tax will be based on 1980 values and rates, which range from 0.6% to 1.9 per cent of their property/properties 1980 values, while taxpayers will be exempt from paying IPT if their tax bill is no more than €10.

The Tax Department has matters in hand and will be making the necessary changes to its IT systems and the procedures for sending IPT notices in the coming days.

In 2015 the Tax Department sent 273,052 IPT notices amounting to €127.5 million to companies and individuals. However, the Department received approximately € 86 million from around 239,000 taxpayers because some took advantage of the discount offered while others failed to pay.

Between 2013 and 2015, the IPT revenue collected by the state amounted to about €284 million: €106 million in 2013, €92 million in 2014 and €86 million in 2016.

Meanwhile local authorities (Municipalities and Communities) have already begun sending notices for ‘local’ property taxes designed to collect a total of €15 million. According to the Finance Ministry local authorities received approximately €14.7 million in 2013 and €15 million in both 2014 and 2015.

Individuals and companies who own property or who have taken delivery of a property in Cyprus but have yet to receive its Title Deed are reminded that they are required (by law) to register details of the property/properties with the Tax Department if they have not already done so.

Chinese targeted by property scammers

Nigel Howarth
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Chinese targeted by property scammers

PAPHOS police are investigating a number of cases of Chinese property investors being scammed by at least two men posing as intermediaries for well-known property developers.

A Chinese woman gave money to these intermediaries to purchase land, only to discover that the land she’d paid for didn’t belong to the seller. She reported the matter to the Paphos police who started investigations.

The police believe that at least two local men are involved in the scam and have managed to extract in the region of €300,000 from their victim. The men are posing as middlemen for major developers and taking money from Chinese property investors. The police have not ruled out the possibility that other scammers may be involved.

Nicos Tsappis, a Paphos CID police inspector, has confirmed that statements will be taken to uncover the extent of the fraud.

Cyprus Central Bank home prices Q1 2016

Stelios Orphanides
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Cyprus Central Bank home prices Q1 2016

Cyprus Central Bank home pricesHOME PRICES fell a quarterly 0.8 per cent in January to March, as a 0.6 per cent increase in the price of apartments was unable to offset a 1.3 per cent drop in house prices, the Central Bank of Cyprus said.

In the first quarter of the year, home prices fell 1.6 per cent compared to the respective three-month period of 2015, the lowest drop since the third quarter of 2010, the Central Bank said in a statement on its website on Monday. House prices fell 1.9 per cent while flats became 0.7 per cent more affordable. Home prices, which began to fall in 2008, are currently at 2006 levels.

“The stabilisation of home prices continues with small fluctuations of the index and its sub-categories amid positive prospects emerging in all economic indicators,” the Central Bank said. “The home price index fell over the past four quarters either marginally or remained stable, which in conjunction with other sector data shows a price stabilisation”.

In the fourth quarter of 2015, home prices remained unchanged compared to July to September, and fell an annual 1.8 per cent.

The Central Bank added that other real estate data, including the number of property transactions reported to the Department of Lands and Surveys, showed a “considerable increase” in the first quarter of the year, in which construction activity increased.

Property transactions in the first quarter, which included real estate acquired by banks as part of asset-to-debt swaps, rose an annual 24 per cent to 1,367, according to department data.

Construction output index in the first three months of the year rose an annual 7.6 per cent, even as it remained 60 per cent below the 2010 average, according to Cystat. Domestic cement sales in the first three months of 2016 rose 38 per cent to 133,970 tonnes.

In the first quarter, home prices fell on average a quarterly 2 per cent in the Famagusta district, followed by 1.4 per cent in Larnaca, 0.8 per cent in Nicosia 0.7 per cent in Paphos and 0.5 per cent in Limassol, the Central Bank continued. Compared to the first quarter of 2015, home prices fell the most in Nicosia with 3.2 per cent and the least in Paphos with 0.7 per cent. In Limassol, Larnaca and Famagusta, home prices fell an annual 0.8 per cent, 1.8 per cent and 1.1 per cent.

While house and apartment prices fell in all districts in the first quarter compared with the respective period of 2015, apartment prices rose in Limassol, Paphos and Larnaca 2.9 per cent, 2.4 per cent and 0.2 per cent respectively, the bank supervisor said.

Further reading

Residential Property Price Indices – 2016Q1 (Greek)

Luxury homes go under the hammer

Staff Reporter
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Luxury homes go under the hammer

Luxury homes go under the hammerOVER a hundred properties, including luxury mansions, will soon go under the hammer after their owners failed to pay back bank loans, incyprus reports.

Two of the luxury homes belong to a father and his daughter.

According to Phileleftheros, one of the mansions – said to be worth over €1 million and used as a main residence – belongs to a person who, since 2008, has failed to pay a single cent back on a loan from the Bank of Cyprus. The bank, the paper said, believes the homeowner is in a position to pay back the loan but is choosing not to.

Situated in a coveted area of Nicosia, the lavish property includes a 520 square metre main house, swimming pool, and a second, smaller, house on the premises. Another two luxury houses, each worth close to €1 million are also reported to be up for auction soon – again due to their owners failing to pay back their loans with the bank.

According to banking sources, the act itself of threatening to take away their homes springs some wealthy homeowners into action and they either immediately recommence repayments of their loans or even payoff the entire debt in full.

Meanwhile, another 125 properties are up for auction shortly, worth a total of €24.6 million. These include a hotel worth €850,000, 10 houses and apartments – which are already built or in the midst of being constructed, 11 commercial properties include offices and shops, factories and farms.

Also up for auction are 22 plots of land suitable for building on, 81 pieces of rural land, and a number of fields.

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