I am often asked, "What do you think of XYZ property investment fund?"
My answer is always, "Is it regulated by the Financial Services Authority (FSA)?
If the answer is "Yes" I will then ask for the details, pricing, weighting, fund manager's experience etc..............make a few comments and then invite the questioner to conduct their due diligence before investing or maybe not depending on the outcome of their research.
If the answer is "No" I tell them not to bother.
Why take the risk of investing in a non-regulated fund, when you can invest in one which is regulated by the FSA?
There are plenty of them about.
Dominic Farrell
Monday, July 31, 2006
InvestinCyprus.com announce the launch of their lettings and rental company
InvestinCyprus.com today announced the launch of a new rentals and lettings company in September 2006.
Dominic Farrell, director, said, "We are pleased to announce the launch date in September of our lettings company as a key factor for any investor is to actually have tenants in the property contributing to costs and generating income. Although we have come across some excellent lettings companies in Cyprus over the past few years which we recommend to our clients, the majority are simply not up to the required standard in terms of service and bookings."
Managing Director Stephanie Fairhurst adds, "This service is only available to InvestinCyprus.com members and as such we will all share information, tenants and short-term bookings across the company. We will pool bookings which cannot be met by individual members who may have an enquiry, but cannot fulfil it due to their properties already being booked. We will operate a sort of "clearing system."
The website will be available for members' comments and feedback at the end of August. The lettings office is operational in Protaras and Michelle McGlade has taken the reins as the Lettings Manager.
www.InvestinCyprus.com
Dominic Farrell, director, said, "We are pleased to announce the launch date in September of our lettings company as a key factor for any investor is to actually have tenants in the property contributing to costs and generating income. Although we have come across some excellent lettings companies in Cyprus over the past few years which we recommend to our clients, the majority are simply not up to the required standard in terms of service and bookings."
Managing Director Stephanie Fairhurst adds, "This service is only available to InvestinCyprus.com members and as such we will all share information, tenants and short-term bookings across the company. We will pool bookings which cannot be met by individual members who may have an enquiry, but cannot fulfil it due to their properties already being booked. We will operate a sort of "clearing system."
The website will be available for members' comments and feedback at the end of August. The lettings office is operational in Protaras and Michelle McGlade has taken the reins as the Lettings Manager.
www.InvestinCyprus.com
Wednesday, July 26, 2006
Forex borrowing reach 20% of all borrowings in Cyprus
Foreign borrowing now accounts for just under a fifth of all lending by commercial banks, according to the most recent figures from the Monetary Survey, and continues to rise.
Foreign loans and advances of commercial banks reached CYP 2,099.3 mln or 19.5% of the total in June, up from 1,981.2 mln or 19.0% in May.
When Cyprus joined the EU May 2004, foreign borrowing was only 9.8% of the total, according to Central Bank reports at the time.
The acceleration in foreign borrowing has been sparked by two developments. First, the entry of Cyprus into the EU, which led to the automatic lifting of all remaining restrictions on foreign borrowing.
This allowed anyone and everyone to borrow in euros or other currencies.
Eurozone interest rates are lower than those in Cyprus, and anecdotal evidence suggests that gap between local lending rates and euro rates is rather bigger than the gap between official rates (now currently only 50 basis points).
The second reason is Cyprus’ entry into the Exchange Rate Mechanism in May 2005. The entry of the pound at the same central parity rate as its previous peg to the euro led to increased confidence to the Cyprus pound.
Since fewer people expected devaluation, more people felt able to take the currency risk of borrowing in euros.
Overall borrowing rises
While foreign borrowing rose between May and June by 6.0%, total borrowing rose in the same period by 3.3% to 10,759.1 mln.
Almost half of the total is accounted for by “personal and professional loans”, of which only 3.3% is hire purchase and 1.6% is credit cards, so presumably the rest is accounted for mainly by mortgages.
Deposits in the banking system amounted to CYP 16.6 bln in Jun, more than double annual GDP. Of this, CYP 9.9 bln was resident deposits and CYP 6.7 bln was non-resident deposits.
Customer deposits at International Banking Units, which for the time being are still measured separately, amounted to CYP 5.2 bln.
Deposits at Co-operative Banks amounted to CYP 4.9 bln.
Source: Financial Mirror
Foreign loans and advances of commercial banks reached CYP 2,099.3 mln or 19.5% of the total in June, up from 1,981.2 mln or 19.0% in May.
When Cyprus joined the EU May 2004, foreign borrowing was only 9.8% of the total, according to Central Bank reports at the time.
The acceleration in foreign borrowing has been sparked by two developments. First, the entry of Cyprus into the EU, which led to the automatic lifting of all remaining restrictions on foreign borrowing.
This allowed anyone and everyone to borrow in euros or other currencies.
Eurozone interest rates are lower than those in Cyprus, and anecdotal evidence suggests that gap between local lending rates and euro rates is rather bigger than the gap between official rates (now currently only 50 basis points).
The second reason is Cyprus’ entry into the Exchange Rate Mechanism in May 2005. The entry of the pound at the same central parity rate as its previous peg to the euro led to increased confidence to the Cyprus pound.
Since fewer people expected devaluation, more people felt able to take the currency risk of borrowing in euros.
Overall borrowing rises
While foreign borrowing rose between May and June by 6.0%, total borrowing rose in the same period by 3.3% to 10,759.1 mln.
Almost half of the total is accounted for by “personal and professional loans”, of which only 3.3% is hire purchase and 1.6% is credit cards, so presumably the rest is accounted for mainly by mortgages.
Deposits in the banking system amounted to CYP 16.6 bln in Jun, more than double annual GDP. Of this, CYP 9.9 bln was resident deposits and CYP 6.7 bln was non-resident deposits.
Customer deposits at International Banking Units, which for the time being are still measured separately, amounted to CYP 5.2 bln.
Deposits at Co-operative Banks amounted to CYP 4.9 bln.
Source: Financial Mirror
Sunday, July 23, 2006
Mimosa Villas, Kapparis - SOLD OUT
Launched 20 days ago, the Mimosa Villas development is now sold out.
Wednesday, July 19, 2006
Bank of Cyprus abandons Emporiki bid
Bank of Cyprus on Wednesday night surprised investors by withdrawing a €3.78bn cash-and-shares offer for Greece's state-controlled Emporiki Bank, leaving France's Credit Agricole as the only bidder.
The Cypriot bank said in a statement on Wednesday it would seek the approval of the Greek authorities to revoke its offer for Emporiki, the centerpiece of the conservative government's 2006 privatisation programme.
Analysts said the Greek Cypriot lender was concerned that Emporiki's uncovered pension liabilities could reach as much as €1.2bn, in spite of renewed by the bank's management that the Greek finance ministry had resolved the issue.
With the bidding deadline set for July 25, there would still be time for another Greek bank to trump Credit Agricole's €3.1bn offer for Emporiki. Alpha Bank, the biggest private Greek bank, has not ruled out making a bid.
George Alogoskoufis, the finance minister, said Greece is keen to attract a west European bank in order to boost competition.
Credit Agricole will come under pressure to increase its offer of €23.5 per share, which was seen as undervaluing Greece's fourth-biggest bank. The French lender already holds 9 per cent of Emporiki and is understood to be satisfied with the Greek government's solution to the pension problem.
BoC's pull-out from the race leaves it open to a possible takeover bid by Bank of Piraeus, Greece's fifth-largest bank by assets.
Source: Financial Times
The Cypriot bank said in a statement on Wednesday it would seek the approval of the Greek authorities to revoke its offer for Emporiki, the centerpiece of the conservative government's 2006 privatisation programme.
Analysts said the Greek Cypriot lender was concerned that Emporiki's uncovered pension liabilities could reach as much as €1.2bn, in spite of renewed by the bank's management that the Greek finance ministry had resolved the issue.
With the bidding deadline set for July 25, there would still be time for another Greek bank to trump Credit Agricole's €3.1bn offer for Emporiki. Alpha Bank, the biggest private Greek bank, has not ruled out making a bid.
George Alogoskoufis, the finance minister, said Greece is keen to attract a west European bank in order to boost competition.
Credit Agricole will come under pressure to increase its offer of €23.5 per share, which was seen as undervaluing Greece's fourth-biggest bank. The French lender already holds 9 per cent of Emporiki and is understood to be satisfied with the Greek government's solution to the pension problem.
BoC's pull-out from the race leaves it open to a possible takeover bid by Bank of Piraeus, Greece's fifth-largest bank by assets.
Source: Financial Times
Foreign Direct Investment almost EUR 1 Billion in 2005
Data from Eurostat shows that combined inward foreign direct investment into Cyprus reached EUR 900 mln in 2005.
Just over 50% of the investment, EUR 0.5 bln, came from other EU member states, while the balance of EUR 0.4 bln came from outside the EU.
Just over 50% of the investment, EUR 0.5 bln, came from other EU member states, while the balance of EUR 0.4 bln came from outside the EU.
Tuesday, July 11, 2006
InvestinCyprus.com FREE investment seminar 17 July 2006 London at 7pm
Dominic Farrell author of bestselling “The Jet-to-Let Bible: the secrets of overseas property investment” will be hosting a FREE seminar Monday 17th July 2006 in Central London at 7pm examining the case for investing in Cyprus.
With property prices reported to have risen by almost 5% since May, now is an ideal opportunity to enter the market. He will also highlight why some recent events will have a significant impact on the economy as well as the property market in forthcoming years.
Dominic has also had high level talks with banks in Cyprus and will soon be launching a market leading mortgage product aimed specifically at property investors. This will be exclusive to InvestinCyprus.com
The seminar will also look at some of the latest development projects which offer
independently verified 12% discount to market value
guaranteed rental schemes covering 19 months of costs
pre-VAT properties
2009 completions for maximum capital growth and
a specially designed resort development aimed at buy-to-let investors in the fast growing region of Kapparis, known as "Kapparis Complex" and due for completion in 2009.
If you wish to attend please complete the form at:
http://www.investincyprus.com/contactus.html
Adding seminar tickets in the “Additional Comments” box
These events are always full and tickets will be allocated on a first come first served basis and limited to 2 per applicant.
To purchase The Jet-to-Let Bible please visit:
http://www.amazon.co.uk/gp/product/190526111X/026-3854365-1929207?v=glance&n=266239
Amazon has sold out and is now in the process of re-stocking so there will be a slight delay on receiving your copy.
See you on Monday
With property prices reported to have risen by almost 5% since May, now is an ideal opportunity to enter the market. He will also highlight why some recent events will have a significant impact on the economy as well as the property market in forthcoming years.
Dominic has also had high level talks with banks in Cyprus and will soon be launching a market leading mortgage product aimed specifically at property investors. This will be exclusive to InvestinCyprus.com
The seminar will also look at some of the latest development projects which offer
independently verified 12% discount to market value
guaranteed rental schemes covering 19 months of costs
pre-VAT properties
2009 completions for maximum capital growth and
a specially designed resort development aimed at buy-to-let investors in the fast growing region of Kapparis, known as "Kapparis Complex" and due for completion in 2009.
If you wish to attend please complete the form at:
http://www.investincyprus.com/contactus.html
Adding seminar tickets in the “Additional Comments” box
These events are always full and tickets will be allocated on a first come first served basis and limited to 2 per applicant.
To purchase The Jet-to-Let Bible please visit:
http://www.amazon.co.uk/gp/product/190526111X/026-3854365-1929207?v=glance&n=266239
Amazon has sold out and is now in the process of re-stocking so there will be a slight delay on receiving your copy.
See you on Monday
Monday, July 10, 2006
Cypriot re-unification talks back on the table
Tassos Papadopoulos, the Greek Cypriot leader, is set to discuss strategy with Greek leaders in Athens on Monday, after making an unexpected deal at the weekend to revive United Nations-backed re-unification talks with the Turkish Cypriots.
The new talks, due to start later this month, are not expected to bring an early agreement on ending the island's 32-year division.
But they could help avert a possible crisis this autumn between Turkey and the European Union, over Ankara's refusal to recognise Cyprus and open Turkish ports and airports to Greek Cypriot traffic, unless the economic isolation of the Turkish Cypriots is lifted.
"Movement on Cyprus after a two-year hiatus is a step forward. More flexibility in Nicosia can only assist the EU-Turkey relationship," one diplomat said. Mr Papadopoulos's decision to unfreeze relations with the Turkish Cypriots came amid increased pressure from Athens for inter-communal talks to be re-started.
As Greece strengthens its support for Turkey's EU membership bid, Costas Karamanlis, the prime minister, has pressed for regular communication to be restored between the Greek and Turkish Cypriot leaders.
"This is a new opening… but goodwill will be needed" Mr Papadopoulos said after a three-hour meeting on Saturday with Mehmet Ali Talat, the Turkish Cypriot leader, which was chaired by Ibrahim Gambari, a UN special envoy.
Kofi Annan, the UN secretary general, later made a congratulatory phone call to both Cypriot leaders, officials said.
Contact between the Greek and Turkish Cypriot leadership had been frozen as a result of the Greek Cypriots' rejection of a detailed UN re-unification plan at a referendum in 2004, one week before Cyprus joined the EU. Mr Papadopoulos claimed the plan was unworkable.
The referendum outcome stirred resentment among Turkish Cypriots because it excluded them from EU membership, in spite of having overwhelmingly backed the UN plan in a separate referendum.
The deal brokered by Mr Gambari calls for a technical committee to start discussing co-operation on "day-to-day" issues such as water and energy management, provided that Mr Papadopoulos and Mr Talat in the meantime exchange a list of substantive improvements to the UN peace plan, for study by Greek and Turkish Cypriot experts.
"This was a compromise," said Mr Talat, who has few concerns about the UN plan but wants a deal that woud secure energy and water supplies for the self-declared Turkish Cypriot republic in north Cyprus.
Mr Talat has less room for manoeuvre than Mr Papadopoulos because of the strong influence wielded by the Turkish military and the Ankara government in the north.
The two leaders also undertook to end the so-called "blame game," referring to the Cypriot leaders' practice of venting mutual recriminations whenever their talks have stalled.
Source: Financial Times
The new talks, due to start later this month, are not expected to bring an early agreement on ending the island's 32-year division.
But they could help avert a possible crisis this autumn between Turkey and the European Union, over Ankara's refusal to recognise Cyprus and open Turkish ports and airports to Greek Cypriot traffic, unless the economic isolation of the Turkish Cypriots is lifted.
"Movement on Cyprus after a two-year hiatus is a step forward. More flexibility in Nicosia can only assist the EU-Turkey relationship," one diplomat said. Mr Papadopoulos's decision to unfreeze relations with the Turkish Cypriots came amid increased pressure from Athens for inter-communal talks to be re-started.
As Greece strengthens its support for Turkey's EU membership bid, Costas Karamanlis, the prime minister, has pressed for regular communication to be restored between the Greek and Turkish Cypriot leaders.
"This is a new opening… but goodwill will be needed" Mr Papadopoulos said after a three-hour meeting on Saturday with Mehmet Ali Talat, the Turkish Cypriot leader, which was chaired by Ibrahim Gambari, a UN special envoy.
Kofi Annan, the UN secretary general, later made a congratulatory phone call to both Cypriot leaders, officials said.
Contact between the Greek and Turkish Cypriot leadership had been frozen as a result of the Greek Cypriots' rejection of a detailed UN re-unification plan at a referendum in 2004, one week before Cyprus joined the EU. Mr Papadopoulos claimed the plan was unworkable.
The referendum outcome stirred resentment among Turkish Cypriots because it excluded them from EU membership, in spite of having overwhelmingly backed the UN plan in a separate referendum.
The deal brokered by Mr Gambari calls for a technical committee to start discussing co-operation on "day-to-day" issues such as water and energy management, provided that Mr Papadopoulos and Mr Talat in the meantime exchange a list of substantive improvements to the UN peace plan, for study by Greek and Turkish Cypriot experts.
"This was a compromise," said Mr Talat, who has few concerns about the UN plan but wants a deal that woud secure energy and water supplies for the self-declared Turkish Cypriot republic in north Cyprus.
Mr Talat has less room for manoeuvre than Mr Papadopoulos because of the strong influence wielded by the Turkish military and the Ankara government in the north.
The two leaders also undertook to end the so-called "blame game," referring to the Cypriot leaders' practice of venting mutual recriminations whenever their talks have stalled.
Source: Financial Times
Sunday, July 9, 2006
Cyprus property market up almost 5% since May
It was reported 7 July that property prices had risen by 2.71% in June following a 2.25% rise in May
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