Υποτιμημένες Ιδιοκτησίες και αναγκαστικές πωλήσεις
CYPRUS’ three largest banks are still holding property at inflated prices when they know that the urgency is to offload properties in Cyprus as distressed properties to get back into the good old days of economic booming.
Offloading distressed property is very simple but depends entirely on timing. Before an owner’s property in Cyprus is repossessed, he has to react speedily. The owner has to be street-smart with an ear to the ground in the property market. All his senses must be attuned to developments therein, like legislations, fiats by the EU, court rulings, owners’ associations operating under a low profile, fresh developments in neighboring countries which could influence properties in Cyprus, among others, and who the possible buyers could be. The owner should be shrewd enough to evaluate properties vis-à-vis the country’s economic status and, most importantly, how the banking sector stands. Are they still viable entities or will they go under, like Baring’s in the UK? This is where MACS comes into the picture. MACS keeps abreast of all facts and figures on a day to day basis, so that we are in a position where we can offer an owner the best possible advice, to an extent where you, a potential one-time loser, actually make money! If you desire, we could send you more details.
Perhaps an example would clarify matters. Let’s say an owner bought a luxurious property in Cyprus in 1999 for € 200,000 and that he was paying a monthly mortgage of € 920 a month over 25 years. This is a steep sum in a depressed market, but eminently justifiable in a booming market. With time, his asset appreciated in value to € 600,000, leaving the owner singing in the rain. The sudden economic turnover we all witnessed unexpectedly left Cyprus in the lurch and this whistling owner’s tune changed to a doleful elegy. He could no longer afford the mortgage, after having already paid; say € 165,600 over 15 years. He was faced with repossession by the lending bank. If he had an adroit company like MACS on his side, we would have quickly found a buyer at below 50 percent of his property’s market value, say € 285-290,000. All dealings would be in spot cash.
In today’s terms, the owner would have made a profit of € 290,000-165,600, or € 124,400. He could then turn around and tell his lender bank, “Help yourself. Here are the papers, thank you very much and goodbye!” The bank would have lost € 200,000-165,600= €34,400, but left with a property worth € 600,000 on paper as an asset. The Bank should realise that no sane person would pay € 600,000 for the mansion and should sell it off in a distressed or heavily discounted sale at, say € 275,000 and not only recover the outgo of € 200,000 in 1999 less mortgage repaid (€ 165,600), but also the pending and accumulative compound interest thereon and any related payments, yet make a huge profit!
This is why people demand that Banks in Cyprus should realise that they can fix the problem by offering the distressed property at huge discounts to attract sales. Moreover, they could increase the mortgage period to 40 years as an added incentive. MACS enjoys an excellent rapport and network with the Banking sector and related associations and will be at the forefront in distress property sales. Let us get you your life’s dream. . .
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