Should You Buy Real Estate in Cyprus?
The answer is: NO!
It’s far too risky. This is a country which has lost its way. The politicians are prepared to sacrifice the banking system in order to “save” economy.
The EuroZone is looking for payment on its loans. Cyprus doesn’t have any money. So, what do they do?
They make an attempt to confiscate money from the bank accounts in the country.
There’s a simple method for this expropriation without compensation:
1) if you have over $100,000.00 euros, the government will confiscate 9.9%,
2) if you have less than $100,000.00 euros, the government will confiscate 6.75%.
Their parliament voted 36 – 0 (19 abstentions) that the motion to CONFICATE would be defeated. That will “force the hand” of the EuroZone officials.
You might think: “that’s good”, but what are these people thinking?
The banks were closed and scheduled to re-open later in the week. Any chance that there might be a “run on the banks”?
That’s probably a good guess. This country is a financial disaster. Having money in their banking system or anywhere near their economy is a financial nightmare.
Don’t touch their real estate. It’s far too risky. There’s no stability whatsoever. Buy it and they might take it from you. What’s easier to take than real estate?
So, when it comes to investing money in a great diversified economy (natural resources and manufacturing), with the world’s best banking system, where do you feel comfortable?
And remember, Canada is only 3% of the world economy. So, that means the other 97% should feel comfortable investing here.
If you own a island in the Mediterranean under Cypriot jurisdiction, you should be selling it now, if you could find a buyer.
Brian Madigan LL.B., Broker is a Manager at RE/MAX West Realty Inc., Brokerage 416-745-2300.