"Will Cyprus property prices plummet?" "Will the value of permanent residency be discounted?" "Will my immigration be affected?" The Cyprus banking crisis has unsettled many, and for some Chinese groups hoping to invest in Cyprus to achieve their immigration goals, this recent information has inevitably shaken their decision-making.
Bankruptcy Threat Contained
According to news from the Worldway Cyprus Customer Service Center, all banks in Cyprus reopened for two days on March 28 and 29. Bank branches were orderly, operations were basically normal, and there were no runs on banks. At the government work meeting held on March 29, President Anastasiades stated that the 10 billion euro (13 billion USD) aid package has brought the country's bankruptcy risk under control and prevented it from leaving the Eurozone. Given this predicament in Cyprus, will it deter Chinese investors from buying property and immigrating to Cyprus?
Investors Continue to Successfully Purchase Property in Cyprus After the Crisis Clarifies
Recently, Worldway clients, Mr. and Mrs. Wu, visited Cyprus for an inspection. Mr. Wu quickly took a liking to a property project; the rental rate near the project is very high, making it difficult to find a vacancy, and the largest luxury shopping mall in Cyprus is about to be completed opposite the property. Mr. and Mrs. Wu signed the property purchase contract, legal agreements, and other documents on March 31, purchasing a property worth 300,000 euros. During the signing, Mr. and Mrs. Wu were cautious and meticulous, proposing requirements such as a 5-year leaseback with an annual return of 5% and a net rental yield of no less than 4.3%. Based on the project's foreseeable lucrative rental income, the developer agreed to the couple's leaseback requirements.
A Glimmer of Hope for Cyprus Investment Immigration?
The main risk for investors choosing European property purchase immigration projects lies in whether the purchased property meets the requirements of the immigration bureau and whether there are hidden issues such as unclear mortgages. To avoid this risk, one must hire a buyer's lawyer before purchasing property, conduct extensive investigations, and buy reliable property. Secondly, there are uncertainties brought about by the sluggish European economy, such as the Cyprus deposit tax proposal and fluctuations in property market value.
Mr. Wu, who just purchased the property, believes that the current purchase price is the most appropriate. He stated that he had researched for a long time; Cyprus property has permanent ownership, and the rental income is quite good, making this a low point. Furthermore, the economy of Cyprus itself has always been very good, with developed tourism, financial services, and natural gas energy industries. The banking crisis only occurred because the banks had purchased a large number of bonds from their "brother country"—Greece—and were affected by the Greek debt crisis. Now that the EU's aid funds have been confirmed, the crisis will soon pass. It is impossible for Cyprus to exit the Eurozone, and the value of the permanent residency obtained will not be "discounted."
