Publications
Partners
Cape Town - In South Africa, the demand for investing in a property in Cyprus has soared, according to CEO of Cypriot Realty, Jenny Ellinas.
Cypriot Realty was founded in the Cape eight years ago. Ellinas says it all came about when she and her husband Chris were looking for a "Plan B". They wanted to diversify investments to a more stable currency, they also wanted to earn a euro based income from a property, and wanted a European country lifestyle similar to South Africa, where there was no language barrier.
In their view, Cyprus ticked all the boxes and Ellinas then saw a business opportunity to help fellow South Africans realise a Plan B.
“Having always worked in financial services and blue chip companies, my financial knowledge was a great advantage in finding clients," she explains.
"I am a very detailed person. Initially I set up a contacts list, prepared a sales presentation and sales kit and worked on a marketing strategy. I used traditional media which played a huge role in brand awareness, raising my profile and cementing credibility in the market place."
A very important part of her marketing activities was attending information seminars and trade exhibitions, which today still are the backbone of her marketing activities and she will exhibit in 14 trade shows nationally this year.
From the first trade show 8 years ago, within a month she got her first client.
"They referred me to a further four contacts who all became clients," she continues.
In her view, Cyprus currently offers "the most attractive permanent residency programme in Europe". Parents and in laws qualify with the main applicant and spouse, for instance. Dependent children up to 25 also qualify. The residency permit is for life and it automatically renews. There is no need to live in Cyprus. One can, therefore, rent out your property.
"Other European countries' residency programmes have language requirements - for instance Portugal's requires that you speak basic Portuguese.
The financial requirements for Cyprus are making a property investment of €300 000, with minimal transfer fees and €30 000 in a 3-year interest bearing fixed deposit account.
A further attraction for South Africans, in her view, is no inheritance tax - which is great for assurance of legacy.
"As opposed to equities, for many South Africans they feel more secure investing in a property, the touch and feel of bricks and mortar. The return on property in Cyprus continues to grow. When I founded Cypriot Realty in 2008 the euro was €11 to the rand, it’s gone to R18.43 and today is R16.50. This is on the currency, then there is the appreciation of the property," she explains.
"My experience having sold property in Cyprus to hundreds of South Africans show 3 key needs for South Africans: No risk in a seamless investment - a property with a guaranteed rental as many South Africans are investing for the future and a hedge and not intending to relocate."
Other clients like the flexibility of earning euros over the very busy holiday season they can visit when they want to compared to a long term rental. Clients want a dream house on the Mediterranean.
She says property remains highly attractive to South Africans in spite of the refugee crisis in Europe. Cyprus is not part of Greece so it is not a migratory route to Germany, Netherlands and Sweden.
"Cyprus has recovered from the austerity measures in 2013 due to the collapse of one of their banks. Investor confidence is at an all-time high with billions of euros pouring into the country," she claims.
"With the recent natural gas discovery there are huge infrastructure developments providing opportunities for many South Africans who have experience in the mining and allied sector to open a business in that arena."
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
