Hi Mulderbauer, I am in the process of signing up predicated on the golf course proceeding.
Viceroy showed me the deal and we flew down to talk to the developers, the local authorities, some old contacts in the construction business, the Laiki Bank (who are arranging the mortgage) and our Lawyer. On the strength of what we saw in and around the area and heard we decided to pay the reservation fee. We are now in that wonderful interim period before formal contract signing.
I would be happy to speak with you more offline or indeed to meet up as I see you are in Brighton and I live in Burgess Hill.
Hi Pyecombe - small world!" have you taken your user name from the golf course..?
I bought in the development last year, went to see it like you and was impressed with the site and potential. What is the latest with the Golf course, i keep hearing conflicting reports though money always wins in the end so if there is some red tape im sure theyll cut through it.
My only concern is the rentability of the development until the golf course is operational.
happy to talk offline but think i (we) need to post 5 replies before we can...
Just to say the Golf at Tersefanou is not a certainty, although some developers and agents may say it is . It is reported in the press that the Government is committed to some courses but that they need to address the water supply issue. An independant lawyer will advise you on this.
BTW Tersefanou is about 10m SW of Larnaca not far from the airport.
Indeed the golf club name is the giveaway and suggest we speak ASAP - see skype corneyp for details - Mulderbauer
Thanks for the other postings, Paramount Gardens is overlooking the proposed 14th hole of Larnaca Golf and Country Club. It is next to Regal Gardens (I think) both are now progressing apace.
I do have a lawyer who is well known to most on this and the Paphos bulletin board.
I (like most) am still awaiting confirmation that the water licence (the key issue) has been granted. I believe all future courses will be responsible for the provision of their own water. And the existing ones are having to augment current supplies. I visited Aphrodite in April and it was showing signs of stress already.
The line given by most developers / estate agents is that there are too many people who will get burnt if the course does not proceed. One indicator of progress is that the open refuse tip (about 2 km) from the development (and currently part of the area which will be taken over) is to be moved to South of Nicosia - when I was there last month a considerable protest had taken place at the proposed new site!
Since my visit the overall project developers have formally contracted with the group who are due to oversee the construction and design - that information is in the public domain. Ignore spurious postings on other sites about European Golf Federation who do not exist - the course will be designed by the European Tour / IMG jv - European Golf Design and it will be a flagship course - they design to a high standard see their website.
As for rental yields, all developers are projecting at least 50% more than is currently on offer for Larnaca and the surrounding area based on a premium attached to the proximity to the golf course.
I have received the following email from my Property Advisors on Paramount Gardens:
The current value is £1,600 CYP per sq.m and it is set to rise to £1,800 CYP in September 2007. For comparison, the prices for properties on the “official” golf village were announced last October at £3,150 CYP.
Regarding the golf course next to the development, construction will begin in September this year (2007). The contracts with PGA Golf for the management of the golf course and club house were signed two weeks ago in St. Andrews. The detailed plans for apartments and villas within the golf resort will be ready in about a month and I expect them to be released soon after.
IMHO: Anyone involved has to realise this is a speculative investment and to anticipate that revenues from letting will take some time to equate to carry costs of a mortgage.
I hope this helps
Recent Press Coverage on Golf and impact on water - Cyprus M
FOR YEARS now, successive governments have been toying with the idea of turning Cyprus into a destination for golf tourism. The reasoning was that the creation of golf courses would boost tourist arrivals, especially during the slow winter months when hotel occupancy rates were low. Our mild winters, with the sun shining on most days, were ideally suited for the game and there would be thousands of golfers escaping to Cyprus from cold and wet northern European countries, for a week or two, in order to play, government policy-makers argued.
Golf tourism had been very lucrative for Spain, and Cyprus could also cash in on what was an affluent person’s sport. Golfers were high net worth individuals, who would spend respectable amounts of money when they visited. The high-quality tourism our authorities had been waxing lyrical about all these years could be lured to Cyprus if we had an adequate number of golf courses. The Papadopoulos government did not confine itself to words and prepared an action plan. After carrying out a study, it concluded that a minimum of 14 courses were needed if Cyprus was to become a golfers’ destination.
The only obstacle to Cyprus becoming a golfer’s paradise was the cost of creating the golf courses, so policy-makers devised a plan offering big incentives for companies that would set them up. A developer who undertook to create a golf course would finance this by being given permission for the development of 600 to 700 houses in the surrounding area. If the golf course proved to be financially unviable, the government would take over its running from the developer and foot the bill for the operating costs. This is quite a sensible arrangement, and not a rip-off of the taxpayer as some newspapers have been claiming – the golf courses would after all have been set up at no cost to the taxpayer and, in theory, would be helping the tourism industry.
But the plan has come under very strong criticism in the last couple of weeks from the Cyprus Technical Chamber ETEK, which has voiced a range of concerns, the main one being the big water needs of courses. In a country that faces perennial water shortages, it would be a big mistake to put an additional strain on supplies, ETEK officials argue. There was no water available for golf courses, and the whole project would depend on the construction of new desalination plants, which were energy-consuming and harmful to the environment; desalination should be a last resort method for a country and not used for watering golf courses, insisted ETEK.
There is an obvious solution to the water issue, even though it is unlikely any government would be prepared to take the political cost of implementing it – reducing the amount of water allocated to agriculture, the least productive sector of the economy. Farming currently takes 70 per cent of the island’s water resources and contributes a paltry five per cent to GDP. Golf courses could be given some of the water currently being wasted on agriculture if their contribution to GDP would be significantly higher. Unfortunately, this is easier said than done, because the management of our water resources has never been based on economic rationality – its primary objective is keeping farmers happy.
But no realistic comparison on the contribution to GDP can be made because it appears the policy-makers have not carried a study about the predicted benefits to the economy of golf courses. For two years now, ETEK has been asking the government for its forecasted returns from the operation of the courses, but has yet to receive anything. It is a possibility that policy-makers did not conduct a study, which should have been done before any decision was taken. But until a professional feasibility study is conducted the golf project should be put on hold.
For instance, would Cyprus be able to attract the number of golfers that would justify the investment in 14 courses, given the existence of so many other destinations for golfing holidays? Are golfers adventurous travellers who would try out new places or would the majority stick to the countries and courses they know? Would Cyprus be able to compete on prices (air fares, hotel accommodation, course fees) with rival destinations? Golfers may be high income earners, but it does not mean they would be willing to pay higher prices for the privilege of playing in Cyprus. Would we have any comparative advantage that would attract golfers or have we left it too late to jump on the golf holiday bandwagon? What would be the effects on the environment and how would scarce water resources be affected?
These questions and many more need to be the subject of an in-depth study that would provide comprehensive answers based on realistic forecasts before a final decision is taken. Nobody would want the creation of golf courses to prove nothing more than an excuse for a handful of developers to build even more holiday villas in our already over-developed countryside. We must be sure of the long-term benefits to the economy before giving the go-ahead to the project.
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