Is it better to pay & have deeds or not?

gio41uk



Joined: 19/08/2008
Posts: 45

Message Posted:
20/03/2009 14:39

I’m having a few problems just now, infact there big in my eyes.

I’ve been in the process of paying for my deeds and all taxes aswell,after being told my total by my lawyer which is nearly £3500 and after i had sent this she has now just told me i still owe the builder £2000 which was the final payment of the apartment.

Now I understand all the payments but it took a lot for me to get the entire first amount together and she only decided to tell me about the 2nd amount afterwards.

The long and the short of it is I don’t have the 2nd amount.

I’m starting to wish I never bought the place.

Taxes payable:



- 5% VAT: ,000 TL

- 0.75% transfer fee (reduced from 3%) : ... TL

- property tax for 3 years (incl.2009) : 120 TL x 3 = ... TL

- stamping costs of the new contract (0.5%) : ... TL

Should I try and get the rest and get this sorted or leave it as it won’t make much difference when selling in the future.

Also how is prices across there just now, has anyone noticed a big price

gio41uk



Joined: 19/08/2008
Posts: 45

Message Posted:
20/03/2009 14:40

Ran out of space.



any help appreciated



thanks

gio

twaddle


Joined: 06/07/2008
Posts: 245

Message Posted:
20/03/2009 14:51

I have a similar problem, we thought that we would be better off taking advantage of the reduction in transfer tax but our Advocate is taking so long that it looks like the expiry date for the reduction will arrive before we are in a position to transfer. We do not have sufficient funds available to pay the full costs without putting it on the mortgage. I was hoping that this process was not going to start until April 2010 when I take early retirement and will have funds available to pay. Problem is, if I decide to sit on my hands will I get chased for the tax and also will having a set of deeds in my hands put me in a stronger position should any settlement of the Cyprus problem ever occur??

gio41uk



Joined: 19/08/2008
Posts: 45

Message Posted:
20/03/2009 15:39

Thats what im needing to know.



Should i go ahead with it or not ?



Will it make a big difference when selling, will i get my money back that i pay out for it all ?



Is it making it more valuable than what it is just now?



hopefully someone can help us.

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
20/03/2009 16:15

"Is it making it more valuable than what it is just now?"



YES!



"Will it make a big difference when selling,"



YES



"will i get my money back that i pay out for it all ? "



NO



"Should i go ahead with it or not ?"



The choice is yours and yours alone.

gio41uk



Joined: 19/08/2008
Posts: 45

Message Posted:
20/03/2009 16:48

You made that sound easy Tim. When u say i wont get my money back,what part are u meaning.

I need to know if its viable,dont want to pay it all out and find out it aint going to make a difference in the long run.

gio

Jimmyboy63


Joined: 16/03/2009
Posts: 400

Message Posted:
20/03/2009 18:20

Gio



I think you have to bite the bullit and pay the taxes as if you do not you will never own the property.The housing market the world over is stagnent at the moment and could remain this way for the forseeable future but in the long term the price will go up and apartment's in North Cyprus are cheap enough so when the property market does pick up there will be plenty of room for growth.



Only my opinion for what it's worth.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
20/03/2009 21:57

Dear Gio



I buy and sell a bit in NC..it seems that you are a first time purchaser who did not recieve the full facts from your solicitor or agent...else you would know all this was payable.



The 5% tax used to be paid when you recieve the deeds..this has now changed...it is now due upon completion of the build / site.



You will not be able to defer or not pay this by not recieving the deeds.



Have you paid the water and Electric meter costs....for advice email me on:

stua@fsmail.net

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
21/03/2009 01:04

Great!



So now you not only have to pay the full amount for a property before you know if you will get to own it, but also have to pay the tax as if you really did own it.



No flies on these boys!

stellasstar1



Joined: 02/07/2008
Posts: 1519

Message Posted:
21/03/2009 17:53

I also have been going through the same dilema. Thought I was going to make the end of March for the tax payment, but as normal a problem has arisen, not a huge one, but enough to take 3 or 4 weeks to resolve, so I miss out on the discount. I wondered if it was worth while paying it all as I would like to sell the apartment, but have been told (and understandably) that if you are lucky enough to find someone interested in buying, they will feel more confident knowing that a PTP has already been granted and title deeds handed over.

Stella

twaddle


Joined: 06/07/2008
Posts: 245

Message Posted:
21/03/2009 19:32

Does anyone know if that now we have our PTP we are likely to get chased for taxes etc or would we be able to wait a while for sufficient funds to accumulate?

Chrystalake


Joined: 19/04/2009
Posts: 11

Message Posted:
27/04/2009 23:21

Hi Stewart,

Just browsing to find answers to some of my own questions. Do you know how the property tax is calculated? Is this 3% of the actual property value or is this 3% calculated on bricks and mortar?

Sorry for butting in!

Thanks in advance,

Chrystalake

TheSaints



Joined: 28/01/2009
Posts: 1369

Message Posted:
27/04/2009 23:25

I believe from the breakdown I had it is 3% of the purchase price on the contract/sales agreement

Aussie


Joined: 17/06/2007
Posts: 657

Message Posted:
28/04/2009 01:52

I would have thought any reasonably prudent buyer would expect at least the KVD/ VAT to have been paid on any property that isn't new and would adjust their offer/ purchase price accordingly.



Whilst payment of transfer duty doesn't directly benefit a new buyer who pays again anyway in a buyers market such as this they rightly expect the seller to have title deed in their own name if the property has been finished for some time. There are now plenty of finished properties with deeds rather than having to take the risk of buying form someone who doesnt have them and relying on a developer you have no direct relationship with to hand them on at the appropriate time say up to 2 years in the future when you get PTP.





Aussie

Perry


Joined: 27/01/2007
Posts: 413

Message Posted:
28/04/2009 07:04

I would suggest that as soon as you are able (ie PTP, Trust or other) you should pay your tax and get the title transferred. The economy is struggling in most countries and in such an environment, more companies will go to the wall. If your builder goes into administration have you considered the consequences ? You will become a creditor to that company with the amount you have paid. You will be joining a list of creditors which will be dealt with by the administrator. Until you have transferred your title, your property will remain an asset of the builder, and will be used to settle against the creditors. If you are in a position to transfer your title, do it !!

millzer


Joined: 12/04/2007
Posts: 978

Message Posted:
28/04/2009 08:43

Message 15. Unless of course the Orams case goes against them and you think the GC's are coming after you. In that case, don't chase your deeds as they can't sequestrate your assets in the UK for something that you don't 'legally' own

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
28/04/2009 12:33

i agree with millzer,

if its exchange land don't bother1

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
28/04/2009 12:42

How will the GC's know that you have your deeds anyway. There isn't a register in the south.

Perry


Joined: 27/01/2007
Posts: 413

Message Posted:
28/04/2009 12:54

Fair enough point - I was coming at it from a pre74 Turkish title point of view. Either way, you are at risk while the title is in the name of the builder.