Improving the TRNC economy, my version!!!

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
23/07/2009 10:41

In my opinion, the economy of the TRNC grew rapidly when the property boom was in place.



So, how do we get the property boom back?



Simples:



Give EVERYONE who has paid in full for their property, their Title Deeds. Do NOT make them pay VAT, or any other tax associated with obtaining their Title Deeds. Also, do NOT take any money off the builders for Stopaj Tax. This is only for current owners.



Now, all current occupiers will be happy, well at least in respect to their deeds.



Change the Law, so that the buyer is responsible for all taxes, including the builders. The price of the house includes all the builders expenses anyway. No hidden surprises.



Next, have Government advocates that deal with sales to foreign nationals. Fixed price of £500, paid on obtaining Title Deeds.



Remove Permission to Purchase. A few non-desirables will not change the make-up too much. As far as the Army "suggesting" the property is not suitable for sale to foreigners.



Continued....

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
23/07/2009 10:42

continued....



The Army should be made aware, that as they, (the Army) have so much land, they are restricting the property boom by their "suggestions". Anyway, you can see anything you want from Google Earth!



Now, we may have removed many of the obstacles from foreigners buying. Some buyers may now be tempted to invest.



Over to you lot!

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
23/07/2009 11:35

Blimey PC - Good post...



Just waiting for mmmmmmmmmmmmm



Sorry, one too many "m's"......

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
23/07/2009 14:31

What about?:



A settlement that clears up the status of the true ownership of the land / property. A clear policy on issuing of title deeds. No need for PTPs for EU Citizens buying one property..



Happy now , NN ?

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
23/07/2009 17:50

The ROC Government seem unable to have "A clear policy on issuing of title deeds".



Or, just let the Turkish mainland investors buy as much land for development as they wish.

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
23/07/2009 19:13

Why would the government want to do that what you have suggested.



If you do a rough calculation on the outstanding taxes which are due from people who have not had their PTP's and the Stopaj tax from builders it will run into many millions. No government in the planet is going to do away with that.



A good starting point would be doing away with the PTP system. Make it easier for foreigners to buy houses, giving them more rights. The government setting up an independent body simliar to the NHBC in the UK to give buyers more protection. Allowing foreigners to take mortgages from local banks and the banks only release stage payments to the builder once the work has been completed and not before this stops the builder using your money to pay for work on someone elses property, more protection for the buyers. The bank registers the contract with the land registry which stops the builder mortgaging the land or house.



.......cont

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
23/07/2009 19:31

Finally the only tax payable by the buyer should be a duty again similiar to what is in the UK where it depends on what price the property is a % of this goes to the government payable by the buyer. The builders price includes VAT which he pays to the goverment.



A clear concise way of doing things would certainly be a step closer to attracting buyers.

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
24/07/2009 09:05

The reason for doing what I suggested is:



The Government is very unlikely to receive the outstanding monies as somewhere along the line, someone will have run out of money.



Look at what "incentives" the Government has offered:



1. Reduce the 1.5% tax that you pay on signing a contract to either 0.5, or 1.0% for a limited time. Fantastic, the queues went on for miles and people arrived at 6 in the morning!



2. Reduce the Transfer tax from 3% to 0.75%. How many have been able to take advantage?



So, IMO I do not think the Government is going to be able to get the taxes that we discussed above.



It is not that foreign investors do not want to pay their taxes, it's because there are problems stopping them.



The Government could score a big propaganda victory against the South, by sorting out their Title deed situation.



They, the TRNC would be in a much stronger position at the negotiating table, if the economic situation was not so dire!

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
24/07/2009 15:35

they could start with finding a settlement with the roc regarding the land and then back up their guarantee.

then the other things would work and the market would bounce back.



who is going to invest here at the moment with the way things stand?



with low prices elsewhere and security of title people will buy elsewhere.( as i just did for investment)



also check out the prices in turkey, very low compaired to here along with the cost of living.

mamachina


Joined: 22/11/2008
Posts: 730

Message Posted:
24/07/2009 16:26

It seems to me that if all of us who are waiting for P to B, were given it - if they have been waiting more than 6 months, the Gov would be in for a waterfall of cash all of a sudden - taxes, bits and pieces, this that and the other they could suddenly find we needed to pay! they'd be in clover (well until they paid the civil service their next salaries!)

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
24/07/2009 16:36

Pinkchilli



The government loosing much needed tax revenue is only a part of the PTP shambles. The amount of outstanding tax money due must me huge.



One of the other factors which has been highlighted over the last few years is the problems with builders, some of the quality of work, lack of planning regulations, infrastructure problems and the severe lack of the issue of title deeds.



There is no or indeed very little protection for buyers in the TRNC. If some of these issues were addressed then surely it would attract more people to buy. A clear, concise structure for buyers along with building quality guarantees would surely be a good starting point.

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
24/07/2009 17:15

mmmmm



"A settlement that clears up the status of the true ownership of the land / property. A clear policy on issuing of title deeds. No need for PTPs for EU Citizens buying one property.."



Correct ,

apart from your first point which involves North/South agreement, what you state could have been done ages ago,so no use the building industry or Govt moaning now,and blaming the Orams case.



If the ROC or the Orams or the present financial climate didnt exist , the TRNC construction industry would be just as dead.

If the ROC is smart ,it shouldnt interfere in the property market, just let the powers that be carry on.

Much the same way as its believed Hitler assasination attempts werent supported by the Allies .It was believed Hitler did more damege being left in place

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
24/07/2009 22:16

Dear Girne_29



Strangely we are probably in complete agreement - as *I* don't believe the RoC govt wanted the Apostolides v Orams case- and they certainly don't want new ones....



It seems that both sides are managing to screw the property market all by themsleves

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
24/07/2009 22:30

I've decided it's probably too late to save the TRNC economy as we're all about to run out of water anyway!



Maybe the Government could employ a few more relatives to catch foreigners in garden centres, follow them home, (or just jot down their car number plate, it's a bit too hot to follow them home) and hey presto, Bob's your uncle, Fanny's your aunt and dish out a great big fine for a new law that has yet to be announced!



Best regards



A very cynical PC.

Brinsley


Joined: 04/04/2009
Posts: 6858

Message Posted:
24/07/2009 22:43

Build a Berlin type wall across the length of the Green Line, appoint me as a 7 year dictator, sack 3/4 of the Civil Servants, rent out the military airbase to the USA, appoint all retired intellectuals to key relevant posts, ignore all international embargoes, fast track oil exploration off the coast of the Karpaz to Syria, release low risk prisoners on a daily basis to clean roads, beaches and the countryside. Privatise the forest department and confiscate all land with half built developments with no sight of being completed. And plenty more!!!!



Richard

mixie


Joined: 16/05/2009
Posts: 302

Message Posted:
24/07/2009 23:57

You know,

They could even keep the PTP system and charge everyone a standard fee for process.



With the money, employ or even second, a civil servant and one member of the military to investigate and process applications. (Ground work still to be done by the applicant in terms of Police records etc) together with one independent gatekeeper to ensure fair process.



Set a cut off date for the applications being considered on lodgment say 28 days.



This could tie up with the contractual elements carried out by the law Practice and result in PTP being ready for when the full cost of the house is paid and the deeds to follow directly.



Done...I could even set up the system for them...at a fee....



Mixiebureaucrat!

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
25/07/2009 00:43

Mixie



There are already loads of civil servants employed by the authorities who do very little.



Perhaps if they got their fingers out their backsides PTP's would be done much quicker

CyprusChill


Joined: 08/05/2009
Posts: 666

Message Posted:
25/07/2009 03:45

Whilst the restrictions still remain ..

Continue to support the youth of the future ..

For the best.

We have only so many more, turns of the dice.

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
25/07/2009 08:24

I say, Brinsley for (President) Dictator!



Best idea for ages.



Israel seems to be doing OK with their wall and ignoring the International community!



Come on Richard, let's hear more of these ideas.

fiendishpaul


Joined: 18/05/2008
Posts: 1720

Message Posted:
25/07/2009 10:52

With regards to the military vetoeing PTP's. A simple answer to this would be for the military to do a survey of all their bases and the surrounding areas. A simple study would identify which areas the military consider 'vulnerable' and these areas could then be deemed off limit for sale to 'foreigners'. It would then be illegal for any estate agent to sell propery/land in this area to 'foreigner'.

Paul

Brinsley


Joined: 04/04/2009
Posts: 6858

Message Posted:
25/07/2009 13:39

Free Broadband access to the whole of TRNC. I think it was Brunei that have done this, not sure.



Richard