  
danjohnson
Posts: 245
Joined: 12/5/2000
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RE: North Cyprus
(in reply to Carol)
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Hi Carol
You need to be fully aware of the political situation in Northern Cyprus before you buy there. At present, the country is not legally recognised in the EU, as it is considered to have been unlawfully occupied by Turkey. This means that there is a potential risk that property title there is not 100% secure.
This risk has meant that demand has been restricted in the Northern part of the island, so prices are significantly cheaper than in the Greek part of the island. There is also no doubt some reflection of the risk factored into the prices.
In many respects, investing in the North has the potential to yield strong returns. A dialogue has recently re-opened between the North and the South, and there are renewed hopes that reunification may eventually happen, though this is not guaranteed and if it does happen, no-one can say whether or not there will be any compensation payable to the Greek Cypriots who lost their land. If there is compensation, at present it is not clear whether this would be paid by the Turkish government, or any subsequent owners of the land. This messy situation is generally what people are referring to in relation to the risks of investing in Northern Cyprus.
At present, we are awaiting a court ruling which should clarify the situation further - it may be worth awaiting the outcome of this court case if you are concerned about the situation. If you can afford to take a semi-speculative flutter, then go for it - you don't win big by avoiding risk at every turn, but make sure you do as much due diligence and research as you can to at least eliminate any unecessary risks.
Best of luck!
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