Houses may be cheap in US, but life isn’t

Sir
I write in response to Mr John Ioannou’s letter (Property bubble will all end in tears, March 12) and appreciate that most of what he says is based on fact – for the UK that is, because I read an almost identical article in the British press when I was over there a few weeks ago, whether I agree or not is another matter.

It is not viable to compare the cost of a house in Cyprus with one in Houston because a villa in Cyprus is built with concrete reinforced with rebar to meet earthquake standards, while in the USA houses are built of timber. Also it takes 12 months for a house to be built in Cyprus, in the US it takes about three months. In Cyprus land is scarce and costs three times the average rate in the US, where land is plentiful.

But when making comparisons it is essential to look at the full package not just housing in isolation. I had an office in Miami for several years before I retired and our preferred choice for a retirement location was Sarasota in Florida, that was until I researched the full package which then led me to the much more cost effective option in Cyprus. Yes, I could have purchased a wonderful house in Florida for half the price I paid in Cyprus but the first time I needed work doing, a plumber an electrician or to have my car serviced it could cost at least four times more than Cyprus. I would have paid more in one month for (essential) medical insurance than I would pay in 12 months here. Because of the rates for liability, insurance, which is a vital part of household and motor vehicle insurance in the States, this again would be at least three times the cost of that in Cyprus.

Then there is good old Uncle Sam taking a much greater proportion of my pension in taxes, and I could go on and on but I do not want to bore your readers. There is however one more critical factor that must be mentioned and that is crime. I would always feel vulnerable in the US where muggings with violence are commonplace. Cyprus by comparison is a Kindergarten.

Overall, therefore, I will keep my house in Cyprus rather than move to Florida or for that matter Romania, Bulgaria or Turkey which are much more volatile countries where the future political and economic outlook is far more uncertain and risk the housing bubble bursting.
George Raistrick
Kamares, Paphos

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.