For a Cyprus bargain one is told to look to the North of the island. Beware as this is fraught with dangers.

In the referendum in April 2004, the Turkish Cypriots voted to for a reunification of the island but the Greek Cypriots voted against what was in the plan. The Republic of Cyprus, the southern part has now joined the EU, but the Turkish side may have to wait a few years.

The economic boom that was expected has attracted British investors to the North and South driving property prices higher.

Since the border controls between North and South were relaxed, development in the North has boomed.

Beware though of the legal implications should you be considering buying in the North.

The Turkish Republic of Northern Cyprus, TRNC is only recognised by Turkey and no other country as a legal state or country. Potential property gains do not outweigh the risks and investing in this illegal state is very high risk.

The Republic of Cyprus, the South, has declared that the buyers are dealing in stolen property as most of the houses were appropriated when the island was divided with Turkish Cypriots going to the North and Greek Cypriots going to the South in 1974.

The former attorney general of Cyprus has declared that anyone buying land or property in the North run the risk of losing all their money. The Annan plan to reunite the island has complicated compensation rules for former owners and could restore the land and property to the rightful owner without any compensation to the purchaser who bought after 1974.

The plan also indicates that some land and villages under the control of the TRNC would move to the Greek Cypriot state if the two state federation idea is adopted. Therefore it is not a good idea to buy any land or property that may be subject to another jurisdiction in the years to come.

We think anyone buying in the TRNC is taking a huge financial and emotional risk and could lose everything without any compensation at all.