Cyprus Villas - But To Let Investments
If you are not accustomed to property market terms then allow me to explain what “Buy to Let” actually means. Well it’s quite straight forward really as it’s just a question of buying and completing on a property followed by letting it out to as many people as possible. The only important factor to consider is that your rental income covers your mortgage payments.
If you decided to buy and then rent out your property you must remember there are two seasons, Low Season and High Season. A high season in Northern Cyprus will be around 7 months of the year, while the low season is the remaining months which are left, but don’t worry because Northern Cyprus as over 300 days of the year of clear blue skies and you’ll find that families like to get away from the dull winter to a nice sunny place like Northern Cyprus.
So let’s quickly run through a nice example of what it will cost you. Let’s say you looking for a property in the value of Euro 250,000, which you can get with a very nice sea view. If you’re buying new then you’ll have to put a reservation fee down for Euro 3000 and this will hold the property for you. After that you’ll have to put a 30% deposit down so that will be around Euro 75,000, don’t forget you have to take the Euro3000 off which you have already paid.
So your remaining amount for your mortgage is Euro 175,000. Now you can get a wide range of mortgages so it’s best to shop around, I have seen them as low as 4.25%, so I’m going to base mine on this. Your monthly mortgage repayments will be around Euro 800. You must remember and this is very important make sure you only get an interest only mortgage. So if you do the sums over a 12 month period you’ll be paying out around Euro 9600.00.
If we now take a look at rental statistics and in Northern Cyprus there are 10 months rental income guaranteed. Now comparing to the property we have just bought, you can expect a cool 2600 Euro. in the high season months and 1500 Euro. during the low season.
Right, now let’s expand on that and if you rent out for 6 months during the high season and just 4 during the low season, you would rake in an amazing 21.600 Euro in rental income. Things are looking good already but out of that we must account for certain payments such as rental management and community fees, so make sure you find a recommended property management agency, although the costs will not succeed 1000 Euro. per year.
If you feel that this could be the property investment for you in a country which received over 2.6 million visitors last year. It is still a growing trend and there is a need for more properties to let out, so don’t miss the boat. Act now and head over to the Cyprusinformer.com/blog and you will find the best property investment advice on the internet.
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