North 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.
One thing to bear in mind when venturing on a property investment like this is the total month duration times of the high and low seasons. In Northern Cyprus for example, the low season lasts just five months and the high season stretches over seven months. To put the icing on the cake, there are over 300 sunny days a year, allowing thousands of travel makers the luxury of all year round holidays in places 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.
The remaining amount due is 175.000 Euro so the best option is a mortgage, but make sure you shop around first. I recently saw one as low as 4.25%, so this will be the base for our calculations making monthly mortgage payments come out out around 800 Euro. Always opt for an interest only mortgage as this will lower the monthly payments, so this time round you would be paying about 9.600 Euro per annum.
The average rental over a 12 month period for a Northern Cyprus property is around 10 months plus. Now on a property valued at this much you can ask for the following rental prices; High Season Euro 2600 Per Month - Low Season Euro 1500 per Month.
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.