Buy To Let Investment In Northern Cyprus
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.
We are now going to go over a real example based on current costs on a property with a sea view valued at 250,000 Euro. If it is a new build property you will be required to leave a 3000 Euro deposit as a reservation fee. You will then be required to pay a total 30% deposit including the 3000 Euro reservation fee amounting to around 75.000 Euro.
With the deposit out of the way we just have to deal with the 175.000 Euro balance, which we are going to finance. Have a good look at all of the different mortgage options but I would recommend a interest only mortgage, as this way your monthly payments are lower. We will take the best rate in current conditions then the resulting monthly payments work out at about 800 Euro, that being 9.600 per year.
The statistics available on rental income in Northern Cyprus show that properties can be let out for up to 10 months per year. So if we put the property we have just bought into the equation, we can expect an amazing 2600 Euro. in the high season and an awesome 1500 Euro. over the low season.
So if we go into a little fine detail on the property we have just purchased, let’s calculate on it being rented out for around 6 months over the high season and about 4 in the low season. This you may be amazed to know works out at 21.600 Euro rental income in your pocket. Well you will have to appoint a property management company to take care of your payments such as community charges, but this won’t be more than 1000 Euro a year. Are you beginning to see why property investment in Northern Cyprus sounds interesting?
The important thing for you to know now is that if you believe this to be an opportunity that you don’t want to let slip, then check out the Cyprusinformer.com/blog which holds all the answers to your Northern Cyprus property investment dreams.