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Finance Real Estate Cyprus Villas - Buy To Let Investment Opportunities
| Cyprus Villas - Buy To Let Investment Opportunities |
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| Written by Tim Martins |
| Thursday, 27 November 2008 15:53 |
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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. 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. 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. So let's say you rent your property out for 6 months in the high season and 4 months in the low season... your total rent for the year would be Euro 21600. Now you're telling me that there's no money in renting. There are other charges to pay which include rental management, community fees and the cost of these will range depending on which rental management you take your property out with. But the cost is way less than Euro 1000. So if your fancy buying a property and renting it out why not try Northern Cyprus, over 2.6 million people visited Cyprus last year and this number is growing year by year, so you can see there is a massive market for renting. The blog at CyprusInformer.org is a very useful guide that we assist you in making the right decision on property in Cyprus. About the Author: Discover this Cyprus Holiday Rent to Buy property investment blog written by the illustrious Tim Martins and Unfold The Northern Cyprus Property Investment Secrets Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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