What's going on in Cyprus?
submitted: Oct 3rd 2008 |
by: TimMartins |
Total views: 1 |
Word Count: 448 |
| 
There's been a bit of a buzz recently in the financial world concerning "Buy to Let" properties. If you didn't really understand fully what this really means well the title itself reveals that you just buy a property and then let it out. It is quite a simple principal really, but you must always calculate that your monthly rent will fully cover the monthly mortgage payment.
In the UK for example you would get a steady monthly income that just covers the mortgage payment, but if you apply it to a holiday home then you have to look at staggered income as the season months will be more profitable. If we had to look for Europe's longest holiday season it would be in Northern Cyprus as here you can enjoy a full seven months. That all being so you will get 300 sunny days in Northern Cyprus each year so you will attract holiday makers virtually all year round.
The best way to show you the ins and outs of a "Buy to Rent" in Northern Cyprus is to go over a real property investment and this one concerns a a 250.000 Euro villa with sea view. You need just 3000 Euro to hold the villa followed by a 75.000 (25%) Euro deposit which includes the initial holding fee to finalize the proceedings before signing the final deeds.
The remaining balance will need to be well financed with a mortgage that will give the lowest monthly payments. That means choosing an "interest only" mortgage which offers just that and so with the current Euro bank rate of 5%, your monthly mortgage payments would work out at around 800 Euro, totaling 9.600 Euro per annum.
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 PER MONTH.
It's time to find the calculator so we can see that how much rental income we can expect from a holiday home in Northern Cyprus. Let's say that we take it as being 6 months of high season and 4 months of low season, well my calculator says 21.600. That is gross profits of course so you would just have to take off the 9.600 Euro mortgage payments and an additional 1.000 Euro in Property management. So that will leave you a net profit totaling 11.000 Euro per annum, plus a 2 month bonus holiday rent free. You can see why property investment in Northern Cyprus is the right choice.
About the Author
Discover these Cyprus Villa Tips written by the illustrious Tim Martins and check out his Cyprus Holiday Blog
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