North Cyprus Villas…But To Let Investments

You may not be at all familiar with property market terminology so in laymen’s terms “Buy to Let” means just that. You only have to buy a property, complete and then let it out. There is just one special rule to take into consideration and that it that your estimated rental income fully covers your mortgage costs.

If you are considering this type of property investment then you need to study the total month times for the Low and High seasons. Let’s take Northern Cyprus as an example which has about a seven month high season and the rest is low and let’s add to that over 300 days of clear blue skies. You can see why so many people want do get away from dull days and get straight over to sunny Northern Cyprus.

There’s nothing better than having real figures to work from so let’s go over a property deal including a sea view totalling 250.000 Euro. First you will have to make an initial down payment of 3000 Euro to hold the property. That is followed by paying a 30% total deposit which would come to 75.000 Euro, including the 3000 Euro down payment.

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.

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.

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.