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.

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.

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.