You may not be at all familiar with property market terminology so in layman'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.
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.
There's nothing better than having real figures to work from so let's go over a property deal including a sea view totaling 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.
Statistics available from people that already have rental villas in Northern Cyprus show that you are able to let out your villa over an average of ten months per year. The average monthly rental earnings for a similar villa in Northern Cyprus equates to 2.600 Euro in the high season and 1.500 Euro in 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? - 15266
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.
There's nothing better than having real figures to work from so let's go over a property deal including a sea view totaling 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.
Statistics available from people that already have rental villas in Northern Cyprus show that you are able to let out your villa over an average of ten months per year. The average monthly rental earnings for a similar villa in Northern Cyprus equates to 2.600 Euro in the high season and 1.500 Euro in 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? - 15266
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Discover these Cyprus Villa Tips written by the renowned Tim Martins and check out his Cyprus Travel Blog
