The Cyprus Informer

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.

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.

To make things totally clear I am going to give you a real working example from start to beginning in order to explain just how you can reap the benefits from a “Buy to Let” property investment in Northern Cyprus. A rental villa in Northern Cyprus will cost about 250.000 Euro, so in order to start the reservation possess you will need to pay 3000 Euro. After that you will still have to pay 25% of the total amount, so including the initial holding fee, you will then have to pay a second amount of 72.000 and the rest on signing the property 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.

To best thing to do now is get out you calculator and start to work out just how much rental income can be generated from a villa in Northern Cyprus. With an average 6 month high season and 4 month low season rental income you would total up a staggering 21.600 Euro annual gross profit. To see what is exactly left in your pocket, you just deduct the 9.600 Euro mortgage payments and about 1.000 Euro fees in property management. My calculator now shows 11.000 Euro of net profit in rental income for a “Buy to Let” villa in Northern Cyprus. Sounds interesting?