Cyprus is beautifully situated in the Mediterranean, not far from the Southern Turkish coast. Recently the Island has evolved into an ideal place for business and holidays. This is a result of a pleasant tax climate combined with the natural beauty of the island itself. This combination has turned Cyprus into a very popular destination for buying property.
Cyprus consists of six districts:
- Famagusta
- Kyrenia
- Larnaca
- Limassol
- Nicosia
- Paphos
When looking at the current Cypriote property, sales investment property is by far the most popular. The ‘buy to let’ construction offers good possibilities, especially when working together with specialised companies who offer a complete package. This often includes the actual sale, the renting out the property when you are not on Cyprus, and the taking care of multiple rental related services. Often you can even choose for several maintenance services.
The number of investors who invest in this ‘buy to let’ arrangement is increasing. According to the latest numbers the majority of people that have bought property in the last five years bought property with this exact purpose in mind. Especially the district of Limassol is very popular and each year many people travel to Cyprus looking for the perfect property which matches their criteria.
The ‘buy to let’ structure is an increasingly popular way of buying and/or financing your Cypriot property. In many cases people spend their holidays at their property on Cyprus and rent it out when they are working back home. Especially the newly built real estate projects often offer a structure where you can sign up to “pool” your property together with the property of other house owners in the same complex or area. Then a company is set up in order to rent out the properties and take care of all the related rental services during the time you are out of Cyprus. Rentals in Cyprus will generally yield around 8% gross. After the deduction of various management fees this figure will however be closer to 5%. In most cases this will be sufficient to cover your mortgage expenses. Additionally, due to the various tax advantages in Cyprus many property buyers establish a positive cash flow from the Cypriot property.
Article written by: www.propertyalert.org