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Business Real Estate Buy To Let Investment In Cyprus
| Buy To Let Investment In Cyprus |
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| Written by Tim Martins |
| Friday, 28 November 2008 08:13 |
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Most people who are not in the property market don't understand what the term "Buy to Let" means. Well it's simple you buy the property and everything has been completed you rent to it out to anyone who wants to stay in your property. The main thing you have to think about when you're doing this is make sure your rent covers your mortgage payments. 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. 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. 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. Right, now let's expand on that and if you rent out for 6 months during the high season and just 4 during the low season, you would rake in an amazing 21.600 Euro in rental income. Things are looking good already but out of that we must account for certain payments such as rental management and community fees, so make sure you find a recommended property management agency, although the costs will not succeed 1000 Euro. per year. 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. About the Author: check out this Cyprus Holiday Rent to Buy property investment blog written by the renowned Tim Martins and check out The Northern Cyprus Property Investment Secrets Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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