Buy to Let
Cyprus has a strong and growing buy-to-let market which is attracting many property investors to the island. This is combined with the fact that there are a number of excellent mortgage products available that are ideal for the buy-to-let investor. Look at our recommended 'Deal of the Day' to see the best mortgage deal on the market, offering low deposit, low interest rates, interest only payments and extended terms. We also recommend the best developments on the island that can be purchased with this mortgage deal, take a look at the property search section for high quality apartments and villas.
Cyprus benefits from an almost year round tourist season with the peak being from April to October. In addition it has developed as an important business base through a calculated strategy of tax breaks and incentives for companies.
It has a very good standard of living and benefits from a very low crime rate, almost no pollution and traffic problem, low tax rates for foreign residents and a booming property market, particularly in the buy-to-let market.
The weather is a major attraction for many Britons who holiday on the island as well as live. There are estimated to be around 60,000 expats in Cyprus and British tourist trade accounts for 60% of the island's tourism income. There are around 300 days of sunshine per year in Cyprus which provides an extended rental market, unlike Spain.
Most of the population in Cyprus speak English as do all the banks, shops and restaurants and the legal system and land registry is similar to the UK. In addition the Cypriots even drive on the left! Getting to Cyprus is also very easy as there are a great number of companies offering cheap flights, this will get even cheaper when flights are further deregulated to allow the low cost airlines to fly their. This is expected mid 2007.
In 2006 the IMF stated that Cyprus would be using the Euro by 2008 which will benefit the property market, currently prices are rising at a staggering 20% per year. There are no rules governing the purchase of property in Cyprus however typically you would deal with an agent or developer - Legal fees are usually in the region of around CY£600.
Obtaining finance for your buy-to-let purchase has just been made easier both financially and technically. There are now a number of developers and agents who have negotiated special rates with commercial banks to offer much better mortgage products to their clients. Our featured product is the current best on the market and is offered through www.cyprus4less.co.uk Their product can be used to buy any of their new developments which are ideal for the buy-to-let market.
Here is a summary of the key features:
For more information on this mortgage package look at our 'Deal of the Day' page.
There are a number of reasons why the buy-to-let market is strong in Cyprus, here are just a few:
- Flight tickets now outsell holiday tickets indicating strong rental income growth.
- Many of the most expensive hotels are fully booked months in advance showing the demand and income spent.
- EU membership will strengthen prices further and increase tourism.
- Cyprus has joined the EU and EU citizens who are non-resident can purchase two properties and this is likely to lead to considerable growth in demand and rising prices.
- A company registered in any EU member state with a registered office, or management, or a branch in Cyprus can buy property freely. A company can also be set up in Cyprus to purchase multiple properties. Communication is easy as almost everyone speaks at least some English and many speak very good English.
- Crime is only 6% that of the UK and there is no traffic problems or pollution.
- The cost of living and the inflation rate is around 3% and their is virtually no unemployment (just 3%).
- Excellent communication links with Europe
- Capital appreciations on property at around 20% per year
- Rental returns show a level of 8%-12% on the current price of property.