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.
The best way to show you the ins and outs of a "Buy to Rent" in Northern Cyprus is to go over a real property investment and this one concerns a a 250.000 Euro villa with sea view. You need just 3000 Euro to hold the villa followed by a 75.000 (25%) Euro deposit which includes the initial holding fee to finalize the proceedings before signing the final 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.
There are figures available in Northern Cyprus that show that a rental villa has an average rental activity for 10 months of the year. For a 250.000 Euro villa in Northern Cyprus you can expect an average of 2.600 Euro per month in the high season and about 1.500 Euro in the low season.
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? - 15359
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.
The best way to show you the ins and outs of a "Buy to Rent" in Northern Cyprus is to go over a real property investment and this one concerns a a 250.000 Euro villa with sea view. You need just 3000 Euro to hold the villa followed by a 75.000 (25%) Euro deposit which includes the initial holding fee to finalize the proceedings before signing the final 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.
There are figures available in Northern Cyprus that show that a rental villa has an average rental activity for 10 months of the year. For a 250.000 Euro villa in Northern Cyprus you can expect an average of 2.600 Euro per month in the high season and about 1.500 Euro in the low season.
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? - 15359
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Read these Cyprus Property Tips written by the renowned Tim Martins and check out his Cyprus Holiday Blog
