Investment Property

There are an endless number of reasons to buy Cyprus Properties, not the least of which is Cyprus’ location.  It’s located half way between the UK and Dubai so when you purchase Cyprus Properties you not only get a great investment, but you also get a convenient vacation home as well.  Cyprus is a safe and scenic island with an ideal climate, changing seasons, fresh air, friendly people, and a sense of culture and history.

How has the entry of Cyprus in the EU affected the purchasing of Cyprus Properties?
On the May 1st, 2004, Cyprus became an official member of the EU.  This was a historical event for Cyprus that benefited Cyprus in many ways.  Not only did the value of Cyprus Properties increase before the entry date, so did the number of people looking to buy in Cyprus (especially people from the UK).  Plus, EU membership means that citizens of any EU state will automatically have the right to work in Cyprus and receive their social security and other benefits from other EU states.
Is buy-to-let a good option in Cyprus Properties right now?
Yes, it’s a good option because Cyprus has a strong seasonal market for short-term lets.  If, for example, you were to make a 30% down payment on a property and then let that property for only 35 weeks, 66%of the mortgage on the property would already paid – and that’s based on a 10-year term!  In other words, in a very short time, that purchase becomes self-funding. Even better, the property becomes available for your own use once it’s vacated.  Moreover, flights from northern Europe are experiencing a price decrease, making Cyprus Properties an even more popular vacation destination, which, in turn, creates an even stronger letting market.

What are the benefits of investing in Cyprus Properties?
Because many investors have taken a hit in the stock market in recent years, property has automatically become an attractive investment.  Plus, Cyprus is indisputably one of the best places to invest in property.  This is largely due to Cyprus’ membership in the EU, which will likely increase the capital value of Cyprus Properties over the next few years. Rental returns are also strong and will probably become even stronger, making property investments in Cyprus even more financially appealing.

What kind of return can I expect on my investment?
This question is difficult to answer because there are so many factors affecting investment returns.  Like any real estate investment, it depends on location, timing (when you buy and sell), and the type of property purchased.  A rough estimate suggests that clients expect annual gains of 15-25% over the next 1-5 years.  The ‘gearing effect’ of buying with a mortgage must also be taken into consideration, as it could produce a much higher return on the actual capital invested.  Obviously, there are no guarantees on any investment, but Cyprus Properties definitely offers one of the most attractive investment opportunities around.

How can you be so certain that prices will rise in the coming year?
Cyprus’ entry into the EU has made the price increase a virtual certainty.
So why are people waiting?
There are basically two reasons:  First, some investors insist on buying a mortgage from a UK provider so these people are waiting for The Abbey and the Halifax to start offering mortgages for Cyprus.  Second, many investors from the UK that already own property in Cyprus are interested in buying more property on the island but are restricted to buying only one property by law.  With Cyprus’ entry into the EU, however, those restrictions should be removed and then interested parties will be able to buy more properties.

What is the average cost of a property?
This is another difficult question to answer because so many factors are involved.  A better question to ask would be what is the price range.  The price range of real estate in Cyprus is wide, starting at £40,000 for apartments, £70,000 for beach Cyprus Properties, and £90,000 for villas.  The old real estate axiom applies to Cyprus too: ‘location, location, location’.  Some buyers get excited about a villa with a breathtaking view of the sea that can be had for £180,000 while others might prefer something in the Aphrodite Hills development.  This is a resort with a championship golf course, a health spa, and a tennis academy.  When you buy here you are buying into a certain lifestyle.  Prices start at £150,000 but can exceed £400,000 for a premium villa with pool.  Of course, any of the same types of properties in Spain or Portugal would cost a great deal more – another reason why we are seeing so much interest in Cyprus Properties.

With over 320 days of sunshine a year, Cyprus is definitely a major European travel destination, but sunshine isn’t the only thing in Cyprus beckoning Europeans.  As Cyprus Properties investors will attest, the sunny Mediterranean island is also a hot spot for real estate investment — and developers and agents assure us that there is plenty of growth potential remaining.

According to recent figures, real estate prices rose by at least 20 percent last year, a hike that was largely due to Cyprus’ entry into the European Union (EU), which pushed many investors to hurriedly purchase property before May 1st.  Additional factors, such as the Cypriot government’s decision to allow members of the EU to own businesses outright on the island and relaxed rules regarding rental properties (prior to changes in the laws regarding rentals, non-Cypriots were prohibited from letting their Cyprus Properties) also boosted real estate values.  It is estimated that approximately 60,000 Britons own property in Cyprus.

According to Mr. Hamilton, the list of reasons that so many Europeans find real estate investment in Cyprus appealing is a long one: “The place is absolutely gorgeous, you can scuba dive and ski on the same day, and the temperature never drops below 60 degrees. The island’s long association with the British means that English is spoken everywhere, the people are friendly, they drive on the left and, now that Cyprus is in the EU, Brits can live, work and own Cyprus Properties freely in the southern part.”

“You can still get Cyprus Properties of an excellent standard at an affordable price,” Hamilton added. “Apartments start from £55,000, semi-detached villas are around £130,000 and wonderful beachside villas are around £150,000. Compared with Spain, that’s good value.”
Hamilton is predicting another 20 percent rise in prices next year: “I met one guy last week who bought eight Cyprus Properties from us. People are looking for sound investments and some are even buying because they can’t get on the property ladder in the UK.”  Investment potential in Cyprus may also receive a boost from the increased tourism expected from Cyprius’ new status as a member of the EU.
Property Investor Show North recently conducted a survey on overseas buyers, which bears out Hamilton’s prediction.  According to the survey, the primary motivation for buying abroad was ‘investment and rental returns’. Eileen Williams cited these factors in her decision to buy a one-bedroom apartment in Larnaca: “I can’t afford to buy in the UK but in Cyprus I don’t think that I can go wrong,” she said. “A friend of mine bought there two years ago and her Cyprus Properties has already risen in value enormously.”  Williams paid £55,500 for her Larnaca apartment, which she plans to use as a vacation and rental property.