What is happening in Northern Cyprus?

You may not be familiar with real estate market terminology, so in layman’s terms, “buy to let” means exactly that. You just have to buy a property, complete it, and then let it go. There is only one special rule to keep in mind and that is that your estimated rental income fully covers your mortgage costs.

One thing to keep in mind when venturing into a real estate investment like this is the total length of the month of the high and low seasons. In Northern Cyprus, for example, the low season lasts just five months and the high season spans seven months. To put the icing on the cake, there are over 300 sunny days a year, allowing thousands of travelers to enjoy the luxury of a year-round holiday in places like Northern Cyprus.

There’s nothing better than having real numbers to work with, so let’s go over a property deal that includes a sea view for a total of €250,000. You will first have to make a down payment of 3,000 euros to maintain the property. This is followed by the payment of a total deposit of 30% which would amount to €75,000, including the initial payment of €3,000.

With the deposit out of the way, we only have to deal with the balance of 175,000 euros, which we are going to finance. Take a look at all the different mortgage options, but I would recommend an interest only mortgage as your monthly payments are lower that way. We will take the best rate under current conditions and then the resulting monthly payments will be approximately 800 euros, which is 9,600 per year.

Available statistics on rental income in Northern Cyprus show that properties can be rented for up to 10 months per year. So if we put the property we just bought into the equation, we can expect an incredible €2,600. in high season and an impressive 1500 euros. during the low season.

So, if we go into detail about the property we just bought, let’s calculate that it is rented for around 6 months in high season and around 4 in low season. You may be surprised to learn that this puts a rental income of €21,600 in your pocket. Well, you will have to appoint a property management company to take care of your payments such as community fees, but this will not be more than 1000 euros per year. Are you beginning to see why real estate investment in Northern Cyprus sounds interesting?