If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

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.

In the UK for example you would get a steady monthly income that just covers the mortgage payment, but if you apply it to a holiday home then you have to look at staggered income as the season months will be more profitable. If we had to look for Europe’s longest holiday season it would be in Northern Cyprus as here you can enjoy a full seven months. That all being so you will get 300 sunny days in Northern Cyprus each year so you will attract holiday makers virtually all year round.

There’s nothing better than having real figures to work from so let’s go over a property deal including a sea view totaling 250.000 Euro. First you will have to make an initial down payment of 3000 Euro to hold the property. That is followed by paying a 30% total deposit which would come to 75.000 Euro, including the 3000 Euro down payment.

With the deposit out of the way we just have to deal with the 175.000 Euro balance, which we are going to finance. Have a good look at all of the different mortgage options but I would recommend a interest only mortgage, as this way your monthly payments are lower. We will take the best rate in current conditions then the resulting monthly payments work out at about 800 Euro, that being 9.600 per year.

Statistics available from people that already have rental villas in Northern Cyprus show that you are able to let out your villa over an average of ten months per year. The average monthly rental earnings for a similar villa in Northern Cyprus equates to 2.600 Euro in the high season and 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?

Tags: Travel Tips

Share This