Articlr

You may not be at all familiar with property market terminology so in layman's terms "Buy to Let" means just that. You only have to buy a property, complete and then let it out. There is just one special rule to take into consideration and that it that your estimated rental income fully covers your mortgage costs.

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.

To make things totally clear I am going to give you a real working example from start to beginning in order to explain just how you can reap the benefits from a "Buy to Let" property investment in Northern Cyprus. A rental villa in Northern Cyprus will cost about 250.000 Euro, so in order to start the reservation possess you will need to pay 3000 Euro. After that you will still have to pay 25% of the total amount, so including the initial holding fee, you will then have to pay a second amount of 72.000 and the rest on signing the property deeds.

So then it's just a question of financing the remaining 175.000, so have a good look at whatever credit options are available with a fine toothpick. If you are able to find a mortgage that offers interest only payments, then take it as this will greatly reduce you monthly mortgage payments. With the current Bank interest rate in Euroland set to remain around 5%, your monthly payments will work out at about 800 Euro per month, almost 10.000 Euro per year.

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.

It's time to find the calculator so we can see that how much rental income we can expect from a holiday home in Northern Cyprus. Let's say that we take it as being 6 months of high season and 4 months of low season, well my calculator says 21.600. That is gross profits of course so you would just have to take off the 9.600 Euro mortgage payments and an additional 1.000 Euro in Property management. So that will leave you a net profit totaling 11.000 Euro per annum, plus a 2 month bonus holiday rent free. You can see why property investment in Northern Cyprus is the right choice.