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Reasons
on WHY and WHY NOT
to Invest in Cyprus !
Reasons FOR Investing
- The
country is beautiful and so are the people. This will attract
future renters and dream home buyers so your property will
be in demand as long as you buy in the right location.
- Cyprus
is sunny and warm year round and attracts potential tenants
throughout the year. Many Brits and other nationalities
like to stay for several months so your option to let out
for long periods is high. (Snowbirds fly down during the
winter).
- Cyprus, now
in the EU, was once a British colony and quite a number
of British ways have remained. This allows visitors to feel
like they are home away from home making it an attractive
place to rent and buy. Eighty percent of Cypriots speak
English, their law system is based on English Common Law
and they drive on the same side of the road as us!
- Due to recent discussions held about the "Cyprus Problem,"
there is the potential that Southern and Northern Cyprus
will iron out their differences - this will have a huge
effect on the island. The country will achieve an enormous
boost to their economy which will in turn increase property
values.
- Cyprus has HUGE tax advantages especially for businesses
(corporation tax is as low as 10%) and retirees (foreign
pensions are taxed only 5%).
- Crime is extremely low - the lowest in Europe. It's unlikely
that your property will be broken into and visitors (tennants)
like the low crime rate as they feel safer.
- Capital growth for the next two to three years has been
forecast at 40% and a long term forecast, over the next
10 years has been forecast at an annual growth rate of 18%
to 20% (stated in the 'Cyprus Market and Forecast Report'
provided by JoJaffa Ltd).
- Gross rental yields, since joining the EU have been averaging
at between 7%-10% - provided you buy in the right location.
- Excellent Mortgage finance is available. You can get offers
for 25 years of up to 80% loan to value if you buy off plan,
you can defer mortgage payments until the build is complete.
- You can still find properties for under £80,000 (GBP)
that will make great investments.
- Every
area of Cyprus has numerous things going for it. Whether
it's new golf courses, more marinas, a larger airport or
a better infrastructure, the country is putting a huge effort
into increasing its appeal to tourists.
Reasons
AGAINST Investing
- Not
every area attracts tenants all year round. You need to
do your homework to find the best location to get the highest
occupancy rate possible.
- The "Cyprus Problem" can deter some people
from visiting and/or buying a property in Cyprus. Anywhere
there is political unrest people may wait to avoid.
- Since the Island still has quite a bit of space to develop
you may locate a wonderful property only to find that 2
years later the view is obstructed by new developments or
a new road is being laid down.
Read the complete Cyprus Buying Guide about the green belt
laws.
- The flight is 4 hours away from England, which is a bit
longer than mainland Europe. However the services are fantastic
and the rewards of Sunny Cyprus are worth the trip. You
will need to, keep in mind that if there is a problem, it
will take you a while to get there and get back.
- This information I provide deals with Southern Cyprus
(The Republic of Cyprus) only. Northern Cyprus is currently
occupied by Turkey, which invaded the country in 1974 and
they are illegally occupying the properties of many displaced
Greek Cypriots. If you buy a property in North Cyprus you
run the chance of buying from someone that does not legally
own the property and thus cannot legally sell it to you.
My suggestion is to stay away as the risks at too high! NOTE:
The UK government has a warning against investing or buying
in the North. And although many developers in the North will
offer your money back if you fail to get title deeds, what
happens if that developer goes under?
If you buy in the North and are taken to court the prosecutors
can not only take away your property, but they can also go
after your assets back in England if you purchase an illegally
owned property.
- During the summer months Cyprus can get too hot by many
peoples standards - a whopping 30 degrees Celsius.
- Prices are rising and since they've entered the EU there's
very little chance of getting a 3 course meal for £5, however
this increase in prices seems to be a reflection of many
EU countries and is expected.
- There are well over 3,500 developers in Cyprus and it
is rumored that over half of them are operating illegally.
Further, most Estate agents are not really estate agents
at all. Read chaptrr xxx in the Cypurs Buying Guide. You
MUST be careful when investing in Cyprus and learn how the
*game* is played.
In many areas
there is an OVERSUPPLY of property and some developers are overpricing
their properties so it isimplerative that you compare and contrast
between developments
To get
information on the top investment strategies - what works
and what does not work in Cyprus, please order your copy of
the 'Cyprus Buying Guide' today. The
guides outlines strategies, a break down of what areas are
good and why along with the all important elements that will
allow you to make sure your investment is a wise and safe
one.
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