Having lived in Cyprus for almost ten years, this September marks that anniversary, we are now in a position to buy residential property here. The idea is we will buy an apartment and rent it out for a few years and then when we’re ready to fully retire, we live in the apartment. Simple… but I’ll bet it isn’t as simple as it seems.
Buying a property anywhere can be fraught with emotional turmoil. Doing so in Cyprus can lead to bankruptcy or worse. I’ve lost track of the horror stories where people have bought off-plan and paid there deposit and installments on time. Only for the developer to go bust with a mortgage against the property. In such a case, the property isn’t going to go to the ‘owner’ but to the bank. As I said, fraught with danger.
So we need to do this with eyes wide-open. Once we have the purchase complete it’s then down to renting it out for holidays. The idea here is to use the best letting agents around, such as booking.com and Airbnb and even our own website, in order to maximise rentals. But that said, you need be able to ensure the lettings data can be shared between all these agents or you can end up double booking. Good job I’m a programmer and web developer. But before all that though, the main question is what area do we buy in?
Protaras, Paphos and Ayia Napa are probably the most popular. I know we like Protaras because the beaches are about the best on the island. Problem there is come November Protaras closes until around March. Paphos, on the other hand, seems to have a year round letting potential.
Then we have to take into account those we are going to rent to. There’s a big trade in Cyprus for stag and hen parties as well as weddings. Also it’s a favourite for families. In the self-catering market we will find ourselves in, we need to be sure the apartment isn’t going to get trashed.
In other words, all this information has to be taken into account in order to maximise the return on our investment. But with banks offering a measly 1.5% return and holiday lettings a much better 4% return, it’s down to a choice. Take the easy road and not have to do a thing for a small return or take the hard road and hopefully realise a bigger return.
I’ve never been one for taking the easy route!
Tom Kane © 2018
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