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Many investors
are using their existing U.K equity to invest in North
Cyprus as this carries two immediate benefits:
-
The UK is not currently seeing high
sales so it is difficult to sell a property and
realize the full equity you have
accrued.
-
By releasing equity from a UK property
it is possible to keep your initial outlay low and
maximize your return on the initial
investment.
Example:
-
Releasing equity in UK - £100,
000
-
Ongoing mortgage payments through
construction
-
Resell the property during
construction / completion
-
Realizing increase in value of off
plan property
During this time the cost to bear on the
borrowed equity is equal to the monthly mortgage
payments until point of sale. If your mortgage repayment
is calculated at 1000 per month and the investment lasts
for two years before you resell. You can see from the
example that the profit is 33, 100 from a borrowed total
of 24, 000 in two years.
Purchase price: £100, 000
Borrow
against UK equity £1000 per month X 24
Resell
property: £133, 100
Increase on initial price:
£33, 100
Totally outlay: £24,
000
These figures do not factor in
market growth for the Cypriot or UK property used to
raise finance against the property.
It is
important to consider that property markets can rise and
fall in any country and RE/MAX is not in control of
property prices.
In reviewing and preparing your
financing for property investment, keep in mind that
off-plan properties typically have a payment schedule of
installments spread over 12 – 24 months with a minimal
down payment.
There are two types of investment
in Northern Cyprus depending largely on your investment
goals and personal lifestyle. Buy-to-let and
Buy-to-sell. The processes are easy with the help of
Estate Agents so that both experienced investors and
first time property investors are reaping the benefits
already.
Although foreigners are restricted to 1
donum of land or 1 property for each passport holder,
several reliable lawyers are accessible to property
investors and follow a simple process of establishing a
company for the investor allowing them no restrictions
whatsoever of the number of properties or amount of land
purchased, and many tax advantages.
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