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North Cyprus - Kyrenia - Esentepe


"Esentepe"
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Financing a Purchase in Northern Cyprus  


Many investors are using their existing U.K equity to invest in North Cyprus as this carries two immediate benefits:

  1. The UK is not currently seeing high sales so it is difficult to sell a property and realize the full equity you have accrued.

  2. 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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