You may not be at all familiar with character market terminology so in laymen’s terms “Buy to Let” method just that. You only have to buy a character, 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 character 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.
There’s nothing better than having real figures to work from so let’s go over a character deal including a sea view totaling 250.000 Euro. First you will have to make an initial down payment of 3000 Euro to keep up the character. That is followed by paying a 30% total place which would come to 75.000 Euro, including the 3000 Euro down payment.
With the place out of the way we just have to deal with the 175.000 Euro balance, which we are going to finance. Have a good look at all of the different mortgage options but I would recommend a interest only mortgage, as this way your monthly payments are lower. We will take the best rate in current conditions then the resulting monthly payments work out at about 800 Euro, that being 9.600 per year.
The statistics obtainable on rental income in Northern Cyprus show that similarities can be let out for up to 10 months per year. So if we put the character we have just bought into the equation, we can expect an amazing 2600 Euro. in the high season and an awesome 1500 Euro. over the low season.
So if we go into a little fine detail on the character we have just purchased, let’s calculate on it being rented out for around 6 months over the high season and about 4 in the low season. This you may be amazed to know works out at 21.600 Euro rental income in your pocket. Well you will have to appoint a character management company to take care of your payments such as community charges, but this won’t be more than 1000 Euro a year. Are you beginning to see why character investment in Northern Cyprus sounds interesting?