Finance for your investment property in Cyprus will need careful consideration. Below is an overview of the various options available.
Financing your property in Cyprus can take the form of a mortgage, equity release scheme or the use of your own funds. Most investors opt for a mortgage, which are available from banks in Cyprus.
Mortgages are widely available in Southern Cyprus and the terms are similar to those in the UK. However, you may require some help from our experts with the process of applying for your mortgage. We will gladly give independent advice and assistance with your mortgage application from a Cypriot bank.
Should you not have 30% deposit available for your down payment, you may apply for a loan to cover it by using an equity release option on your existing home.
It often makes financial sense to buy property as a company. For legal, tax and inheritance law reasons you are recommended to review this option.
Properyshowrooms.com will gladly give you expert advice as to whether this is a suitable option for your particular circumstances.
Northern Cyprus has traditionally been a cash buyer’s island where only those with a sizeable lump sum can secure their dream Mediterranean home. However today, thanks to the development and maturity of the property market in TRNC there are several banks, estate agents and property developers now happily assisting with finance for property purchase on the island.
Due to the unique political situation in Northern Cyprus it is not currently possible to raise a foreign mortgage on a property located in the TRNC. However, some Turkish banks operating in North Cyprus do, however offer mortgages to their customers as they understand the political situation here. They have worked with it for some 30 years and are aware of ongoing developments underway to bring about a final peaceful resolution to the Cyprus problem.
Turk Bankasi currently offers the most flexible terms:
Base lending rates start at 4% and repayment is over a maximum of 8 years.
It is always worth considering the off-plan finance options offered by developers as these are sometimes preferential to the terms of a standard bank mortgage. Initial deposit and other payment terms can vary according to the construction phase of the project and rates are often competitive.
Property developers in Northern Cyprus have quickly caught onto the fact that the previous lack of bank finance restricted the local property market potential. Today many developers in Northern Cyprus offer a varied range of financial incentives and payment options to their customers.
As always, before making a commitment to a property investment in Cyprus, we recommend you discuss your strategy with a lawyer, a reputable property agent with experience in the area and even a financial advisor.
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Equity release is an efficient way of releasing cash from a property you already own, without having to sell up.
If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in some circumstances to raise money for a mortgage to finance your investment property in Cyprus.
Not everybody falls into a category and some investors will need to raise alternative finance to equity release or mortgage options. There are other borrowing facilities available to investors of Cyprus property.
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